<?xml  version="1.0" encoding="utf-8"?>
<!-- DFIN ActiveDisclosure(SM) Inline XBRL Document - http://www.dfinsolutions.com/ -->
<!-- Creation Date      : 2021-08-10T18:55:08.0693148+00:00 -->
<!-- Version            : 5.0.1.648 -->
<!-- Package ID         : 42e4edf908d14cd9979e8f6fb32a2351 -->
<!-- Copyright (c) 2021 Donnelley Financial Solutions, Inc. All Rights Reserved. -->
<html xmlns:xbrli="http://www.xbrl.org/2003/instance" xmlns:xbrldi="http://xbrl.org/2006/xbrldi" xmlns:prld="http://preludetx.com/20210630" xmlns:us-types="http://fasb.org/us-types/2020-01-31" xmlns:us-gaap="http://fasb.org/us-gaap/2020-01-31" xmlns:stpr="http://xbrl.sec.gov/stpr/2018-01-31" xmlns:srt-types="http://fasb.org/srt-types/2020-01-31" xmlns:srt="http://fasb.org/srt/2020-01-31" xmlns:sic="http://xbrl.sec.gov/sic/2020-01-31" xmlns:naics="http://xbrl.sec.gov/naics/2017-01-31" xmlns:exch="http://xbrl.sec.gov/exch/2020-01-31" xmlns:num="http://www.xbrl.org/dtr/type/numeric" xmlns:nonnum="http://www.xbrl.org/dtr/type/non-numeric" xmlns:dei-std="http://xbrl.sec.gov/dei-std/2020-01-31" xmlns:dei-ent-std="http://xbrl.sec.gov/dei-ent-std/2020-01-31" xmlns:dei="http://xbrl.sec.gov/dei/2020-01-31" xmlns:currency="http://xbrl.sec.gov/currency/2020-01-31" xmlns:country="http://xbrl.sec.gov/country/2020-01-31" xmlns:xlink="http://www.w3.org/1999/xlink" xmlns:utr="http://www.xbrl.org/2009/utr" xmlns:link="http://www.xbrl.org/2003/linkbase" xmlns:iso4217="http://www.xbrl.org/2003/iso4217" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:ix="http://www.xbrl.org/2013/inlineXBRL" xmlns:dtr-types="http://www.xbrl.org/dtr/type/2020-01-21" xmlns:enum2="http://xbrl.org/2020/extensible-enumerations-2.0" xmlns:ixt="http://www.xbrl.org/inlineXBRL/transformation/2015-02-26" xmlns:ixt-sec="http://www.sec.gov/inlineXBRL/transformation/2015-08-31" xmlns="http://www.w3.org/1999/xhtml">
<head>
<meta http-equiv="Content-Type" content="text/html" />
<title>
prld-10q_20210630.htm
</title>
</head>
<!-- NG Converter v5.0.2.50 -->
<body><div style="display:none">
	<ix:header>
		<ix:hidden>
			<ix:nonNumeric id="F_000001" name="dei:AmendmentFlag" contextRef="C_0001678660_20210101_20210630">false</ix:nonNumeric>
			<ix:nonNumeric id="F_000004" name="dei:DocumentFiscalPeriodFocus" contextRef="C_0001678660_20210101_20210630">Q2</ix:nonNumeric>
			<ix:nonNumeric id="F_000007" name="dei:EntityCentralIndexKey" contextRef="C_0001678660_20210101_20210630">0001678660</ix:nonNumeric>
			<ix:nonNumeric id="F_000009" name="dei:CurrentFiscalYearEndDate" contextRef="C_0001678660_20210101_20210630">--12-31</ix:nonNumeric>
			<ix:nonNumeric id="F_000264" name="us-gaap:ChangeInAccountingPrincipleAccountingStandardsUpdateAdopted" contextRef="C_0001678660_us-gaapAdjustmentsForNewAccountingPronouncementsAxis_us-gaapAccountingStandardsUpdate201602Member_20210630">true</ix:nonNumeric>
			<ix:nonNumeric id="F_000266" name="us-gaap:ChangeInAccountingPrincipleAccountingStandardsUpdateImmaterialEffect" contextRef="C_0001678660_us-gaapAdjustmentsForNewAccountingPronouncementsAxis_us-gaapAccountingStandardsUpdate201602Member_20210630">true</ix:nonNumeric>
			<ix:nonNumeric id="F_000312" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1" contextRef="C_0001678660_srtRangeAxis_srtMaximumMember_us-gaapPlanNameAxis_prldTwoThousandTwentyEquityIncentivePlanMember_20210101_20210630">P4Y</ix:nonNumeric>
			<ix:nonNumeric id="F_000385" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockMember_20210101_20210630">P4Y</ix:nonNumeric>
			<ix:nonNumeric id="F_000400" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockUnitsRSUMember_20210101_20210630">P4Y</ix:nonNumeric>
			<ix:nonFraction unitRef="U_iso4217USD" id="F_000053" name="us-gaap:CommitmentsAndContingencies" contextRef="C_0001678660_20210630" xsi:nil="true"></ix:nonFraction>
			<ix:nonFraction unitRef="U_iso4217USD" id="F_000054" name="us-gaap:CommitmentsAndContingencies" contextRef="C_0001678660_20201231" xsi:nil="true"></ix:nonFraction>
			<ix:nonNumeric id="F_000342" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2" contextRef="C_0001678660_20200101_20201231">P9Y2M1D</ix:nonNumeric>
			<ix:nonNumeric id="F_000343" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2" contextRef="C_0001678660_20210101_20210630">P8Y9M14D</ix:nonNumeric>
			<ix:nonNumeric id="F_000344" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1" contextRef="C_0001678660_20210101_20210630">P8Y1M17D</ix:nonNumeric>
			<ix:nonNumeric id="F_000357" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2" contextRef="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeOneMember_20210101_20210630">P8Y2M23D</ix:nonNumeric>
			<ix:nonNumeric id="F_000358" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2" contextRef="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeTwoMember_20210101_20210630">P9Y2M1D</ix:nonNumeric>
			<ix:nonNumeric id="F_000359" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2" contextRef="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeThreeMember_20210101_20210630">P9Y8M19D</ix:nonNumeric>
			<ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000347" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" contextRef="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeOneMember_20210101_20210630" decimals="INF">0.31</ix:nonFraction>
			<ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000348" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" contextRef="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeTwoMember_20210101_20210630" decimals="INF">7.38</ix:nonFraction>
			<ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000349" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" contextRef="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeThreeMember_20210101_20210630" decimals="INF">15.94</ix:nonFraction>
			<ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000350" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeUpperRangeLimit" contextRef="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeOneMember_20210101_20210630" decimals="INF">7.37</ix:nonFraction>
			<ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000351" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeUpperRangeLimit" contextRef="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeTwoMember_20210101_20210630" decimals="INF">15.93</ix:nonFraction>
			<ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000352" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeUpperRangeLimit" contextRef="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeThreeMember_20210101_20210630" decimals="INF">88.98</ix:nonFraction>
			<ix:nonNumeric id="F_000383" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapEmployeeStockOptionMember_20210101_20210630">P5Y10M28D</ix:nonNumeric>
			<ix:nonNumeric id="F_000384" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapEmployeeStockOptionMember_20200101_20200630">P6Y3M</ix:nonNumeric>
		</ix:hidden>
		<ix:references>
			<link:schemaRef xlink:type="simple" xlink:href="prld-20210630.xsd" xlink:arcrole="http://www.xbrl.org/2003/linkbase" xmlns:xlink="http://www.w3.org/1999/xlink" xmlns:link="http://www.xbrl.org/2003/linkbase"></link:schemaRef>
		</ix:references>
		<ix:resources>
			<xbrli:context id="C_0001678660_20210101_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:unit id="U_xbrlishares">
				<xbrli:measure>xbrli:shares</xbrli:measure>
			</xbrli:unit>
			<xbrli:context id="C_0001678660_20210809">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2021-08-09</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:unit id="U_iso4217USD">
				<xbrli:measure>iso4217:USD</xbrli:measure>
			</xbrli:unit>
			<xbrli:context id="C_0001678660_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2021-06-30</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_20201231">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2020-12-31</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementClassOfStockAxis_prldVotingCommonStockMember_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">prld:VotingCommonStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2021-06-30</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementClassOfStockAxis_prldVotingCommonStockMember_20201231">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">prld:VotingCommonStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2020-12-31</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementClassOfStockAxis_us-gaapNonvotingCommonStockMember_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">us-gaap:NonvotingCommonStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2021-06-30</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementClassOfStockAxis_us-gaapNonvotingCommonStockMember_20201231">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">us-gaap:NonvotingCommonStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2020-12-31</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:unit id="U_iso4217USD_xbrlishares">
				<xbrli:divide>
					<xbrli:unitNumerator>
						<xbrli:measure>iso4217:USD</xbrli:measure>
					</xbrli:unitNumerator>
					<xbrli:unitDenominator>
						<xbrli:measure>xbrli:shares</xbrli:measure>
					</xbrli:unitDenominator>
				</xbrli:divide>
			</xbrli:unit>
			<xbrli:context id="C_0001678660_20210401_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-04-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_20200401_20200630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2020-04-01</xbrli:startDate>
					<xbrli:endDate>2020-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_20200101_20200630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2020-01-01</xbrli:startDate>
					<xbrli:endDate>2020-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapAdditionalPaidInCapitalMember_20201231">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2020-12-31</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapRetainedEarningsMember_20201231">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2020-12-31</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementClassOfStockAxis_prldVotingCommonStockMember_20210101_20210331">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">prld:VotingCommonStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-03-31</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapAdditionalPaidInCapitalMember_20210101_20210331">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-03-31</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_20210101_20210331">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-03-31</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementClassOfStockAxis_us-gaapNonvotingCommonStockMember_20210101_20210331">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">us-gaap:NonvotingCommonStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-03-31</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapRetainedEarningsMember_20210101_20210331">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-03-31</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementClassOfStockAxis_prldVotingCommonStockMember_20210331">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">prld:VotingCommonStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2021-03-31</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementClassOfStockAxis_us-gaapNonvotingCommonStockMember_20210331">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">us-gaap:NonvotingCommonStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2021-03-31</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapAdditionalPaidInCapitalMember_20210331">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2021-03-31</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapRetainedEarningsMember_20210331">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2021-03-31</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_20210331">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2021-03-31</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementClassOfStockAxis_prldVotingCommonStockMember_20210401_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">prld:VotingCommonStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-04-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapAdditionalPaidInCapitalMember_20210401_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-04-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapRetainedEarningsMember_20210401_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-04-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapAdditionalPaidInCapitalMember_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2021-06-30</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapRetainedEarningsMember_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2021-06-30</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementClassOfStockAxis_prldSeriesBConvertiblePreferredStockMember_20200101_20200331">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">prld:SeriesBConvertiblePreferredStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2020-01-01</xbrli:startDate>
					<xbrli:endDate>2020-03-31</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementClassOfStockAxis_prldSeriesAConvertiblePreferredStockMember_20191231">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">prld:SeriesAConvertiblePreferredStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2019-12-31</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementClassOfStockAxis_prldSeriesBConvertiblePreferredStockMember_20191231">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">prld:SeriesBConvertiblePreferredStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2019-12-31</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapCommonStockMember_20191231">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2019-12-31</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapAdditionalPaidInCapitalMember_20191231">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2019-12-31</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapRetainedEarningsMember_20191231">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2019-12-31</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_20191231">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2019-12-31</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapCommonStockMember_20200101_20200331">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2020-01-01</xbrli:startDate>
					<xbrli:endDate>2020-03-31</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapAdditionalPaidInCapitalMember_20200101_20200331">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2020-01-01</xbrli:startDate>
					<xbrli:endDate>2020-03-31</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_20200101_20200331">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2020-01-01</xbrli:startDate>
					<xbrli:endDate>2020-03-31</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapRetainedEarningsMember_20200101_20200331">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2020-01-01</xbrli:startDate>
					<xbrli:endDate>2020-03-31</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementClassOfStockAxis_prldSeriesAConvertiblePreferredStockMember_20200331">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">prld:SeriesAConvertiblePreferredStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2020-03-31</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementClassOfStockAxis_prldSeriesBConvertiblePreferredStockMember_20200331">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">prld:SeriesBConvertiblePreferredStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2020-03-31</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapCommonStockMember_20200331">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2020-03-31</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapAdditionalPaidInCapitalMember_20200331">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2020-03-31</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapRetainedEarningsMember_20200331">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2020-03-31</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_20200331">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2020-03-31</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapCommonStockMember_20200401_20200630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2020-04-01</xbrli:startDate>
					<xbrli:endDate>2020-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapAdditionalPaidInCapitalMember_20200401_20200630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2020-04-01</xbrli:startDate>
					<xbrli:endDate>2020-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapRetainedEarningsMember_20200401_20200630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2020-04-01</xbrli:startDate>
					<xbrli:endDate>2020-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementClassOfStockAxis_prldSeriesAConvertiblePreferredStockMember_20200630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">prld:SeriesAConvertiblePreferredStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2020-06-30</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementClassOfStockAxis_prldSeriesBConvertiblePreferredStockMember_20200630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">prld:SeriesBConvertiblePreferredStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2020-06-30</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapCommonStockMember_20200630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2020-06-30</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapAdditionalPaidInCapitalMember_20200630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2020-06-30</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapRetainedEarningsMember_20200630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2020-06-30</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_20200630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2020-06-30</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementClassOfStockAxis_prldSeriesBConvertiblePreferredStockMember_20200101_20200630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">prld:SeriesBConvertiblePreferredStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2020-01-01</xbrli:startDate>
					<xbrli:endDate>2020-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis_prldSeriesAConvertiblePreferredStockMember_20200101_20200630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis">prld:SeriesAConvertiblePreferredStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2020-01-01</xbrli:startDate>
					<xbrli:endDate>2020-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis_prldSeriesBConvertiblePreferredStockMember_20200101_20200630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis">prld:SeriesBConvertiblePreferredStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2020-01-01</xbrli:startDate>
					<xbrli:endDate>2020-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis_us-gaapRestrictedStockMember_20210101_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis">us-gaap:RestrictedStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis_us-gaapRestrictedStockMember_20200101_20200630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis">us-gaap:RestrictedStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2020-01-01</xbrli:startDate>
					<xbrli:endDate>2020-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis_us-gaapRestrictedStockUnitsRSUMember_20210101_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis">us-gaap:RestrictedStockUnitsRSUMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis_us-gaapEmployeeStockOptionMember_20210101_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis">us-gaap:EmployeeStockOptionMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis_us-gaapEmployeeStockOptionMember_20200101_20200630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis">us-gaap:EmployeeStockOptionMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2020-01-01</xbrli:startDate>
					<xbrli:endDate>2020-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapAdjustmentsForNewAccountingPronouncementsAxis_us-gaapAccountingStandardsUpdate201602Member_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:AdjustmentsForNewAccountingPronouncementsAxis">us-gaap:AccountingStandardsUpdate201602Member</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2021-06-30</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapCashAndCashEquivalentsAxis_us-gaapMoneyMarketFundsMember_us-gaapFairValueByFairValueHierarchyLevelAxis_us-gaapFairValueInputsLevel1Member_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:CashAndCashEquivalentsAxis">us-gaap:MoneyMarketFundsMember</xbrldi:explicitMember>
						<xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel1Member</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2021-06-30</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapCashAndCashEquivalentsAxis_us-gaapMoneyMarketFundsMember_us-gaapFairValueByFairValueHierarchyLevelAxis_us-gaapFairValueInputsLevel1Member_20201231">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:CashAndCashEquivalentsAxis">us-gaap:MoneyMarketFundsMember</xbrldi:explicitMember>
						<xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel1Member</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2020-12-31</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapCommonStockMember_us-gaapSubsidiarySaleOfStockAxis_us-gaapIPOMember_20210101_20210131">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:SubsidiarySaleOfStockAxis">us-gaap:IPOMember</xbrldi:explicitMember>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-01-31</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapCommonStockMember_us-gaapSubsidiarySaleOfStockAxis_us-gaapIPOMember_20210131">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:SubsidiarySaleOfStockAxis">us-gaap:IPOMember</xbrldi:explicitMember>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2021-01-31</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapCommonStockMember_20210101_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:unit id="U_xbrlipure">
				<xbrli:measure>xbrli:pure</xbrli:measure>
			</xbrli:unit>
			<xbrli:context id="C_0001678660_srtRangeAxis_srtMinimumMember_us-gaapStatementEquityComponentsAxis_us-gaapCommonStockMember_20210101_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
						<xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_srtRangeAxis_srtMaximumMember_us-gaapStatementEquityComponentsAxis_us-gaapCommonStockMember_20210101_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
						<xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapLeaseContractualTermAxis_prldOperatingLeaseExpiringDecember2022Member_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:LeaseContractualTermAxis">prld:OperatingLeaseExpiringDecember2022Member</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2021-06-30</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_20210601_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-06-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapSubsequentEventTypeAxis_us-gaapSubsequentEventMember_20210701">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:SubsequentEventTypeAxis">us-gaap:SubsequentEventMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2021-07-01</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:unit id="U_prldPlan">
				<xbrli:measure>prld:Plan</xbrli:measure>
			</xbrli:unit>
			<xbrli:context id="C_0001678660_us-gaapPlanNameAxis_prldTwoThousandTwentyEquityIncentivePlanMember_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:PlanNameAxis">prld:TwoThousandTwentyEquityIncentivePlanMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2021-06-30</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapPlanNameAxis_prldTwoThousandTwentyEquityIncentivePlanMember_20210101_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:PlanNameAxis">prld:TwoThousandTwentyEquityIncentivePlanMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_srtRangeAxis_srtMaximumMember_us-gaapPlanNameAxis_prldTwoThousandTwentyEquityIncentivePlanMember_20210101_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
						<xbrldi:explicitMember dimension="us-gaap:PlanNameAxis">prld:TwoThousandTwentyEquityIncentivePlanMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_srtRangeAxis_srtMinimumMember_us-gaapPlanNameAxis_prldTwoThousandTwentyEquityIncentivePlanMember_20210101_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
						<xbrldi:explicitMember dimension="us-gaap:PlanNameAxis">prld:TwoThousandTwentyEquityIncentivePlanMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapPlanNameAxis_prldTwoThousandTwentyEquityIncentivePlanMember_us-gaapVestingAxis_us-gaapShareBasedCompensationAwardTrancheOneMember_20210101_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:PlanNameAxis">prld:TwoThousandTwentyEquityIncentivePlanMember</xbrldi:explicitMember>
						<xbrldi:explicitMember dimension="us-gaap:VestingAxis">us-gaap:ShareBasedCompensationAwardTrancheOneMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapPlanNameAxis_prldTwoThousandTwentyEmployeeStockPurchasePlanMember_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:PlanNameAxis">prld:TwoThousandTwentyEmployeeStockPurchasePlanMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2021-06-30</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapPlanNameAxis_prldTwoThousandTwentyEmployeeStockPurchasePlanMember_20210101_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:PlanNameAxis">prld:TwoThousandTwentyEmployeeStockPurchasePlanMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapIncomeStatementLocationAxis_us-gaapResearchAndDevelopmentExpenseMember_20210401_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:ResearchAndDevelopmentExpenseMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-04-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapIncomeStatementLocationAxis_us-gaapResearchAndDevelopmentExpenseMember_20200401_20200630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:ResearchAndDevelopmentExpenseMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2020-04-01</xbrli:startDate>
					<xbrli:endDate>2020-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapIncomeStatementLocationAxis_us-gaapResearchAndDevelopmentExpenseMember_20210101_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:ResearchAndDevelopmentExpenseMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapIncomeStatementLocationAxis_us-gaapResearchAndDevelopmentExpenseMember_20200101_20200630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:ResearchAndDevelopmentExpenseMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2020-01-01</xbrli:startDate>
					<xbrli:endDate>2020-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapIncomeStatementLocationAxis_us-gaapGeneralAndAdministrativeExpenseMember_20210401_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:GeneralAndAdministrativeExpenseMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-04-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapIncomeStatementLocationAxis_us-gaapGeneralAndAdministrativeExpenseMember_20200401_20200630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:GeneralAndAdministrativeExpenseMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2020-04-01</xbrli:startDate>
					<xbrli:endDate>2020-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapIncomeStatementLocationAxis_us-gaapGeneralAndAdministrativeExpenseMember_20210101_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:GeneralAndAdministrativeExpenseMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapIncomeStatementLocationAxis_us-gaapGeneralAndAdministrativeExpenseMember_20200101_20200630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:GeneralAndAdministrativeExpenseMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2020-01-01</xbrli:startDate>
					<xbrli:endDate>2020-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_20200101_20201231">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2020-01-01</xbrli:startDate>
					<xbrli:endDate>2020-12-31</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeOneMember_20210101_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">prld:ExercisePriceRangeOneMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeTwoMember_20210101_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">prld:ExercisePriceRangeTwoMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeThreeMember_20210101_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">prld:ExercisePriceRangeThreeMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeOneMember_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">prld:ExercisePriceRangeOneMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2021-06-30</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeTwoMember_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">prld:ExercisePriceRangeTwoMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2021-06-30</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeThreeMember_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">prld:ExercisePriceRangeThreeMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2021-06-30</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapAwardTypeAxis_us-gaapEmployeeStockOptionMember_20210101_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">us-gaap:EmployeeStockOptionMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapAwardTypeAxis_us-gaapEmployeeStockOptionMember_20200101_20200630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">us-gaap:EmployeeStockOptionMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2020-01-01</xbrli:startDate>
					<xbrli:endDate>2020-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapAwardTypeAxis_us-gaapEmployeeStockOptionMember_20210401_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">us-gaap:EmployeeStockOptionMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-04-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapAwardTypeAxis_us-gaapEmployeeStockOptionMember_20200401_20200630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">us-gaap:EmployeeStockOptionMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2020-04-01</xbrli:startDate>
					<xbrli:endDate>2020-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapAwardTypeAxis_us-gaapEmployeeStockOptionMember_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">us-gaap:EmployeeStockOptionMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2021-06-30</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockMember_20210101_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">us-gaap:RestrictedStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockMember_us-gaapVestingAxis_us-gaapShareBasedCompensationAwardTrancheOneMember_20210101_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">us-gaap:RestrictedStockMember</xbrldi:explicitMember>
						<xbrldi:explicitMember dimension="us-gaap:VestingAxis">us-gaap:ShareBasedCompensationAwardTrancheOneMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockMember_20201231">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">us-gaap:RestrictedStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2020-12-31</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockMember_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">us-gaap:RestrictedStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2021-06-30</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockMember_20210401_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">us-gaap:RestrictedStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-04-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockMember_20200401_20200630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">us-gaap:RestrictedStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2020-04-01</xbrli:startDate>
					<xbrli:endDate>2020-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockMember_20200101_20200630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">us-gaap:RestrictedStockMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2020-01-01</xbrli:startDate>
					<xbrli:endDate>2020-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockUnitsRSUMember_20210101_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">us-gaap:RestrictedStockUnitsRSUMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockUnitsRSUMember_us-gaapVestingAxis_us-gaapShareBasedCompensationAwardTrancheOneMember_20210101_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">us-gaap:RestrictedStockUnitsRSUMember</xbrldi:explicitMember>
						<xbrldi:explicitMember dimension="us-gaap:VestingAxis">us-gaap:ShareBasedCompensationAwardTrancheOneMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:startDate>2021-01-01</xbrli:startDate>
					<xbrli:endDate>2021-06-30</xbrli:endDate>
				</xbrli:period>
			</xbrli:context>
			<xbrli:context id="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockUnitsRSUMember_20210630">
				<xbrli:entity>
					<xbrli:identifier scheme="http://www.sec.gov/CIK">0001678660</xbrli:identifier>
					<xbrli:segment>
						<xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">us-gaap:RestrictedStockUnitsRSUMember</xbrldi:explicitMember>
					</xbrli:segment>
				</xbrli:entity>
				<xbrli:period>
					<xbrli:instant>2021-06-30</xbrli:instant>
				</xbrli:period>
			</xbrli:context>
		</ix:resources>
	</ix:header>
</div>

<p style="border-top:Double 2.25pt;padding-top:1pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;;font-size:3pt;">&#160;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-size:17pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">UNITED STATES</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-size:17pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">SECURITIES AND EXCHANGE COMMISSION</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-size:12pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">WASHINGTON, DC 20549</p>
<p style="text-align:center;border-bottom:Solid 0.75pt;padding-bottom:1pt;margin-bottom:0pt;margin-top:0pt;margin-left:40%;margin-right:40%;text-indent:0%;font-size:4pt;">&#160;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:4pt;">&#160;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-size:17pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">FORM <ix:nonNumeric id="F_000000" name="dei:DocumentType" contextRef="C_0001678660_20210101_20210630">10-Q</ix:nonNumeric></p>
<p style="text-align:center;border-bottom:Solid 0.75pt;padding-bottom:1pt;margin-bottom:0pt;margin-top:0pt;margin-left:40%;margin-right:40%;text-indent:0%;font-weight:bold;;font-size:4pt;">&#160;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;;font-size:4pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(Mark One)</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:4%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Segoe UI Symbol;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonNumeric id="F_000028" name="dei:DocumentQuarterlyReport" contextRef="C_0001678660_20210101_20210630" format="ixt-sec:boolballotbox">&#9746;</ix:nonNumeric></p></td>
<td valign="top" style="width:96%;">
<p style="margin-top:2pt;margin-bottom:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:4pt;">&#160;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">For the quarterly period ended <ix:nonNumeric id="F_000002" name="dei:DocumentPeriodEndDate" contextRef="C_0001678660_20210101_20210630" format="ixt:datemonthdayyearen">June 30, <ix:nonNumeric id="F_000003" name="dei:DocumentFiscalYearFocus" contextRef="C_0001678660_20210101_20210630">2021</ix:nonNumeric></ix:nonNumeric></p>
<p style="text-align:center;margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">OR</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:4pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:4%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Segoe UI Symbol;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonNumeric id="F_000029" name="dei:DocumentTransitionReport" contextRef="C_0001678660_20210101_20210630" format="ixt-sec:boolballotbox">&#9744;</ix:nonNumeric></p></td>
<td valign="top" style="width:96%;">
<p style="margin-top:2pt;margin-bottom:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:4pt;">&#160;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">For the transition period from &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; to &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</p>
<p style="text-align:center;margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Commission File Number: <ix:nonNumeric id="F_000019" name="dei:EntityFileNumber" contextRef="C_0001678660_20210101_20210630">001-39527</ix:nonNumeric><span style="font-weight:normal;">&#160;</span></p>
<p style="text-align:center;border-bottom:Solid 0.75pt;padding-bottom:1pt;margin-bottom:0pt;margin-top:0pt;margin-left:40%;margin-right:40%;text-indent:0%;font-size:4pt;">&#160;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:4pt;">&#160;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-size:22pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonNumeric id="F_000006" name="dei:EntityRegistrantName" contextRef="C_0001678660_20210101_20210630">PRELUDE THERAPEUTICS INC</ix:nonNumeric>ORPORATED</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">(Exact Name of Registrant as Specified in its Charter)</p>
<p style="text-align:center;border-bottom:Solid 0.75pt;padding-bottom:1pt;margin-bottom:0pt;margin-top:0pt;margin-left:40%;margin-right:40%;text-indent:0%;font-size:4pt;">&#160;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:4pt;">&#160;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" style="margin:auto;border-collapse:collapse; width:100%;">
<tr>
<td valign="bottom" style="width:50%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonNumeric id="F_000020" name="dei:EntityIncorporationStateCountryCode" contextRef="C_0001678660_20210101_20210630" format="ixt-sec:stateprovnameen">Delaware</ix:nonNumeric></p></td>
<td valign="bottom" style="width:50%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonNumeric id="F_000021" name="dei:EntityTaxIdentificationNumber" contextRef="C_0001678660_20210101_20210630">81-1384762</ix:nonNumeric></p></td>
</tr>
<tr>
<td valign="bottom" style="width:50%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:7pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(State or other jurisdiction of</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:7pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">incorporation or organization)</p></td>
<td valign="bottom" style="width:50%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:7pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(I.R.S. Employer<br />Identification No.)</p></td>
</tr>
<tr>
<td valign="bottom" style="width:50%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:6pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonNumeric id="F_000022" name="dei:EntityAddressAddressLine1" contextRef="C_0001678660_20210101_20210630">200 Powder Mill Road</ix:nonNumeric></p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonNumeric id="F_000023" name="dei:EntityAddressCityOrTown" contextRef="C_0001678660_20210101_20210630">Wilmington</ix:nonNumeric>, <ix:nonNumeric id="F_000024" name="dei:EntityAddressStateOrProvince" contextRef="C_0001678660_20210101_20210630" format="ixt-sec:stateprovnameen">Delaware</ix:nonNumeric></p></td>
<td valign="bottom" style="width:50%;">
<p style="text-align:center;margin-top:6pt;margin-bottom:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonNumeric id="F_000025" name="dei:EntityAddressPostalZipCode" contextRef="C_0001678660_20210101_20210630">19803</ix:nonNumeric></p></td>
</tr>
<tr>
<td valign="bottom" style="width:50%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:7pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(Address of principal executive offices)</p></td>
<td valign="bottom" style="width:50%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:7pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(Zip Code)</p></td>
</tr>
</table></div>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:4pt;">&#160;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Registrant&#8217;s telephone number, including area code: (<ix:nonNumeric id="F_000026" name="dei:CityAreaCode" contextRef="C_0001678660_20210101_20210630">302</ix:nonNumeric>) <ix:nonNumeric id="F_000027" name="dei:LocalPhoneNumber" contextRef="C_0001678660_20210101_20210630">467-1280</ix:nonNumeric></p>
<p style="text-align:center;border-bottom:Solid 0.75pt;padding-bottom:1pt;margin-bottom:0pt;margin-top:0pt;margin-left:40%;margin-right:40%;text-indent:0%;font-size:4pt;">&#160;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:4pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:4.26%;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Securities registered pursuant to Section&#160;12(b) of the Act: </p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:4pt;">&#160;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" style="margin:auto;border-collapse:collapse; width:100%;">
<tr>
<td valign="bottom" style="width:39%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Title of each class</p></td>
<td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;;font-size:8pt;">&#160;</p></td>
<td valign="bottom" style="width:20%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Trading</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Symbol(s)</p></td>
<td valign="bottom" style="width:1%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;;font-size:8pt;">&#160;</p></td>
<td valign="bottom" style="width:39%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Name of each exchange on which registered</p></td>
</tr>
<tr>
<td valign="top" style="width:39%; border-top:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonNumeric id="F_000016" name="dei:Security12bTitle" contextRef="C_0001678660_20210101_20210630">Common Stock, par value $0.0001 per share</ix:nonNumeric></p></td>
<td valign="bottom" style="width:1%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;">&#160;</p></td>
<td valign="bottom" style="width:20%; border-top:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonNumeric id="F_000005" name="dei:TradingSymbol" contextRef="C_0001678660_20210101_20210630">PRLD</ix:nonNumeric></p></td>
<td valign="bottom" style="width:1%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;">&#160;</p></td>
<td valign="bottom" style="width:39%; border-top:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonNumeric id="F_000017" name="dei:SecurityExchangeName" contextRef="C_0001678660_20210101_20210630" format="ixt-sec:exchnameen">The Nasdaq Stock Market LLC</ix:nonNumeric></p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:4pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:4.26%;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. &#160;&#160;&#160;&#160;<ix:nonNumeric id="F_000008" name="dei:EntityCurrentReportingStatus" contextRef="C_0001678660_20210101_20210630">Yes</ix:nonNumeric>&#160;&#160;<span style="font-family:Segoe UI Symbol;">&#9746;&#160;</span>&#160;&#160;&#160;No&#160;&#160;<span style="font-family:Segoe UI Symbol;">&#9744;</span></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (&#167;232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). &#160;&#160;&#160;&#160;<ix:nonNumeric id="F_000018" name="dei:EntityInteractiveDataCurrent" contextRef="C_0001678660_20210101_20210630">Yes</ix:nonNumeric>&#160;&#160;<span style="font-family:Segoe UI Symbol;">&#9746;&#160;</span>&#160;&#160;&#160;No&#160;&#160;<span style="font-family:Segoe UI Symbol;">&#9744;</span></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of &#8220;large accelerated filer,&#8221; &#8220;accelerated filer,&#8221; &#8220;smaller reporting company,&#8221; and &#8220;emerging growth company&#8221; in Rule 12b-2 of the Exchange Act.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:4pt;">&#160;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" style="margin:auto;border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:19.3%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Large&#160;accelerated&#160;filer</p></td>
<td valign="top" style="width:0.6%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="width:55.84%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-family:Segoe UI Symbol;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#9744;</p></td>
<td valign="top" style="width:1.06%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;&#160;</p></td>
<td valign="top" style="width:20.48%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Accelerated&#160;filer</p></td>
<td valign="top" style="width:0.6%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="width:2.12%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-family:Segoe UI Symbol;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#9744;</p></td>
</tr>
<tr>
<td valign="top" style="width:19.3%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:2pt;">&#160;</p></td>
<td colspan="2" valign="top" style="width:56.44%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:2pt;">&#160;</p></td>
<td colspan="2" valign="top" style="width:21.56%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:2pt;">&#160;</p></td>
<td colspan="2" valign="top" style="width:2.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:2pt;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="width:19.3%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonNumeric id="F_000010" name="dei:EntityFilerCategory" contextRef="C_0001678660_20210101_20210630" format="ixt-sec:entityfilercategoryen">Non-accelerated filer</ix:nonNumeric></p></td>
<td valign="top" style="width:0.6%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="width:55.84%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-family:Segoe UI Symbol;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#9746;</p></td>
<td valign="top" style="width:1.06%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;&#160;</p></td>
<td valign="top" style="width:20.48%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Smaller&#160;reporting&#160;company</p></td>
<td valign="top" style="width:0.6%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="width:2.12%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-family:Segoe UI Symbol;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonNumeric id="F_000011" name="dei:EntitySmallBusiness" contextRef="C_0001678660_20210101_20210630" format="ixt-sec:boolballotbox">&#9746;</ix:nonNumeric></p></td>
</tr>
<tr>
<td valign="top" style="width:19.3%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:2pt;">&#160;</p></td>
<td valign="top" style="width:0.6%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:2pt;">&#160;</p></td>
<td valign="top" style="width:55.84%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:2pt;">&#160;</p></td>
<td valign="top" style="width:1.06%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:2pt;">&#160;</p></td>
<td valign="top" style="width:20.48%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:2pt;">&#160;</p></td>
<td valign="top" style="width:0.6%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:2pt;">&#160;</p></td>
<td valign="top" style="width:2.12%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:2pt;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="width:19.3%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Emerging growth company</p></td>
<td valign="top" style="width:0.6%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;">&#160;</p></td>
<td valign="top" style="width:55.84%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-family:Segoe UI Symbol;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonNumeric id="F_000012" name="dei:EntityEmergingGrowthCompany" contextRef="C_0001678660_20210101_20210630" format="ixt-sec:boolballotbox">&#9746;</ix:nonNumeric></p></td>
<td valign="top" style="width:1.06%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;">&#160;</p></td>
<td valign="top" style="width:20.48%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;">&#160;</p></td>
<td valign="top" style="width:0.6%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;">&#160;</p></td>
<td valign="top" style="width:2.12%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;">&#160;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:4pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:4.26%;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">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.&#160;<span style="font-family:Segoe UI Symbol;"><ix:nonNumeric id="F_000013" name="dei:EntityExTransitionPeriod" contextRef="C_0001678660_20210101_20210630" format="ixt-sec:boolballotbox">&#9744;</ix:nonNumeric></span></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). &#160;&#160;&#160;&#160;Yes&#160;&#160;<span style="font-family:Segoe UI Symbol;"><ix:nonNumeric id="F_000015" name="dei:EntityShellCompany" contextRef="C_0001678660_20210101_20210630" format="ixt-sec:boolballotbox">&#9744;</ix:nonNumeric></span><span style="font-size:10pt;">&#160;</span><span style="font-family:Segoe UI Symbol;">&#160;</span>&#160;&#160;&#160;No&#160;&#160;<span style="font-family:Segoe UI Symbol;">&#9746;</span></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. &#160;&#160;&#160;&#160;Yes&#160;&#160;<span style="font-family:Segoe UI Symbol;">&#9746;&#160;</span>&#160;&#160;&#160;No&#160;&#160;<span style="font-family:Segoe UI Symbol;">&#9744;</span></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">As of August 9, 2021, the registrant had <ix:nonFraction unitRef="U_xbrlishares" id="F_000014" name="dei:EntityCommonStockSharesOutstanding" contextRef="C_0001678660_20210809" decimals="INF" format="ixt:numdotdecimal">47,093,531</ix:nonFraction> shares of voting and non-voting common stock, $0.0001 par value per share, outstanding.</p>
<p style="border-bottom:Double 2.25pt;padding-bottom:1pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:3pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Table of Contents</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" style="margin:auto;border-collapse:collapse; width:100%;">
<tr>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:9%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:6.85pt;;text-indent:0pt;;color:#000000;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:85%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:6.85pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Page</p></td>
</tr>
<tr>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">PART I.</p></td>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:85%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#PART_IFINANCIAL_INFORMATION"><span style="text-decoration:underline;">FINANCIAL INFORMATION</span></a></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6%; border-top:solid 0.75pt #000000;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Item 1.</p></td>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:85%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#ITEM_1_FINANCIAL_STATEMENTS"><span style="text-decoration:underline;">Financial Statements </span></a></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1</p></td>
</tr>
<tr>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:6.85pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:85%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#BALANCE_SHEETS"><span style="text-decoration:underline;">Balance Sheets (Unaudited)</span></a><span style="text-decoration:underline;"> </span></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1</p></td>
</tr>
<tr>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:6.85pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:85%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#STATEMENTS_OPERATIONS"><span style="text-decoration:underline;">Statements of Operations (Unaudited)</span></a><span style="text-decoration:underline;"> </span></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2</p></td>
</tr>
<tr>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:6.85pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:85%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#STATEMENTS_CHANGES_IN_CONVERTIBLE_PREFER"><span style="text-decoration:underline;">Statements of Changes in Convertible Preferred Stock and Stockholder&#8217;s Equity (Deficit) (Unaudited)</span></a><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3</p></td>
</tr>
<tr>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:6.85pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:85%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#STATEMENTS_CASH_FLOWS"><span style="text-decoration:underline;">Statements of Cash Flows (Unaudited)</span></a><span style="text-decoration:underline;"> </span></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4</p></td>
</tr>
<tr>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:6.85pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:85%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#NOTES_TO_UNAUDITED_INTERIM_FINANCIAL_STA"><span style="text-decoration:underline;">Notes to Unaudited Interim Financial Statements</span></a></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">5</p></td>
</tr>
<tr>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Item 2.</p></td>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:85%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#ITEM_2_MANAGEMENTS_DISCUSSION_ANALYSIS_F"><span style="text-decoration:underline;">Management&#8217;s Discussion and Analysis of Financial Condition and Results of Operations</span></a></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">12</p></td>
</tr>
<tr>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Item 3.</p></td>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:85%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#ITEM_3_QUANTITATIVE_QUALITATIVE_DISCLOSU"><span style="text-decoration:underline;">Quantitative and Qualitative Disclosures About Market Risk</span></a></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">20</p></td>
</tr>
<tr>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Item 4.</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:85%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#ITEM_4_CONTROLS_PROCEDURES"><span style="text-decoration:underline;">Controls and Procedures</span></a></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">20</p></td>
</tr>
<tr>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">PART II.</p></td>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:85%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">OTHER INFORMATION</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
</tr>
<tr>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Item 1.</p></td>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:85%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#ITEM_1_LEGAL_PROCEEDINGS"><span style="text-decoration:underline;">Legal Proceedings</span></a></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">20</p></td>
</tr>
<tr>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Item 1A.</p></td>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:85%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#ITEM_1A_RISK_FACTORS"><span style="text-decoration:underline;">Risk Factors</span></a></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">21</p></td>
</tr>
<tr>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Item 2.</p></td>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:85%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#ITEM_2_UNREGISTERED_SALES_EQUITY_SECURIT"><span style="text-decoration:underline;">Unregistered Sales of Equity Securities and Use of Proceeds</span></a></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">68</p></td>
</tr>
<tr>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Item 3.</p></td>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:85%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#ITEM_3_DEFAULTS_UPON_SENIOR_SECURITIES"><span style="text-decoration:underline;">Defaults Upon Senior Securities</span></a></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">68</p></td>
</tr>
<tr>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Item 4.</p></td>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:85%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#ITEM_4_MINE_SAFETY_DISCLOSURES"><span style="text-decoration:underline;">Mine Safety Disclosures</span></a></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">68</p></td>
</tr>
<tr>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Item 5.</p></td>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:85%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#ITEM_5_OR_INFORMATION"><span style="text-decoration:underline;">Other Information</span></a></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">68</p></td>
</tr>
<tr>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Item 6.</p></td>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:85%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#ITEM_6_EXHIBITS"><span style="text-decoration:underline;">Exhibits</span></a></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">69</p></td>
</tr>
<tr>
<td colspan="2" valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:85%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#SIGNATURES"><span style="text-decoration:underline;">Signatures</span></a></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">70</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">i</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;" id="PART_IFINANCIAL_INFORMATION">PART I&#8212;FINANCIAL INFORMATION</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;" id="ITEM_1_FINANCIAL_STATEMENTS">Item 1. Financial Statements.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">PRELUDE THERAPEUTICS INCORPORATED</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;" id="BALANCE_SHEETS">BALANCE SHEETS</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">(UNAUDITED)</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" style="margin:auto;border-collapse:collapse; width:100%;">
<tr>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:65.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(in thousands, except share data)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.52%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:14.48%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June&#160;30,</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2021</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.52%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:14.48%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">December&#160;31,</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2020</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:65.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Assets</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:65.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Current assets:</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:65.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cash and cash equivalents</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000030" name="us-gaap:CashAndCashEquivalentsAtCarryingValue" contextRef="C_0001678660_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">343,119</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000031" name="us-gaap:CashAndCashEquivalentsAtCarryingValue" contextRef="C_0001678660_20201231" decimals="-3" format="ixt:numdotdecimal" scale="3">218,309</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:65.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Prepaid expenses and other current assets</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.52%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000032" name="us-gaap:PrepaidExpenseAndOtherAssetsCurrent" contextRef="C_0001678660_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">1,456</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.52%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000033" name="us-gaap:PrepaidExpenseAndOtherAssetsCurrent" contextRef="C_0001678660_20201231" decimals="-3" format="ixt:numdotdecimal" scale="3">2,500</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:65.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total current assets</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000034" name="us-gaap:AssetsCurrent" contextRef="C_0001678660_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">344,575</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000035" name="us-gaap:AssetsCurrent" contextRef="C_0001678660_20201231" decimals="-3" format="ixt:numdotdecimal" scale="3">220,809</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:65.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Property and equipment, net</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000036" name="us-gaap:PropertyPlantAndEquipmentNet" contextRef="C_0001678660_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">3,109</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000037" name="us-gaap:PropertyPlantAndEquipmentNet" contextRef="C_0001678660_20201231" decimals="-3" format="ixt:numdotdecimal" scale="3">2,480</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:65.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Right-of-use asset</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000038" name="us-gaap:OperatingLeaseRightOfUseAsset" contextRef="C_0001678660_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">1,897</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:65.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Deferred offering costs</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.52%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.52%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000039" name="prld:DeferredOfferingCostsNonCurrent" contextRef="C_0001678660_20201231" decimals="-3" scale="3">301</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:65.98%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total assets</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.52%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000040" name="us-gaap:Assets" contextRef="C_0001678660_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">349,581</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.52%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000041" name="us-gaap:Assets" contextRef="C_0001678660_20201231" decimals="-3" format="ixt:numdotdecimal" scale="3">223,590</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:65.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Liabilities and stockholders&#8217; equity</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:65.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Current liabilities:</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:65.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Accounts payable</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000042" name="us-gaap:AccountsPayableCurrent" contextRef="C_0001678660_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">6,844</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000043" name="us-gaap:AccountsPayableCurrent" contextRef="C_0001678660_20201231" decimals="-3" format="ixt:numdotdecimal" scale="3">3,920</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:65.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Accrued expenses and other current liabilities</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000044" name="us-gaap:AccruedLiabilitiesCurrent" contextRef="C_0001678660_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">6,430</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000045" name="us-gaap:AccruedLiabilitiesCurrent" contextRef="C_0001678660_20201231" decimals="-3" format="ixt:numdotdecimal" scale="3">7,455</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:65.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Operating lease liability</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.52%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000046" name="us-gaap:OperatingLeaseLiabilityCurrent" contextRef="C_0001678660_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">1,403</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.52%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:65.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total current liabilities</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000047" name="us-gaap:LiabilitiesCurrent" contextRef="C_0001678660_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">14,677</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000048" name="us-gaap:LiabilitiesCurrent" contextRef="C_0001678660_20201231" decimals="-3" format="ixt:numdotdecimal" scale="3">11,375</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:65.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Other liabilities</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000049" name="us-gaap:OtherLiabilitiesNoncurrent" contextRef="C_0001678660_20201231" decimals="-3" scale="3">32</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:65.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Operating lease liability</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.52%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000050" name="us-gaap:OperatingLeaseLiabilityNoncurrent" contextRef="C_0001678660_20210630" decimals="-3" scale="3">543</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.52%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:65.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total liabilities</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.52%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000051" name="us-gaap:Liabilities" contextRef="C_0001678660_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">15,220</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.52%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000052" name="us-gaap:Liabilities" contextRef="C_0001678660_20201231" decimals="-3" format="ixt:numdotdecimal" scale="3">11,407</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:65.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Commitments (Note 7)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="-sec-ix-hidden:F_000053">&#160;</span></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="-sec-ix-hidden:F_000054">&#160;</span></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:65.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Stockholders&#8217; equity:</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:65.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Voting common stock, $<ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000067" name="us-gaap:CommonStockParOrStatedValuePerShare" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldVotingCommonStockMember_20210630" decimals="INF"><ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000068" name="us-gaap:CommonStockParOrStatedValuePerShare" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldVotingCommonStockMember_20201231" decimals="INF">0.0001</ix:nonFraction></ix:nonFraction> par value: <ix:nonFraction unitRef="U_xbrlishares" id="F_000069" name="us-gaap:CommonStockSharesAuthorized" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldVotingCommonStockMember_20210630" decimals="INF" format="ixt:numdotdecimal"><ix:nonFraction unitRef="U_xbrlishares" id="F_000070" name="us-gaap:CommonStockSharesAuthorized" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldVotingCommonStockMember_20201231" decimals="INF" format="ixt:numdotdecimal">487,149,741</ix:nonFraction></ix:nonFraction> shares authorized&#59; <ix:nonFraction unitRef="U_xbrlishares" id="F_000071" name="us-gaap:CommonStockSharesIssued" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldVotingCommonStockMember_20210630" decimals="INF" format="ixt:numdotdecimal"><ix:nonFraction unitRef="U_xbrlishares" id="F_000073" name="us-gaap:CommonStockSharesOutstanding" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldVotingCommonStockMember_20210630" decimals="INF" format="ixt:numdotdecimal">35,636,695</ix:nonFraction></ix:nonFraction> and <ix:nonFraction unitRef="U_xbrlishares" id="F_000072" name="us-gaap:CommonStockSharesIssued" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldVotingCommonStockMember_20201231" decimals="INF" format="ixt:numdotdecimal"><ix:nonFraction unitRef="U_xbrlishares" id="F_000074" name="us-gaap:CommonStockSharesOutstanding" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldVotingCommonStockMember_20201231" decimals="INF" format="ixt:numdotdecimal">32,595,301</ix:nonFraction></ix:nonFraction> shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000055" name="us-gaap:CommonStockValue" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldVotingCommonStockMember_20210630" decimals="-3" scale="3">4</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000056" name="us-gaap:CommonStockValue" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldVotingCommonStockMember_20201231" decimals="-3" scale="3">3</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:65.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Non-voting common stock, $<ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000075" name="us-gaap:CommonStockParOrStatedValuePerShare" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_us-gaapNonvotingCommonStockMember_20210630" decimals="INF"><ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000076" name="us-gaap:CommonStockParOrStatedValuePerShare" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_us-gaapNonvotingCommonStockMember_20201231" decimals="INF">0.0001</ix:nonFraction></ix:nonFraction> par value&#59; <ix:nonFraction unitRef="U_xbrlishares" id="F_000077" name="us-gaap:CommonStockSharesAuthorized" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_us-gaapNonvotingCommonStockMember_20210630" decimals="INF" format="ixt:numdotdecimal"><ix:nonFraction unitRef="U_xbrlishares" id="F_000078" name="us-gaap:CommonStockSharesAuthorized" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_us-gaapNonvotingCommonStockMember_20201231" decimals="INF" format="ixt:numdotdecimal">12,850,259</ix:nonFraction></ix:nonFraction> shares authorized&#59; <ix:nonFraction unitRef="U_xbrlishares" id="F_000079" name="us-gaap:CommonStockSharesIssued" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_us-gaapNonvotingCommonStockMember_20210630" decimals="INF" format="ixt:numdotdecimal"><ix:nonFraction unitRef="U_xbrlishares" id="F_000081" name="us-gaap:CommonStockSharesOutstanding" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_us-gaapNonvotingCommonStockMember_20210630" decimals="INF" format="ixt:numdotdecimal">11,402,037</ix:nonFraction></ix:nonFraction> and <ix:nonFraction unitRef="U_xbrlishares" id="F_000080" name="us-gaap:CommonStockSharesIssued" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_us-gaapNonvotingCommonStockMember_20201231" decimals="INF" format="ixt:numdotdecimal"><ix:nonFraction unitRef="U_xbrlishares" id="F_000082" name="us-gaap:CommonStockSharesOutstanding" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_us-gaapNonvotingCommonStockMember_20201231" decimals="INF" format="ixt:numdotdecimal">11,110,371</ix:nonFraction></ix:nonFraction> shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000057" name="us-gaap:CommonStockValue" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_us-gaapNonvotingCommonStockMember_20210630" decimals="-3" scale="3">1</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000058" name="us-gaap:CommonStockValue" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_us-gaapNonvotingCommonStockMember_20201231" decimals="-3" scale="3">1</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:65.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Additional paid-in capital</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000059" name="us-gaap:AdditionalPaidInCapitalCommonStock" contextRef="C_0001678660_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">489,947</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.52%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000060" name="us-gaap:AdditionalPaidInCapitalCommonStock" contextRef="C_0001678660_20201231" decimals="-3" format="ixt:numdotdecimal" scale="3">319,605</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:65.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Accumulated deficit</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.52%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000061" name="us-gaap:RetainedEarningsAccumulatedDeficit" contextRef="C_0001678660_20210630" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">155,591</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.52%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000062" name="us-gaap:RetainedEarningsAccumulatedDeficit" contextRef="C_0001678660_20201231" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">107,426</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:65.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total stockholders&#8217; equity</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.52%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000063" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">334,361</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.52%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000064" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_20201231" decimals="-3" format="ixt:numdotdecimal" scale="3">212,183</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:65.98%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total liabilities and stockholders&#8217; equity</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.52%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000065" name="us-gaap:LiabilitiesAndStockholdersEquity" contextRef="C_0001678660_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">349,581</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.52%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.48%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000066" name="us-gaap:LiabilitiesAndStockholdersEquity" contextRef="C_0001678660_20201231" decimals="-3" format="ixt:numdotdecimal" scale="3">223,590</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">See accompanying notes to unaudited interim financial statements.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1</p>
<hr style="page-break-after:always" />

<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">PRELUDE THERAPEUTICS INCORPORATED</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;" id="STATEMENTS_OPERATIONS">STATEMENTS OF OPERATIONS</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">(UNAUDITED)</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" style="margin:auto;border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:45.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="6" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:23.9%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Three Months Ended June&#160;30,</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="6" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:25.74%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Six Months Ended June&#160;30,</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:45.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(in thousands, except share and per share data)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.8%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2021</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.8%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2020</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:11.66%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2021</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-top:solid 0.75pt #000000;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:11.66%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2020</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:45.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Operating expenses:</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.8%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.8%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.66%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.66%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:45.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Research and development</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000083" name="us-gaap:ResearchAndDevelopmentExpense" contextRef="C_0001678660_20210401_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">22,409</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000084" name="us-gaap:ResearchAndDevelopmentExpense" contextRef="C_0001678660_20200401_20200630" decimals="-3" format="ixt:numdotdecimal" scale="3">9,776</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.66%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000085" name="us-gaap:ResearchAndDevelopmentExpense" contextRef="C_0001678660_20210101_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">38,879</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.66%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000086" name="us-gaap:ResearchAndDevelopmentExpense" contextRef="C_0001678660_20200101_20200630" decimals="-3" format="ixt:numdotdecimal" scale="3">18,312</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:45.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">General and administrative</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.8%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000087" name="us-gaap:GeneralAndAdministrativeExpense" contextRef="C_0001678660_20210401_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">5,513</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.8%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000088" name="us-gaap:GeneralAndAdministrativeExpense" contextRef="C_0001678660_20200401_20200630" decimals="-3" format="ixt:numdotdecimal" scale="3">1,660</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.66%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000089" name="us-gaap:GeneralAndAdministrativeExpense" contextRef="C_0001678660_20210101_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">11,010</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.66%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000090" name="us-gaap:GeneralAndAdministrativeExpense" contextRef="C_0001678660_20200101_20200630" decimals="-3" format="ixt:numdotdecimal" scale="3">2,861</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:45.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total operating expenses</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.8%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000091" name="us-gaap:OperatingExpenses" contextRef="C_0001678660_20210401_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">27,922</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.8%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000092" name="us-gaap:OperatingExpenses" contextRef="C_0001678660_20200401_20200630" decimals="-3" format="ixt:numdotdecimal" scale="3">11,436</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.66%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000093" name="us-gaap:OperatingExpenses" contextRef="C_0001678660_20210101_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">49,889</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.66%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000094" name="us-gaap:OperatingExpenses" contextRef="C_0001678660_20200101_20200630" decimals="-3" format="ixt:numdotdecimal" scale="3">21,173</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:45.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Loss from operations</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.8%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000095" name="us-gaap:OperatingIncomeLoss" contextRef="C_0001678660_20210401_20210630" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">27,922</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.8%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000096" name="us-gaap:OperatingIncomeLoss" contextRef="C_0001678660_20200401_20200630" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">11,436</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.66%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000097" name="us-gaap:OperatingIncomeLoss" contextRef="C_0001678660_20210101_20210630" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">49,889</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.66%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000098" name="us-gaap:OperatingIncomeLoss" contextRef="C_0001678660_20200101_20200630" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">21,173</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:45.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Other income, net</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.8%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000099" name="us-gaap:OtherNonoperatingIncomeExpense" contextRef="C_0001678660_20210401_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">1,057</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.8%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000100" name="us-gaap:OtherNonoperatingIncomeExpense" contextRef="C_0001678660_20200401_20200630" decimals="-3" scale="3">28</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.66%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000101" name="us-gaap:OtherNonoperatingIncomeExpense" contextRef="C_0001678660_20210101_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">1,724</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.66%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000102" name="us-gaap:OtherNonoperatingIncomeExpense" contextRef="C_0001678660_20200101_20200630" decimals="-3" scale="3">254</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:45.64%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net loss</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.8%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000103" name="us-gaap:NetIncomeLoss" contextRef="C_0001678660_20210401_20210630" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">26,865</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.8%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000104" name="us-gaap:NetIncomeLoss" contextRef="C_0001678660_20200401_20200630" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">11,408</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.66%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000105" name="us-gaap:NetIncomeLoss" contextRef="C_0001678660_20210101_20210630" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">48,165</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.66%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000106" name="us-gaap:NetIncomeLoss" contextRef="C_0001678660_20200101_20200630" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">20,919</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:45.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Per share information:</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.8%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.8%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.66%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.66%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:45.64%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net loss per share of common stock, basic and diluted</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.8%; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000107" name="us-gaap:EarningsPerShareBasicAndDiluted" contextRef="C_0001678660_20210401_20210630" decimals="2" sign="-">0.58</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.8%; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000108" name="us-gaap:EarningsPerShareBasicAndDiluted" contextRef="C_0001678660_20200401_20200630" decimals="2" sign="-">5.50</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.66%; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000109" name="us-gaap:EarningsPerShareBasicAndDiluted" contextRef="C_0001678660_20210101_20210630" decimals="2" sign="-">1.06</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.66%; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000110" name="us-gaap:EarningsPerShareBasicAndDiluted" contextRef="C_0001678660_20200101_20200630" decimals="2" sign="-">10.65</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:45.64%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Weighted average common shares outstanding, basic</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;&#160; and diluted</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.8%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000111" name="us-gaap:WeightedAverageNumberOfShareOutstandingBasicAndDiluted" contextRef="C_0001678660_20210401_20210630" decimals="0" format="ixt:numdotdecimal">46,057,112</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.8%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000112" name="us-gaap:WeightedAverageNumberOfShareOutstandingBasicAndDiluted" contextRef="C_0001678660_20200401_20200630" decimals="0" format="ixt:numdotdecimal">2,074,108</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.66%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000113" name="us-gaap:WeightedAverageNumberOfShareOutstandingBasicAndDiluted" contextRef="C_0001678660_20210101_20210630" decimals="0" format="ixt:numdotdecimal">45,592,117</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.66%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000114" name="us-gaap:WeightedAverageNumberOfShareOutstandingBasicAndDiluted" contextRef="C_0001678660_20200101_20200630" decimals="0" format="ixt:numdotdecimal">1,964,403</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">See accompanying notes to unaudited interim financial statements.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">PRELUDE THERAPEUTICS INCORPORATED</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;" id="STATEMENTS_CHANGES_IN_CONVERTIBLE_PREFER">STATEMENTS OF CHANGES IN CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS&#8217; EQUITY (DEFICIT)</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">(UNAUDITED)</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" style="margin:auto;border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:24.3%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="26" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:73.88%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Stockholders&#8217; equity</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:24.3%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="6" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:19.82%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Voting common stock</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="6" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:19.82%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Non-voting common</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">stock</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-top:solid 0.75pt #000000;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:9%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Additional</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">paid-in</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:9%; border-top:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Accumulated</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-top:solid 0.75pt #000000;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:8%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:24.3%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(in thousands, except shares)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Shares</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Amount</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Shares</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-top:solid 0.75pt #000000;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Amount</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">capital</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">deficit</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Total</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:24.3%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Balance at January 1, 2021</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000115" name="us-gaap:SharesOutstanding" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldVotingCommonStockMember_20201231" decimals="INF" format="ixt:numdotdecimal">32,595,301</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000116" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldVotingCommonStockMember_20201231" decimals="-3" scale="3">3</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000117" name="us-gaap:SharesOutstanding" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_us-gaapNonvotingCommonStockMember_20201231" decimals="INF" format="ixt:numdotdecimal">11,110,371</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000118" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_us-gaapNonvotingCommonStockMember_20201231" decimals="-3" scale="3">1</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000119" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapAdditionalPaidInCapitalMember_20201231" decimals="-3" format="ixt:numdotdecimal" scale="3">319,605</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000120" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapRetainedEarningsMember_20201231" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">107,426</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000121" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_20201231" decimals="-3" format="ixt:numdotdecimal" scale="3">212,183</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:24.3%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Exercise of stock options</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000122" name="us-gaap:StockIssuedDuringPeriodSharesStockOptionsExercised" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldVotingCommonStockMember_20210101_20210331" decimals="INF" format="ixt:numdotdecimal">210,274</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000123" name="us-gaap:StockIssuedDuringPeriodValueStockOptionsExercised" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapAdditionalPaidInCapitalMember_20210101_20210331" decimals="-3" scale="3">386</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000124" name="us-gaap:StockIssuedDuringPeriodValueStockOptionsExercised" contextRef="C_0001678660_20210101_20210331" decimals="-3" scale="3">386</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:24.3%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Sale of common stock,</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;&#160; net of offering costs of $<ix:nonFraction unitRef="U_iso4217USD" id="F_000156" name="prld:PaymentsOfOfferingCosts" contextRef="C_0001678660_20210101_20210331" decimals="-3" scale="3">739</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000125" name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldVotingCommonStockMember_20210101_20210331" decimals="INF" format="ixt:numdotdecimal">2,583,334</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000126" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldVotingCommonStockMember_20210101_20210331" decimals="-3" scale="3">1</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000127" name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_us-gaapNonvotingCommonStockMember_20210101_20210331" decimals="INF" format="ixt:numdotdecimal">291,666</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000128" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapAdditionalPaidInCapitalMember_20210101_20210331" decimals="-3" format="ixt:numdotdecimal" scale="3">161,411</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000129" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" contextRef="C_0001678660_20210101_20210331" decimals="-3" format="ixt:numdotdecimal" scale="3">161,412</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:24.3%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Stock-based compensation</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;&#160; expense</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000130" name="us-gaap:StockIssuedDuringPeriodValueShareBasedCompensation" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapAdditionalPaidInCapitalMember_20210101_20210331" decimals="-3" format="ixt:numdotdecimal" scale="3">3,886</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000131" name="us-gaap:StockIssuedDuringPeriodValueShareBasedCompensation" contextRef="C_0001678660_20210101_20210331" decimals="-3" format="ixt:numdotdecimal" scale="3">3,886</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:24.3%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net loss</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000132" name="us-gaap:NetIncomeLoss" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapRetainedEarningsMember_20210101_20210331" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">21,300</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000133" name="us-gaap:NetIncomeLoss" contextRef="C_0001678660_20210101_20210331" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">21,300</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:24.3%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Balance at March 31, 2021</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000134" name="us-gaap:SharesOutstanding" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldVotingCommonStockMember_20210331" decimals="INF" format="ixt:numdotdecimal">35,388,909</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000135" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldVotingCommonStockMember_20210331" decimals="-3" scale="3">4</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000136" name="us-gaap:SharesOutstanding" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_us-gaapNonvotingCommonStockMember_20210331" decimals="INF" format="ixt:numdotdecimal">11,402,037</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000137" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_us-gaapNonvotingCommonStockMember_20210331" decimals="-3" scale="3">1</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000138" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapAdditionalPaidInCapitalMember_20210331" decimals="-3" format="ixt:numdotdecimal" scale="3">485,288</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000139" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapRetainedEarningsMember_20210331" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">128,726</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000140" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_20210331" decimals="-3" format="ixt:numdotdecimal" scale="3">356,567</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:24.3%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Exercise of stock options</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000141" name="us-gaap:StockIssuedDuringPeriodSharesStockOptionsExercised" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldVotingCommonStockMember_20210401_20210630" decimals="INF" format="ixt:numdotdecimal">247,786</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000142" name="us-gaap:StockIssuedDuringPeriodValueStockOptionsExercised" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapAdditionalPaidInCapitalMember_20210401_20210630" decimals="-3" scale="3">422</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000143" name="us-gaap:StockIssuedDuringPeriodValueStockOptionsExercised" contextRef="C_0001678660_20210401_20210630" decimals="-3" scale="3">422</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:24.3%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Stock-based compensation</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;&#160; expense</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000144" name="us-gaap:StockIssuedDuringPeriodValueShareBasedCompensation" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapAdditionalPaidInCapitalMember_20210401_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">4,237</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:0.8%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000145" name="us-gaap:StockIssuedDuringPeriodValueShareBasedCompensation" contextRef="C_0001678660_20210401_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">4,237</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:24.3%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net loss</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000146" name="us-gaap:NetIncomeLoss" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapRetainedEarningsMember_20210401_20210630" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">26,865</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000147" name="us-gaap:NetIncomeLoss" contextRef="C_0001678660_20210401_20210630" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">26,865</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:24.3%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Balance at June 30, 2021</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000148" name="us-gaap:SharesOutstanding" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldVotingCommonStockMember_20210630" decimals="INF" format="ixt:numdotdecimal">35,636,695</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000149" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldVotingCommonStockMember_20210630" decimals="-3" scale="3">4</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000150" name="us-gaap:SharesOutstanding" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_us-gaapNonvotingCommonStockMember_20210630" decimals="INF" format="ixt:numdotdecimal">11,402,037</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000151" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_us-gaapNonvotingCommonStockMember_20210630" decimals="-3" scale="3">1</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000152" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapAdditionalPaidInCapitalMember_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">489,947</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000153" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapRetainedEarningsMember_20210630" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">155,591</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:0.8%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8.5pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000154" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">334,361</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" style="margin:auto;border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:19.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="14" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:33.74%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Convertible preferred stock</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-right:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-left:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="18" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:42.6%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Stockholders&#8217; deficit</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:19.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="6" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:16.04%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Series A</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="6" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:16.04%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Series B</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-right:solid 0.75pt #000000;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-left:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="6" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:16.04%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Common stock</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-top:solid 0.75pt #000000;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:7.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Additional</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">paid-in</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:7.18%; border-top:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Accumulated</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:6.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:19.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(in thousands, except shares)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Shares</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Amount</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Shares</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-top:solid 0.75pt #000000;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Amount</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-right:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-left:solid 0.75pt #000000;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Shares</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Amount</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.18%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">capital</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.18%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">deficit</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.18%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Total</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:19.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Balance at January 1, 2020</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000157" name="us-gaap:TemporaryEquitySharesOutstanding" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldSeriesAConvertiblePreferredStockMember_20191231" decimals="INF" format="ixt:numdotdecimal">11,736,119</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000158" name="us-gaap:TemporaryEquityCarryingAmountAttributableToParent" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldSeriesAConvertiblePreferredStockMember_20191231" decimals="-3" format="ixt:numdotdecimal" scale="3">36,595</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000159" name="us-gaap:TemporaryEquitySharesOutstanding" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldSeriesBConvertiblePreferredStockMember_20191231" decimals="INF" format="ixt:numdotdecimal">7,628,846</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000160" name="us-gaap:TemporaryEquityCarryingAmountAttributableToParent" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldSeriesBConvertiblePreferredStockMember_20191231" decimals="-3" format="ixt:numdotdecimal" scale="3">29,848</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-right:solid 0.75pt #000000;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-left:solid 0.75pt #000000;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000161" name="us-gaap:SharesOutstanding" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapCommonStockMember_20191231" decimals="INF" format="ixt:numdotdecimal">3,161,653</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000162" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapAdditionalPaidInCapitalMember_20191231" decimals="-3" format="ixt:numdotdecimal" scale="3">1,085</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000163" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapRetainedEarningsMember_20191231" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">50,497</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000164" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_20191231" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">49,412</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:19.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Sale of Series B convertible</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;&#160; preferred stock, net of</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;&#160; offering costs of $<ix:nonFraction unitRef="U_iso4217USD" id="F_000155" name="prld:PaymentsOfOfferingCosts" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldSeriesBConvertiblePreferredStockMember_20200101_20200331" decimals="-3" scale="3">152</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000165" name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldSeriesBConvertiblePreferredStockMember_20200101_20200331" decimals="INF" format="ixt:numdotdecimal">7,628,846</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000166" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldSeriesBConvertiblePreferredStockMember_20200101_20200331" decimals="-3" format="ixt:numdotdecimal" scale="3">29,942</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-right:solid 0.75pt #000000;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-left:solid 0.75pt #000000;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:19.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Stock-based compensation</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;&#160; expense, including issuance of RSAs</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-right:solid 0.75pt #000000;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-left:solid 0.75pt #000000;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000167" name="us-gaap:StockIssuedDuringPeriodSharesShareBasedCompensation" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapCommonStockMember_20200101_20200331" decimals="INF" format="ixt:numdotdecimal">432,301</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000168" name="us-gaap:StockIssuedDuringPeriodValueShareBasedCompensation" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapAdditionalPaidInCapitalMember_20200101_20200331" decimals="-3" scale="3">362</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000169" name="us-gaap:StockIssuedDuringPeriodValueShareBasedCompensation" contextRef="C_0001678660_20200101_20200331" decimals="-3" scale="3">362</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:19.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net loss</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-right:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-left:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000170" name="us-gaap:NetIncomeLoss" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapRetainedEarningsMember_20200101_20200331" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">9,511</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000171" name="us-gaap:NetIncomeLoss" contextRef="C_0001678660_20200101_20200331" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">9,511</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:19.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Balance at March 31, 2020</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000172" name="us-gaap:TemporaryEquitySharesOutstanding" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldSeriesAConvertiblePreferredStockMember_20200331" decimals="INF" format="ixt:numdotdecimal">11,736,119</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000173" name="us-gaap:TemporaryEquityCarryingAmountAttributableToParent" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldSeriesAConvertiblePreferredStockMember_20200331" decimals="-3" format="ixt:numdotdecimal" scale="3">36,595</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000174" name="us-gaap:TemporaryEquitySharesOutstanding" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldSeriesBConvertiblePreferredStockMember_20200331" decimals="INF" format="ixt:numdotdecimal">15,257,692</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000175" name="us-gaap:TemporaryEquityCarryingAmountAttributableToParent" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldSeriesBConvertiblePreferredStockMember_20200331" decimals="-3" format="ixt:numdotdecimal" scale="3">59,790</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-right:solid 0.75pt #000000;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-left:solid 0.75pt #000000;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000176" name="us-gaap:SharesOutstanding" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapCommonStockMember_20200331" decimals="INF" format="ixt:numdotdecimal">3,593,954</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000177" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapAdditionalPaidInCapitalMember_20200331" decimals="-3" format="ixt:numdotdecimal" scale="3">1,447</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000178" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapRetainedEarningsMember_20200331" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">60,008</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000179" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_20200331" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">58,561</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:19.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Exercise of stock options</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-right:solid 0.75pt #000000;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-left:solid 0.75pt #000000;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000180" name="us-gaap:StockIssuedDuringPeriodSharesStockOptionsExercised" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapCommonStockMember_20200401_20200630" decimals="INF" format="ixt:numdotdecimal">36,745</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000181" name="us-gaap:StockIssuedDuringPeriodValueStockOptionsExercised" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapAdditionalPaidInCapitalMember_20200401_20200630" decimals="-3" scale="3">31</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000182" name="us-gaap:StockIssuedDuringPeriodValueStockOptionsExercised" contextRef="C_0001678660_20200401_20200630" decimals="-3" scale="3">31</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:19.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Stock-based compensation</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;&#160; expense</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-right:solid 0.75pt #000000;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-left:solid 0.75pt #000000;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000183" name="us-gaap:StockIssuedDuringPeriodValueShareBasedCompensation" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapAdditionalPaidInCapitalMember_20200401_20200630" decimals="-3" scale="3">627</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000184" name="us-gaap:StockIssuedDuringPeriodValueShareBasedCompensation" contextRef="C_0001678660_20200401_20200630" decimals="-3" scale="3">627</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:19.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net loss</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-right:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-left:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000185" name="us-gaap:NetIncomeLoss" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapRetainedEarningsMember_20200401_20200630" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">11,408</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000186" name="us-gaap:NetIncomeLoss" contextRef="C_0001678660_20200401_20200630" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">11,408</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:19.64%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Balance at June 30, 2020</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000187" name="us-gaap:TemporaryEquitySharesOutstanding" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldSeriesAConvertiblePreferredStockMember_20200630" decimals="INF" format="ixt:numdotdecimal">11,736,119</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000188" name="us-gaap:TemporaryEquityCarryingAmountAttributableToParent" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldSeriesAConvertiblePreferredStockMember_20200630" decimals="-3" format="ixt:numdotdecimal" scale="3">36,595</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000189" name="us-gaap:TemporaryEquitySharesOutstanding" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldSeriesBConvertiblePreferredStockMember_20200630" decimals="INF" format="ixt:numdotdecimal">15,257,692</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000190" name="us-gaap:TemporaryEquityCarryingAmountAttributableToParent" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldSeriesBConvertiblePreferredStockMember_20200630" decimals="-3" format="ixt:numdotdecimal" scale="3">59,790</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-right:solid 0.75pt #000000; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-left:solid 0.75pt #000000; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000191" name="us-gaap:SharesOutstanding" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapCommonStockMember_20200630" decimals="INF" format="ixt:numdotdecimal">3,630,699</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000192" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapAdditionalPaidInCapitalMember_20200630" decimals="-3" format="ixt:numdotdecimal" scale="3">2,105</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000193" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapRetainedEarningsMember_20200630" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">71,416</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000194" name="us-gaap:StockholdersEquity" contextRef="C_0001678660_20200630" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">69,311</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">See accompanying notes to unaudited interim financial statements.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">PRELUDE THERAPEUTICS INCORPORATED</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;" id="STATEMENTS_CASH_FLOWS">STATEMENTS OF CASH FLOWS</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">(UNAUDITED)</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" style="margin:auto;border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="6" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:30.4%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Six months ended June 30,</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(in thousands)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2021</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2020</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cash flows used in operating activities:</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net loss</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000195" name="us-gaap:ProfitLoss" contextRef="C_0001678660_20210101_20210630" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">48,165</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000196" name="us-gaap:ProfitLoss" contextRef="C_0001678660_20200101_20200630" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">20,919</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Adjustments to reconcile net loss to net cash used in operating activities:</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Depreciation and amortization</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000197" name="us-gaap:DepreciationDepletionAndAmortization" contextRef="C_0001678660_20210101_20210630" decimals="-3" scale="3">359</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000198" name="us-gaap:DepreciationDepletionAndAmortization" contextRef="C_0001678660_20200101_20200630" decimals="-3" scale="3">267</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Noncash lease expense</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000199" name="prld:NoncashLeaseExpense" contextRef="C_0001678660_20210101_20210630" decimals="-3" scale="3">572</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Stock-based compensation</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000200" name="us-gaap:ShareBasedCompensation" contextRef="C_0001678660_20210101_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">8,123</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000201" name="us-gaap:ShareBasedCompensation" contextRef="C_0001678660_20200101_20200630" decimals="-3" scale="3">989</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Changes in operating assets and liabilities:</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Prepaid expenses and other current assets</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000202" name="us-gaap:IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets" contextRef="C_0001678660_20210101_20210630" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">1,044</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000203" name="us-gaap:IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets" contextRef="C_0001678660_20200101_20200630" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">364</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Accounts payable</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000204" name="us-gaap:IncreaseDecreaseInAccountsPayable" contextRef="C_0001678660_20210101_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">3,327</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000205" name="us-gaap:IncreaseDecreaseInAccountsPayable" contextRef="C_0001678660_20200101_20200630" decimals="-3" format="ixt:numdotdecimal" scale="3">1,134</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Accrued expenses and other liabilities</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000206" name="us-gaap:IncreaseDecreaseInAccruedLiabilitiesAndOtherOperatingLiabilities" contextRef="C_0001678660_20210101_20210630" decimals="-3" sign="-" scale="3">856</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000207" name="us-gaap:IncreaseDecreaseInAccruedLiabilitiesAndOtherOperatingLiabilities" contextRef="C_0001678660_20200101_20200630" decimals="-3" sign="-" scale="3">658</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Operating lease liabilities</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000208" name="prld:IncreaseDecreaseInOperatingLeaseLiabilities" contextRef="C_0001678660_20210101_20210630" decimals="-3" scale="3">459</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net cash used in operating activities</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000209" name="us-gaap:NetCashProvidedByUsedInOperatingActivities" contextRef="C_0001678660_20210101_20210630" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">36,055</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000210" name="us-gaap:NetCashProvidedByUsedInOperatingActivities" contextRef="C_0001678660_20200101_20200630" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">18,823</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cash flows used in investing activities:</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Purchases of property and equipment</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000211" name="us-gaap:PaymentsToAcquirePropertyPlantAndEquipment" contextRef="C_0001678660_20210101_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">1,367</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000212" name="us-gaap:PaymentsToAcquirePropertyPlantAndEquipment" contextRef="C_0001678660_20200101_20200630" decimals="-3" scale="3">122</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net cash used in investing activities</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000213" name="us-gaap:NetCashProvidedByUsedInInvestingActivities" contextRef="C_0001678660_20210101_20210630" decimals="-3" sign="-" format="ixt:numdotdecimal" scale="3">1,367</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000214" name="us-gaap:NetCashProvidedByUsedInInvestingActivities" contextRef="C_0001678660_20200101_20200630" decimals="-3" sign="-" scale="3">122</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cash flows provided by financing activities:</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Proceeds from the sale of common stock, net of offering costs</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000215" name="us-gaap:ProceedsFromIssuanceOfCommonStock" contextRef="C_0001678660_20210101_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">161,424</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Proceeds from the sale of Series B convertible preferred stock, net of offering costs</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000216" name="us-gaap:ProceedsFromIssuanceOfConvertiblePreferredStock" contextRef="C_0001678660_us-gaapStatementClassOfStockAxis_prldSeriesBConvertiblePreferredStockMember_20200101_20200630" decimals="-3" format="ixt:numdotdecimal" scale="3">29,942</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Payment of capital lease obligation</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000217" name="us-gaap:RepaymentsOfLongTermCapitalLeaseObligations" contextRef="C_0001678660_20200101_20200630" decimals="-3" scale="3">191</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Proceeds from the exercise of stock options</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000218" name="us-gaap:ProceedsFromStockOptionsExercised" contextRef="C_0001678660_20210101_20210630" decimals="-3" scale="3">808</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000219" name="us-gaap:ProceedsFromStockOptionsExercised" contextRef="C_0001678660_20200101_20200630" decimals="-3" scale="3">31</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net cash provided by financing activities</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000220" name="us-gaap:NetCashProvidedByUsedInFinancingActivities" contextRef="C_0001678660_20210101_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">162,232</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000221" name="us-gaap:NetCashProvidedByUsedInFinancingActivities" contextRef="C_0001678660_20200101_20200630" decimals="-3" format="ixt:numdotdecimal" scale="3">29,782</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net increase in cash and cash equivalents</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000222" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect" contextRef="C_0001678660_20210101_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">124,810</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000223" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect" contextRef="C_0001678660_20200101_20200630" decimals="-3" format="ixt:numdotdecimal" scale="3">10,837</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cash and cash equivalents at beginning of period</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000224" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations" contextRef="C_0001678660_20201231" decimals="-3" format="ixt:numdotdecimal" scale="3">218,309</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000225" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations" contextRef="C_0001678660_20191231" decimals="-3" format="ixt:numdotdecimal" scale="3">18,879</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cash and cash equivalents at end of period</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000226" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations" contextRef="C_0001678660_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">343,119</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000227" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations" contextRef="C_0001678660_20200630" decimals="-3" format="ixt:numdotdecimal" scale="3">29,716</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Supplemental disclosures:</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Property and equipment in accounts payable</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000228" name="us-gaap:CapitalExpendituresIncurredButNotYetPaid" contextRef="C_0001678660_20210101_20210630" decimals="-3" scale="3">386</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000229" name="us-gaap:CapitalExpendituresIncurredButNotYetPaid" contextRef="C_0001678660_20200101_20200630" decimals="-3" scale="3">73</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Offering costs in accounts payable</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000230" name="prld:OfferingCostsInAccountsPayable" contextRef="C_0001678660_20200101_20200630" decimals="-3" scale="3">290</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Offering costs in accrued expenses and other current liabilities</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000231" name="prld:OfferingCostsInAccruedExpensesAndOtherCurrentLiabilities" contextRef="C_0001678660_20200101_20200630" decimals="-3" scale="3">185</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">See accompanying notes to unaudited interim financial statements.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">PRELUDE THERAPEUTICS INCORPORATED</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;" id="NOTES_TO_UNAUDITED_INTERIM_FINANCIAL_STA">NOTES TO UNAUDITED INTERIM FINANCIAL STATEMENTS</p><ix:nonNumeric id="F_000232" name="us-gaap:BusinessDescriptionAndBasisOfPresentationTextBlock" contextRef="C_0001678660_20210101_20210630" escape="true">
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">1. Background</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Prelude Therapeutics Incorporated (the &#8220;Company&#8221;) was incorporated in Delaware on February&#160;5, 2016 and is a clinical-stage precision oncology company focused on discovering and developing small molecule therapies optimized to target the key driver mechanisms in cancers with high unmet need. Since beginning operations, the Company has devoted substantially all its efforts to research and development, conducting preclinical and clinical studies, recruiting management and technical staff, administration, and raising capital.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</p></ix:nonNumeric><ix:nonNumeric id="F_000233" name="prld:RisksAndLiquidityTextBlock" contextRef="C_0001678660_20210101_20210630" escape="true">
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">2. Risks and liquidity</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="Background-color:#FFFFFF;">The Company is subject to a number of risks common to early-stage companies in the biotechnology industry. Principal among these risks are the uncertainties in the development process, development of the same or similar technological innovations by competitors, protection of proprietary technology, dependence on key personnel, compliance with government regulations and approval requirements, and the need to obtain additional financing to fund operations. Product candidates currently under development will require significant additional research and development efforts, including extensive pre-clinical and clinical testing and regulatory approval, prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel infrastructure, and extensive compliance-reporting capabilities. There can be no assurance that the Company&#8217;s research and development will be successfully completed, that adequate protection for the Company&#8217;s technology will be obtained, that any products developed will obtain necessary government regulatory approval, or that any approved products will be commercially viable. The Company operates in an environment of rapid change in technology and substantial competition from pharmaceutical and biotechnology companies. In addition, the Company is dependent upon the services of its employees, consultants and contractors.</span></p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Since its inception, the Company has incurred operating losses and has an accumulated deficit of $<ix:nonFraction unitRef="U_iso4217USD" id="F_000254" name="us-gaap:RetainedEarningsAccumulatedDeficit" contextRef="C_0001678660_20210630" decimals="-5" sign="-" scale="6">155.6</ix:nonFraction>&#160;million at June 30, 2021. The Company has no revenue to date and devotes its efforts to research and development. The Company anticipates incurring additional losses until such time, if ever, that it can generate significant sales of its product candidates currently in development. </p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:4.26%;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company believes that its cash and cash equivalents as of June 30, 2021 will be sufficient to fund its operating expenses and capital expenditure requirements into mid-2023.&#160;&#160;</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:4.26%;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">To fund its operating expenses and capital expenditure requirements after that date, the Company plans to seek additional funding through public or private equity offerings, debt financings, collaborations, strategic alliances and licensing arrangements. The Company may not be able to obtain financing on acceptable terms, or at all, and the Company may not be able to enter into strategic alliances or other arrangements on favorable terms, or at all. The terms of any financing may adversely affect the holdings or the rights of the Company&#8217;s stockholders. If the Company is unable to obtain funding, the Company could be required to delay, reduce or eliminate research and development programs, product portfolio expansion or future commercialization efforts, which could adversely affect its business prospects.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">On March&#160;10, 2020, the World Health Organization characterized the novel&#160;COVID-19&#160;virus as a global pandemic. There is significant uncertainty as to the likely effects of this disease which may, among other things, materially impact the Company&#8217;s planned clinical trials. This pandemic or outbreak could result in difficulty securing clinical trial site locations, CROs, and/or trial monitors and other critical vendors and consultants supporting the trial. In addition, outbreaks or the perception of an outbreak near a clinical trial site location could impact the Company&#8217;s ability to enroll patients. These situations, or others associated with&#160;COVID-19,&#160;could cause delays in the Company&#8217;s clinical trial plans and could increase expected costs, all of which could have a material adverse effect on the Company&#8217;s business and its financial condition. At the current time, the Company is unable to quantify the potential effects of this pandemic on its future financial statements.</p></ix:nonNumeric><ix:nonNumeric id="F_000234" name="us-gaap:SignificantAccountingPoliciesTextBlock" contextRef="C_0001678660_20210101_20210630" escape="true" continuedAt="F_000234_dcnt_d5c6369e-8b28-4332-891f-eaa74399b3c8">
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">3. Summary of significant accounting policies</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The summary of significant accounting policies included in the Company&#8217;s financial statements for the year ended December&#160;31, 2020 can be found in &#8220;Note 3. Summary of significant accounting policies&#8221; of the Company&#8217;s Form 10-K filed with the Securities and Exchange Commission (the &#8220;SEC&#8221;) on March 16, 2021. Those policies have not materially changed, except as set forth below.</p><ix:nonNumeric id="F_000240" name="us-gaap:BasisOfAccountingPolicyPolicyTextBlock" contextRef="C_0001678660_20210101_20210630" escape="true" continuedAt="F_000240_dcnt_3fc3525d-015c-468c-97cc-6c712267ea18"></ix:nonNumeric></ix:nonNumeric>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">5</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p><ix:continuation id="F_000234_dcnt_d5c6369e-8b28-4332-891f-eaa74399b3c8" continuedAt="F_000234_dcnt_a18cdf2c-fd7a-4cd8-af2f-04ff890d3709"><ix:continuation id="F_000240_dcnt_3fc3525d-015c-468c-97cc-6c712267ea18">
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Basis of presentation</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles (&#8220;GAAP&#8221;) for interim financial information, the instructions to&#160;Form&#160;10-Q&#160;and&#160;Article&#160;10&#160;of Regulation S-X.&#160;&#160;They do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six month periods ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The accompanying unaudited interim financial statements should be read in conjunction with the annual audited financial statements and related notes as of and for the year ended December&#160;31, 2020 found in the Form 10-K filed with the SEC on March 16, 2021. Any reference in these notes to applicable guidance is meant to refer to GAAP as found in the Accounting Standards Codification (&#8220;ASC&#8221;) and Accounting Standards Updates (&#8220;ASU&#8221;) of the Financial Accounting Standards Board (&#8220;FASB&#8221;).</p></ix:continuation><ix:nonNumeric id="F_000241" name="us-gaap:UseOfEstimates" contextRef="C_0001678660_20210101_20210630" escape="true">
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Use of estimates</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The preparation of the unaudited interim financial statements in conformity with&#160;GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and contingent liabilities at the date of the unaudited interim financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Estimates and assumptions are periodically reviewed and the effects of the revisions are reflected in the accompanying unaudited interim financial statements in the period they are determined to be necessary. The most significant estimate relates to accrued clinical trial expenses.</p></ix:nonNumeric><ix:nonNumeric id="F_000242" name="us-gaap:IncomeTaxPolicyTextBlock" contextRef="C_0001678660_20210101_20210630" escape="true">
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Income taxes</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Based upon the historical and anticipated future losses, management has determined that the deferred tax assets generated by net operating losses and research and development credits do not meet the more likely than not threshold for realizability. Accordingly, a full valuation allowance has been recorded against the Company&#8217;s net deferred tax assets as of June 30, 2021 and December&#160;31, 2020.</p></ix:nonNumeric><ix:nonNumeric id="F_000243" name="us-gaap:EarningsPerSharePolicyTextBlock" contextRef="C_0001678660_20210101_20210630" escape="true" continuedAt="F_000243_dcnt_39a6023f-ed61-49f8-a108-f90044ff6b96">
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Net Loss Per Share</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Basic net loss per share of common stock is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during each period. The weighted-average number of shares of common stock outstanding used in the basic net loss per share calculation does not include unvested restricted stock awards as these instruments are considered contingently issuable shares until they vest. Diluted net loss per share of common stock includes the effect, if any, from the potential exercise or conversion of securities, such as stock options and convertible preferred stock, and the effect from unvested restricted stock awards which would result in the issuance of incremental shares of common stock. For diluted net loss per share, the weighted-average number of shares of common stock is the same for basic net loss per share due to the fact that when a net loss exists, dilutive securities are not included in the calculation as the impact is anti-dilutive. The Company&#8217;s convertible preferred stock and unvested restricted stock entitles the holder to participate in dividends and earnings of the Company, and, if the Company were to recognize net income, it would have to use the two-class method to calculate earnings per share. The two-class method is not applicable during periods with a net loss, as the holders of the convertible preferred stock and unvested restricted stock have no obligation to fund losses.</p><ix:nonNumeric id="F_000245" name="us-gaap:ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock" contextRef="C_0001678660_20210101_20210630" escape="true">
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares of common stock outstanding, as they would be anti-dilutive:</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" style="margin:auto;border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="6" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:30.4%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June 30,</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2021</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2020</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Series A convertible preferred stock</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000255" name="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount" contextRef="C_0001678660_us-gaapAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis_prldSeriesAConvertiblePreferredStockMember_20200101_20200630" decimals="0" format="ixt:numdotdecimal">11,736,119</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Series B convertible preferred stock</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000256" name="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount" contextRef="C_0001678660_us-gaapAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis_prldSeriesBConvertiblePreferredStockMember_20200101_20200630" decimals="0" format="ixt:numdotdecimal">15,257,692</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Unvested restricted stock awards</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000257" name="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount" contextRef="C_0001678660_us-gaapAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis_us-gaapRestrictedStockMember_20210101_20210630" decimals="0" format="ixt:numdotdecimal">841,965</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000258" name="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount" contextRef="C_0001678660_us-gaapAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis_us-gaapRestrictedStockMember_20200101_20200630" decimals="0" format="ixt:numdotdecimal">1,409,250</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Unvested restricted stock units</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000259" name="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount" contextRef="C_0001678660_us-gaapAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis_us-gaapRestrictedStockUnitsRSUMember_20210101_20210630" decimals="0" format="ixt:numdotdecimal">25,000</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Stock options</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000260" name="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount" contextRef="C_0001678660_us-gaapAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis_us-gaapEmployeeStockOptionMember_20210101_20210630" decimals="0" format="ixt:numdotdecimal">6,769,438</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000261" name="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount" contextRef="C_0001678660_us-gaapAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis_us-gaapEmployeeStockOptionMember_20200101_20200630" decimals="0" format="ixt:numdotdecimal">3,578,863</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000262" name="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount" contextRef="C_0001678660_20210101_20210630" decimals="0" format="ixt:numdotdecimal">7,636,403</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000263" name="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount" contextRef="C_0001678660_20200101_20200630" decimals="0" format="ixt:numdotdecimal">31,981,924</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
</table></div></ix:nonNumeric>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Amounts in the above table reflect the common stock equivalents.</p></ix:nonNumeric></ix:continuation>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">6</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p><ix:continuation id="F_000234_dcnt_a18cdf2c-fd7a-4cd8-af2f-04ff890d3709"><ix:continuation id="F_000243_dcnt_39a6023f-ed61-49f8-a108-f90044ff6b96">
</ix:continuation><ix:nonNumeric id="F_000244" name="us-gaap:NewAccountingPronouncementsPolicyPolicyTextBlock" contextRef="C_0001678660_20210101_20210630" escape="true">
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Recently Issued Accounting Pronouncements</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Emerging Growth Company Status</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the &#8220;JOBS Act&#8221;). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act, until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i)&#160;is no longer an emerging growth company or (ii)&#160;affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, these unaudited interim financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:4.26%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Recently Adopted Accounting Pronouncements</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">On <ix:nonNumeric id="F_000265" name="us-gaap:ChangeInAccountingPrincipleAccountingStandardsUpdateAdoptionDate" contextRef="C_0001678660_us-gaapAdjustmentsForNewAccountingPronouncementsAxis_us-gaapAccountingStandardsUpdate201602Member_20210630" format="ixt:datemonthdayyearen">January 1, 2021</ix:nonNumeric>, the Company adopted ASC 842 issued by the FASB in February 2016, which was subsequently supplemented by clarifying guidance to improve financial reporting of leasing transactions. The new lease accounting guidance requires lessees to recognize lease liabilities and right-of-use assets on the balance sheet for all leases with initial terms longer than 12 months and provides enhanced disclosures on key information of leasing arrangements.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-top:2pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company adopted the new standard using the modified retrospective transition method utilizing the optional transition method and elected the package of practical expedients. Accordingly, prior periods were not restated to reflect the adopted standard. <span style="color:#000000;">In accordance with the guidance in&#160;</span>ASC 842<span style="color:#000000;">, components of a lease should be split into three categories: lease components (e.g., land, building, etc.), non-lease components (e.g., common area maintenance, maintenance, consumables, etc.), and non-components (e.g., property taxes, insurance, etc.). The Company has elected the practical expedient to account for the lease and non-lease components of each of its operating leases as a single lease component and allocate all of the contract consideration to the lease component only</span>. Upon adoption, the Company recorded a right of use asset of $<ix:nonFraction unitRef="U_iso4217USD" id="F_000267" name="us-gaap:OperatingLeaseRightOfUseAsset" contextRef="C_0001678660_us-gaapAdjustmentsForNewAccountingPronouncementsAxis_us-gaapAccountingStandardsUpdate201602Member_20210630" decimals="-5" scale="6">2.5</ix:nonFraction> million and corresponding operating lease liabilities of $<ix:nonFraction unitRef="U_iso4217USD" id="F_000268" name="us-gaap:OperatingLeaseLiability" contextRef="C_0001678660_us-gaapAdjustmentsForNewAccountingPronouncementsAxis_us-gaapAccountingStandardsUpdate201602Member_20210630" decimals="-5" scale="6">2.5</ix:nonFraction> million, with an offset to accrued expenses and other current liabilities of approximately $<ix:nonFraction unitRef="U_iso4217USD" id="F_000269" name="prld:OffsetAccruedExpenseAndOtherCurrentLiabilitiesToEliminateDeferredRent" contextRef="C_0001678660_20210630" decimals="0" format="ixt:numdotdecimal">64,000</ix:nonFraction> to eliminate deferred rent on the balance sheets. </p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:2pt;text-indent:4.26%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">At lease commencement, the Company records a lease liability based on the present value of lease payments over the expected lease term including any options to extend the lease that the Company is reasonably certain to exercise. The Company calculates the present value of lease payments using an incremental borrowing rate as the Company&#8217;s leases do not provide an implicit interest rate. The Company&#8217;s incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. At the lease commencement date, the Company records a corresponding right-of-use lease asset based on the lease liability, adjusted for any lease incentives received and any initial direct costs paid to the lessor prior to the lease commencement date. The Company may enter into leases with an initial term of 12 months or less (&#8220;Short-Term Leases&#8221;). For Short-Term Leases, the Company records the rent expense on a straight-line basis and does not record the leases on the balance sheet. The Company entered into a short-term lease in June 2021 and elected the short-term lease exemption that allows the Company to record the rent expense on a straight-line basis and does not require the recognition of a right-of-use asset or corresponding operating lease liability. <span style="color:#000000;">Refer to Note 7 for the Company&#8217;s lease disclosures.</span></p>
<p style="margin-bottom:0pt;margin-top:12pt;text-indent:4.26%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">After lease commencement, the Company measures its leases as follows: (i) the lease liability based on the present value of the remaining lease payments using the discount rate determined at lease commencement and (ii) the right-of-use lease asset based on the re-measured lease liability, adjusted for any unamortized lease incentives received, any unamortized initial direct costs and the cumulative difference between rent expense and amounts paid under the lease agreement. Any lease incentives received, and any initial direct costs incurred are amortized on a straight-line basis over the expected lease term. Rent expense is recorded on a straight-line basis over the expected lease term.</p>
<p style="margin-bottom:0pt;margin-top:12pt;text-indent:4.26%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The adoption of the new lease accounting standard did not have a material impact on the Company&#8217;s results of operations or cash flows for the six months ended June 30, 2021. </p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p></ix:nonNumeric></ix:continuation><ix:nonNumeric id="F_000235" name="us-gaap:FairValueDisclosuresTextBlock" contextRef="C_0001678660_20210101_20210630" escape="true" continuedAt="F_000235_dcnt_730034b0-4e4b-461c-868c-e02d7b1503ea">
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">4. Fair Value of Financial Instruments</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Fair value is the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value determination in accordance with applicable accounting guidance requires that a number of significant judgments be made. Additionally, fair value is used on a nonrecurring basis to evaluate assets for impairment or as required for disclosure purposes by applicable accounting guidance on disclosures about fair value of financial instruments. Depending on the nature of the assets and liabilities, various valuation techniques and assumptions are used when estimating fair value. The Company follows the provisions of ASC 820, for financial assets and liabilities measured on a recurring basis. The guidance requires fair value measurements be classified and disclosed in one of the following three categories:</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#000000;"></span><span style="font-style:italic;color:#000000;">Level&#160;1:</span><span style="color:#000000;"> Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.</span></p></td></tr></table></div></ix:nonNumeric>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">7</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p><ix:continuation id="F_000235_dcnt_730034b0-4e4b-461c-868c-e02d7b1503ea">
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;"><span style="text-decoration:none;Background-color:#auto;"></span><span style="color:#000000;"></span><span style="font-style:italic;color:#000000;">Level&#160;2:</span><span style="color:#000000;"> Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liabilities.</span></p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#000000;"></span><span style="font-style:italic;color:#000000;">Level&#160;3:</span><span style="color:#000000;"> Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e.,&#160;supported by little or no market activity).</span></p></td></tr></table></div><ix:nonNumeric id="F_000246" name="us-gaap:ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock" contextRef="C_0001678660_20210101_20210630" escape="true">
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The following fair value hierarchy table presents information about the Company&#8217;s assets and liabilities measured at fair value on a recurring basis:</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" style="margin:auto;border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:57.48%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="10" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:40.1%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Fair value measurement at reporting date using</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:57.48%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(in thousands)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:11.76%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Quoted prices</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">in active</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">markets for</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">identical</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">assets</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(Level 1)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:11.76%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Significant</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">other</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">observable</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">inputs</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(Level 2)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-top:solid 0.75pt #000000;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:11.76%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Significant</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">unobservable</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">inputs</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(Level 3)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:57.48%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">June 30, 2021:</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:57.48%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Assets:</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:57.48%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cash equivalents (Money Market Funds)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000270" name="us-gaap:FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue" contextRef="C_0001678660_us-gaapCashAndCashEquivalentsAxis_us-gaapMoneyMarketFundsMember_us-gaapFairValueByFairValueHierarchyLevelAxis_us-gaapFairValueInputsLevel1Member_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">341,198</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:57.48%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">December 31, 2020:</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:57.48%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Assets:</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:57.48%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cash equivalents (Money Market Funds)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000271" name="us-gaap:FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue" contextRef="C_0001678660_us-gaapCashAndCashEquivalentsAxis_us-gaapMoneyMarketFundsMember_us-gaapFairValueByFairValueHierarchyLevelAxis_us-gaapFairValueInputsLevel1Member_20201231" decimals="-3" format="ixt:numdotdecimal" scale="3">217,072</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p></ix:nonNumeric></ix:continuation><ix:nonNumeric id="F_000236" name="prld:AccruedExpensesAndOtherCurrentLiabilitiesTextBlock" contextRef="C_0001678660_20210101_20210630" escape="true">
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">5. Accrued Expenses and Other Current Liabilities</p><ix:nonNumeric id="F_000247" name="prld:ScheduleOfAccruedExpensesAndOtherCurrentLiabilitiesTableTextBlock" contextRef="C_0001678660_20210101_20210630" escape="true">
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Accrued expenses and other current liabilities consisted of the following:</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" style="margin:auto;border-collapse:collapse; width:100%;">
<tr>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(in thousands)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June 30,</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2021</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">December 31,</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2020</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Compensation and related benefits</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000272" name="us-gaap:EmployeeRelatedLiabilitiesCurrent" contextRef="C_0001678660_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">2,330</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000273" name="us-gaap:EmployeeRelatedLiabilitiesCurrent" contextRef="C_0001678660_20201231" decimals="-3" format="ixt:numdotdecimal" scale="3">3,614</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Research and development</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000274" name="prld:AccruedResearchAndDevelopmentLiabilitiesCurrent" contextRef="C_0001678660_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">4,071</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000275" name="prld:AccruedResearchAndDevelopmentLiabilitiesCurrent" contextRef="C_0001678660_20201231" decimals="-3" format="ixt:numdotdecimal" scale="3">3,421</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Other</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000276" name="us-gaap:OtherAccruedLiabilitiesCurrent" contextRef="C_0001678660_20210630" decimals="-3" scale="3">29</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000277" name="us-gaap:OtherAccruedLiabilitiesCurrent" contextRef="C_0001678660_20201231" decimals="-3" scale="3">420</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000278" name="us-gaap:AccruedLiabilitiesCurrent" contextRef="C_0001678660_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">6,430</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000279" name="us-gaap:AccruedLiabilitiesCurrent" contextRef="C_0001678660_20201231" decimals="-3" format="ixt:numdotdecimal" scale="3">7,455</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p></ix:nonNumeric></ix:nonNumeric><ix:nonNumeric id="F_000237" name="us-gaap:StockholdersEquityNoteDisclosureTextBlock" contextRef="C_0001678660_20210101_20210630" escape="true" continuedAt="F_000237_dcnt_b92367d4-d934-457a-966b-219f7579671a">
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">6. Common Stock</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-weight:bold;font-style:italic;color:#000000;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Common Stock Offering</p>
<p style="margin-bottom:0pt;margin-top:6pt;text-indent:4.26%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In January 2021, the Company sold <ix:nonFraction unitRef="U_xbrlishares" id="F_000280" name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapCommonStockMember_us-gaapSubsidiarySaleOfStockAxis_us-gaapIPOMember_20210101_20210131" decimals="INF" format="ixt:numdotdecimal">2,875,000</ix:nonFraction> shares of its common stock at a public offering price of $<ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000281" name="us-gaap:SaleOfStockPricePerShare" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapCommonStockMember_us-gaapSubsidiarySaleOfStockAxis_us-gaapIPOMember_20210131" decimals="INF">60.00</ix:nonFraction> per share. The Company received net proceeds of $<ix:nonFraction unitRef="U_iso4217USD" id="F_000282" name="us-gaap:ProceedsFromIssuanceOfCommonStock" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapCommonStockMember_us-gaapSubsidiarySaleOfStockAxis_us-gaapIPOMember_20210101_20210131" decimals="-5" scale="6">161.4</ix:nonFraction> million after deducting underwriting discounts, commissions, and other offering expenses paid by the Company.</p>
<p style="margin-bottom:0pt;margin-top:6pt;text-indent:4.26%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company has two classes of common stock&#59; &#8220;voting common stock&#8221; and &#8220;non-voting common stock.&#8221; <span style="color:#000000;"><ix:nonNumeric id="F_000283" name="us-gaap:CommonStockVotingRights" contextRef="C_0001678660_us-gaapStatementEquityComponentsAxis_us-gaapCommonStockMember_20210101_20210630">The holders of the voting common stock are entitled to one vote for each share of voting common stock held at all meetings of stockholders.</ix:nonNumeric></span> Except as otherwise required by law, the holders of non-voting common stock shall not be entitled to vote at any meetings of stockholders (or written actions in lieu of meetings) and the shares of non-voting common stock shall not be included in determining the number of shares voting or entitled to vote on any matter. Unless required by law, there shall be no cumulative voting. Any holder of non-voting common stock may elect to convert each share of non-voting common stock into one fully paid and non-assessable share of voting common stock at any time by providing written notice to the Company&#59; provided that as a result of such conversion, such holder, together with its affiliates and any members of a Schedule&#160;13(d) group with such holder, would not beneficially own in excess of <ix:nonFraction unitRef="U_xbrlipure" id="F_000284" name="prld:BeneficialOwnershipPercentage" contextRef="C_0001678660_srtRangeAxis_srtMinimumMember_us-gaapStatementEquityComponentsAxis_us-gaapCommonStockMember_20210101_20210630" decimals="INF" scale="-2">9.99</ix:nonFraction>% of the Company&#8217;s common stock immediately prior to and following such conversion, unless otherwise as expressly provided for in the Company&#8217;s restated certificate of incorporation. However, this ownership limitation may be increased (not to exceed <ix:nonFraction unitRef="U_xbrlipure" id="F_000285" name="prld:BeneficialOwnershipPercentage" contextRef="C_0001678660_srtRangeAxis_srtMaximumMember_us-gaapStatementEquityComponentsAxis_us-gaapCommonStockMember_20210101_20210630" decimals="INF" scale="-2">19.99</ix:nonFraction>%) or decreased to any other percentage designated by such holder of non-voting common stock upon 61 days&#8217; notice to the Company.</p>
<p style="margin-top:8pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;">&#160;</p></ix:nonNumeric>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">8</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p><ix:continuation id="F_000237_dcnt_b92367d4-d934-457a-966b-219f7579671a">
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p></ix:continuation><ix:nonNumeric id="F_000238" name="us-gaap:CommitmentsDisclosureTextBlock" contextRef="C_0001678660_20210101_20210630" escape="true">
<p style="margin-bottom:0pt;margin-top:0pt;margin-right:66.11%;text-indent:0%;font-weight:bold;color:#231F20;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">7. Commitments</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:4.54%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Leases</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:4.54%;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="Background-color:#FFFFFF;">The Company leases office and laboratory space in Wilmington, Delaware under a noncancelable lease, which expires in December 2022. The Company has an option to renew the leases for an additional <ix:nonNumeric id="F_000286" name="us-gaap:LesseeOperatingLeaseRenewalTerm" contextRef="C_0001678660_us-gaapLeaseContractualTermAxis_prldOperatingLeaseExpiringDecember2022Member_20210630" format="ixt-sec:duryear">1</ix:nonNumeric>-year period. </span><ix:nonNumeric id="F_000288" name="us-gaap:LesseeOperatingLeaseOptionToExtend" contextRef="C_0001678660_20210101_20210630"><span style="color:#231F20;">This</span><span style="color:#231F20;letter-spacing:0.05pt;"> </span><span style="color:#231F20;">option</span><span style="color:#231F20;letter-spacing:0.1pt;"> </span><span style="color:#231F20;">to</span><span style="color:#231F20;letter-spacing:0.05pt;"> </span><span style="color:#231F20;">extend</span><span style="color:#231F20;letter-spacing:0.1pt;"> </span><span style="color:#231F20;">was</span><span style="color:#231F20;letter-spacing:0.05pt;"> </span><span style="color:#231F20;">not</span><span style="color:#231F20;letter-spacing:0.05pt;"> </span><span style="color:#231F20;">recognized</span><span style="color:#231F20;letter-spacing:0.15pt;"> </span><span style="color:#231F20;">as part</span><span style="color:#231F20;letter-spacing:0.05pt;"> </span><span style="color:#231F20;">of the</span><span style="color:#231F20;letter-spacing:0.05pt;"> </span><span style="color:#231F20;">Company&#8217;s measurement</span><span style="color:#231F20;letter-spacing:0.2pt;"> </span><span style="color:#231F20;">of the</span><span style="color:#231F20;letter-spacing:0.05pt;"> </span><span style="color:#231F20;">right-of-use</span><span style="color:#231F20;letter-spacing:0.15pt;"> </span><span style="color:#231F20;">asset</span><span style="color:#231F20;letter-spacing:0.05pt;"> </span><span style="color:#231F20;">and operating</span><span style="color:#231F20;letter-spacing:0.1pt;"> </span><span style="color:#231F20;">lease</span><span style="color:#231F20;letter-spacing:0.05pt;"> </span><span style="color:#231F20;">liability</span><span style="color:#231F20;letter-spacing:0.15pt;"> </span><span style="color:#231F20;">as of June 30, 2021</span></ix:nonNumeric><span style="Background-color:#FFFFFF;">.&#160;</span><span style="color:#231F20;">The</span><span style="color:#231F20;letter-spacing:1.15pt;"> </span><span style="color:#231F20;">discount</span><span style="color:#231F20;letter-spacing:1.2pt;"> </span><span style="color:#231F20;">rate</span><span style="color:#231F20;letter-spacing:1.2pt;"> </span><span style="color:#231F20;">used</span><span style="color:#231F20;letter-spacing:1.15pt;"> </span><span style="color:#231F20;">to</span><span style="color:#231F20;letter-spacing:1.15pt;"> </span><span style="color:#231F20;">account</span><span style="color:#231F20;letter-spacing:1.2pt;"> </span><span style="color:#231F20;">for</span><span style="color:#231F20;letter-spacing:1.2pt;"> </span><span style="color:#231F20;">the</span><span style="color:#231F20;letter-spacing:1.2pt;"> </span><span style="color:#231F20;">Company&#8217;s operating</span><span style="color:#231F20;letter-spacing:0.15pt;"> </span><span style="color:#231F20;">lease</span><span style="color:#231F20;letter-spacing:0.1pt;"> </span><span style="color:#231F20;">under</span><span style="color:#231F20;letter-spacing:0.1pt;"> </span><span style="color:#231F20;">ASC 842</span><span style="color:#231F20;letter-spacing:0.05pt;"> </span><span style="color:#231F20;">is</span><span style="color:#231F20;letter-spacing:0.1pt;"> </span><span style="color:#231F20;">the</span><span style="color:#231F20;letter-spacing:0.1pt;"> </span><span style="color:#231F20;">Company&#8217;s</span><span style="color:#231F20;letter-spacing:0.1pt;"> </span><span style="color:#231F20;">estimated</span><span style="color:#231F20;letter-spacing:0.15pt;"> </span><span style="color:#231F20;">incremental</span><span style="color:#231F20;letter-spacing:0.2pt;"> </span><span style="color:#231F20;">borrowing</span><span style="color:#231F20;letter-spacing:0.1pt;"> </span><span style="color:#231F20;">rate</span><span style="color:#231F20;letter-spacing:0.1pt;"> </span><span style="color:#231F20;">of</span><span style="color:#231F20;letter-spacing:0.05pt;"> </span><span style="color:#231F20;"><ix:nonFraction unitRef="U_xbrlipure" id="F_000287" name="prld:OperatingLeaseEstimatedIncrementalBorrowingRatePercent" contextRef="C_0001678660_20210101_20210630" decimals="3" scale="-2">10.0</ix:nonFraction></span>%.<span style="color:#231F20;letter-spacing:0.05pt;"> In June 2021, the Company signed a <ix:nonNumeric id="F_000289" name="us-gaap:LesseeOperatingLeaseTermOfContract" contextRef="C_0001678660_20210630" format="ixt-sec:durmonth">12</ix:nonNumeric>-month noncancelable lease, which commenced on <ix:nonNumeric id="F_000290" name="prld:LeaseCommencementDate" contextRef="C_0001678660_20210601_20210630" format="ixt:datemonthdayyearen">July 1, 2021</ix:nonNumeric> and will expire on <ix:nonNumeric id="F_000291" name="us-gaap:LeaseExpirationDate1" contextRef="C_0001678660_20210601_20210630" format="ixt:datemonthdayyearen">June 30, 2022</ix:nonNumeric> and has remaining lease payments of approximately $<ix:nonFraction unitRef="U_iso4217USD" id="F_000292" name="us-gaap:LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear" contextRef="C_0001678660_us-gaapSubsequentEventTypeAxis_us-gaapSubsequentEventMember_20210701" decimals="-5" scale="6"><ix:nonFraction unitRef="U_iso4217USD" id="F_000293" name="us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths" contextRef="C_0001678660_us-gaapSubsequentEventTypeAxis_us-gaapSubsequentEventMember_20210701" decimals="-5" scale="6">0.2</ix:nonFraction></ix:nonFraction> million in both 2021 and 2022. </span></p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:4.54%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:4.54%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Rent<span style="letter-spacing:0.05pt;"> </span>expense<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>three months<span style="letter-spacing:0.1pt;"> </span>ended<span style="letter-spacing:0.05pt;"> </span>June 30,<span style="letter-spacing:0.05pt;"> </span>2021<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>2020<span style="letter-spacing:0.05pt;"> </span>was<span style="letter-spacing:0.05pt;"> </span>$<ix:nonFraction unitRef="U_iso4217USD" id="F_000294" name="us-gaap:OperatingLeaseExpense" contextRef="C_0001678660_20210401_20210630" decimals="-5" scale="6">0.3</ix:nonFraction><span style="letter-spacing:0.05pt;"> </span>million<span style="letter-spacing:0.1pt;"> </span>and $<ix:nonFraction unitRef="U_iso4217USD" id="F_000295" name="us-gaap:OperatingLeaseExpense" contextRef="C_0001678660_20200401_20200630" decimals="-5" scale="6">0.2</ix:nonFraction> million, respectively.<span style="color:#000000;"> </span>Rent<span style="letter-spacing:0.05pt;"> </span>expense<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>six months<span style="letter-spacing:0.1pt;"> </span>ended<span style="letter-spacing:0.05pt;"> </span>June 30,<span style="letter-spacing:0.05pt;"> </span>2021<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>2020<span style="letter-spacing:0.05pt;"> </span>was<span style="letter-spacing:0.05pt;"> </span>$<ix:nonFraction unitRef="U_iso4217USD" id="F_000296" name="us-gaap:OperatingLeaseExpense" contextRef="C_0001678660_20210101_20210630" decimals="-5" scale="6">0.7</ix:nonFraction><span style="letter-spacing:0.05pt;"> </span>million<span style="letter-spacing:0.1pt;"> </span>and $<ix:nonFraction unitRef="U_iso4217USD" id="F_000297" name="us-gaap:OperatingLeaseExpense" contextRef="C_0001678660_20200101_20200630" decimals="-5" scale="6">0.5</ix:nonFraction> million, respectively.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;">&#160;</p><ix:nonNumeric id="F_000248" name="us-gaap:LesseeOperatingLeaseLiabilityMaturityTableTextBlock" contextRef="C_0001678660_20210101_20210630" escape="true">
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:4.26%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Future<span style="letter-spacing:0.25pt;"> </span>minimum<span style="letter-spacing:0.3pt;"> </span>annual<span style="letter-spacing:0.25pt;"> </span>lease<span style="letter-spacing:0.25pt;"> </span>payments<span style="letter-spacing:0.25pt;"> </span>under<span style="letter-spacing:0.25pt;"> the Company&#8217;s </span>noncancelable<span style="letter-spacing:0.25pt;"> </span>lease<span style="letter-spacing:0.2pt;"> </span>at<span style="letter-spacing:0.2pt;"> </span>June 30,<span style="letter-spacing:0.15pt;"> </span>2021<span style="letter-spacing:0.15pt;"> </span>is<span style="letter-spacing:0.2pt;"> </span>as<span style="letter-spacing:0.15pt;"> </span>follows:</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-right:9.81%;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" style="margin:auto;border-collapse:collapse; width:100%;">
<tr>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:80.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><span style="text-decoration:underline;">(in thousands)</span></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.96%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:15.82%;white-space:nowrap;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:80.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2021 (remaining)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.96%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:15.82%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000298" name="us-gaap:LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear" contextRef="C_0001678660_20210630" decimals="-3" scale="3">702</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:80.18%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2022</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.96%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:15.82%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000299" name="us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths" contextRef="C_0001678660_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">1,403</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:80.18%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total undiscounted lease payments</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.96%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:15.82%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000300" name="us-gaap:LesseeOperatingLeaseLiabilityPaymentsDue" contextRef="C_0001678660_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">2,105</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:80.18%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Less imputed interest</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.96%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:15.82%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_iso4217USD" id="F_000301" name="us-gaap:LesseeOperatingLeaseLiabilityUndiscountedExcessAmount" contextRef="C_0001678660_20210630" decimals="-3" scale="3">159</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:80.18%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Current and noncurrent lease liability</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.96%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:15.82%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000302" name="us-gaap:OperatingLeaseLiability" contextRef="C_0001678660_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">1,946</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
</table></div></ix:nonNumeric>
<p style="Background-color:#FFFFFF;margin-bottom:0pt;margin-top:18pt;text-indent:4.54%;font-weight:bold;font-style:italic;color:#000000;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">Employment Agreements</p>
<p style="Background-color:#FFFFFF;margin-bottom:0pt;margin-top:6pt;text-indent:4.54%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="Background-color:#FFFFFF;">The Company entered into employment agreements with key personnel providing for compensation and severance in certain circumstances, as defined in the respective employment agreements</span></p>
<p style="Background-color:#FFFFFF;margin-bottom:0pt;margin-top:18pt;text-indent:4.54%;font-weight:bold;font-style:italic;color:#000000;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">401(k) Defined Contribution Plan</p>
<p style="Background-color:#FFFFFF;margin-bottom:0pt;margin-top:6pt;text-indent:4.54%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company sponsors a 401(k)&#160;defined&#8209;contribution plan covering all employees. Participants are permitted to contribute up to <ix:nonFraction unitRef="U_xbrlipure" id="F_000303" name="us-gaap:DefinedContributionPlanMaximumAnnualContributionsPerEmployeePercent" contextRef="C_0001678660_20210101_20210630" decimals="INF" scale="-2">100</ix:nonFraction>% of their eligible annual pretax compensation up to an established federal limit on aggregate participant contributions. The Company provides a safe harbor match with a maximum amount of <ix:nonFraction unitRef="U_xbrlipure" id="F_000304" name="us-gaap:DefinedContributionPlanEmployerMatchingContributionPercent" contextRef="C_0001678660_20210101_20210630" decimals="2" scale="-2">3</ix:nonFraction>% of the participant&#8217;s compensation. During the three and six months ended June 30, 2021, the Company made matching contributions of $<ix:nonFraction unitRef="U_iso4217USD" id="F_000305" name="us-gaap:DefinedContributionPlanEmployerDiscretionaryContributionAmount" contextRef="C_0001678660_20210401_20210630" decimals="-5" scale="6">0.1</ix:nonFraction> million and $<ix:nonFraction unitRef="U_iso4217USD" id="F_000306" name="us-gaap:DefinedContributionPlanEmployerDiscretionaryContributionAmount" contextRef="C_0001678660_20210101_20210630" decimals="-5" scale="6">0.3</ix:nonFraction> million, respectively.</p>
<p style="Background-color:#FFFFFF;margin-bottom:0pt;margin-top:18pt;text-indent:4.54%;font-weight:bold;font-style:italic;color:#000000;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">Other Research and Development Arrangements</p>
<p style="Background-color:#FFFFFF;margin-bottom:0pt;margin-top:6pt;text-indent:4.54%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company enters into agreements with contract research organizations (&#8220;CROs&#8221;) to assist in the performance of research and development activities. Expenditures to CROs will represent a significant cost in clinical development for the Company.</p></ix:nonNumeric><ix:nonNumeric id="F_000239" name="us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock" contextRef="C_0001678660_20210101_20210630" escape="true" continuedAt="F_000239_dcnt_3f3acca7-7530-4b61-a338-160581d81810">
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">8. Stock-Based Compensation</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company has <ix:nonFraction unitRef="U_prldPlan" id="F_000307" name="prld:NumberOfEquityIncentivePlans" contextRef="C_0001678660_20210101_20210630" decimals="INF" format="ixt-sec:numwordsen">two</ix:nonFraction> equity incentive plans: the 2016 Equity Incentive Plan, as amended, and the 2020 Equity Incentive Plan. New awards can only be granted under the 2020 Equity Incentive Plan (the &#8220;Plan&#8221;) and as of June 30, 2021, <ix:nonFraction unitRef="U_xbrlishares" id="F_000308" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant" contextRef="C_0001678660_us-gaapPlanNameAxis_prldTwoThousandTwentyEquityIncentivePlanMember_20210630" decimals="INF" format="ixt:numdotdecimal">6,282,783</ix:nonFraction> shares were available for future grants. <ix:nonNumeric id="F_000309" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardTermsOfAward" contextRef="C_0001678660_us-gaapPlanNameAxis_prldTwoThousandTwentyEquityIncentivePlanMember_20210101_20210630">The number of shares of the Company&#8217;s common stock that may be issued pursuant to rights granted under the Plan shall automatically increase on January 1st of each year, commencing on January 1, 2021, and continuing for <ix:nonNumeric id="F_000310" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardExpirationPeriod" contextRef="C_0001678660_us-gaapPlanNameAxis_prldTwoThousandTwentyEquityIncentivePlanMember_20210101_20210630" format="ixt-sec:durwordsen">ten years</ix:nonNumeric>, in an amount equal to <ix:nonFraction unitRef="U_xbrlipure" id="F_000311" name="prld:PercentageOfSharesOutstandingUsedToCalculateAnnualIncreaseInNumberOfSharesThatCanBeIssued" contextRef="C_0001678660_us-gaapPlanNameAxis_prldTwoThousandTwentyEquityIncentivePlanMember_20210101_20210630" decimals="2" format="ixt-sec:numwordsen" scale="-2">five</ix:nonFraction> percent of the total number of shares of the Company&#8217;s common stock outstanding on December 31st of the preceding calendar year, subject to the discretion of the board of directors or compensation committee to determine a lesser number of shares shall be added for such year.</ix:nonNumeric> The Plan provides for the granting of common stock, incentive stock options, nonqualified stock options, restricted stock awards, and/or stock appreciation rights to employees, directors, and other persons, as determined by the Company&#8217;s board of directors. The Company&#8217;s stock options vest based on the terms in each award agreement, generally over <span style="-sec-ix-hidden:F_000312">four-year</span> periods with <ix:nonFraction unitRef="U_xbrlipure" id="F_000314" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardAwardVestingRightsPercentage" contextRef="C_0001678660_us-gaapPlanNameAxis_prldTwoThousandTwentyEquityIncentivePlanMember_us-gaapVestingAxis_us-gaapShareBasedCompensationAwardTrancheOneMember_20210101_20210630" decimals="2" scale="-2">25</ix:nonFraction>% of options vesting after <ix:nonNumeric id="F_000313" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1" contextRef="C_0001678660_srtRangeAxis_srtMinimumMember_us-gaapPlanNameAxis_prldTwoThousandTwentyEquityIncentivePlanMember_20210101_20210630" format="ixt-sec:duryear">1</ix:nonNumeric> year and then monthly thereafter, and have a term of <ix:nonNumeric id="F_000315" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardExpirationPeriod" contextRef="C_0001678660_us-gaapPlanNameAxis_prldTwoThousandTwentyEquityIncentivePlanMember_20210101_20210630" format="ixt-sec:durwordsen">ten years</ix:nonNumeric>. In September 2020, the Company adopted the 2020 Employee Stock Purchase Plan (the &#8220;ESPP&#8221;), which, as of June 30, 2021, had <ix:nonFraction unitRef="U_xbrlishares" id="F_000316" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant" contextRef="C_0001678660_us-gaapPlanNameAxis_prldTwoThousandTwentyEmployeeStockPurchasePlanMember_20210630" decimals="INF" format="ixt:numdotdecimal">957,056</ix:nonFraction> shares of common stock reserved for future issuance. <ix:nonFraction unitRef="U_xbrlishares" id="F_000317" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardSharesIssuedInPeriod" contextRef="C_0001678660_us-gaapPlanNameAxis_prldTwoThousandTwentyEmployeeStockPurchasePlanMember_20210101_20210630" decimals="INF" format="ixt-sec:numwordsen">No</ix:nonFraction> shares have been issued from the ESPP as of June 30, 2021.</p></ix:nonNumeric>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">9</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p><ix:continuation id="F_000239_dcnt_3f3acca7-7530-4b61-a338-160581d81810" continuedAt="F_000239_dcnt_25a919ed-7dd3-4e37-9eea-25d3a93d1502">

<p style="margin-top:12pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company measures stock-based awards at their grant-date fair value and records compensation expense on a straight-line basis over the vesting period of the awards. <ix:nonNumeric id="F_000249" name="us-gaap:ScheduleOfCompensationCostForShareBasedPaymentArrangementsAllocationOfShareBasedCompensationCostsByPlanTableTextBlock" contextRef="C_0001678660_20210101_20210630" escape="true" continuedAt="F_000249_cnt_1">The Company recorded stock-based compensation expense in the following expense categories in its accompanying statements of operations:</ix:nonNumeric></p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p><ix:continuation id="F_000249_cnt_1">
<div>
<table border="0" cellspacing="0" cellpadding="0" style="margin:auto;border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:49.44%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="6" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:22.16%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Three Months Ended</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June 30,</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="6" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:23.86%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Six Months</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June 30,</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:49.44%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(in thousands)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.98%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2021</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.98%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2020</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.78%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2021</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-top:solid 0.75pt #000000;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.78%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2020</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:49.44%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Research and development</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.98%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000318" name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="C_0001678660_us-gaapIncomeStatementLocationAxis_us-gaapResearchAndDevelopmentExpenseMember_20210401_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">2,203</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.98%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000319" name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="C_0001678660_us-gaapIncomeStatementLocationAxis_us-gaapResearchAndDevelopmentExpenseMember_20200401_20200630" decimals="-3" scale="3">244</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.78%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000320" name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="C_0001678660_us-gaapIncomeStatementLocationAxis_us-gaapResearchAndDevelopmentExpenseMember_20210101_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">4,043</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.78%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000321" name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="C_0001678660_us-gaapIncomeStatementLocationAxis_us-gaapResearchAndDevelopmentExpenseMember_20200101_20200630" decimals="-3" scale="3">417</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:49.44%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">General and administrative</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.98%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000322" name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="C_0001678660_us-gaapIncomeStatementLocationAxis_us-gaapGeneralAndAdministrativeExpenseMember_20210401_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">2,034</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.98%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000323" name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="C_0001678660_us-gaapIncomeStatementLocationAxis_us-gaapGeneralAndAdministrativeExpenseMember_20200401_20200630" decimals="-3" scale="3">383</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.78%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000324" name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="C_0001678660_us-gaapIncomeStatementLocationAxis_us-gaapGeneralAndAdministrativeExpenseMember_20210101_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">4,080</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.78%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000325" name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="C_0001678660_us-gaapIncomeStatementLocationAxis_us-gaapGeneralAndAdministrativeExpenseMember_20200101_20200630" decimals="-3" scale="3">572</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:49.44%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.98%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000326" name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="C_0001678660_20210401_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">4,237</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.98%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000327" name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="C_0001678660_20200401_20200630" decimals="-3" scale="3">627</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.78%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000328" name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="C_0001678660_20210101_20210630" decimals="-3" format="ixt:numdotdecimal" scale="3">8,123</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.78%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD" id="F_000329" name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="C_0001678660_20200101_20200630" decimals="-3" scale="3">989</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p></ix:continuation>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Stock Options</p><ix:nonNumeric id="F_000250" name="us-gaap:ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock" contextRef="C_0001678660_20210101_20210630" escape="true">
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The following table summarizes stock option activity for the periods indicated:</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" style="margin:auto;border-collapse:collapse; width:100%;">
<tr>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:57.48%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:11.76%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Number</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">of shares</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:11.76%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Weighted</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">average</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">exercise price</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">per share</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:11.76%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Weighted</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">average</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">remaining</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">contractual</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">term (years)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:57.48%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Outstanding at January 1, 2021</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000330" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber" contextRef="C_0001678660_20201231" decimals="INF" format="ixt:numdotdecimal">6,839,091</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000336" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice" contextRef="C_0001678660_20201231" decimals="2">8.46</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="-sec-ix-hidden:F_000342">9.17</span></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:57.48%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Granted</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000331" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross" contextRef="C_0001678660_20210101_20210630" decimals="INF" format="ixt:numdotdecimal">423,395</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000337" name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice" contextRef="C_0001678660_20210101_20210630" decimals="2">45.30</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:57.48%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Exercised</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_xbrlishares" id="F_000332" name="us-gaap:StockIssuedDuringPeriodSharesStockOptionsExercised" contextRef="C_0001678660_20210101_20210630" decimals="INF" format="ixt:numdotdecimal">458,060</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000338" name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice" contextRef="C_0001678660_20210101_20210630" decimals="2">1.76</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.38%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:57.48%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Forfeited</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_xbrlishares" id="F_000333" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod" contextRef="C_0001678660_20210101_20210630" decimals="INF" format="ixt:numdotdecimal">34,988</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:10.76%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000339" name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice" contextRef="C_0001678660_20210101_20210630" decimals="2">43.36</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:10.76%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:57.48%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Outstanding at June&#160;30, 2021</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000334" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber" contextRef="C_0001678660_20210630" decimals="INF" format="ixt:numdotdecimal">6,769,438</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:10.76%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000340" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice" contextRef="C_0001678660_20210630" decimals="2">11.04</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:10.76%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="-sec-ix-hidden:F_000343">8.79</span></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:57.48%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Exercisable at June&#160;30, 2021</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000335" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" contextRef="C_0001678660_20210630" decimals="INF" format="ixt:numdotdecimal">1,255,060</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:10.76%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000341" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice" contextRef="C_0001678660_20210630" decimals="2">2.21</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.38%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:10.76%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="-sec-ix-hidden:F_000344">8.13</span></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
</table></div></ix:nonNumeric>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">At June 30, 2021, the aggregate intrinsic value of outstanding options and exercisable options was $<ix:nonFraction unitRef="U_iso4217USD" id="F_000345" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue" contextRef="C_0001678660_20210630" decimals="-5" scale="6">131.1</ix:nonFraction>&#160;million and $<ix:nonFraction unitRef="U_iso4217USD" id="F_000346" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1" contextRef="C_0001678660_20210630" decimals="-5" scale="6">33.2</ix:nonFraction>&#160;million, respectively.</p><ix:nonNumeric id="F_000251" name="us-gaap:ScheduleOfShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeTextBlock" contextRef="C_0001678660_20210101_20210630" escape="true">
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The following table summarizes information about stock options outstanding at June 30, 2021 under the Plan:</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" style="margin:auto;border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:44.74%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.08%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="10" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:31.04%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Options Outstanding</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.08%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="6" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:20%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Options Exercisable</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:44.74%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Range of Exercise Prices</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.08%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.94%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Number</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Outstanding</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.08%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.94%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Weighted&#160;Average</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Remaining</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Contractual&#160;Life</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(in years)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.08%; border-top:solid 0.75pt #000000;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.94%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Weighted</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Average</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Exercise</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Price</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.08%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.94%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Number</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Exercisable</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.08%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.94%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Weighted</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Average</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Exercise</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Price</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:44.74%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$0.31 - $7.37</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.08%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000353" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions" contextRef="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeOneMember_20210630" decimals="INF" format="ixt:numdotdecimal">3,051,304</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.08%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="-sec-ix-hidden:F_000357">8.23</span></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.08%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000360" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1" contextRef="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeOneMember_20210630" decimals="2">1.80</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.08%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000363" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions" contextRef="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeOneMember_20210630" decimals="INF" format="ixt:numdotdecimal">1,205,008</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.08%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000367" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1" contextRef="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeOneMember_20210630" decimals="2">1.76</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:44.74%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$7.38 - $15.93</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.08%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000354" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions" contextRef="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeTwoMember_20210630" decimals="INF" format="ixt:numdotdecimal">3,116,323</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.08%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="-sec-ix-hidden:F_000358">9.17</span></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.08%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000361" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1" contextRef="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeTwoMember_20210630" decimals="2">12.85</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.08%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000364" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions" contextRef="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeTwoMember_20210630" decimals="INF" format="ixt:numdotdecimal">48,322</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.08%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000368" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1" contextRef="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeTwoMember_20210630" decimals="2">12.85</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:44.74%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$15.94 - $88.98</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.08%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000355" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions" contextRef="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeThreeMember_20210630" decimals="INF" format="ixt:numdotdecimal">601,811</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.08%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:7.94%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="-sec-ix-hidden:F_000359">9.72</span></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.08%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:7.94%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000362" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1" contextRef="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeThreeMember_20210630" decimals="2">48.42</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.08%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000365" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions" contextRef="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeThreeMember_20210630" decimals="INF" format="ixt:numdotdecimal">1,730</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.08%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:7.94%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000369" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1" contextRef="C_0001678660_us-gaapShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis_prldExercisePriceRangeThreeMember_20210630" decimals="2">19.00</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:44.74%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.08%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000356" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions" contextRef="C_0001678660_20210630" decimals="INF" format="ixt:numdotdecimal">6,769,438</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.08%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:7.94%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.08%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:7.94%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.08%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000366" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions" contextRef="C_0001678660_20210630" decimals="INF" format="ixt:numdotdecimal">1,255,060</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.08%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:7.94%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
</table></div></ix:nonNumeric>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The weighted-average grant date fair value of options granted was $<ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000370" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapEmployeeStockOptionMember_20210101_20210630" decimals="2">38.31</ix:nonFraction> and $<ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000371" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapEmployeeStockOptionMember_20200101_20200630" decimals="2">2.88</ix:nonFraction> per share for the six months ended June 30, 2021 and 2020, respectively. The aggregate intrinsic value of options exercised was $<ix:nonFraction unitRef="U_iso4217USD" id="F_000372" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapEmployeeStockOptionMember_20210101_20210630" decimals="-5" scale="6">18.3</ix:nonFraction> million for the six months ended June 30, 2021. The Company recorded stock-based compensation expense of $<ix:nonFraction unitRef="U_iso4217USD" id="F_000375" name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapEmployeeStockOptionMember_20210401_20210630" decimals="-5" scale="6">4.2</ix:nonFraction>&#160;million and $<ix:nonFraction unitRef="U_iso4217USD" id="F_000376" name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapEmployeeStockOptionMember_20200401_20200630" decimals="-5" scale="6">0.6</ix:nonFraction>&#160;million for the three months ended June 30, 2021 and 2020, respectively, related to stock options.&#160;The Company recorded stock-based compensation expense of $<ix:nonFraction unitRef="U_iso4217USD" id="F_000373" name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapEmployeeStockOptionMember_20210101_20210630" decimals="-5" scale="6">7.7</ix:nonFraction>&#160;million and $<ix:nonFraction unitRef="U_iso4217USD" id="F_000374" name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapEmployeeStockOptionMember_20200101_20200630" decimals="-5" scale="6">0.7</ix:nonFraction>&#160;million for the six months ended June 30, 2021 and 2020, respectively, related to stock options.&#160;As of June 30, 2021, the total unrecognized compensation expense related to unvested stock option awards was $<ix:nonFraction unitRef="U_iso4217USD" id="F_000377" name="us-gaap:EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapEmployeeStockOptionMember_20210630" decimals="-5" scale="6">55.6</ix:nonFraction>&#160;million, which the Company expects to recognize over a weighted-average period of <ix:nonNumeric id="F_000378" name="us-gaap:EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapEmployeeStockOptionMember_20210101_20210630" format="ixt-sec:duryear">3.05</ix:nonNumeric>&#160;years.</p></ix:continuation>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">10</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p><ix:continuation id="F_000239_dcnt_25a919ed-7dd3-4e37-9eea-25d3a93d1502">
<ix:nonNumeric id="F_000252" name="us-gaap:ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock" contextRef="C_0001678660_20210101_20210630" escape="true">
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The fair value of each option was estimated on the date of grant using the weighted average assumptions in the table below:</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" style="margin:auto;border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="6" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:30.38%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Six months ended</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June&#160;30,</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2021</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2020</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Expected volatility</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlipure" id="F_000379" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapEmployeeStockOptionMember_20210101_20210630" decimals="4" scale="-2">115.05</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">%</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlipure" id="F_000380" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapEmployeeStockOptionMember_20200101_20200630" decimals="4" scale="-2">111.81</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">%</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Risk-free interest rate</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlipure" id="F_000381" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapEmployeeStockOptionMember_20210101_20210630" decimals="4" scale="-2">0.93</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">%</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlipure" id="F_000382" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapEmployeeStockOptionMember_20200101_20200630" decimals="4" scale="-2">0.51</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">%</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Expected life (in years)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="-sec-ix-hidden:F_000383">5.91</span></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="-sec-ix-hidden:F_000384">6.25</span></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Expected dividend yield</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
</table></div></ix:nonNumeric>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Restricted Stock Awards and Units</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company issues restricted stock awards (&#8220;RSA&#8221;) to employees that generally vest over a <span style="-sec-ix-hidden:F_000385">four-year</span> period with <ix:nonFraction unitRef="U_xbrlipure" id="F_000386" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardAwardVestingRightsPercentage" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockMember_us-gaapVestingAxis_us-gaapShareBasedCompensationAwardTrancheOneMember_20210101_20210630" decimals="2" scale="-2">25</ix:nonFraction>% of awards vesting after one year and then monthly thereafter. Any unvested shares will be forfeited upon termination of services. The fair value of an RSA is equal to the fair market value price of the Company&#8217;s common stock on the date of grant. RSA expense is recorded on a straight-line basis over the vesting period.</p><ix:nonNumeric id="F_000253" name="us-gaap:NonvestedRestrictedStockSharesActivityTableTextBlock" contextRef="C_0001678660_20210101_20210630" escape="true">
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The following table summarizes activity related to RSA stock-based payment awards:</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" style="margin:auto;border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Number of</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">shares</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Weighted-average</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">grant date fair</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">value</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Unvested balance at January 1, 2021</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000387" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockMember_20201231" decimals="INF" format="ixt:numdotdecimal">1,214,778</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000390" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockMember_20201231" decimals="2">2.09</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Vested</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(<ix:nonFraction unitRef="U_xbrlishares" id="F_000388" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockMember_20210101_20210630" decimals="INF" format="ixt:numdotdecimal">372,813</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:12.88%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000391" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockMember_20210101_20210630" decimals="2">1.95</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Unvested balance at June&#160;30, 2021</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_xbrlishares" id="F_000389" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockMember_20210630" decimals="INF" format="ixt:numdotdecimal">841,965</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:12.88%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><ix:nonFraction unitRef="U_iso4217USD_xbrlishares" id="F_000392" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockMember_20210630" decimals="2">2.16</ix:nonFraction></p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
</table></div></ix:nonNumeric>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company recorded stock-based compensation expense of $<ix:nonFraction unitRef="U_iso4217USD" id="F_000393" name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockMember_20210401_20210630" decimals="-5" scale="6">0.2</ix:nonFraction>&#160;million and $<ix:nonFraction unitRef="U_iso4217USD" id="F_000394" name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockMember_20200401_20200630" decimals="-5" scale="6">0.2</ix:nonFraction>&#160;million for the three months ended June 30, 2021 and 2020, respectively, related to RSAs. The Company recorded stock-based compensation expense of $<ix:nonFraction unitRef="U_iso4217USD" id="F_000395" name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockMember_20210101_20210630" decimals="-5" scale="6">0.4</ix:nonFraction>&#160;million and $<ix:nonFraction unitRef="U_iso4217USD" id="F_000396" name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockMember_20200101_20200630" decimals="-5" scale="6">0.3</ix:nonFraction>&#160;million for the six months ended June 30, 2021 and 2020, respectively, related to RSAs. As of June 30, 2021, the total unrecognized expense related to all RSAs was $<ix:nonFraction unitRef="U_iso4217USD" id="F_000397" name="us-gaap:EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedShareBasedAwardsOtherThanOptions" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockMember_20210630" decimals="-5" scale="6">1.8</ix:nonFraction>&#160;million, which the Company expects to recognize over a weighted-average period of <ix:nonNumeric id="F_000398" name="us-gaap:EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockMember_20210101_20210630" format="ixt-sec:duryear">2.26</ix:nonNumeric>&#160;years.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:4.26%;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">During the six months ended June 30, 2021, the Company granted <ix:nonFraction unitRef="U_xbrlishares" id="F_000399" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockUnitsRSUMember_20210101_20210630" decimals="INF" format="ixt:numdotdecimal">25,000</ix:nonFraction> restricted stock units <span style="color:#000000;">(&#8220;RSU&#8221;) to an employee that vest over a <span style="-sec-ix-hidden:F_000400">four-year</span> period with <ix:nonFraction unitRef="U_xbrlipure" id="F_000401" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardAwardVestingRightsPercentage" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockUnitsRSUMember_us-gaapVestingAxis_us-gaapShareBasedCompensationAwardTrancheOneMember_20210101_20210630" decimals="2" scale="-2">25</ix:nonFraction>% of awards vesting after one year and then quarterly thereafter. Any unvested units will be forfeited upon termination of services.</span> At June 30, 2021<span style="color:#000000;"> the total unrecognized expense related to the RSUs was $<ix:nonFraction unitRef="U_iso4217USD" id="F_000402" name="us-gaap:EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedShareBasedAwardsOtherThanOptions" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockUnitsRSUMember_20210630" decimals="-5" scale="6">0.8</ix:nonFraction>&#160;million, which the Company expects to recognize over <ix:nonNumeric id="F_000403" name="us-gaap:EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1" contextRef="C_0001678660_us-gaapAwardTypeAxis_us-gaapRestrictedStockUnitsRSUMember_20210101_20210630" format="ixt-sec:duryear">3.95</ix:nonNumeric>&#160;years.</span></p></ix:continuation>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">11</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;" id="ITEM_2_MANAGEMENTS_DISCUSSION_ANALYSIS_F">Item 2. Management&#8217;s Discussion and Analysis of Financial Condition and Results of Operations.</p>
<p style="margin-bottom:0pt;margin-top:6pt;text-indent:4.26%;font-style:italic;font-size:10pt;font-family:Times New Roman;font-weight:normal;text-transform:none;font-variant: normal;">You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this Quarterly Report on Form 10-Q. <span style="color:#000000;">In addition to historical financial information, this discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties, such as statements of our plans, objectives, expectations, intentions and belief. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in the section titled &#8220;Risk Factors&#8221; under Part II, Item 1A below.&#160;These forward-looking statements may include, but are not limited to, statements regarding our future results of operations and financial position, the impact of the COVID-19 pandemic, business strategy, market size, potential growth opportunities, preclinical and clinical development activities, efficacy and safety profile of our product candidates, use of net proceeds from our offerings, our ability to maintain and recognize the benefits of certain designations received by product candidates, the timing and results of preclinical studies and clinical trials, commercial collaborations with third parties and the receipt and timing of potential regulatory designations, approvals and commercialization of product candidates. The words &#8220;believe,&#8221; &#8220;may,&#8221; &#8220;will,&#8221; &#8220;potentially,&#8221; &#8220;estimate,&#8221; &#8220;continue,&#8221; &#8220;anticipate,&#8221; &#8220;predict,&#8221; &#8220;target,&#8221; &#8220;intend,&#8221; &#8220;could,&#8221; &#8220;would,&#8221; &#8220;should,&#8221; &#8220;project,&#8221; &#8220;plan,&#8221; &#8220;expect,&#8221; and similar expressions that convey uncertainty of future events or outcomes are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.</span></p>
<p style="margin-bottom:0pt;margin-top:12pt;text-indent:4.26%;font-style:italic;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;text-transform:none;font-variant: normal;">These statements are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Overview</p>
<p style="Background-color:#FFFFFF;margin-bottom:0pt;margin-top:6pt;text-indent:4.54%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We are a clinical-stage precision oncology company focused on discovering and developing small molecule therapies optimized to target the key driver mechanisms in cancers with high unmet need. By leveraging our core competencies in cancer biology and medicinal chemistry, combined with our target class- and technology platform-agnostic approach, we have built an efficient, fully-integrated drug discovery engine to identify compelling biological targets and create new chemical entities, or NCEs, that we rapidly advance into clinical development. We believe our approach could result in better targeted cancer therapies. Our discovery excellence has been validated by our rapid progress in creating a wholly-owned, internally developed pipeline. Since our inception in 2016, we have received clearance from the U.S. Food and Drug Administration, or the FDA, for four investigational new drug applications, or INDs, and successfully advanced these programs into clinical development. In addition, we have three unique programs in various stages of preclinical development that we plan to advance into clinical development beginning in 2021.</p>
<p style="Background-color:#FFFFFF;margin-bottom:0pt;margin-top:12pt;text-indent:4.54%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">By focusing on developing agents using broad mechanisms that have multiple links to oncogenic driver pathways in select patients, we have developed a diverse pipeline consisting of six distinct programs spanning methyltransferases, kinases, protein-protein interactions and targeted protein degraders. Our pipeline is geared towards serving patients with high unmet medical need where there are limited or no treatment options. We are exploring therapies in both solid tumors and hematological malignancies such as adenoid cystic carcinoma, or ACC, homologous recombination deficient positive, or HRD+, cancers, myelofibrosis, or MF, and glioblastoma multiforme, or GBM, amongst others. We believe we can best address these diseases by developing therapies that target primary and secondary resistance mechanisms.</p>
<p style="Background-color:#FFFFFF;margin-bottom:0pt;margin-top:12pt;text-indent:4.54%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our lead product candidates are designed to be oral, potent and selective inhibitors of protein arginine methyltransferase 5, or PRMT5. The potency and selectivity of our product candidates is supported by preclinical data demonstrating nanomolar inhibition of PRMT5 and no inhibition of related enzymes at 1,000 times higher concentration of our product candidates. We are currently advancing our first clinical candidate, PRT543, in a Phase 1 clinical trial in select solid tumors and myeloid malignancies in patients who are refractory to or intolerant of established therapies. Interim Phase 1 results indicate dose-dependent increases in exposure and target engagement, and we have observed early signs of clinical activity, including an ongoing confirmed complete response, or CR, in a patient with HRD+ high grade serous ovarian cancer through nine months of therapy. A complete response is defined as the disappearance of all target lesions. We will need to enroll and demonstrate objective responses in additional patients to support further development and potential approval by the FDA or other regulatory authorities, and while such approval is not guaranteed, we are encouraged by the clinical activity as of the date of this Quarterly Report on Form 10-Q. Patient enrollment is continuing in multiple biomarker-selected solid tumor and hematologic malignancy expansion cohorts. We anticipate presenting data from the dose escalation portion of the Phase 1 trial in unselected patient populations, including safety, PK and PD data and markers of target engagement, at the AACR-NCI-EORTC Annual Meeting in October 2021 and data from the expansion cohorts of the trial at medical meetings throughout 2022.</p>
<p style="Background-color:#FFFFFF;margin-bottom:0pt;margin-top:0pt;text-indent:4.54%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">12</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="Background-color:#FFFFFF;margin-bottom:0pt;margin-top:2pt;text-indent:4.54%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="Background-color:#FFFFFF;">We are also advancing PRT811, a second PRMT5 inhibitor that we have optimized for high brain exposure, in a Phase 1 clinical trial in solid tumors, including GBM. As of the date of this Quarterly Report on Form 10-Q, the trial has&#160;</span>demonstrated early signs of clinical activity and tolerability. The previously disclosed refractory GBM patient whose tumor had demonstrated a 66% reduction on monotherapy PRT811 subsequently underwent a&#160;follow-up&#160;MRI at week 18 and the regression improved to 77% from baseline, confirming a partial response, or PR, per RANO (response assessment in neuro-oncology) criteria. We will present data from the dose escalation portion of the Phase 1 trial in unselected patient populations, including safety, PK and PD data and markers of target engagement, at the AACR-NCI-EORTC Annual Meeting in October 2021. We anticipate beginning the dose expansion portion of the Phase 1 trial in the third quarter of 2021 in selected patients with central nervous system cancers, including high grade gliomas and CNS metastatic cancers. We expect to present data from these expansion cohorts at medical meetings throughout 2022.</p>
<p style="Background-color:#FFFFFF;margin-bottom:0pt;margin-top:12pt;text-indent:4.54%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">PRT1419, our third clinical candidate, is designed to be a potent and selective inhibitor of the anti-apoptotic protein, MCL1. The potency and selectivity of PRT1419 is supported by preclinical data demonstrating nanomolar inhibition of MCL1 and no inhibition of related enzymes at 200 times higher concentration of our product candidate. We have begun enrolling patients with hematologic malignancies, including patients with myelodysplastic syndrome, or MDS, acute myeloid<span style="font-size:12pt;"> </span>leukemia, or AML,&#160;non-Hodgkin&#8217;s&#160;lymphoma, or NHL, and multiple myeloma, or MM, into the dose escalation portion of a Phase 1 open-label, multicenter clinical trial for&#160;the oral formulation of&#160;PRT1419.&#160;We expect to add dose expansion and combination cohorts to the Phase 1 clinical trial in the second half of 2021. Additionally, in March 2021, the FDA cleared our IND for an intravenous (IV) formulation of PRT1419. <span style="color:#000000;">The Phase 1 trial of the IV formulation of PRT1419, which leverages the optimized physicochemical properties of PRT1419, is now underway in patients with solid tumors</span>.</p>
<p style="Background-color:#FFFFFF;margin-bottom:0pt;margin-top:12pt;text-indent:4.54%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We were incorporated in February 2016 under the laws of the State of Delaware. Since inception, we have devoted substantially all of our resources to developing product and technology rights, conducting research and development, organizing and staffing our company, business planning and raising capital. We have incurred recurring losses, the majority of which are attributable to research and development activities, and negative cash flows from operations. We have funded our operations primarily through the sale of convertible preferred stock and common stock. Our net loss was $48.2&#160;million for the six months ended June 30, 2021 as compared to $20.9 million for the six months ended June 30, 2020, and as of June 30, 2021, we had an accumulated deficit of $155.6&#160;million. Our primary use of cash is to fund operating expenses, which consist primarily of research and development expenditures, and to a lesser extent, general and administrative expenditures. Our ability to generate product revenue sufficient to achieve profitability will depend heavily on the successful development and eventual commercialization of one or more of our current or future product candidates. We expect to continue to incur significant expenses and operating losses for the foreseeable future as we advance our product candidates through all stages of development and clinical trials and, ultimately, seek regulatory approval. In addition, if we obtain marketing approval for any of our product candidates, we expect to incur significant commercialization expenses related to product manufacturing, marketing, sales and distribution. Furthermore, we expect to incur additional costs associated with operating as a public company, including significant legal, accounting, investor relations and other expenses that we did not incur as a private company. Our net losses may fluctuate significantly from quarter-to-quarter and year-to-year, depending on the timing of our clinical trials and our expenditures on other research and development activities.</p>
<p style="Background-color:#FFFFFF;margin-bottom:0pt;margin-top:12pt;text-indent:4.54%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We will need to raise substantial additional capital to support our continuing operations and pursue our growth strategy. Until such time as we can generate significant revenue from product sales, if ever, we plan to finance our operations through the sale of equity, debt financings or other capital sources, which may include collaborations with other companies or other strategic transactions. There are no assurances that we will be successful in obtaining an adequate level of financing as and when needed to finance our operations on terms acceptable to us or at all. Any failure to raise capital as and when needed could have a negative impact on our financial condition and on our ability to pursue our business plans and strategies. If we are unable to secure adequate additional funding, we may have to significantly delay, scale back or discontinue the development and commercialization of one or more product candidates or delay our pursuit of potential in-licenses or acquisitions.</p>
<p style="Background-color:#FFFFFF;margin-bottom:0pt;margin-top:12pt;text-indent:4.54%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">As of June 30, 2021, we had $343.1&#160;million in cash and cash equivalents. We expect our existing cash and cash equivalents will enable us to fund our operating expenses and capital expenditures into mid-2023.</p>
<p style="margin-bottom:0pt;margin-top:8pt;text-indent:4.26%;font-weight:bold;font-style:italic;color:#000000;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">COVID-19 Impact</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="Background-color:#FFFFFF;margin-bottom:0pt;margin-top:0pt;text-indent:4.26%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We are continuing to proactively monitor and assess the current coronavirus disease 2019, or COVID-19,&#160;global pandemic. Since early March 2020, we have been monitoring the potential impact on our business that may result from this rapidly evolving crisis and to avoid any unnecessary potential delays to our programs. At this time, our lead programs and research activities remain on track. The safety and well-being of employees, patients and partners is our highest priority.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">13</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Components of Results of Operations</span></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Revenue</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">To date, we have not recognized any revenue from any sources, including from product sales, and we do not expect to generate any revenue from the sale of products in the foreseeable future. If our development efforts for our product candidates are successful and result in regulatory approval, or license agreements with third parties, we may generate revenue in the future from product sales. However, there can be no assurance as to when we will generate such revenue, if at all.</p>
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Operating Expenses</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Research and Development Expenses</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Research and development expenses consist primarily of costs incurred in connection with the discovery and development of our product candidates. We expense research and development costs as incurred, including:</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#000000;">expenses incurred to conduct the necessary discovery-stage laboratory work, preclinical studies and clinical trials required to obtain regulatory approval&#59;</span></p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#000000;">personnel expenses, including salaries, benefits and stock-based compensation expense for our employees engaged in research and development functions&#59;</span></p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#000000;">costs of funding research performed by third parties, including pursuant to agreements with clinical research organizations, or CROs, that conduct our clinical trials, as well as investigative sites, consultants and CROs that conduct our preclinical and nonclinical studies&#59;</span></p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#000000;">expenses incurred under agreements with contract manufacturing organizations, or CMOs, including manufacturing scale-up expenses and the cost of acquiring and manufacturing preclinical study and clinical trial materials&#59;</span></p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#000000;">fees paid to consultants who assist with research and development activities&#59;</span></p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#000000;">expenses related to regulatory activities, including filing fees paid to regulatory agencies&#59; and</span></p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#000000;">allocated expenses for facility costs, including rent, utilities, depreciation and maintenance.</span></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:4.26%;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="Background-color:#FFFFFF;">We track outsourced development costs and other external research and development costs to specific product candidates on a program-by-program basis, fees paid to CROs, CMOs and research laboratories in connection with our preclinical development, process development, manufacturing and clinical development activities. However, we do not track our internal research and development expenses on a program-by-program basis as they primarily relate to compensation, early research and other costs which are deployed across multiple projects under development.</span></p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Research and development activities are central to our business model. Product candidates in later stages of clinical development generally have higher development costs than those in earlier stages of clinical development, primarily due to the increased size and duration of later-stage clinical trials. We expect our research and development expenses to increase significantly over the next several years as we increase personnel costs, including stock-based compensation, conduct our clinical trials, including later-stage clinical trials, for current and future product candidates and prepare regulatory filings for our product candidates.</p>
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">General and Administrative Expenses</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">General and administrative expenses consist primarily of personnel expenses, including salaries, benefits and stock-based compensation expense, for employees and consultants in executive, finance and accounting, legal, operations support, information technology and human resource functions. General and administrative expense also includes corporate facility costs not otherwise included in research and development expense, including rent, utilities, depreciation and maintenance, as well as legal fees related to intellectual property and corporate matters and fees for accounting and consulting services.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We expect that our general and administrative expense will increase in the future to support our continued research and development activities, potential commercialization efforts and increased costs of operating as a public company. These increases will likely include increased costs related to the hiring of additional personnel and fees to outside consultants, legal support and accountants, among other expenses. Additionally, we anticipate increased costs associated with being a public company, including expenses related to services associated with maintaining compliance with the requirements of Nasdaq and the Securities and Exchange Commission, or SEC,<span style="font-size:12pt;"> </span>insurance and investor relations costs. If any of our current or future product candidates obtains U.S. regulatory approval, we expect that we would incur significantly increased expenses associated with building a sales and marketing team.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">14</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;"><span style="font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Other Income, Net</span></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Other income, net consists primarily of interest earned on our cash equivalents and grant income received from the State of Delaware. We anticipate re-applying for the grant from the State of Delaware from time to time as long as we maintain qualifying headcount levels in the State of Delaware. We expect our interest income, net to increase due to our investment of cash received our stock offerings.</p>
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Income Taxes</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Since our inception, we have not recorded any income tax benefits for the net operating losses, or NOLs, we have incurred or for our research and development tax credits, as we believe, based upon the weight of available evidence, that it is more likely than not that all of our NOLs and tax credits will not be realized. </p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Results of Operations</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Comparison of the Three Months Ended June 30, 2021 and 2020</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The following table sets forth our results of operations for the three months ended June 30, 2021 and 2020.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" style="margin:auto;border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:57.44%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="6" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:25.96%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Three months ended</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June 30,</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:11.76%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Change</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:57.44%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(in thousands)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:11.76%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2021</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:11.76%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2020</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:10.76%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:57.44%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Operating expenses:</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.4%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.4%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.4%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:57.44%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Research and development</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.4%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">22,409</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.4%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">9,776</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.4%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">12,633</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:57.44%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">General and administrative</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">5,513</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,660</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3,853</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:57.44%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total operating expenses</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">27,922</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">11,436</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">16,486</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:57.44%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Loss from operations</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.4%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(27,922</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.4%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(11,436</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.4%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(16,486</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:57.44%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Other income, net</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,057</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">28</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,029</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:57.44%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net loss</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(26,865</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(11,408</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(15,457</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Research and Development Expenses</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Research and development expenses increased by $12.6 million to $22.4 million for the three months ended June 30, 2021 from $9.8 million for the three months ended June 30, 2020. The increase was mainly due to increased clinical research costs for the PRT543, PRT811 and PRT1419 (Oral and IV). Our chemistry, manufacturing and other costs for those trials also increased. We track our external research and development expenses on a program-by-program basis, such as fees paid to CROs, CMOs and research laboratories in connection with our pre-clinical development, process development, manufacturing and clinical development activities. However, we do not track our internal research and development expenses on a program-by-program basis as they primarily relate to compensation, early research and other costs which are deployed across multiple projects under development.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Research and development expenses by program are summarized in the table below:</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" style="margin:auto;border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="6" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:30.38%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Three months ended</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June 30,</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(in thousands)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2021</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2020</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">PRT543</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4,415</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,886</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">PRT811</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4,550</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,217</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">PRT1419 (Oral and IV)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,863</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,109</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Discovery programs</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4,215</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,442</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Internal costs, including personnel related</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">7,366</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3,122</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">22,409</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">9,776</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:4.26%;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">General and Administrative Expenses</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">General and administrative expenses increased by $3.9 million to $5.5 million for the three months ended June 30, 2021 from $1.6 million for the three months ended June 30, 2020. The increase was primarily due to an increase in personnel related expense due to an increase in employee headcount and an increase in our professional fees as we expanded our operations to support our research and development efforts and incurred additional costs to operate as a public company.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">15</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;"><span style="font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Other Income, net</span></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Other income, net increased by $1.0 million primarily due to the receipt and recognition of a research and development tax credit from the State of Delaware in the second quarter of 2021. </p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Results of Operations</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Comparison of the Six Months Ended June 30, 2021 and 2020</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The following table sets forth our results of operations for the six months ended June 30, 2021 and 2020.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" style="margin:auto;border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:57.44%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="6" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:25.96%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Six months ended</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June 30,</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:11.76%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Change</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:57.44%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(in thousands)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:11.76%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2021</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:11.76%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2020</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:10.76%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:57.44%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Operating expenses:</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.4%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.4%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.4%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:57.44%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Research and development</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.4%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">38,879</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.4%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">18,312</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.4%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">20,567</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:57.44%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">General and administrative</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">11,010</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,861</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">8,149</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:57.44%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total operating expenses</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">49,889</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">21,173</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">28,716</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:57.44%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Loss from operations</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.4%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(49,889</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.4%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(21,173</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.4%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(28,716</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:57.44%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Other income, net</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,724</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">254</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,470</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:57.44%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net loss</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(48,165</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(20,919</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.4%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.76%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(27,246</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Research and Development Expenses</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Research and development expenses increased by $20.6 million to $38.9 million for the six months ended June 30, 2021 from $18.3 million for the six months ended June 30, 2020. The increase was mainly due to increased clinical research costs for the PRT543 and PRT811. Our chemistry, manufacturing and other costs for those trials also increased. We track our external research and development expenses on a program-by-program basis, such as fees paid to CROs, CMOs and research laboratories in connection with our pre-clinical development, process development, manufacturing and clinical development activities. However, we do not track our internal research and development expenses on a program-by-program basis as they primarily relate to compensation, early research and other costs which are deployed across multiple projects under development.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Research and development expenses by program are summarized in the table below:</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" style="margin:auto;border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="6" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:30.4%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Six months ended</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June 30,</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(in thousands)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2021</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2020</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">PRT543</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">7,680</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4,060</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">PRT811</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">6,340</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,566</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">PRT1419 (Oral and IV)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3,800</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4,007</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Discovery programs</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">7,387</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.64%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,970</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Internal costs, including personnel related</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">13,672</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">6,709</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.94%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">38,879</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.64%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">18,312</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
</table></div>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">General and Administrative Expenses</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">General and administrative expenses increased by $8.1 million to $11.0 million for the six months ended June 30, 2021 from $2.9 million for the six months ended June 30, 2020. The increase was primarily due to an increase in personnel related expense due to increases in employee headcount and an increase in our professional fees as we expanded our operations to support our research and development efforts and incurred additional costs to operate as a public company.</p>
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Other Income, net</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Other income, net increased by $1.5 million primarily due to the receipt and recognition of a research and development tax credit from the State of Delaware in the first and second quarter of 2021. </p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-size:12pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">16</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Liquidity and Capital Resources</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Overview</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Since our inception, we have not recognized any revenue and have incurred operating losses and negative cash flows from our operations. We have not yet commercialized any product and we do not expect to generate revenue from sales of any products for several years, if at all. Since our inception, we have funded our operations through the sale of convertible preferred stock and common stock<span style="color:#000000;">. </span>As of June 30, 2021, we had $343.1&#160;million in cash and cash equivalents and had an accumulated deficit of $155.6&#160;million. We expect our existing cash and cash equivalents to enable us to fund our operating expenses and capital expenditure requirements into mid-2023. We have based these estimates on assumptions that may prove to be imprecise, and we could utilize our available capital resources sooner than we expect.</p>
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Funding Requirements</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our primary use of cash is to fund operating expenses, primarily research and development expenditures. Cash used to fund operating expenses is impacted by the timing of when we pay these expenses, as reflected in the change in our outstanding accounts payable, accrued expenses and prepaid expenses.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Because of the numerous risks and uncertainties associated with research, development and commercialization of pharmaceutical products, we are unable to estimate the exact amount of our operating capital requirements. Our future funding requirements will depend on many factors, including, but not limited to:</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#000000;">the scope, timing, progress and results of discovery, preclinical development, laboratory testing and clinical trials for our product candidates&#59;</span></p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#000000;">the costs of manufacturing our product candidates for clinical trials and in preparation for marketing approval and commercialization&#59;</span></p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#000000;">the extent to which we enter into collaborations or other arrangements with additional third parties in order to further develop our product candidates&#59;</span></p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#000000;">the costs of preparing, filing and prosecuting patent applications, maintaining and enforcing our intellectual property rights and defending intellectual property-related claims&#59;</span></p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#000000;">the costs and fees associated with the discovery, acquisition or in-license of additional product candidates or technologies&#59;</span></p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#000000;">expenses needed to attract and retain skilled personnel&#59;</span></p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#000000;">costs associated with being a public company&#59;</span></p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#000000;">the costs required to scale up our clinical, regulatory and manufacturing capabilities&#59;</span></p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#000000;">the costs of future commercialization activities, if any, including establishing sales, marketing, manufacturing and distribution capabilities, for any of our product candidates for which we receive marketing approval&#59; and</span></p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:4.27%;white-space:nowrap">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;letter-spacing:0pt;">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Times New Roman;font-size:10pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#000000;">revenue, if any, received from commercial sales of our product candidates, should any of our product candidates receive marketing approval.</span></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We will need additional funds to meet operational needs and capital requirements for clinical trials, other research and development expenditures, and business development activities. We currently have no credit facility or committed sources of capital. Because of the numerous risks and uncertainties associated with the development and commercialization of our product candidates, we are unable to estimate the amounts of increased capital outlays and operating expenditures associated with our current and anticipated clinical studies.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Until such time, if ever, as we can generate substantial product revenue, we expect to finance our operations through a combination of equity offerings, debt financings, collaborations, strategic alliances and marketing, distribution or licensing arrangements. To the extent that we raise additional capital through the sale of equity or convertible debt securities, ownership interests will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of common stockholders. Debt financing and preferred equity financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making acquisitions or capital expenditures or declaring dividends. If we raise additional funds through collaborations, strategic alliances or marketing, distribution or licensing arrangements with third parties, we may have to relinquish valuable rights to our technologies, future revenue streams, research programs or product candidates, or grant licenses on terms that may not be favorable to us. If we are unable to raise additional funds through equity or debt financings or other arrangements when needed, we may be required to delay, limit, reduce or terminate our research, product development or future commercialization efforts, or grant rights to develop and market product candidates that we would otherwise prefer to develop and market ourselves.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">17</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;"><span style="font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Cash Flows</span></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The following table shows a summary of our cash flows for the periods indicated:</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" style="margin:auto;border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="6" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:30.38%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Six months ended</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June 30,</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(in thousands)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2021</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2020</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cash used in operating activities</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(36,055</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(18,823</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cash used in investing activities</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(1,367</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(122</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cash provided by financing activities</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">162,232</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">29,782</p></td>
<td valign="bottom" style="background-color:#CFF0FC;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net increase in cash and cash equivalents</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">124,810</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">10,837</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Operating Activities</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">During the six months ended June 30, 2021, we used $36.1&#160;million of cash in operating activities. Cash used in operating activities reflected our net loss of $48.2&#160;million, offset by a $3.1&#160;million net decrease in our operating assets and liabilities and noncash charges of $9.1&#160;million, which consisted of $0.4&#160;million in depreciation, $0.6 million noncash lease expense and $8.1&#160;million in stock-based compensation. The primary use of cash was to fund our operations related to the development of our product candidates.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:4.26%;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="Background-color:#FFFFFF;">During the six months ended June&#160;30, 2020, we used $18.8&#160;million of cash in operating activities. Cash used in operating activities reflected our net loss of $20.9&#160;million, offset by a $0.8&#160;million net decrease in our operating assets and liabilities and noncash charges of $1.3&#160;million, which consisted of $0.3&#160;million in depreciation and $1.0&#160;million in stock-based compensation. The primary use of cash was to fund our operations related to the development of our product candidates. </span></p>
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Investing Activities</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">During the six months ended June 30, 2021 and 2020, we used $1.4&#160;million and $0.1&#160;million of cash, respectively, for the purchase of property and equipment.</p>
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:4.26%;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Financing Activities</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">During the six months ended June 30, 2021, financing activities provided $162.2 million, which reflected the receipt of net cash of $161.4 million from the sale of common stock as well as the receipt of $0.8 million from the exercise of stock options. During the six months ended June&#160;30, 2020, financing activities provided $29.8&#160;million of cash. Net cash provided by financing activities for the six months ended June&#160;30, 2020 consisted of $29.9&#160;million from the sale of our Series&#160;B convertible preferred stock and $31,000 of proceeds received from the exercise of stock options, offset by payments of $0.2&#160;million for our capital lease obligation.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Off-Balance Sheet Arrangements</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">During the periods presented, we did not have, nor do we currently have, any relationships with unconsolidated entities or financial partnerships, including entities sometimes referred to as structured finance or special purpose entities that were established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. We do not engage in off-balance sheet financing arrangements. In addition, we do not engage in trading activities involving non-exchange traded contracts. We therefore believe that we are not materially exposed to any financing, liquidity, market or credit risk that could arise if we had engaged in these relationships.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Critical Accounting Policies</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="Background-color:#FFFFFF;">During the three months ended June 30, 2021, there were no material changes to our critical accounting policies and estimates from those described under the heading &#8220;Management&#8217;s Discussion and Analysis of Financial Condition and Results of Operations-Critical Accounting Policies and Estimates&#8221; on our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 16, 2021.</span></p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">JOBS Act Accounting Election</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We are an &#8220;emerging growth company,&#8221; as defined in the Jumpstart Our Business Startups Act of 2012, or the&#160;JOBS Act. Under the&#160;JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the&#160;JOBS Act&#160;until such time as those standards apply to private companies.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">18</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:12pt;text-indent:4.26%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We have elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the&#160;JOBS Act. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.</span></p>
<p style="margin-bottom:0pt;margin-top:12pt;text-indent:4.26%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We will remain an emerging growth company until the earliest of (1) the last day of our first fiscal year (a) in which we have total annual gross revenues of at least $1.07 billion, or (b) in which we are deemed to be a large accelerated filer, which means the market value of our common stock that is held by non-affiliates exceeds $700.0 million as of the prior June 30<sup style="font-size:85%;line-height:120%;vertical-align:top">th</sup>, (2) the date on which we have issued more than $1.0 billion in non-convertible debt securities during the prior three-year period and (3) December 31, 2025.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Recent Accounting Pronouncements</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">See Note&#160;3 <span style="Background-color:#FFFFFF;color:#000000;">to our interim financial statements included elsewhere in this Quarterly Report on Form 10-Q for a description of recent accounting pronouncements applicable to our financial statements.</span></p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Emerging Growth Company and Smaller Reporting Company Status</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In April 2012, the Jumpstart Our Business Startups Act of 2012, or the JOBS Act, was enacted. Section&#160;107 of the JOBS Act provides that an &#8220;emerging growth company&#8221; can take advantage of the extended transition period provided in Section&#160;7(a)(2)(B) of the Securities Act of 1933, as amended, for complying with new or revised accounting standards. Thus, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to avail ourselves of this exemption from complying with new or revised accounting standards and, therefore, will not be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We are in the process of evaluating the benefits of relying on other exemptions and reduced reporting requirements under the JOBS Act, including without limitation, exemption to the requirements for providing an auditor&#8217;s attestation report on our system of internal controls over financial reporting pursuant to Section&#160;404(b) of the Sarbanes-Oxley Act. We will remain an emerging growth company until the earlier to occur of (a)&#160;the last day of the fiscal year (i)&#160;following the fifth anniversary of the completion of our IPO, (ii)&#160;in which we have total annual gross revenues of at least $1.07&#160;billion or (iii)&#160;in which we are deemed to be a &#8220;large accelerated filer&#8221; under the rules of the SEC, which means the market value of our common stock that is held by non-affiliates exceeds $700.0&#160;million as of the prior June&#160;30th, or (b)&#160;the date on which we have issued more than $1.0&#160;billion in non-convertible debt during the prior three-year period.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We are also a &#8220;smaller reporting company,&#8221; meaning that the market value of our stock held by non-affiliates is less than $700.0&#160;million and our annual revenue is less than $100.0&#160;million during the most recently completed fiscal year. We may continue to be a smaller reporting company after if either (i)&#160;the market value of our stock held by non-affiliates is less than $250.0&#160;million or (ii)&#160;our annual revenue is less than $100.0&#160;million during the most recently completed fiscal year and the market value of our stock held by non-affiliates is less than $700.0&#160;million. If we are a smaller reporting company at the time we cease to be an emerging growth company, we may continue to rely on exemptions from certain disclosure requirements that are available to smaller reporting companies. Specifically, as a smaller reporting company we may choose to present only the two most recent fiscal years of audited financial statements in our Annual Report on Form&#160;10-K and, similar to emerging growth companies, smaller reporting companies have reduced disclosure obligations regarding executive compensation.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">19</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>

<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;" id="ITEM_3_QUANTITATIVE_QUALITATIVE_DISCLOSU">Item 3. Quantitative and Qualitative Disclosures About Market Risk.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item. </p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;" id="ITEM_4_CONTROLS_PROCEDURES">Item 4. Controls and Procedures.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Evaluation of Disclosure Controls and Procedure<span style="Background-color:#FFFFFF;font-weight:normal;"> </span></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="Background-color:#FFFFFF;">As of June 30, 2021, management, with the participation of our Principal Executive Officer and Principal Financial and Accounting Officer, performed an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rules&#160;</span><span style="color:#000000;">13a-15(e)</span><span style="Background-color:#FFFFFF;">&#160;and&#160;</span><span style="color:#000000;">15d-15(e)</span><span style="Background-color:#FFFFFF;">&#160;of the&#160;</span><span style="color:#000000;">Securities Exchange Act of 1934</span><span style="Background-color:#FFFFFF;">, as amended, or the&#160;</span><span style="color:#000000;">Exchange Act</span><span style="Background-color:#FFFFFF;">. Our disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports we file or submit under the&#160;</span><span style="color:#000000;">Exchange Act</span><span style="Background-color:#FFFFFF;">&#160;is recorded, processed, summarized, and reported within the time periods specified in the SEC&#8217;s rules and forms, and that such information is accumulated and communicated to our management, including the Principal Executive Officer and the Principal Financial and Accounting Officer, to allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objective and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on this evaluation, our Principal Executive Officer and Principal Financial and Accounting Officer concluded that, as of June 30, 2021, the design and operation of our disclosure controls and procedures were effective at a reasonable assurance level.</span></p>
<p style="margin-bottom:0pt;margin-top:18pt;text-indent:0%;font-weight:bold;color:#000000;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Changes in Internal Control over Financial Reporting</p>
<p style="margin-bottom:0pt;margin-top:6pt;text-indent:4.26%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Management determined that, as of June 30, 2021, there were no changes in our internal control over financial reporting that occurred during the fiscal quarter then ended that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.</p>
<p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;font-weight:bold;color:#000000;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;" id="ITEM_1_LEGAL_PROCEEDINGS">Item 1. Legal Proceedings.</p>
<p style="margin-bottom:0pt;margin-top:6pt;text-indent:4.82%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">From time to time, we may be involved in legal proceedings arising in the ordinary course of our business. In addition, we may receive letters alleging infringement of patents or other intellectual property rights. We are not presently a party to any legal proceedings that, in the opinion of management, would have a material adverse effect on our business, operating results, cash flows or financial conditions should such litigation be resolved unfavorably. Regardless of outcome, litigation can have an adverse impact on us due to defense and settlement costs, diversion of management resources, negative publicity and reputational harm, and other factors.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">20</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;" id="ITEM_1A_RISK_FACTORS"><span style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Item 1A. Ri</span><span style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">sk Factors</span></p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;color:#auto;font-size:10pt;font-family:Times New Roman;letter-spacing:0.25pt;font-style:normal;text-transform:none;font-variant: normal;">RISK FACTORS</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:6.67%;font-style:italic;color:#000000;font-size:10pt;font-family:Times New Roman;letter-spacing:0.25pt;font-weight:normal;text-transform:none;font-variant: normal;">Investing in our common stock involves a high degree of risk. Before making your decision to invest in shares of our common stock, you should carefully consider the risks and uncertainties described below, together with the other information contained in this <span style="color:#auto;">Quarterly</span> <span style="color:#auto;">R</span>eport<span style="color:#auto;"> on Form 10-Q</span>, including our financial statements and the related notes and &#8220;Management&#8217;s Discussion and Analysis of Financial Condition and Results of Operations&#8221;. The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties that we are unaware of, or that we currently believe are not material, may also become important factors that affect us. We cannot assure you that any of the events discussed below will not occur. These events could have a material and adverse impact on our business, financial condition, results of operations and prospects. If that were to happen, the trading price of our common stock could decline, and you could lose all or part of your investment.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-top:2pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;color:#auto;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Summary of Risk Factors</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-top:2pt;margin-bottom:0pt;text-indent:0%;color:#auto;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our business is subject to a number of risks and uncertainties, including those immediately following this summary. Some of these risks are:</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Cambria;font-size:13pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:'Times New Roman';text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:'Times New Roman';text-transform:none;font-variant: normal;letter-spacing:0pt;"></span><span style="font-size:10pt;font-family:'Times New Roman'">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Cambria;font-size:13pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#365F91;"></span><span style="font-size:10pt;font-family:Times New Roman;">We are a clinical-stage precision oncology company with a history of operating losses, and we may not achieve or sustain profitability. We anticipate that we will continue to incur losses for the foreseeable future. Our limited operating history may make it difficult for you to evaluate our success to date and to assess our future viability.</span></p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Cambria;font-size:13pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:'Times New Roman';text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:'Times New Roman';text-transform:none;font-variant: normal;letter-spacing:0pt;"></span><span style="font-size:10pt;font-family:'Times New Roman'">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Cambria;font-size:13pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#365F91;"></span><span style="font-size:10pt;font-family:Times New Roman;">The outbreak of the novel strain of coronavirus, SARS-CoV-2, which causes COVID-19, could adversely impact our business, including our clinical development activities and clinical trials.</span></p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Cambria;font-size:13pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:'Times New Roman';text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:'Times New Roman';text-transform:none;font-variant: normal;letter-spacing:0pt;"></span><span style="font-size:10pt;font-family:'Times New Roman'">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Cambria;font-size:13pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#365F91;"></span><span style="font-size:10pt;font-family:Times New Roman;">We will need to raise additional funding before we can expect to become profitable from any potential future sales of our products.</span></p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Cambria;font-size:13pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:'Times New Roman';text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:'Times New Roman';text-transform:none;font-variant: normal;letter-spacing:0pt;"></span><span style="font-size:10pt;font-family:'Times New Roman'">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Cambria;font-size:13pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#365F91;"></span><span style="font-size:10pt;font-family:Times New Roman;">We are very early in our development efforts. Our business is dependent on our ability to advance our current and future product candidates through preclinical studies and clinical trials, obtain marketing approval and ultimately commercialize them.</span></p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Cambria;font-size:13pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:'Times New Roman';text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:'Times New Roman';text-transform:none;font-variant: normal;letter-spacing:0pt;"></span><span style="font-size:10pt;font-family:'Times New Roman'">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Cambria;font-size:13pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#365F91;"></span><span style="font-size:10pt;font-family:Times New Roman;">Preclinical and clinical development involve a lengthy and expensive process with an uncertain outcome. We may incur additional costs or experience delays in completing, or ultimately be unable to complete, the development and commercialization of our current product candidates or any future product candidates.</span></p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Cambria;font-size:13pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:'Times New Roman';text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:'Times New Roman';text-transform:none;font-variant: normal;letter-spacing:0pt;"></span><span style="font-size:10pt;font-family:'Times New Roman'">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Cambria;font-size:13pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#365F91;"></span><span style="font-size:10pt;font-family:Times New Roman;">Our product candidates may cause undesirable and unforeseen side effects, which could delay or prevent their advancement into clinical trials or regulatory approval, limit the commercial potential or result in significant negative consequences.</span></p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Cambria;font-size:13pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:'Times New Roman';text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:'Times New Roman';text-transform:none;font-variant: normal;letter-spacing:0pt;"></span><span style="font-size:10pt;font-family:'Times New Roman'">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Cambria;font-size:13pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#365F91;"></span><span style="font-size:10pt;font-family:Times New Roman;">We face significant competition in an environment of rapid technological change and the possibility that our competitors may achieve regulatory approval before us or develop therapies or technologies that are more advanced or effective than ours.</span></p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.73%;white-space:nowrap">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Cambria;font-size:13pt;">&#160;</p></td>
<td valign="top" style="width:3.73%;white-space:nowrap">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:'Times New Roman';text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:'Times New Roman';text-transform:none;font-variant: normal;letter-spacing:0pt;"></span><span style="font-size:10pt;font-family:'Times New Roman'">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Cambria;font-size:13pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#365F91;"></span><span style="font-size:10pt;font-family:Times New Roman;">We currently rely and expect to continue to rely on third-party manufacturers to produce clinical supply of our product candidates.</span></p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.73%;white-space:nowrap">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Cambria;font-size:13pt;">&#160;</p></td>
<td valign="top" style="width:3.73%;white-space:nowrap">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;font-size:10pt;font-family:'Times New Roman';text-transform:none;font-variant: normal;letter-spacing:0pt;"><span style="font-weight:normal;font-style:normal;text-decoration:none;Background-color:#auto;color:#auto;font-size:10pt;font-family:'Times New Roman';text-transform:none;font-variant: normal;letter-spacing:0pt;"></span><span style="font-size:10pt;font-family:'Times New Roman'">&#8226;</span></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:6pt;margin-top:6pt;font-weight:normal;font-style:normal;color:#auto;text-transform:none;font-variant: normal;letter-spacing:0pt;font-family:Cambria;font-size:13pt;"><span style="Background-color:#auto;text-decoration:none;"></span><span style="color:#365F91;"></span><span style="font-size:10pt;font-family:Times New Roman;">If we are unable to obtain and maintain patent protection or other necessary rights for our products and technology, or if the scope of the patent protection obtained is not sufficiently broad or our rights under licensed patents is not sufficiently broad, our competitors could develop and commercialize products and technology similar or identical to ours, and our ability to successfully commercialize our products and technology may be adversely affected.</span></p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Risks Related<span style="letter-spacing:0.05pt;"> </span>to Our Financial<span style="letter-spacing:0.05pt;"> </span>Position<span style="letter-spacing:0.05pt;"> </span>and Need for<span style="letter-spacing:0.05pt;"> </span>Capital</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:7pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.73%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We have a limited<span style="letter-spacing:0.1pt;"> </span>operating<span style="letter-spacing:0.05pt;"> </span>history,<span style="letter-spacing:0.05pt;"> </span>which may<span style="letter-spacing:0.05pt;"> </span>make<span style="letter-spacing:0.05pt;"> </span>it<span style="letter-spacing:0.05pt;"> </span>difficult<span style="letter-spacing:0.1pt;"> </span>to evaluate<span style="letter-spacing:0.05pt;"> </span>the success<span style="letter-spacing:0.05pt;"> </span>of our business<span style="letter-spacing:0.05pt;"> </span>to date<span style="letter-spacing:0.05pt;"> </span>and to assess<span style="letter-spacing:0.05pt;"> </span>our future<span style="letter-spacing:0.05pt;"> </span>viability.<span style="letter-spacing:0.1pt;"> </span>We have incurred<span style="letter-spacing:0.05pt;"> </span>significant<span style="letter-spacing:0.1pt;"> </span>operating<span style="letter-spacing:0.05pt;"> </span>losses<span style="letter-spacing:0.05pt;"> </span>since<span style="letter-spacing:0.05pt;"> </span>our inception and have not generated<span style="letter-spacing:0.05pt;"> </span>any revenue.<span style="letter-spacing:0.05pt;"> </span>We expect<span style="letter-spacing:0.05pt;"> </span>to incur continued<span style="letter-spacing:0.05pt;"> </span>losses<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>the foreseeable<span style="letter-spacing:0.1pt;"> </span>future<span style="letter-spacing:0.05pt;"> </span>and may<span style="letter-spacing:0.05pt;"> </span>never<span style="letter-spacing:0.05pt;"> </span>achieve<span style="letter-spacing:0.05pt;"> </span>or maintain<span style="letter-spacing:0.05pt;"> </span>profitability.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Investment<span style="letter-spacing:1.4pt;"> </span>in<span style="letter-spacing:1.3pt;"> </span>drug<span style="letter-spacing:1.3pt;"> </span>development<span style="letter-spacing:1.4pt;"> </span>is<span style="letter-spacing:1.35pt;"> </span>a<span style="letter-spacing:1.3pt;"> </span>highly<span style="letter-spacing:1.35pt;"> </span>speculative<span style="letter-spacing:1.4pt;"> </span>undertaking<span style="letter-spacing:1.4pt;"> </span>and<span style="letter-spacing:1.3pt;"> </span>involves<span style="letter-spacing:1.35pt;"> </span>a<span style="letter-spacing:1.25pt;"> </span>substantial<span style="letter-spacing:1.35pt;"> </span>degree<span style="letter-spacing:1.3pt;"> </span>of risk.<span style="letter-spacing:0.1pt;"> </span>We<span style="letter-spacing:0.05pt;"> </span>commenced<span style="letter-spacing:0.15pt;"> </span>operations<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>2016<span style="letter-spacing:0.05pt;"> </span>and are<span style="letter-spacing:0.05pt;"> </span>a clinical-stage<span style="letter-spacing:0.2pt;"> </span>biopharmaceutical<span style="letter-spacing:0.2pt;"> </span>company<span style="letter-spacing:0.05pt;"> </span>with a limited operating<span style="letter-spacing:0.15pt;"> </span>history.<span style="letter-spacing:0.1pt;"> </span>We<span style="letter-spacing:0.05pt;"> </span>have not yet<span style="letter-spacing:0.05pt;"> </span>commercialized<span style="letter-spacing:0.2pt;"> </span>any product<span style="letter-spacing:0.05pt;"> </span>and we do not expect<span style="letter-spacing:0.05pt;"> </span>to generate<span style="letter-spacing:0.1pt;"> </span>revenue<span style="letter-spacing:0.05pt;"> </span>from sales<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>any products<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>several<span style="letter-spacing:0.1pt;"> </span>years,<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>at<span style="letter-spacing:0.05pt;"> </span>all.<span style="letter-spacing:0.05pt;"> </span>Consequently,<span style="letter-spacing:0.05pt;"> </span>there<span style="letter-spacing:0.05pt;"> </span>have been limited<span style="letter-spacing:0.1pt;"> </span>operations<span style="letter-spacing:0.1pt;"> </span>upon which we or<span style="letter-spacing:0.05pt;"> </span>you<span style="letter-spacing:0.05pt;"> </span>can<span style="letter-spacing:0.05pt;"> </span>evaluate<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>business,<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>predictions<span style="letter-spacing:0.15pt;"> </span>about<span style="letter-spacing:0.1pt;"> </span>our future<span style="letter-spacing:0.05pt;"> </span>success<span style="letter-spacing:0.05pt;"> </span>or viability<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>not be as accurate<span style="letter-spacing:0.1pt;"> </span>as they<span style="letter-spacing:0.1pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>had<span style="letter-spacing:0.05pt;"> </span>a longer<span style="letter-spacing:0.05pt;"> </span>operating<span style="letter-spacing:0.1pt;"> </span>history<span style="letter-spacing:0.05pt;"> </span>or a history<span style="letter-spacing:0.05pt;"> </span>of successfully<span style="letter-spacing:0.1pt;"> </span>developing<span style="letter-spacing:0.05pt;"> </span>and commercializing cancer<span style="letter-spacing:0.85pt;"> </span>therapies.<span style="letter-spacing:0.85pt;"> </span>For<span style="letter-spacing:0.75pt;"> </span>the<span style="letter-spacing:0.8pt;"> </span>six months<span style="letter-spacing:0.8pt;"> </span>June 30, 2021 and 2020,<span style="letter-spacing:0.75pt;"> </span>we<span style="letter-spacing:0.75pt;"> </span>reported<span style="letter-spacing:0.85pt;"> </span>a<span style="letter-spacing:0.75pt;"> </span>net<span style="letter-spacing:0.8pt;"> </span>loss<span style="letter-spacing:0.8pt;"> </span>of<span style="letter-spacing:0.75pt;"> </span>$48.2<span style="letter-spacing:0.75pt;"> </span>million and $20.9 million, respectively.<span style="letter-spacing:0.7pt;"> </span>As<span style="letter-spacing:0.55pt;"> </span>of<span style="letter-spacing:0.55pt;"> </span>June 30,<span style="letter-spacing:0.5pt;"> </span>2021,<span style="letter-spacing:0.5pt;"> </span>we<span style="letter-spacing:0.5pt;"> </span>had<span style="letter-spacing:0.5pt;"> </span>an<span style="letter-spacing:0.5pt;"> </span>accumulated<span style="letter-spacing:0.6pt;"> </span>deficit<span style="letter-spacing:0.6pt;"> </span>of<span style="letter-spacing:0.5pt;"> </span>$155.6<span style="letter-spacing:0.5pt;"> </span>million.<span style="letter-spacing:0.6pt;"> </span>We<span style="letter-spacing:0.5pt;"> </span>expect<span style="letter-spacing:0.55pt;"> </span>to<span style="letter-spacing:0.5pt;"> </span>continue to incur<span style="letter-spacing:0.05pt;"> </span>significant<span style="letter-spacing:0.15pt;"> </span>research<span style="letter-spacing:0.1pt;"> </span>and development<span style="letter-spacing:0.1pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>expenses<span style="letter-spacing:0.05pt;"> </span>related<span style="letter-spacing:0.1pt;"> </span>to our ongoing operations.</p>
<p style="margin-top:0pt;line-height:13pt;margin-bottom:0pt;text-indent:0%;font-size:13pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">21</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Since<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>inception,<span style="letter-spacing:0.15pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>focused<span style="letter-spacing:0.1pt;"> </span>substantially<span style="letter-spacing:0.2pt;"> </span>all<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>efforts<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>financial<span style="letter-spacing:0.15pt;"> </span>resources<span style="letter-spacing:0.15pt;"> </span>on the<span style="letter-spacing:0.05pt;"> </span>research, preclinical<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>development<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates,<span style="letter-spacing:0.1pt;"> </span>PRT543,<span style="letter-spacing:-0.05pt;"> </span>PRT811<span style="letter-spacing:-0.05pt;"> </span>and PRT1419,<span style="letter-spacing:-0.05pt;"> </span>and our research efforts<span style="letter-spacing:0.2pt;"> </span>on<span style="letter-spacing:0.1pt;"> </span>other<span style="letter-spacing:0.15pt;"> </span>potential<span style="letter-spacing:0.2pt;"> </span>product<span style="letter-spacing:0.15pt;"> </span>candidates<span style="letter-spacing:0.2pt;"> </span>targeting<span style="letter-spacing:0.15pt;"> </span>Protein<span style="letter-spacing:0.1pt;"> </span>Arginine<span style="letter-spacing:0.1pt;"> </span>Methyltransferase<span style="letter-spacing:0.25pt;"> </span>5,<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>PRMT5, Myeloid Cell<span style="letter-spacing:0.1pt;"> </span>Leukemia<span style="letter-spacing:0.1pt;"> </span>Sequence<span style="letter-spacing:0.1pt;"> </span>1,<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>MCL1,<span style="letter-spacing:0.05pt;"> </span>Cyclin-dependent<span style="letter-spacing:0.15pt;"> </span>kinase<span style="letter-spacing:0.1pt;"> </span>9,<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>CDK9, and<span style="letter-spacing:0.05pt;"> </span>Brahma<span style="letter-spacing:0.1pt;"> </span>homologue,<span style="letter-spacing:0.1pt;"> </span>or BRM, otherwise<span style="letter-spacing:0.75pt;"> </span>known<span style="letter-spacing:0.7pt;"> </span>as<span style="letter-spacing:0.7pt;"> </span>SMARCA2.<span style="letter-spacing:0.6pt;"> </span>As of June 30, 2021, our cash<span style="letter-spacing:0.05pt;"> </span>and cash<span style="letter-spacing:0.05pt;"> </span>equivalents<span style="letter-spacing:0.1pt;"> </span>were $343.1 million.</p>
<p style="margin-top:0pt;line-height:13pt;margin-bottom:0pt;text-indent:0%;font-size:13pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:2.2pt;"> </span>expect<span style="letter-spacing:2.25pt;"> </span>to<span style="letter-spacing:2.2pt;"> </span>incur<span style="letter-spacing:2.25pt;"> </span>increasing<span style="letter-spacing:2.3pt;"> </span>levels<span style="letter-spacing:2.25pt;"> </span>of<span style="letter-spacing:2.2pt;"> </span>operating<span style="letter-spacing:2.3pt;"> </span>losses<span style="letter-spacing:2.25pt;"> </span>for<span style="letter-spacing:2.25pt;"> </span>the<span style="letter-spacing:2.25pt;"> </span>foreseeable<span style="letter-spacing:2.3pt;"> </span>future,<span style="letter-spacing:2.25pt;"> </span>particularly<span style="letter-spacing:2.35pt;"> </span>as<span style="letter-spacing:2.2pt;"> </span>we advance PRT543, PRT811 and PRT1419 through clinical development. Our prior losses, combined with expected<span style="letter-spacing:0.1pt;"> </span>future<span style="letter-spacing:0.1pt;"> </span>losses,<span style="letter-spacing:0.1pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>had,<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>continue<span style="letter-spacing:0.05pt;"> </span>to have, an adverse<span style="letter-spacing:0.05pt;"> </span>effect<span style="letter-spacing:0.1pt;"> </span>on our stockholders&#8217;<span style="letter-spacing:0.1pt;"> </span>equity<span style="letter-spacing:0.05pt;"> </span>and working<span style="letter-spacing:0.05pt;"> </span>capital.<span style="letter-spacing:0.15pt;"> </span>We<span style="letter-spacing:0.05pt;"> </span>expect<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>research<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.15pt;"> </span>expenses<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>significantly<span style="letter-spacing:0.15pt;"> </span>increase<span style="letter-spacing:0.1pt;"> </span>in connection<span style="letter-spacing:0.05pt;"> </span>with our additional<span style="letter-spacing:0.1pt;"> </span>planned<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our lead<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>ongoing Phase 1 clinical<span style="letter-spacing:0.05pt;"> </span>trials and<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>planned<span style="letter-spacing:0.15pt;"> </span>expansion<span style="letter-spacing:0.1pt;"> </span>cohorts<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>PRT543 and<span style="letter-spacing:0.05pt;"> </span>PRT811, the<span style="letter-spacing:0.1pt;"> </span>ongoing<span style="letter-spacing:0.05pt;"> </span>Phase<span style="letter-spacing:0.05pt;"> </span>1<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trial<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> oral </span>PRT1419 and development<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>subsequent<span style="letter-spacing:0.1pt;"> </span>INDs<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>future<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.15pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>choose<span style="letter-spacing:0.05pt;"> </span>to pursue,<span style="letter-spacing:0.05pt;"> </span>including IV PRT1419, PRT2527,<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.1pt;"> </span>CDK9<span style="letter-spacing:0.05pt;"> </span>inhibitor,<span style="letter-spacing:0.2pt;"> </span>a<span style="letter-spacing:0.1pt;"> </span>SMARCA2 protein<span style="letter-spacing:0.15pt;"> </span>degrader<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>kinase<span style="letter-spacing:0.1pt;"> </span>inhibitor.<span style="letter-spacing:0.15pt;"> </span>In<span style="letter-spacing:0.05pt;"> </span>addition,<span style="letter-spacing:0.1pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>obtain marketing<span style="letter-spacing:0.2pt;"> </span>approval<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.15pt;"> </span>PRT543,<span style="letter-spacing:0.05pt;"> </span>PRT811, PRT1419 or<span style="letter-spacing:0.05pt;"> </span>another<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidate,<span style="letter-spacing:0.15pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>incur<span style="letter-spacing:0.1pt;"> </span>significant<span style="letter-spacing:0.2pt;"> </span>sales, marketing and outsourced manufacturing expenses in connection with the commercialization of PRT543, PRT811, PRT1419 or<span style="letter-spacing:0.05pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidate,<span style="letter-spacing:0.15pt;"> </span>respectively.<span style="letter-spacing:0.2pt;"> </span>We<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>also<span style="letter-spacing:0.1pt;"> </span>continue<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>incur<span style="letter-spacing:0.1pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>costs associated<span style="letter-spacing:0.1pt;"> </span>with operating<span style="letter-spacing:0.1pt;"> </span>as a public<span style="letter-spacing:0.05pt;"> </span>company.<span style="letter-spacing:0.05pt;"> </span>As a result,<span style="letter-spacing:0.1pt;"> </span>we expect<span style="letter-spacing:0.05pt;"> </span>to continue<span style="letter-spacing:0.05pt;"> </span>to incur<span style="letter-spacing:0.05pt;"> </span>significant<span style="letter-spacing:0.1pt;"> </span>and increasing<span style="letter-spacing:0.15pt;"> </span>operating<span style="letter-spacing:0.15pt;"> </span>losses<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>foreseeable<span style="letter-spacing:0.15pt;"> </span>future.<span style="letter-spacing:0.1pt;"> </span>Because<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>numerous<span style="letter-spacing:0.1pt;"> </span>risks<span style="letter-spacing:0.05pt;"> </span>and uncertainties<span style="letter-spacing:0.15pt;"> </span>associated with<span style="letter-spacing:1.05pt;"> </span>developing<span style="letter-spacing:1.1pt;"> </span>pharmaceutical<span style="letter-spacing:1.2pt;"> </span>products,<span style="letter-spacing:1.1pt;"> </span>we<span style="letter-spacing:1.05pt;"> </span>are<span style="letter-spacing:1.1pt;"> </span>unable<span style="letter-spacing:1.1pt;"> </span>to<span style="letter-spacing:1.05pt;"> </span>predict<span style="letter-spacing:1.15pt;"> </span>the<span style="letter-spacing:1.1pt;"> </span>extent<span style="letter-spacing:1.1pt;"> </span>of<span style="letter-spacing:1.05pt;"> </span>any<span style="letter-spacing:1pt;"> </span>future<span style="letter-spacing:1.05pt;"> </span>losses<span style="letter-spacing:1.05pt;"> </span>or<span style="letter-spacing:1pt;"> </span>when<span style="letter-spacing:1pt;"> </span>we will<span style="letter-spacing:0.55pt;"> </span>become<span style="letter-spacing:0.55pt;"> </span>profitable,<span style="letter-spacing:0.6pt;"> </span>if<span style="letter-spacing:0.55pt;"> </span>at<span style="letter-spacing:0.55pt;"> </span>all.<span style="letter-spacing:0.55pt;"> </span>Even<span style="letter-spacing:0.5pt;"> </span>if<span style="letter-spacing:0.55pt;"> </span>we<span style="letter-spacing:0.5pt;"> </span>do<span style="letter-spacing:0.5pt;"> </span>become<span style="letter-spacing:0.55pt;"> </span>profitable,<span style="letter-spacing:0.6pt;"> </span>we<span style="letter-spacing:0.5pt;"> </span>may<span style="letter-spacing:0.55pt;"> </span>not<span style="letter-spacing:0.5pt;"> </span>be<span style="letter-spacing:0.5pt;"> </span>able<span style="letter-spacing:0.5pt;"> </span>to<span style="letter-spacing:0.45pt;"> </span>sustain<span style="letter-spacing:0.5pt;"> </span>or<span style="letter-spacing:0.45pt;"> </span>increase<span style="letter-spacing:0.55pt;"> </span>our profitability<span style="letter-spacing:0.2pt;"> </span>on a quarterly<span style="letter-spacing:0.1pt;"> </span>or annual<span style="letter-spacing:0.05pt;"> </span>basis.<span style="letter-spacing:0.05pt;"> </span>We expect<span style="letter-spacing:0.05pt;"> </span>our financial<span style="letter-spacing:0.1pt;"> </span>condition<span style="letter-spacing:0.05pt;"> </span>and operating<span style="letter-spacing:0.1pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>to fluctuate significantly<span style="letter-spacing:0.15pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>quarter-to-quarter<span style="letter-spacing:0.2pt;"> </span>and year-to-year<span style="letter-spacing:0.15pt;"> </span>due to a variety<span style="letter-spacing:0.1pt;"> </span>of factors,<span style="letter-spacing:0.1pt;"> </span>many<span style="letter-spacing:0.05pt;"> </span>of which are<span style="letter-spacing:0.05pt;"> </span>beyond our control.<span style="letter-spacing:0.1pt;"> </span>Accordingly,<span style="letter-spacing:0.1pt;"> </span>you<span style="letter-spacing:0.05pt;"> </span>should<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>rely<span style="letter-spacing:0.05pt;"> </span>upon the<span style="letter-spacing:0.05pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>of any quarterly<span style="letter-spacing:0.1pt;"> </span>or annual<span style="letter-spacing:0.05pt;"> </span>periods<span style="letter-spacing:0.05pt;"> </span>as indications<span style="letter-spacing:0.1pt;"> </span>of future<span style="letter-spacing:0.05pt;"> </span>operating<span style="letter-spacing:0.1pt;"> </span>performance.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our<span style="letter-spacing:0.05pt;"> </span>ability<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>become<span style="letter-spacing:0.1pt;"> </span>profitable<span style="letter-spacing:0.15pt;"> </span>depends<span style="letter-spacing:0.05pt;"> </span>upon our ability<span style="letter-spacing:0.1pt;"> </span>to generate<span style="letter-spacing:0.1pt;"> </span>revenue.<span style="letter-spacing:0.05pt;"> </span>To date,<span style="letter-spacing:0.05pt;"> </span>we have not generated<span style="letter-spacing:0.15pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>revenue<span style="letter-spacing:0.1pt;"> </span>and we do not know when, or if,<span style="letter-spacing:0.05pt;"> </span>we will<span style="letter-spacing:0.05pt;"> </span>generate<span style="letter-spacing:0.1pt;"> </span>any revenue.<span style="letter-spacing:0.05pt;"> </span>We do not expect<span style="letter-spacing:0.05pt;"> </span>to generate<span style="letter-spacing:0.1pt;"> </span>significant<span style="letter-spacing:0.15pt;"> </span>revenue<span style="letter-spacing:0.05pt;"> </span>unless<span style="letter-spacing:0.05pt;"> </span>and until<span style="letter-spacing:0.05pt;"> </span>we obtain<span style="letter-spacing:0.05pt;"> </span>marketing<span style="letter-spacing:0.1pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>for,<span style="letter-spacing:0.05pt;"> </span>and begin<span style="letter-spacing:0.05pt;"> </span>to sell,<span style="letter-spacing:0.05pt;"> </span>PRT543, PRT811, PRT1419 or<span style="letter-spacing:0.05pt;"> </span>another<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidate.<span style="letter-spacing:0.15pt;"> </span>Our<span style="letter-spacing:0.05pt;"> </span>ability<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>generate<span style="letter-spacing:0.15pt;"> </span>revenue<span style="letter-spacing:0.1pt;"> </span>depends<span style="letter-spacing:0.05pt;"> </span>on a number<span style="letter-spacing:0.05pt;"> </span>of factors, including,<span style="letter-spacing:0.05pt;"> </span>but not limited<span style="letter-spacing:0.1pt;"> </span>to, our ability<span style="letter-spacing:0.1pt;"> </span>to:</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">complete<span style="letter-spacing:0.1pt;"> </span>successful<span style="letter-spacing:0.1pt;"> </span>Phase 1 portions<span style="letter-spacing:0.05pt;"> </span>of PRT543,<span style="letter-spacing:-0.05pt;"> </span>PRT811<span style="letter-spacing:-0.05pt;"> </span>and PRT1419<span style="letter-spacing:-0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials&#59;</p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">initiate<span style="letter-spacing:0.5pt;"> </span>and<span style="letter-spacing:0.4pt;"> </span>successfully<span style="letter-spacing:0.5pt;"> </span>complete<span style="letter-spacing:0.5pt;"> </span>all<span style="letter-spacing:0.45pt;"> </span>safety,<span style="letter-spacing:0.45pt;"> </span>pharmacokinetic<span style="letter-spacing:0.55pt;"> </span>and<span style="letter-spacing:0.4pt;"> </span>other<span style="letter-spacing:0.45pt;"> </span>studies<span style="letter-spacing:0.45pt;"> </span>required<span style="letter-spacing:0.5pt;"> </span>to<span style="letter-spacing:0.4pt;"> </span>obtain<span style="letter-spacing:0.45pt;"> </span>U.S. and foreign marketing approval for PRT543 as a treatment for patients with hematological malignancies<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>advanced<span style="letter-spacing:0.1pt;"> </span>solid<span style="letter-spacing:0.1pt;"> </span>tumors,<span style="letter-spacing:0.1pt;"> </span>PRT811 as<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>treatment<span style="letter-spacing:0.2pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>patients<span style="letter-spacing:0.15pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>glioblastoma<span style="letter-spacing:0.2pt;"> </span>and advanced<span style="letter-spacing:0.1pt;"> </span>solid<span style="letter-spacing:0.1pt;"> </span>tumors<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>PRT1419 as<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>treatment<span style="letter-spacing:0.2pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>patients<span style="letter-spacing:0.1pt;"> </span>with certain<span style="letter-spacing:0.1pt;"> solid tumors and </span>hematological malignancies&#59;</p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">initiate<span style="letter-spacing:0.1pt;"> </span>and complete<span style="letter-spacing:0.1pt;"> </span>successful<span style="letter-spacing:0.1pt;"> </span>later-stage<span style="letter-spacing:0.15pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>meet<span style="letter-spacing:0.05pt;"> </span>their<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>endpoints&#59;</p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">obtain favorable results from our<span style="letter-spacing:2.45pt;"> </span>clinical trials and<span style="letter-spacing:2.45pt;"> </span>apply for and<span style="letter-spacing:2.4pt;"> </span>obtain<span style="letter-spacing:2.45pt;"> </span>marketing approval<span style="letter-spacing:2.45pt;"> </span>for PRT543,<span style="letter-spacing:-0.05pt;"> </span>PRT811<span style="letter-spacing:-0.05pt;"> </span>and PRT1419&#59;</p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">establish<span style="letter-spacing:0.1pt;"> </span>licenses,<span style="letter-spacing:0.1pt;"> </span>collaborations<span style="letter-spacing:0.15pt;"> </span>or strategic<span style="letter-spacing:0.1pt;"> </span>partnerships<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>increase<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>value<span style="letter-spacing:0.05pt;"> </span>of our programs&#59;</p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">successfully<span style="letter-spacing:0.8pt;"> </span>manufacture<span style="letter-spacing:0.8pt;"> </span>or<span style="letter-spacing:0.7pt;"> </span>contract<span style="letter-spacing:0.8pt;"> </span>with<span style="letter-spacing:0.7pt;"> </span>others<span style="letter-spacing:0.75pt;"> </span>to<span style="letter-spacing:0.7pt;"> </span>manufacture<span style="letter-spacing:0.8pt;"> </span>PRT543,<span style="letter-spacing:0.65pt;"> </span>PRT811,<span style="letter-spacing:0.65pt;"> </span>PRT1419<span style="letter-spacing:0.65pt;"> </span>and<span style="letter-spacing:0.65pt;"> </span>our other<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates&#59;</p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">commercialize<span style="letter-spacing:2pt;"> </span>PRT543,<span style="letter-spacing:1.75pt;"> </span>PRT811,<span style="letter-spacing:1.75pt;"> </span>PRT1419,<span style="letter-spacing:1.75pt;"> </span>if<span style="letter-spacing:1.85pt;"> </span>approved,<span style="letter-spacing:1.85pt;"> </span>respectively,<span style="letter-spacing:1.95pt;"> </span>by<span style="letter-spacing:1.8pt;"> </span>building<span style="letter-spacing:1.8pt;"> </span>a<span style="letter-spacing:1.75pt;"> </span>sales<span style="letter-spacing:1.8pt;"> </span>force<span style="letter-spacing:1.8pt;"> </span>or entering<span style="letter-spacing:0.1pt;"> </span>into<span style="letter-spacing:0.05pt;"> </span>collaborations<span style="letter-spacing:0.15pt;"> </span>with third<span style="letter-spacing:0.05pt;"> </span>parties&#59;</p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">submit<span style="letter-spacing:1.3pt;"> </span>INDs<span style="letter-spacing:1.25pt;"> </span>for<span style="letter-spacing:1.3pt;"> </span>PRT2527<span style="letter-spacing:1.15pt;"> </span>and<span style="letter-spacing:1.2pt;"> </span>the<span style="letter-spacing:1.25pt;"> </span>SMARCA2<span style="letter-spacing:1.1pt;"> </span>protein<span style="letter-spacing:1.25pt;"> </span>degrader<span style="letter-spacing:1.25pt;"> </span>that<span style="letter-spacing:1.25pt;"> </span>are<span style="letter-spacing:1.25pt;"> </span>made<span style="letter-spacing:1.25pt;"> </span>effective<span style="letter-spacing:1.3pt;"> </span>by<span style="letter-spacing:1.2pt;"> </span>the<span style="letter-spacing:1.25pt;"> </span>U.S.</p></td></tr></table></div>
<p style="margin-top:0pt;margin-bottom:0pt;margin-left:7.41%;text-indent:0.09%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Food and Drug Administration,<span style="letter-spacing:0.15pt;"> </span>or the<span style="letter-spacing:0.05pt;"> </span>FDA&#59;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">obtain,<span style="letter-spacing:0.05pt;"> </span>maintain,<span style="letter-spacing:0.1pt;"> </span>protect<span style="letter-spacing:0.1pt;"> </span>and defend<span style="letter-spacing:0.05pt;"> </span>our intellectual<span style="letter-spacing:0.15pt;"> </span>property<span style="letter-spacing:0.05pt;"> </span>portfolio&#59;<span style="letter-spacing:0.1pt;"> </span>and</p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">achieve<span style="letter-spacing:0.3pt;"> </span>market<span style="letter-spacing:0.35pt;"> </span>acceptance<span style="letter-spacing:0.35pt;"> </span>of<span style="letter-spacing:0.25pt;"> </span>PRT543,<span style="letter-spacing:0.2pt;"> </span>PRT811,<span style="letter-spacing:0.2pt;"> </span>PRT1419<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.25pt;"> </span>our<span style="letter-spacing:0.25pt;"> </span>other<span style="letter-spacing:0.25pt;"> </span>successful<span style="letter-spacing:0.3pt;"> </span>product<span style="letter-spacing:0.25pt;"> </span>candidates with the<span style="letter-spacing:0.05pt;"> </span>medical<span style="letter-spacing:0.1pt;"> </span>community<span style="letter-spacing:0.1pt;"> </span>and with third-party<span style="letter-spacing:0.15pt;"> </span>payors.</p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">To become and remain profitable, we must succeed in designing, developing and eventually commercializing<span style="letter-spacing:1.25pt;"> </span>products<span style="letter-spacing:1.1pt;"> </span>that<span style="letter-spacing:1.1pt;"> </span>generate<span style="letter-spacing:1.15pt;"> </span>significant<span style="letter-spacing:1.2pt;"> </span>revenue.<span style="letter-spacing:1.1pt;"> </span>This<span style="letter-spacing:1.05pt;"> </span>will<span style="letter-spacing:1.1pt;"> </span>require<span style="letter-spacing:1.15pt;"> </span>us<span style="letter-spacing:1.05pt;"> </span>to<span style="letter-spacing:1.05pt;"> </span>be<span style="letter-spacing:1pt;"> </span>successful<span style="letter-spacing:1.1pt;"> </span>in<span style="letter-spacing:1pt;"> </span>a<span style="letter-spacing:1pt;"> </span>range<span style="letter-spacing:1.05pt;"> </span>of challenging<span style="letter-spacing:0.15pt;"> </span>activities,<span style="letter-spacing:0.2pt;"> </span>including<span style="letter-spacing:0.1pt;"> </span>completing<span style="letter-spacing:0.15pt;"> </span>preclinical<span style="letter-spacing:0.2pt;"> </span>testing<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trials<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates, designing<span style="letter-spacing:0.05pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates,<span style="letter-spacing:0.1pt;"> </span>establishing<span style="letter-spacing:0.1pt;"> </span>arrangements<span style="letter-spacing:0.15pt;"> </span>with third parties<span style="letter-spacing:0.05pt;"> </span>for the manufacture<span style="letter-spacing:0.05pt;"> </span>of clinical<span style="letter-spacing:0.15pt;"> </span>supplies<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates,<span style="letter-spacing:0.15pt;"> </span>obtaining<span style="letter-spacing:0.1pt;"> </span>marketing<span style="letter-spacing:0.1pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>and manufacturing,<span style="letter-spacing:0.2pt;"> </span>marketing<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>selling<span style="letter-spacing:0.15pt;"> </span>any products<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>which we may<span style="letter-spacing:0.05pt;"> </span>obtain<span style="letter-spacing:0.05pt;"> </span>marketing<span style="letter-spacing:0.1pt;"> </span>approval.<span style="letter-spacing:0.05pt;"> </span>We are<span style="letter-spacing:0.05pt;"> </span>only in the<span style="letter-spacing:0.1pt;"> </span>preliminary<span style="letter-spacing:0.2pt;"> </span>stages<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>most<span style="letter-spacing:0.05pt;"> </span>of these<span style="letter-spacing:0.05pt;"> </span>activities.<span style="letter-spacing:0.15pt;"> </span>We may<span style="letter-spacing:0.05pt;"> </span>never<span style="letter-spacing:0.05pt;"> </span>succeed<span style="letter-spacing:0.05pt;"> </span>in these<span style="letter-spacing:0.05pt;"> </span>activities<span style="letter-spacing:0.15pt;"> </span>and, even if<span style="letter-spacing:0.05pt;"> </span>we do, may<span style="letter-spacing:0.05pt;"> </span>never<span style="letter-spacing:0.05pt;"> </span>generate<span style="letter-spacing:0.1pt;"> </span>revenues<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>significant<span style="letter-spacing:0.15pt;"> </span>enough to achieve<span style="letter-spacing:0.05pt;"> </span>profitability.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">22</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In<span style="letter-spacing:1.25pt;"> </span>cases<span style="letter-spacing:1.3pt;"> </span>where<span style="letter-spacing:1.25pt;"> </span>we<span style="letter-spacing:1.25pt;"> </span>are<span style="letter-spacing:1.3pt;"> </span>successful<span style="letter-spacing:1.35pt;"> </span>in<span style="letter-spacing:1.25pt;"> </span>obtaining<span style="letter-spacing:1.3pt;"> </span>regulatory<span style="letter-spacing:1.35pt;"> </span>approval<span style="letter-spacing:1.3pt;"> </span>to<span style="letter-spacing:1.25pt;"> </span>market<span style="letter-spacing:1.35pt;"> </span>one<span style="letter-spacing:1.25pt;"> </span>or<span style="letter-spacing:1.25pt;"> </span>more<span style="letter-spacing:1.3pt;"> </span>of<span style="letter-spacing:1.25pt;"> </span>our<span style="letter-spacing:1.2pt;"> </span>product candidates,<span style="letter-spacing:1pt;"> </span>our<span style="letter-spacing:0.9pt;"> </span>revenue<span style="letter-spacing:0.95pt;"> </span>will<span style="letter-spacing:0.95pt;"> </span>be<span style="letter-spacing:0.9pt;"> </span>dependent,<span style="letter-spacing:0.95pt;"> </span>in<span style="letter-spacing:0.9pt;"> </span>part,<span style="letter-spacing:0.95pt;"> </span>upon<span style="letter-spacing:0.9pt;"> </span>the<span style="letter-spacing:0.95pt;"> </span>size<span style="letter-spacing:0.95pt;"> </span>of<span style="letter-spacing:0.9pt;"> </span>the<span style="letter-spacing:0.95pt;"> </span>markets<span style="letter-spacing:1pt;"> </span>in<span style="letter-spacing:0.9pt;"> </span>the<span style="letter-spacing:0.95pt;"> </span>territories<span style="letter-spacing:1pt;"> </span>for<span style="letter-spacing:0.9pt;"> </span>which<span style="letter-spacing:0.85pt;"> </span>we gain<span style="letter-spacing:1pt;"> </span>regulatory<span style="letter-spacing:1.05pt;"> </span>approval,<span style="letter-spacing:1pt;"> </span>the<span style="letter-spacing:1pt;"> </span>accepted<span style="letter-spacing:1pt;"> </span>price<span style="letter-spacing:1pt;"> </span>for<span style="letter-spacing:1pt;"> </span>the<span style="letter-spacing:1pt;"> </span>product,<span style="letter-spacing:1pt;"> </span>the<span style="letter-spacing:1pt;"> </span>ability<span style="letter-spacing:1.05pt;"> </span>to<span style="letter-spacing:0.95pt;"> </span>obtain<span style="letter-spacing:0.95pt;"> </span>coverage<span style="letter-spacing:0.95pt;"> </span>and<span style="letter-spacing:0.9pt;"> </span>reimbursement, and<span style="letter-spacing:0.05pt;"> </span>whether<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>own<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>commercial<span style="letter-spacing:0.2pt;"> </span>rights<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>territory.<span style="letter-spacing:0.2pt;"> </span>If<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>number<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>addressable<span style="letter-spacing:0.15pt;"> </span>patients<span style="letter-spacing:0.15pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>not as significant<span style="letter-spacing:0.2pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>estimate,<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>indication<span style="letter-spacing:0.15pt;"> </span>approved<span style="letter-spacing:0.1pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>regulatory<span style="letter-spacing:0.15pt;"> </span>authorities<span style="letter-spacing:0.2pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>narrower<span style="letter-spacing:0.1pt;"> </span>than<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>expect,<span style="letter-spacing:0.1pt;"> </span>or the treatment<span style="letter-spacing:0.2pt;"> </span>population<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>narrowed<span style="letter-spacing:0.1pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>competition,<span style="letter-spacing:0.15pt;"> </span>physician<span style="letter-spacing:0.05pt;"> </span>choice<span style="letter-spacing:0.05pt;"> </span>or treatment<span style="letter-spacing:0.15pt;"> </span>guidelines,<span style="letter-spacing:0.1pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>not generate significant<span style="letter-spacing:0.15pt;"> </span>revenue<span style="letter-spacing:0.05pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>sales<span style="letter-spacing:0.05pt;"> </span>of such products,<span style="letter-spacing:0.05pt;"> </span>even if<span style="letter-spacing:0.05pt;"> </span>approved.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Because<span style="letter-spacing:1pt;"> </span>of<span style="letter-spacing:0.95pt;"> </span>the<span style="letter-spacing:1pt;"> </span>numerous<span style="letter-spacing:1pt;"> </span>risks<span style="letter-spacing:1pt;"> </span>and<span style="letter-spacing:0.95pt;"> </span>uncertainties<span style="letter-spacing:1.1pt;"> </span>associated<span style="letter-spacing:1pt;"> </span>with<span style="letter-spacing:0.9pt;"> </span>pharmaceutical<span style="letter-spacing:1.05pt;"> </span>product<span style="letter-spacing:0.95pt;"> </span>development,<span style="letter-spacing:1pt;"> </span>we are<span style="letter-spacing:0.1pt;"> </span>unable<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>accurately<span style="letter-spacing:0.15pt;"> </span>predict<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>timing<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>amount<span style="letter-spacing:0.05pt;"> </span>of increased<span style="letter-spacing:0.1pt;"> </span>expenses<span style="letter-spacing:0.05pt;"> </span>we will<span style="letter-spacing:0.05pt;"> </span>incur<span style="letter-spacing:0.05pt;"> </span>or when, or if,<span style="letter-spacing:0.05pt;"> </span>we will be<span style="letter-spacing:0.05pt;"> </span>able<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>achieve<span style="letter-spacing:0.1pt;"> </span>profitability.<span style="letter-spacing:0.2pt;"> </span>If<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>decide<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>required<span style="letter-spacing:0.15pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA or<span style="letter-spacing:0.05pt;"> </span>regulatory<span style="letter-spacing:0.15pt;"> </span>authorities<span style="letter-spacing:0.2pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>other jurisdictions<span style="letter-spacing:0.2pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>perform<span style="letter-spacing:0.15pt;"> </span>studies<span style="letter-spacing:0.1pt;"> </span>or clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>in addition<span style="letter-spacing:0.05pt;"> </span>to those<span style="letter-spacing:0.05pt;"> </span>currently<span style="letter-spacing:0.1pt;"> </span>expected,<span style="letter-spacing:0.05pt;"> </span>or if<span style="letter-spacing:0.05pt;"> </span>there<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>any delays in<span style="letter-spacing:0.05pt;"> </span>establishing<span style="letter-spacing:0.15pt;"> </span>appropriate<span style="letter-spacing:0.15pt;"> </span>manufacturing<span style="letter-spacing:0.2pt;"> </span>arrangements<span style="letter-spacing:0.2pt;"> </span>for,<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>initiating<span style="letter-spacing:0.15pt;"> </span>or completing<span style="letter-spacing:0.1pt;"> </span>our current<span style="letter-spacing:0.1pt;"> </span>and planned clinical<span style="letter-spacing:0.15pt;"> </span>trials<span style="letter-spacing:0.15pt;"> </span>for,<span style="letter-spacing:0.05pt;"> </span>or in the<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>of, any of our product<span style="letter-spacing:0.05pt;"> </span>candidates,<span style="letter-spacing:0.1pt;"> </span>our expenses<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>increase<span style="letter-spacing:0.1pt;"> </span>materially and profitability<span style="letter-spacing:0.15pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>be further<span style="letter-spacing:0.1pt;"> </span>delayed.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Even<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>do<span style="letter-spacing:0.05pt;"> </span>achieve<span style="letter-spacing:0.1pt;"> </span>profitability,<span style="letter-spacing:0.2pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>able<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>sustain<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>increase<span style="letter-spacing:0.15pt;"> </span>profitability<span style="letter-spacing:0.2pt;"> </span>on a quarterly<span style="letter-spacing:0.1pt;"> </span>or annual<span style="letter-spacing:0.1pt;"> </span>basis.<span style="letter-spacing:0.1pt;"> </span>Our<span style="letter-spacing:0.05pt;"> </span>failure<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>become<span style="letter-spacing:0.1pt;"> </span>and remain<span style="letter-spacing:0.1pt;"> </span>profitable<span style="letter-spacing:0.1pt;"> </span>would depress<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>value<span style="letter-spacing:0.05pt;"> </span>of our company<span style="letter-spacing:0.05pt;"> </span>and could impair<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>ability<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>raise<span style="letter-spacing:0.05pt;"> </span>capital,<span style="letter-spacing:0.1pt;"> </span>expand our business,<span style="letter-spacing:0.05pt;"> </span>maintain<span style="letter-spacing:0.1pt;"> </span>our research<span style="letter-spacing:0.1pt;"> </span>and development<span style="letter-spacing:0.1pt;"> </span>efforts,<span style="letter-spacing:0.1pt;"> </span>diversify our<span style="letter-spacing:0.85pt;"> </span>product<span style="letter-spacing:0.9pt;"> </span>offerings<span style="letter-spacing:0.95pt;"> </span>or<span style="letter-spacing:0.8pt;"> </span>even<span style="letter-spacing:0.8pt;"> </span>continue<span style="letter-spacing:0.85pt;"> </span>our<span style="letter-spacing:0.8pt;"> </span>operations.<span style="letter-spacing:0.9pt;"> </span>A<span style="letter-spacing:0.8pt;"> </span>decline<span style="letter-spacing:0.85pt;"> </span>in<span style="letter-spacing:0.8pt;"> </span>the<span style="letter-spacing:0.85pt;"> </span>value<span style="letter-spacing:0.85pt;"> </span>of<span style="letter-spacing:0.8pt;"> </span>our<span style="letter-spacing:0.8pt;"> </span>company<span style="letter-spacing:0.85pt;"> </span>could<span style="letter-spacing:0.85pt;"> </span>also<span style="letter-spacing:0.85pt;"> </span>cause you to lose<span style="letter-spacing:0.05pt;"> </span>all<span style="letter-spacing:0.05pt;"> </span>or part<span style="letter-spacing:0.05pt;"> </span>of your investment.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We will<span style="letter-spacing:0.05pt;"> </span>require<span style="letter-spacing:0.05pt;"> </span>substantial<span style="letter-spacing:0.1pt;"> </span>additional<span style="letter-spacing:0.05pt;"> </span>funding to pursue our business objectives.<span style="letter-spacing:0.1pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>we are unable to raise<span style="letter-spacing:0.05pt;"> </span>capital<span style="letter-spacing:0.05pt;"> </span>when<span style="letter-spacing:-0.05pt;"> </span>needed or on terms<span style="letter-spacing:0.05pt;"> </span>acceptable<span style="letter-spacing:0.1pt;"> </span>to us, we could be forced to delay,<span style="letter-spacing:0.05pt;"> </span>reduce<span style="letter-spacing:0.05pt;"> </span>or eliminate<span style="letter-spacing:0.1pt;"> </span>our research<span style="letter-spacing:0.05pt;"> </span>or drug development<span style="letter-spacing:0.1pt;"> </span>programs,<span style="letter-spacing:0.05pt;"> </span>any future<span style="letter-spacing:0.05pt;"> </span>commercialization efforts<span style="letter-spacing:0.1pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>operations.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.8pt;"> </span>expect<span style="letter-spacing:0.85pt;"> </span>our<span style="letter-spacing:0.8pt;"> </span>expenses<span style="letter-spacing:0.85pt;"> </span>to<span style="letter-spacing:0.8pt;"> </span>increase<span style="letter-spacing:0.9pt;"> </span>substantially<span style="letter-spacing:0.95pt;"> </span>in<span style="letter-spacing:0.8pt;"> </span>connection<span style="letter-spacing:0.85pt;"> </span>with<span style="letter-spacing:0.8pt;"> </span>our<span style="letter-spacing:0.8pt;"> </span>ongoing<span style="letter-spacing:0.75pt;"> </span>activities,<span style="letter-spacing:0.9pt;"> </span>particularly<span style="letter-spacing:0.9pt;"> </span>as we<span style="letter-spacing:0.1pt;"> </span>advance<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.15pt;"> </span>candidates,<span style="letter-spacing:0.2pt;"> </span>PRT543,<span style="letter-spacing:0.05pt;"> </span>PRT811<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>PRT1419, and<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>pipeline<span style="letter-spacing:0.15pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates through<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>development,<span style="letter-spacing:0.1pt;"> </span>and seek<span style="letter-spacing:0.05pt;"> </span>to design<span style="letter-spacing:0.05pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>our discovery<span style="letter-spacing:0.05pt;"> </span>programs.<span style="letter-spacing:0.1pt;"> </span>We expect<span style="letter-spacing:1.25pt;"> </span>increased<span style="letter-spacing:1.3pt;"> </span>expenses<span style="letter-spacing:1.25pt;"> </span>as<span style="letter-spacing:1.2pt;"> </span>we<span style="letter-spacing:1.15pt;"> </span>continue<span style="letter-spacing:1.2pt;"> </span>our<span style="letter-spacing:1.15pt;"> </span>research<span style="letter-spacing:1.25pt;"> </span>and<span style="letter-spacing:1.15pt;"> </span>development,<span style="letter-spacing:1.25pt;"> </span>initiate<span style="letter-spacing:1.25pt;"> </span>additional<span style="letter-spacing:1.25pt;"> </span>clinical<span style="letter-spacing:1.25pt;"> </span>trials,<span style="letter-spacing:1.25pt;"> </span>and seek<span style="letter-spacing:0.1pt;"> </span>marketing<span style="letter-spacing:0.15pt;"> </span>approval<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>lead<span style="letter-spacing:0.1pt;"> </span>programs<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates.<span style="letter-spacing:0.1pt;"> </span>In addition,<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>we obtain marketing<span style="letter-spacing:0.1pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>any of our product<span style="letter-spacing:0.05pt;"> </span>candidates,<span style="letter-spacing:0.1pt;"> </span>we expect<span style="letter-spacing:0.05pt;"> </span>to incur<span style="letter-spacing:0.05pt;"> </span>significant<span style="letter-spacing:0.1pt;"> </span>commercialization<span style="letter-spacing:0.15pt;"> </span>expenses related<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>manufacturing,<span style="letter-spacing:0.2pt;"> </span>marketing,<span style="letter-spacing:0.15pt;"> </span>sales<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>distribution.<span style="letter-spacing:0.2pt;"> </span>Furthermore,<span style="letter-spacing:0.1pt;"> </span>we expect<span style="letter-spacing:0.05pt;"> </span>to continue<span style="letter-spacing:0.05pt;"> </span>to incur additional<span style="letter-spacing:0.15pt;"> </span>costs<span style="letter-spacing:0.1pt;"> </span>associated<span style="letter-spacing:0.15pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>operating<span style="letter-spacing:0.15pt;"> </span>as a public<span style="letter-spacing:0.05pt;"> </span>company.<span style="letter-spacing:0.05pt;"> </span>Accordingly,<span style="letter-spacing:0.05pt;"> </span>we will<span style="letter-spacing:0.05pt;"> </span>need to obtain<span style="letter-spacing:0.05pt;"> </span>substantial additional<span style="letter-spacing:0.15pt;"> </span>funding<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>connection<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>continuing<span style="letter-spacing:0.1pt;"> </span>operations.<span style="letter-spacing:0.15pt;"> </span>Adequate<span style="letter-spacing:0.1pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>financing<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>not be available<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>us on favorable<span style="letter-spacing:0.1pt;"> </span>terms,<span style="letter-spacing:0.1pt;"> </span>or at<span style="letter-spacing:0.05pt;"> </span>all.<span style="letter-spacing:0.05pt;"> </span>In addition,<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>seek<span style="letter-spacing:0.05pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>capital<span style="letter-spacing:0.1pt;"> </span>due to favorable<span style="letter-spacing:0.1pt;"> </span>market conditions<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>strategic<span style="letter-spacing:0.15pt;"> </span>considerations<span style="letter-spacing:0.2pt;"> </span>even<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>believe<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>sufficient<span style="letter-spacing:0.2pt;"> </span>funds<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>current<span style="letter-spacing:0.1pt;"> </span>or future operating<span style="letter-spacing:0.15pt;"> </span>plans.<span style="letter-spacing:0.1pt;"> </span>If<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>unable<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>raise<span style="letter-spacing:0.1pt;"> </span>capital<span style="letter-spacing:0.15pt;"> </span>when<span style="letter-spacing:0.05pt;"> </span>needed<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>favorable<span style="letter-spacing:0.15pt;"> </span>terms,<span style="letter-spacing:0.15pt;"> </span>we could<span style="letter-spacing:0.05pt;"> </span>be forced<span style="letter-spacing:0.05pt;"> </span>to delay, reduce<span style="letter-spacing:0.05pt;"> </span>or eliminate<span style="letter-spacing:0.15pt;"> </span>our research<span style="letter-spacing:0.1pt;"> </span>and development<span style="letter-spacing:0.1pt;"> </span>programs,<span style="letter-spacing:0.1pt;"> </span>our commercialization<span style="letter-spacing:0.2pt;"> </span>plans<span style="letter-spacing:0.05pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>operations.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:1.15pt;"> </span>believe<span style="letter-spacing:1.2pt;"> </span>that<span style="letter-spacing:1.2pt;"> </span>our<span style="letter-spacing:1.1pt;"> </span>existing<span style="letter-spacing:1.2pt;"> </span>cash<span style="letter-spacing:1.15pt;"> </span>and<span style="letter-spacing:1.1pt;"> </span>cash<span style="letter-spacing:1.15pt;"> </span>equivalents will<span style="letter-spacing:0.1pt;"> </span>enable<span style="letter-spacing:0.1pt;"> </span>us<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>fund<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>operating<span style="letter-spacing:0.15pt;"> </span>expenses,<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>capital<span style="letter-spacing:0.15pt;"> </span>expenditure<span style="letter-spacing:0.1pt;"> </span>requirements<span style="letter-spacing:0.15pt;"> </span>into mid-2023. We have based this estimate on assumptions that may prove to be wrong, and we could use our capital resources sooner than we currently expect. Changes beyond our control may occur that would cause us to use our available capital before that time, including changes in and progress of our drug development activities and changes in regulation. Our future<span style="letter-spacing:0.05pt;"> </span>capital<span style="letter-spacing:0.1pt;"> </span>requirements<span style="letter-spacing:0.15pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>depend on many<span style="letter-spacing:0.05pt;"> </span>factors,<span style="letter-spacing:0.1pt;"> </span>including:</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:1.15pt;"> </span>progress,<span style="letter-spacing:1.15pt;"> </span>timing<span style="letter-spacing:1.2pt;"> </span>and<span style="letter-spacing:1.1pt;"> </span>results<span style="letter-spacing:1.2pt;"> </span>of<span style="letter-spacing:1.1pt;"> </span>preclinical<span style="letter-spacing:1.25pt;"> </span>studies<span style="letter-spacing:1.15pt;"> </span>and<span style="letter-spacing:1.1pt;"> </span>clinical<span style="letter-spacing:1.2pt;"> </span>trials<span style="letter-spacing:1.2pt;"> </span>for<span style="letter-spacing:1.15pt;"> </span>our<span style="letter-spacing:1.1pt;"> </span>current<span style="letter-spacing:1.2pt;"> </span>or<span style="letter-spacing:1.1pt;"> </span>any<span style="letter-spacing:1.1pt;"> </span>future product<span style="letter-spacing:0.05pt;"> </span>candidates&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.05pt;"> </span>extent<span style="letter-spacing:0.05pt;"> </span>to which we develop,<span style="letter-spacing:0.05pt;"> </span>in-license<span style="letter-spacing:0.1pt;"> </span>or acquire<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.05pt;"> </span>pipeline<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>or technologies&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.75pt;"> </span>number<span style="letter-spacing:0.75pt;"> </span>and<span style="letter-spacing:0.7pt;"> </span>development<span style="letter-spacing:0.8pt;"> </span>requirements<span style="letter-spacing:0.85pt;"> </span>of<span style="letter-spacing:0.7pt;"> </span>other<span style="letter-spacing:0.75pt;"> </span>product<span style="letter-spacing:0.75pt;"> </span>candidates<span style="letter-spacing:0.8pt;"> </span>that<span style="letter-spacing:0.7pt;"> </span>we<span style="letter-spacing:0.65pt;"> </span>may<span style="letter-spacing:0.7pt;"> </span>pursue,<span style="letter-spacing:0.7pt;"> </span>and<span style="letter-spacing:0.65pt;"> </span>other indications<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our current<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>pursue&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:2.35pt;"> </span>costs,<span style="letter-spacing:2.35pt;"> </span>timing<span style="letter-spacing:2.4pt;"> </span>and<span style="letter-spacing:2.3pt;"> </span>outcome<span style="letter-spacing:2.3pt;"> </span>of<span style="letter-spacing:2.25pt;"> </span>obtaining<span style="letter-spacing:2.3pt;"> </span>regulatory<span style="letter-spacing:2.35pt;"> </span>approvals<span style="letter-spacing:2.3pt;"> </span>of<span style="letter-spacing:2.25pt;"> </span>our<span style="letter-spacing:2.25pt;"> </span>current<span style="letter-spacing:2.35pt;"> </span>or<span style="letter-spacing:2.25pt;"> </span>future<span style="letter-spacing:2.3pt;"> </span>product candidates<span style="letter-spacing:0.1pt;"> </span>and any companion<span style="letter-spacing:0.05pt;"> </span>diagnostics<span style="letter-spacing:0.1pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>pursue&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the scope and costs of making arrangements with third-party manufacturers, or establishing manufacturing<span style="letter-spacing:0.2pt;"> </span>capabilities,<span style="letter-spacing:0.2pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>both<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>commercial<span style="letter-spacing:0.2pt;"> </span>supplies<span style="letter-spacing:0.1pt;"> </span>of our current<span style="letter-spacing:0.1pt;"> </span>or future<span style="letter-spacing:0.05pt;"> </span>product candidates&#59;</p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-top:3pt;margin-bottom:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-top:3pt;margin-bottom:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-top:3pt;margin-bottom:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the costs involved in growing our organization to the size needed to allow for the research, development<span style="letter-spacing:0.1pt;"> </span>and potential<span style="letter-spacing:0.1pt;"> </span>commercialization<span style="letter-spacing:0.2pt;"> </span>of our current<span style="letter-spacing:0.1pt;"> </span>or future<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:2.4pt;"> </span>cost<span style="letter-spacing:2.4pt;"> </span>associated<span style="letter-spacing:2.45pt;"> </span>with<span style="letter-spacing:2.35pt;"> </span>commercializing any<span style="letter-spacing:2.35pt;"> </span>approved<span style="letter-spacing:2.4pt;"> </span>product<span style="letter-spacing:2.35pt;"> </span>candidates,<span style="letter-spacing:2.4pt;"> </span>including<span style="letter-spacing:2.35pt;"> </span>establishing sales,<span style="letter-spacing:0.05pt;"> </span>marketing<span style="letter-spacing:0.1pt;"> </span>and distribution<span style="letter-spacing:0.15pt;"> </span>capabilities&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">23</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.75pt;"> </span>cost<span style="letter-spacing:0.75pt;"> </span>associated<span style="letter-spacing:0.8pt;"> </span>with<span style="letter-spacing:0.7pt;"> </span>completing<span style="letter-spacing:0.8pt;"> </span>any<span style="letter-spacing:0.65pt;"> </span>post-marketing<span style="letter-spacing:0.8pt;"> </span>studies<span style="letter-spacing:0.7pt;"> </span>or<span style="letter-spacing:0.65pt;"> </span>trials<span style="letter-spacing:0.75pt;"> </span>required<span style="letter-spacing:0.75pt;"> </span>by<span style="letter-spacing:0.65pt;"> </span>the<span style="letter-spacing:0.7pt;"> </span>FDA<span style="letter-spacing:0.6pt;"> </span>or<span style="letter-spacing:0.65pt;"> </span>other regulatory<span style="letter-spacing:0.1pt;"> </span>authorities&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.1pt;"> </span>revenue,<span style="letter-spacing:0.1pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>any,<span style="letter-spacing:0.05pt;"> </span>received<span style="letter-spacing:0.15pt;"> </span>from<span style="letter-spacing:0.1pt;"> </span>commercial<span style="letter-spacing:0.2pt;"> </span>sales<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>PRT543, PRT811, PRT1419, or<span style="letter-spacing:0.05pt;"> </span>PRT2527<span style="letter-spacing:-0.05pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>any are<span style="letter-spacing:0.05pt;"> </span>approved,<span style="letter-spacing:0.05pt;"> </span>or our other<span style="letter-spacing:0.05pt;"> </span>pipeline<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>receive<span style="letter-spacing:0.1pt;"> </span>marketing<span style="letter-spacing:0.1pt;"> </span>approval&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the costs of preparing, filing and prosecuting patent applications, maintaining and enforcing our intellectual<span style="letter-spacing:0.2pt;"> </span>property<span style="letter-spacing:0.1pt;"> </span>rights<span style="letter-spacing:0.05pt;"> </span>and defending<span style="letter-spacing:0.05pt;"> </span>intellectual<span style="letter-spacing:0.15pt;"> </span>property-related<span style="letter-spacing:0.2pt;"> </span>claims<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>become subject<span style="letter-spacing:0.05pt;"> </span>to, including<span style="letter-spacing:0.05pt;"> </span>any litigation<span style="letter-spacing:0.15pt;"> </span>costs<span style="letter-spacing:0.05pt;"> </span>and the<span style="letter-spacing:0.05pt;"> </span>outcome<span style="letter-spacing:0.05pt;"> </span>of such litigation&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the costs associated with potential product liability claims, including the costs associated with obtaining<span style="letter-spacing:0.05pt;"> </span>insurance<span style="letter-spacing:0.1pt;"> </span>against<span style="letter-spacing:0.05pt;"> </span>such claims<span style="letter-spacing:0.1pt;"> </span>and with defending<span style="letter-spacing:0.05pt;"> </span>against<span style="letter-spacing:0.05pt;"> </span>such claims&#59;<span style="letter-spacing:0.1pt;"> </span>and</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">to<span style="letter-spacing:1.4pt;"> </span>the<span style="letter-spacing:1.45pt;"> </span>extent<span style="letter-spacing:1.45pt;"> </span>we<span style="letter-spacing:1.35pt;"> </span>pursue<span style="letter-spacing:1.4pt;"> </span>strategic<span style="letter-spacing:1.45pt;"> </span>collaborations,<span style="letter-spacing:1.5pt;"> </span>including<span style="letter-spacing:1.4pt;"> </span>collaborations<span style="letter-spacing:1.5pt;"> </span>to<span style="letter-spacing:1.35pt;"> </span>commercialize<span style="letter-spacing:1.55pt;"> </span>PRT543, PRT811, PRT1419, PRT2527 or<span style="letter-spacing:0.05pt;"> </span>any of our other<span style="letter-spacing:0.05pt;"> </span>pipeline<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates,<span style="letter-spacing:0.1pt;"> </span>our ability<span style="letter-spacing:0.1pt;"> </span>to establish and<span style="letter-spacing:0.05pt;"> </span>maintain<span style="letter-spacing:0.15pt;"> </span>collaborations<span style="letter-spacing:0.2pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>favorable<span style="letter-spacing:0.15pt;"> </span>terms,<span style="letter-spacing:0.15pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>at<span style="letter-spacing:0.1pt;"> </span>all,<span style="letter-spacing:0.1pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>well<span style="letter-spacing:0.1pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>timing<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>amount<span style="letter-spacing:0.1pt;"> </span>of any milestone<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>royalty<span style="letter-spacing:0.1pt;"> </span>payments<span style="letter-spacing:0.1pt;"> </span>we are<span style="letter-spacing:0.05pt;"> </span>required<span style="letter-spacing:0.1pt;"> </span>to make<span style="letter-spacing:0.05pt;"> </span>or are<span style="letter-spacing:0.05pt;"> </span>eligible<span style="letter-spacing:0.1pt;"> </span>to receive<span style="letter-spacing:0.1pt;"> </span>under<span style="letter-spacing:0.05pt;"> </span>such collaborations,<span style="letter-spacing:0.15pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>any.</p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0.93%;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We will<span style="letter-spacing:0.05pt;"> </span>require<span style="letter-spacing:0.1pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>capital<span style="letter-spacing:0.1pt;"> </span>to complete<span style="letter-spacing:0.1pt;"> </span>our planned clinical development<span style="letter-spacing:0.15pt;"> </span>programs<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>current<span style="letter-spacing:0.15pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>to obtain<span style="letter-spacing:0.05pt;"> </span>regulatory<span style="letter-spacing:0.1pt;"> </span>approval.<span style="letter-spacing:0.05pt;"> </span>Our ability<span style="letter-spacing:0.1pt;"> </span>to raise additional<span style="letter-spacing:0.15pt;"> </span>funds<span style="letter-spacing:0.1pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>depend on financial,<span style="letter-spacing:0.1pt;"> </span>economic<span style="letter-spacing:0.05pt;"> </span>and market<span style="letter-spacing:0.1pt;"> </span>conditions<span style="letter-spacing:0.1pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>factors,<span style="letter-spacing:0.1pt;"> </span>over<span style="letter-spacing:0.05pt;"> </span>which we may have<span style="letter-spacing:0.75pt;"> </span>no<span style="letter-spacing:0.75pt;"> </span>or<span style="letter-spacing:0.75pt;"> </span>limited<span style="letter-spacing:0.8pt;"> </span>control.<span style="letter-spacing:0.75pt;"> </span>If<span style="letter-spacing:0.75pt;"> </span>adequate<span style="letter-spacing:0.75pt;"> </span>funds<span style="letter-spacing:0.75pt;"> </span>are<span style="letter-spacing:0.75pt;"> </span>not<span style="letter-spacing:0.7pt;"> </span>available<span style="letter-spacing:0.8pt;"> </span>on<span style="letter-spacing:0.7pt;"> </span>commercially<span style="letter-spacing:0.85pt;"> </span>acceptable<span style="letter-spacing:0.8pt;"> </span>terms<span style="letter-spacing:0.8pt;"> </span>when<span style="letter-spacing:0.7pt;"> </span>needed, we<span style="letter-spacing:1.75pt;"> </span>may<span style="letter-spacing:1.8pt;"> </span>be<span style="letter-spacing:1.75pt;"> </span>forced<span style="letter-spacing:1.8pt;"> </span>to<span style="letter-spacing:1.75pt;"> </span>delay,<span style="letter-spacing:1.8pt;"> </span>reduce<span style="letter-spacing:1.8pt;"> </span>or<span style="letter-spacing:1.75pt;"> </span>terminate<span style="letter-spacing:1.9pt;"> </span>the<span style="letter-spacing:1.75pt;"> </span>development<span style="letter-spacing:1.8pt;"> </span>or<span style="letter-spacing:1.7pt;"> </span>commercialization<span style="letter-spacing:1.9pt;"> </span>of<span style="letter-spacing:1.7pt;"> </span>all<span style="letter-spacing:1.75pt;"> </span>or<span style="letter-spacing:1.7pt;"> </span>part<span style="letter-spacing:1.75pt;"> </span>of<span style="letter-spacing:1.7pt;"> </span>our research<span style="letter-spacing:0.15pt;"> </span>programs<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>or we may<span style="letter-spacing:0.05pt;"> </span>be unable<span style="letter-spacing:0.05pt;"> </span>to take<span style="letter-spacing:0.05pt;"> </span>advantage<span style="letter-spacing:0.05pt;"> </span>of future<span style="letter-spacing:0.05pt;"> </span>business<span style="letter-spacing:0.05pt;"> </span>opportunities. Furthermore,<span style="letter-spacing:0.1pt;"> </span>any additional<span style="letter-spacing:0.1pt;"> </span>capital-raising<span style="letter-spacing:0.2pt;"> </span>efforts<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>divert<span style="letter-spacing:0.05pt;"> </span>our management<span style="letter-spacing:0.05pt;"> </span>from their day-to-day<span style="letter-spacing:0.05pt;"> </span>activities, which<span style="letter-spacing:0.55pt;"> </span>may<span style="letter-spacing:0.6pt;"> </span>adversely<span style="letter-spacing:0.65pt;"> </span>affect<span style="letter-spacing:0.65pt;"> </span>our<span style="letter-spacing:0.55pt;"> </span>ability<span style="letter-spacing:0.65pt;"> </span>to<span style="letter-spacing:0.55pt;"> </span>develop<span style="letter-spacing:0.6pt;"> </span>and<span style="letter-spacing:0.55pt;"> </span>commercialize<span style="letter-spacing:0.75pt;"> </span>our<span style="letter-spacing:0.5pt;"> </span>current<span style="letter-spacing:0.6pt;"> </span>and<span style="letter-spacing:0.5pt;"> </span>future<span style="letter-spacing:0.55pt;"> </span>product<span style="letter-spacing:0.55pt;"> </span>candidates, if<span style="letter-spacing:0.05pt;"> </span>approved.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Raising additional<span style="letter-spacing:0.05pt;"> </span>capital<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>cause dilution<span style="letter-spacing:0.05pt;"> </span>to our stockholders<span style="letter-spacing:0.05pt;"> </span>restrict<span style="letter-spacing:0.1pt;"> </span>our operations<span style="letter-spacing:0.05pt;"> </span>or require<span style="letter-spacing:0.05pt;"> </span>us to relinquish<span style="letter-spacing:0.05pt;"> </span>rights<span style="letter-spacing:0.05pt;"> </span>to our technologies<span style="letter-spacing:0.1pt;"> </span>or product candidates.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Until<span style="letter-spacing:0.1pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>time,<span style="letter-spacing:0.1pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>ever,<span style="letter-spacing:0.1pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>we can generate<span style="letter-spacing:0.1pt;"> </span>substantial<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>revenue,<span style="letter-spacing:0.05pt;"> </span>we expect<span style="letter-spacing:0.05pt;"> </span>to finance<span style="letter-spacing:0.05pt;"> </span>our cash<span style="letter-spacing:0.05pt;"> </span>needs through<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>combination<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>equity<span style="letter-spacing:0.1pt;"> </span>offerings,<span style="letter-spacing:0.15pt;"> </span>debt<span style="letter-spacing:0.05pt;"> </span>financings,<span style="letter-spacing:0.1pt;"> </span>collaborations,<span style="letter-spacing:0.15pt;"> </span>strategic<span style="letter-spacing:0.1pt;"> </span>alliances<span style="letter-spacing:0.1pt;"> </span>and marketing, distribution<span style="letter-spacing:0.2pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>licensing<span style="letter-spacing:0.15pt;"> </span>arrangements.<span style="letter-spacing:0.2pt;"> </span>In<span style="letter-spacing:0.05pt;"> </span>addition,<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>seek<span style="letter-spacing:0.1pt;"> </span>additional<span style="letter-spacing:0.15pt;"> </span>capital<span style="letter-spacing:0.1pt;"> </span>due to favorable<span style="letter-spacing:0.1pt;"> </span>market conditions<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>strategic<span style="letter-spacing:0.15pt;"> </span>considerations,<span style="letter-spacing:0.2pt;"> </span>even<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>believe<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>sufficient<span style="letter-spacing:0.2pt;"> </span>funds<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our current<span style="letter-spacing:0.1pt;"> </span>or future operating<span style="letter-spacing:0.15pt;"> </span>plans.<span style="letter-spacing:0.1pt;"> </span>To<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>extent<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>raise<span style="letter-spacing:0.1pt;"> </span>additional<span style="letter-spacing:0.15pt;"> </span>capital<span style="letter-spacing:0.15pt;"> </span>through<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>sale<span style="letter-spacing:0.05pt;"> </span>of equity<span style="letter-spacing:0.05pt;"> </span>or convertible<span style="letter-spacing:0.1pt;"> </span>debt securities,<span style="letter-spacing:0.2pt;"> </span>your<span style="letter-spacing:0.05pt;"> </span>ownership<span style="letter-spacing:0.1pt;"> </span>interest<span style="letter-spacing:0.15pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>be diluted,<span style="letter-spacing:0.05pt;"> </span>and the<span style="letter-spacing:0.05pt;"> </span>terms<span style="letter-spacing:0.1pt;"> </span>of these<span style="letter-spacing:0.05pt;"> </span>securities<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>include<span style="letter-spacing:0.05pt;"> </span>liquidation<span style="letter-spacing:0.1pt;"> </span>or other<span style="letter-spacing:0.1pt;"> </span>preferences<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>adversely<span style="letter-spacing:0.15pt;"> </span>affect<span style="letter-spacing:0.15pt;"> </span>your<span style="letter-spacing:0.05pt;"> </span>rights<span style="letter-spacing:0.1pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>common<span style="letter-spacing:0.1pt;"> </span>stockholder.<span style="letter-spacing:0.15pt;"> </span>Debt financing<span style="letter-spacing:0.1pt;"> </span>and preferred<span style="letter-spacing:0.1pt;"> </span>equity financing,<span style="letter-spacing:0.15pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>available,<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>involve<span style="letter-spacing:0.05pt;"> </span>agreements<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>include<span style="letter-spacing:0.05pt;"> </span>covenants<span style="letter-spacing:0.05pt;"> </span>limiting<span style="letter-spacing:0.1pt;"> </span>or restricting<span style="letter-spacing:0.15pt;"> </span>our ability<span style="letter-spacing:0.1pt;"> </span>to take specific<span style="letter-spacing:0.15pt;"> </span>actions,<span style="letter-spacing:0.1pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>incurring<span style="letter-spacing:0.15pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>debt,<span style="letter-spacing:0.05pt;"> </span>making<span style="letter-spacing:0.05pt;"> </span>acquisitions<span style="letter-spacing:0.1pt;"> </span>or capital<span style="letter-spacing:0.1pt;"> </span>expenditures<span style="letter-spacing:0.1pt;"> </span>or declaring dividends.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If<span style="letter-spacing:0.1pt;"> </span>we raise<span style="letter-spacing:0.05pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>funds<span style="letter-spacing:0.05pt;"> </span>through<span style="letter-spacing:0.05pt;"> </span>collaborations,<span style="letter-spacing:0.15pt;"> </span>strategic<span style="letter-spacing:0.1pt;"> </span>alliances<span style="letter-spacing:0.1pt;"> </span>or marketing,<span style="letter-spacing:0.1pt;"> </span>distribution<span style="letter-spacing:0.15pt;"> </span>or licensing arrangements<span style="letter-spacing:1.25pt;"> </span>with<span style="letter-spacing:1.1pt;"> </span>third<span style="letter-spacing:1.15pt;"> </span>parties,<span style="letter-spacing:1.2pt;"> </span>we<span style="letter-spacing:1.1pt;"> </span>may<span style="letter-spacing:1.15pt;"> </span>have<span style="letter-spacing:1.05pt;"> </span>to<span style="letter-spacing:1.05pt;"> </span>relinquish<span style="letter-spacing:1.15pt;"> </span>valuable<span style="letter-spacing:1.1pt;"> </span>rights<span style="letter-spacing:1.1pt;"> </span>to<span style="letter-spacing:1.05pt;"> </span>our<span style="letter-spacing:1.05pt;"> </span>technologies,<span style="letter-spacing:1.15pt;"> </span>future<span style="letter-spacing:1.1pt;"> </span>revenue streams,<span style="letter-spacing:0.9pt;"> </span>research<span style="letter-spacing:0.9pt;"> </span>programs<span style="letter-spacing:0.9pt;"> </span>or<span style="letter-spacing:0.8pt;"> </span>product<span style="letter-spacing:0.85pt;"> </span>candidates<span style="letter-spacing:0.9pt;"> </span>or<span style="letter-spacing:0.8pt;"> </span>grant<span style="letter-spacing:0.85pt;"> </span>licenses<span style="letter-spacing:0.9pt;"> </span>on<span style="letter-spacing:0.8pt;"> </span>terms<span style="letter-spacing:0.9pt;"> </span>that<span style="letter-spacing:0.8pt;"> </span>may<span style="letter-spacing:0.8pt;"> </span>not<span style="letter-spacing:0.75pt;"> </span>be<span style="letter-spacing:0.75pt;"> </span>favorable<span style="letter-spacing:0.85pt;"> </span>to<span style="letter-spacing:0.75pt;"> </span>us.<span style="letter-spacing:0.75pt;"> </span>If we<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>unable<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>raise<span style="letter-spacing:0.1pt;"> </span>additional<span style="letter-spacing:0.15pt;"> </span>funds<span style="letter-spacing:0.1pt;"> </span>through<span style="letter-spacing:0.1pt;"> </span>equity<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>debt<span style="letter-spacing:0.1pt;"> </span>financings<span style="letter-spacing:0.15pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>arrangements<span style="letter-spacing:0.15pt;"> </span>when needed,<span style="letter-spacing:0.05pt;"> </span>we may be required to delay, limit, reduce or terminate our research, product development or future commercialization<span style="letter-spacing:0.45pt;"> </span>efforts<span style="letter-spacing:0.35pt;"> </span>or<span style="letter-spacing:0.25pt;"> </span>grant<span style="letter-spacing:0.3pt;"> </span>rights<span style="letter-spacing:0.3pt;"> </span>to<span style="letter-spacing:0.2pt;"> </span>third<span style="letter-spacing:0.25pt;"> </span>parties<span style="letter-spacing:0.3pt;"> </span>to<span style="letter-spacing:0.2pt;"> </span>develop<span style="letter-spacing:0.25pt;"> </span>and<span style="letter-spacing:0.2pt;"> </span>market<span style="letter-spacing:0.3pt;"> </span>product<span style="letter-spacing:0.25pt;"> </span>candidates<span style="letter-spacing:0.3pt;"> </span>that<span style="letter-spacing:0.25pt;"> </span>we<span style="letter-spacing:0.2pt;"> </span>would otherwise<span style="letter-spacing:0.05pt;"> </span>prefer<span style="letter-spacing:0.1pt;"> </span>to develop<span style="letter-spacing:0.05pt;"> </span>and market<span style="letter-spacing:0.1pt;"> </span>ourselves.</p>
<p style="margin-top:0pt;line-height:7pt;margin-bottom:0pt;margin-left:3.7%;text-indent:-3.7%;font-size:7pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:-3.7%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Risks Related to Design and Development of our Product Candidates</p>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:3.7%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We are highly<span style="letter-spacing:0.05pt;"> </span>dependent<span style="letter-spacing:0.05pt;"> </span>on the success<span style="letter-spacing:0.05pt;"> </span>of our product<span style="letter-spacing:0.05pt;"> </span>candidates,<span style="letter-spacing:0.05pt;"> </span>PRT543,<span style="letter-spacing:-0.05pt;"> </span>PRT811<span style="letter-spacing:-0.05pt;"> </span>and PRT1419, which are in early<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>development,<span style="letter-spacing:0.1pt;"> </span>and PRT2527,<span style="letter-spacing:-0.05pt;"> </span>which is<span style="letter-spacing:0.05pt;"> </span>in preclinical<span style="letter-spacing:0.1pt;"> </span>development.<span style="letter-spacing:0.1pt;"> </span>We have not completed<span style="letter-spacing:0.1pt;"> </span>successful<span style="letter-spacing:0.1pt;"> </span>late-stage<span style="letter-spacing:0.1pt;"> </span>pivotal<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>or obtained<span style="letter-spacing:0.05pt;"> </span>regulatory<span style="letter-spacing:0.05pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>any product candidate.<span style="letter-spacing:0.05pt;"> </span>We may<span style="letter-spacing:0.05pt;"> </span>never<span style="letter-spacing:0.05pt;"> </span>obtain<span style="letter-spacing:0.05pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>any of our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.05pt;"> </span>or achieve<span style="letter-spacing:0.05pt;"> </span>or sustain profitability.</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:3.7%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our future<span style="letter-spacing:0.05pt;"> </span>success<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>highly<span style="letter-spacing:0.05pt;"> </span>dependent<span style="letter-spacing:0.05pt;"> </span>on our ability<span style="letter-spacing:0.1pt;"> </span>to obtain<span style="letter-spacing:0.05pt;"> </span>regulatory<span style="letter-spacing:0.1pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>for,<span style="letter-spacing:0.05pt;"> </span>and then<span style="letter-spacing:0.05pt;"> </span>successfully commercialize,<span style="letter-spacing:0.3pt;"> </span>our<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.15pt;"> </span>candidates,<span style="letter-spacing:0.2pt;"> </span>PRT543,<span style="letter-spacing:0.05pt;"> </span>PRT811<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.1pt;"> </span>PRT1419. We<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>early<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.15pt;"> </span>efforts and<span style="letter-spacing:0.8pt;"> </span>our<span style="letter-spacing:0.8pt;"> </span>lead<span style="letter-spacing:0.85pt;"> </span>product<span style="letter-spacing:0.85pt;"> </span>candidates,<span style="letter-spacing:0.9pt;"> </span>PRT543,<span style="letter-spacing:0.75pt;"> </span>PRT811<span style="letter-spacing:0.75pt;"> </span>and<span style="letter-spacing:0.8pt;"> </span>PRT1419,<span style="letter-spacing:0.75pt;"> </span>are<span style="letter-spacing:0.85pt;"> </span>each<span style="letter-spacing:0.85pt;"> </span>currently<span style="letter-spacing:0.9pt;"> </span>in<span style="letter-spacing:0.8pt;"> </span>a<span style="letter-spacing:0.8pt;"> </span>Phase<span style="letter-spacing:0.8pt;"> </span>1<span style="letter-spacing:0.8pt;"> </span>clinical<span style="letter-spacing:0.9pt;"> </span>trial. Our<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates,<span style="letter-spacing:0.15pt;"> </span>including<span style="letter-spacing:0.1pt;"> </span>PRT2527, are<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>earlier<span style="letter-spacing:0.15pt;"> </span>stages<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>development.<span style="letter-spacing:0.15pt;"> </span>We<span style="letter-spacing:0.05pt;"> </span>currently<span style="letter-spacing:0.15pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>no products<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.15pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>approved<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>sale<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>jurisdiction.<span style="letter-spacing:0.2pt;"> </span>There<span style="letter-spacing:0.1pt;"> </span>can<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>no<span style="letter-spacing:0.05pt;"> </span>assurance<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>PRT543, PRT811, PRT1419, PRT2527 or our other<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>in development<span style="letter-spacing:0.1pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>achieve<span style="letter-spacing:0.05pt;"> </span>success<span style="letter-spacing:0.05pt;"> </span>in their<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>or obtain<span style="letter-spacing:0.05pt;"> </span>regulatory<span style="letter-spacing:0.1pt;"> </span>approval.</p>
<p style="margin-top:0pt;line-height:11pt;margin-bottom:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">24</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our<span style="letter-spacing:0.05pt;"> </span>ability<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>generate<span style="letter-spacing:0.15pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>revenues,<span style="letter-spacing:0.05pt;"> </span>which we do not expect<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>occur<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>many<span style="letter-spacing:0.05pt;"> </span>years,<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>ever,<span style="letter-spacing:0.05pt;"> </span>will depend<span style="letter-spacing:0.1pt;"> </span>heavily<span style="letter-spacing:0.15pt;"> </span>on<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>successful<span style="letter-spacing:0.15pt;"> </span>development<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>eventual<span style="letter-spacing:0.1pt;"> </span>commercialization<span style="letter-spacing:0.25pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>PRT543, PRT811, PRT1419, PRT2527 or<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>development.<span style="letter-spacing:0.15pt;"> </span>The success<span style="letter-spacing:0.05pt;"> </span>of our product<span style="letter-spacing:0.05pt;"> </span>candidates,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>PRT543, PRT811,<span style="letter-spacing:-0.05pt;"> </span>PRT1419<span style="letter-spacing:-0.05pt;"> </span>and PRT2527,<span style="letter-spacing:-0.05pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>depend on several<span style="letter-spacing:0.1pt;"> </span>factors,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>following:</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">successful<span style="letter-spacing:0.1pt;"> </span>completion<span style="letter-spacing:0.1pt;"> </span>of preclinical<span style="letter-spacing:0.15pt;"> </span>studies<span style="letter-spacing:0.05pt;"> </span>and clinical<span style="letter-spacing:0.1pt;"> </span>trials&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">acceptance<span style="letter-spacing:1.85pt;"> </span>of<span style="letter-spacing:1.75pt;"> </span>INDs<span style="letter-spacing:1.75pt;"> </span>by<span style="letter-spacing:1.75pt;"> </span>the<span style="letter-spacing:1.8pt;"> </span>FDA<span style="letter-spacing:1.7pt;"> </span>or<span style="letter-spacing:1.75pt;"> </span>other<span style="letter-spacing:1.75pt;"> </span>similar<span style="letter-spacing:1.8pt;"> </span>clinical<span style="letter-spacing:1.8pt;"> </span>trial<span style="letter-spacing:1.8pt;"> </span>applications<span style="letter-spacing:1.8pt;"> </span>from<span style="letter-spacing:1.75pt;"> </span>foreign<span style="letter-spacing:1.75pt;"> </span>regulatory authorities<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our future<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our pipeline<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">timely<span style="letter-spacing:0.1pt;"> </span>and successful<span style="letter-spacing:0.1pt;"> </span>enrollment<span style="letter-spacing:0.1pt;"> </span>of patients<span style="letter-spacing:0.1pt;"> </span>in, and completion<span style="letter-spacing:0.1pt;"> </span>of, clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>with favorable<span style="letter-spacing:0.1pt;"> </span>results&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">demonstration<span style="letter-spacing:1pt;"> </span>of<span style="letter-spacing:0.85pt;"> </span>safety,<span style="letter-spacing:0.9pt;"> </span>efficacy<span style="letter-spacing:0.95pt;"> </span>and<span style="letter-spacing:0.85pt;"> </span>acceptable<span style="letter-spacing:0.95pt;"> </span>risk-benefit<span style="letter-spacing:1pt;"> </span>profiles<span style="letter-spacing:0.9pt;"> </span>of<span style="letter-spacing:0.8pt;"> </span>our<span style="letter-spacing:0.8pt;"> </span>product<span style="letter-spacing:0.85pt;"> </span>candidates<span style="letter-spacing:0.9pt;"> </span>to<span style="letter-spacing:0.8pt;"> </span>the satisfaction<span style="letter-spacing:0.15pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>FDA<span style="letter-spacing:-0.05pt;"> </span>and foreign<span style="letter-spacing:0.05pt;"> </span>regulatory<span style="letter-spacing:0.1pt;"> </span>agencies&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">our<span style="letter-spacing:1.6pt;"> </span>ability,<span style="letter-spacing:1.7pt;"> </span>or<span style="letter-spacing:1.6pt;"> </span>that<span style="letter-spacing:1.65pt;"> </span>of<span style="letter-spacing:1.6pt;"> </span>our<span style="letter-spacing:1.6pt;"> </span>collaborators,<span style="letter-spacing:1.75pt;"> </span>to<span style="letter-spacing:1.6pt;"> </span>develop<span style="letter-spacing:1.65pt;"> </span>and<span style="letter-spacing:1.6pt;"> </span>obtain<span style="letter-spacing:1.65pt;"> </span>clearance<span style="letter-spacing:1.7pt;"> </span>or<span style="letter-spacing:1.6pt;"> </span>approval<span style="letter-spacing:1.65pt;"> </span>of<span style="letter-spacing:1.55pt;"> </span>companion diagnostics,<span style="letter-spacing:0.1pt;"> </span>on a timely<span style="letter-spacing:0.1pt;"> </span>basis,<span style="letter-spacing:0.05pt;"> </span>or at<span style="letter-spacing:0.05pt;"> </span>all&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">receipt<span style="letter-spacing:0.95pt;"> </span>and<span style="letter-spacing:0.85pt;"> </span>related<span style="letter-spacing:0.95pt;"> </span>terms<span style="letter-spacing:0.95pt;"> </span>of<span style="letter-spacing:0.85pt;"> </span>marketing<span style="letter-spacing:0.9pt;"> </span>approvals<span style="letter-spacing:0.85pt;"> </span>from<span style="letter-spacing:0.85pt;"> </span>applicable<span style="letter-spacing:0.9pt;"> </span>regulatory<span style="letter-spacing:0.9pt;"> </span>authorities,<span style="letter-spacing:0.95pt;"> </span>including<span style="letter-spacing:0.85pt;"> </span>the completion<span style="letter-spacing:0.1pt;"> </span>of any required<span style="letter-spacing:0.1pt;"> </span>post-marketing<span style="letter-spacing:0.15pt;"> </span>studies<span style="letter-spacing:0.05pt;"> </span>or trials&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">raising<span style="letter-spacing:0.6pt;"> </span>additional<span style="letter-spacing:0.6pt;"> </span>funds<span style="letter-spacing:0.55pt;"> </span>necessary<span style="letter-spacing:0.6pt;"> </span>to<span style="letter-spacing:0.5pt;"> </span>complete<span style="letter-spacing:0.6pt;"> </span>clinical<span style="letter-spacing:0.6pt;"> </span>development<span style="letter-spacing:0.55pt;"> </span>of<span style="letter-spacing:0.45pt;"> </span>and<span style="letter-spacing:0.45pt;"> </span>commercialize<span style="letter-spacing:0.65pt;"> </span>our<span style="letter-spacing:0.45pt;"> </span>product candidates&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">obtaining<span style="letter-spacing:0.55pt;"> </span>and<span style="letter-spacing:0.45pt;"> </span>maintaining<span style="letter-spacing:0.55pt;"> </span>patent,<span style="letter-spacing:0.5pt;"> </span>trade<span style="letter-spacing:0.5pt;"> </span>secret<span style="letter-spacing:0.55pt;"> </span>and<span style="letter-spacing:0.45pt;"> </span>other<span style="letter-spacing:0.5pt;"> </span>intellectual<span style="letter-spacing:0.6pt;"> </span>property<span style="letter-spacing:0.5pt;"> </span>protection<span style="letter-spacing:0.55pt;"> </span>and<span style="letter-spacing:0.45pt;"> </span>regulatory exclusivity<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">making<span style="letter-spacing:1.65pt;"> </span>arrangements<span style="letter-spacing:1.75pt;"> </span>with<span style="letter-spacing:1.6pt;"> </span>third-party<span style="letter-spacing:1.75pt;"> </span>manufacturers,<span style="letter-spacing:1.75pt;"> </span>or<span style="letter-spacing:1.6pt;"> </span>establishing<span style="letter-spacing:1.7pt;"> </span>manufacturing<span style="letter-spacing:1.7pt;"> </span>capabilities,<span style="letter-spacing:1.7pt;"> </span>for both clinical<span style="letter-spacing:0.1pt;"> </span>and commercial<span style="letter-spacing:0.15pt;"> </span>supplies<span style="letter-spacing:0.05pt;"> </span>of our product<span style="letter-spacing:0.05pt;"> </span>candidates&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">developing<span style="letter-spacing:0.05pt;"> </span>and implementing<span style="letter-spacing:0.15pt;"> </span>marketing<span style="letter-spacing:0.1pt;"> </span>and reimbursement<span style="letter-spacing:0.15pt;"> </span>strategies&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">establishing sales, marketing and distribution capabilities and launching commercial sales of our products,<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>and when approved,<span style="letter-spacing:0.05pt;"> </span>whether<span style="letter-spacing:0.05pt;"> </span>alone<span style="letter-spacing:0.05pt;"> </span>or in collaboration<span style="letter-spacing:0.15pt;"> </span>with others&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">acceptance<span style="letter-spacing:0.55pt;"> </span>of<span style="letter-spacing:0.4pt;"> </span>our<span style="letter-spacing:0.4pt;"> </span>products,<span style="letter-spacing:0.45pt;"> </span>if<span style="letter-spacing:0.45pt;"> </span>and<span style="letter-spacing:0.4pt;"> </span>when<span style="letter-spacing:0.4pt;"> </span>approved,<span style="letter-spacing:0.45pt;"> </span>by<span style="letter-spacing:0.4pt;"> </span>patients,<span style="letter-spacing:0.5pt;"> </span>the<span style="letter-spacing:0.45pt;"> </span>medical<span style="letter-spacing:0.5pt;"> </span>community<span style="letter-spacing:0.5pt;"> </span>and<span style="letter-spacing:0.4pt;"> </span>third-party payors&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">effectively<span style="letter-spacing:0.15pt;"> </span>competing<span style="letter-spacing:0.1pt;"> </span>with other<span style="letter-spacing:0.05pt;"> </span>therapies&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">obtaining<span style="letter-spacing:0.05pt;"> </span>and maintaining<span style="letter-spacing:0.1pt;"> </span>third-party<span style="letter-spacing:0.15pt;"> </span>payor<span style="letter-spacing:0.05pt;"> </span>coverage<span style="letter-spacing:0.05pt;"> </span>and adequate<span style="letter-spacing:0.05pt;"> </span>reimbursement&#59;</p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-top:6pt;margin-bottom:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-top:6pt;margin-bottom:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-top:6pt;margin-bottom:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">protecting<span style="letter-spacing:0.1pt;"> </span>and enforcing<span style="letter-spacing:0.1pt;"> </span>our rights<span style="letter-spacing:0.05pt;"> </span>in our intellectual<span style="letter-spacing:0.15pt;"> </span>property<span style="letter-spacing:0.05pt;"> </span>portfolio&#59;<span style="letter-spacing:0.1pt;"> </span>and</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">maintaining<span style="letter-spacing:0.1pt;"> </span>a continued<span style="letter-spacing:0.05pt;"> </span>acceptable<span style="letter-spacing:0.1pt;"> </span>safety<span style="letter-spacing:0.05pt;"> </span>profile<span style="letter-spacing:0.1pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>products<span style="letter-spacing:0.05pt;"> </span>following<span style="letter-spacing:0.05pt;"> </span>approval.</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:12pt;margin-bottom:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Many<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>these<span style="letter-spacing:0.1pt;"> </span>factors<span style="letter-spacing:0.15pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>beyond<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>control,<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>it<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>possible<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>none of our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>ever obtain<span style="letter-spacing:0.1pt;"> </span>regulatory<span style="letter-spacing:0.15pt;"> </span>approval<span style="letter-spacing:0.1pt;"> </span>even<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>expend<span style="letter-spacing:0.05pt;"> </span>substantial<span style="letter-spacing:0.15pt;"> </span>time<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>resources<span style="letter-spacing:0.15pt;"> </span>seeking<span style="letter-spacing:0.1pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>approval.<span style="letter-spacing:0.1pt;"> </span>If<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>do not achieve<span style="letter-spacing:0.1pt;"> </span>one<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>more<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>these<span style="letter-spacing:0.1pt;"> </span>factors<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>timely<span style="letter-spacing:0.15pt;"> </span>manner<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>at<span style="letter-spacing:0.05pt;"> </span>all,<span style="letter-spacing:0.05pt;"> </span>we could<span style="letter-spacing:0.05pt;"> </span>experience<span style="letter-spacing:0.1pt;"> </span>significant<span style="letter-spacing:0.15pt;"> </span>delays<span style="letter-spacing:0.05pt;"> </span>or an inability<span style="letter-spacing:0.1pt;"> </span>to successfully<span style="letter-spacing:0.1pt;"> </span>commercialize<span style="letter-spacing:0.2pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates,<span style="letter-spacing:0.1pt;"> </span>which would materially<span style="letter-spacing:0.15pt;"> </span>harm<span style="letter-spacing:0.05pt;"> </span>our business. For example,<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.1pt;"> </span>business<span style="letter-spacing:0.15pt;"> </span>could<span style="letter-spacing:0.15pt;"> </span>be<span style="letter-spacing:0.1pt;"> </span>harmed<span style="letter-spacing:0.15pt;"> </span>if<span style="letter-spacing:0.15pt;"> </span>results<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.1pt;"> </span>ongoing<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.2pt;"> </span>trials<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>PRT543, PRT811 or<span style="letter-spacing:0.05pt;"> </span>PRT1419, vary<span style="letter-spacing:0.05pt;"> </span>adversely<span style="letter-spacing:0.1pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>our expectations.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Drug development<span style="letter-spacing:0.1pt;"> </span>involves<span style="letter-spacing:0.05pt;"> </span>a lengthy<span style="letter-spacing:0.05pt;"> </span>and expensive<span style="letter-spacing:0.05pt;"> </span>process,<span style="letter-spacing:0.05pt;"> </span>and clinical<span style="letter-spacing:0.1pt;"> </span>testing<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>uncertain<span style="letter-spacing:0.05pt;"> </span>as to the outcome.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We currently<span style="letter-spacing:0.1pt;"> </span>have three<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>in Phase 1 clinical<span style="letter-spacing:0.1pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>and additional<span style="letter-spacing:0.05pt;"> </span>product candidates<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>preclinical<span style="letter-spacing:0.2pt;"> </span>development,<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>risk<span style="letter-spacing:0.05pt;"> </span>of failure<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>each<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>high. We are<span style="letter-spacing:0.05pt;"> </span>unable<span style="letter-spacing:0.05pt;"> </span>to predict<span style="letter-spacing:0.1pt;"> </span>when or if our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.15pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>prove<span style="letter-spacing:0.1pt;"> </span>effective<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>safe<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>humans<span style="letter-spacing:0.1pt;"> </span>or will<span style="letter-spacing:0.05pt;"> </span>obtain<span style="letter-spacing:0.05pt;"> </span>marketing<span style="letter-spacing:0.1pt;"> </span>approval.<span style="letter-spacing:0.05pt;"> </span>Before<span style="letter-spacing:0.05pt;"> </span>obtaining marketing approval from regulatory authorities for the sale of any product candidate, we must complete preclinical<span style="letter-spacing:0.2pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>and then<span style="letter-spacing:0.05pt;"> </span>conduct<span style="letter-spacing:0.05pt;"> </span>extensive<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>to demonstrate<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>safety<span style="letter-spacing:0.05pt;"> </span>and efficacy<span style="letter-spacing:0.1pt;"> </span>of our product<span style="letter-spacing:1.25pt;"> </span>candidates<span style="letter-spacing:1.3pt;"> </span>in<span style="letter-spacing:1.2pt;"> </span>humans.<span style="letter-spacing:1.2pt;"> </span>Clinical<span style="letter-spacing:1.25pt;"> </span>testing<span style="letter-spacing:1.25pt;"> </span>is<span style="letter-spacing:1.2pt;"> </span>expensive,<span style="letter-spacing:1.2pt;"> </span>difficult<span style="letter-spacing:1.3pt;"> </span>to<span style="letter-spacing:1.15pt;"> </span>design<span style="letter-spacing:1.2pt;"> </span>and<span style="letter-spacing:1.15pt;"> </span>implement,<span style="letter-spacing:1.25pt;"> </span>can<span style="letter-spacing:1.15pt;"> </span>take<span style="letter-spacing:1.2pt;"> </span>many years<span style="letter-spacing:0.05pt;"> </span>to complete<span style="letter-spacing:0.1pt;"> </span>and is<span style="letter-spacing:0.05pt;"> </span>uncertain<span style="letter-spacing:0.1pt;"> </span>as to the<span style="letter-spacing:0.05pt;"> </span>outcome.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">A<span style="letter-spacing:0.05pt;"> </span>failure<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>one<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>more<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trials<span style="letter-spacing:0.15pt;"> </span>can<span style="letter-spacing:0.05pt;"> </span>occur<span style="letter-spacing:0.1pt;"> </span>at<span style="letter-spacing:0.1pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>stage<span style="letter-spacing:0.1pt;"> </span>of testing.<span style="letter-spacing:0.1pt;"> </span>The outcome<span style="letter-spacing:0.05pt;"> </span>of preclinical<span style="letter-spacing:0.15pt;"> </span>testing and<span style="letter-spacing:0.05pt;"> </span>early<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trials<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>predictive<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>success<span style="letter-spacing:0.05pt;"> </span>of later<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>or of clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>same product<span style="letter-spacing:1.15pt;"> </span>candidates<span style="letter-spacing:1.2pt;"> </span>in<span style="letter-spacing:1.1pt;"> </span>other<span style="letter-spacing:1.15pt;"> </span>indications,<span style="letter-spacing:1.2pt;"> </span>and<span style="letter-spacing:1.1pt;"> </span>interim<span style="letter-spacing:1.2pt;"> </span>or<span style="letter-spacing:1.1pt;"> </span>preliminary<span style="letter-spacing:1.25pt;"> </span>results<span style="letter-spacing:1.2pt;"> </span>of<span style="letter-spacing:1.1pt;"> </span>a<span style="letter-spacing:1.1pt;"> </span>clinical<span style="letter-spacing:1.2pt;"> </span>trial<span style="letter-spacing:1.2pt;"> </span>do<span style="letter-spacing:1.05pt;"> </span>not<span style="letter-spacing:1.05pt;"> </span>necessarily predict<span style="letter-spacing:0.15pt;"> </span>final<span style="letter-spacing:0.1pt;"> </span>results.<span style="letter-spacing:0.1pt;"> </span>Later-stage<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>differ<span style="letter-spacing:0.1pt;"> </span>in significant<span style="letter-spacing:0.15pt;"> </span>ways from<span style="letter-spacing:0.05pt;"> </span>early-stage<span style="letter-spacing:0.15pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials, including<span style="letter-spacing:0.9pt;"> </span>changes<span style="letter-spacing:0.9pt;"> </span>to<span style="letter-spacing:0.85pt;"> </span>inclusion<span style="letter-spacing:0.95pt;"> </span>and<span style="letter-spacing:0.85pt;"> </span>exclusion<span style="letter-spacing:0.9pt;"> </span>criteria,<span style="letter-spacing:0.95pt;"> </span>efficacy<span style="letter-spacing:0.9pt;"> </span>endpoints,<span style="letter-spacing:0.85pt;"> </span>dosing<span style="letter-spacing:0.85pt;"> </span>regimen<span style="letter-spacing:0.9pt;"> </span>and<span style="letter-spacing:0.8pt;"> </span>statistical<span style="letter-spacing:0.95pt;"> </span>design. In<span style="letter-spacing:1.15pt;"> </span>particular,<span style="letter-spacing:1.3pt;"> </span>the<span style="letter-spacing:1.2pt;"> </span>small<span style="letter-spacing:1.25pt;"> </span>number<span style="letter-spacing:1.2pt;"> </span>of<span style="letter-spacing:1.1pt;"> </span>patients<span style="letter-spacing:1.2pt;"> </span>in<span style="letter-spacing:1.1pt;"> </span>our<span style="letter-spacing:1.1pt;"> </span>current<span style="letter-spacing:1.2pt;"> </span>Phase<span style="letter-spacing:1.1pt;"> </span>1<span style="letter-spacing:1.1pt;"> </span>clinical<span style="letter-spacing:1.2pt;"> </span>trials<span style="letter-spacing:1.2pt;"> </span>may<span style="letter-spacing:1.15pt;"> </span>make<span style="letter-spacing:1.15pt;"> </span>the<span style="letter-spacing:1.15pt;"> </span>results<span style="letter-spacing:1.2pt;"> </span>of<span style="letter-spacing:1.1pt;"> </span>these trials<span style="letter-spacing:0.15pt;"> </span>less<span style="letter-spacing:0.1pt;"> </span>predictive<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>outcome<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>later<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials.<span style="letter-spacing:0.1pt;"> </span>In addition,<span style="letter-spacing:0.05pt;"> </span>although<span style="letter-spacing:0.05pt;"> </span>we have observed<span style="letter-spacing:0.05pt;"> </span></p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">25</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">encouraging clinical</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">activity</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">dose</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">escalation</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">portion</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Phase</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">portion</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">ongoing</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">PRT543 and</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">PRT811 clinical trials,</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">primary</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">objectives</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">were</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">determine</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">safety,</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">tolerability</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and maximum</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">tolerated</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">dose of PRT543 and</span><span style="letter-spacing:1.85pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">PRT811,</span><span style="letter-spacing:1.8pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">respectively,</span><span style="letter-spacing:2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</span><span style="letter-spacing:1.85pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:1.85pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">determine</span><span style="letter-spacing:1.95pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">a</span><span style="letter-spacing:1.85pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">recommended</span><span style="letter-spacing:1.95pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Phase</span><span style="letter-spacing:1.85pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2</span><span style="letter-spacing:1.85pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">dose</span><span style="letter-spacing:1.85pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">for</span><span style="letter-spacing:1.85pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="letter-spacing:1.85pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">expansion</span><span style="letter-spacing:1.85pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">portion</span><span style="letter-spacing:1.85pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="letter-spacing:1.8pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our Phase</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">clinical</span><span style="letter-spacing:0.75pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">trials,</span><span style="letter-spacing:0.75pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">not</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">demonstrate</span><span style="letter-spacing:0.75pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">efficacy.</span><span style="letter-spacing:0.75pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">assessments</span><span style="letter-spacing:0.75pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">clinical</span><span style="letter-spacing:0.75pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">activity</span><span style="letter-spacing:0.7pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">from</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">this</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">portion</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of the</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">clinical</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">trials,</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">some</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">which</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">were</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">not</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">pre-specified,</span><span style="letter-spacing:0.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">may</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">not</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">be</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">predictive</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">results</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in dose expansion cohorts,</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">specific</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">tumor</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">types</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">further</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">clinical</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">trials</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">PRT543 and</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">PRT811. In</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">addition,</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">while</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">may</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">believe certain</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">results</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in patients,</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">such as stable</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">disease,</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">suggest</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">encouraging</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">clinical</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">activity,</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">stable</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">disease is not considered</span><span style="letter-spacing:0.7pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">a</span><span style="letter-spacing:0.6pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">response</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">for</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">regulatory</span><span style="letter-spacing:0.7pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">purposes.</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Stable</span><span style="letter-spacing:0.6pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">disease,</span><span style="letter-spacing:0.6pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or</span><span style="letter-spacing:0.55pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">SD,</span><span style="letter-spacing:0.5pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">is</span><span style="letter-spacing:0.6pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">defined</span><span style="letter-spacing:0.6pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">as</span><span style="letter-spacing:0.55pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">failure</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:0.55pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">meet</span><span style="letter-spacing:0.6pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="letter-spacing:0.6pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">definition of</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">objective</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">clinical</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">response</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or progressive</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">disease.</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Furthermore,</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">safety</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">events</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">may</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">be observed</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in later</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">trials that</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">alter</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">anticipated</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">risk-benefit</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">profiles</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of PRT543</span><span style="letter-spacing:-0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and PRT811.</span></p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We may<span style="letter-spacing:0.05pt;"> </span>incur additional<span style="letter-spacing:0.05pt;"> </span>costs<span style="letter-spacing:0.05pt;"> </span>or experience<span style="letter-spacing:0.05pt;"> </span>delays<span style="letter-spacing:0.05pt;"> </span>in completing,<span style="letter-spacing:0.1pt;"> </span>or ultimately<span style="letter-spacing:0.15pt;"> </span>be unable to complete<span style="letter-spacing:0.1pt;"> </span>the development<span style="letter-spacing:0.1pt;"> </span>and/or commercialization<span style="letter-spacing:0.2pt;"> </span>of PRT543,<span style="letter-spacing:-0.05pt;"> </span>PRT811,<span style="letter-spacing:-0.05pt;"> </span>PRT1419,<span style="letter-spacing:-0.05pt;"> </span>PRT2527<span style="letter-spacing:-0.05pt;"> </span>or our other<span style="letter-spacing:0.05pt;"> </span>product candidates.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Before<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>can<span style="letter-spacing:0.05pt;"> </span>initiate<span style="letter-spacing:0.15pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trials<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidate<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>indication,<span style="letter-spacing:0.15pt;"> </span>we must<span style="letter-spacing:0.05pt;"> </span>submit<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>of preclinical<span style="letter-spacing:0.25pt;"> </span>studies<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA or<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>comparable<span style="letter-spacing:0.15pt;"> </span>foreign<span style="letter-spacing:0.1pt;"> </span>authorities,<span style="letter-spacing:0.2pt;"> </span>respectively,<span style="letter-spacing:0.2pt;"> </span>along<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>information, including<span style="letter-spacing:0.1pt;"> </span>information<span style="letter-spacing:0.2pt;"> </span>about<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidate&#8217;s<span style="letter-spacing:0.15pt;"> </span>chemistry,<span style="letter-spacing:0.1pt;"> </span>manufacturing<span style="letter-spacing:0.15pt;"> </span>and controls<span style="letter-spacing:0.1pt;"> </span>and our proposed clinical<span style="letter-spacing:0.1pt;"> </span>trial<span style="letter-spacing:0.1pt;"> </span>protocol,<span style="letter-spacing:0.05pt;"> </span>as part<span style="letter-spacing:0.05pt;"> </span>of an IND or comparable<span style="letter-spacing:0.1pt;"> </span>foreign<span style="letter-spacing:0.05pt;"> </span>regulatory<span style="letter-spacing:0.1pt;"> </span>filings.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The<span style="letter-spacing:0.05pt;"> </span>FDA may<span style="letter-spacing:0.1pt;"> </span>require<span style="letter-spacing:0.15pt;"> </span>us<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>conduct<span style="letter-spacing:0.1pt;"> </span>additional<span style="letter-spacing:0.15pt;"> </span>preclinical<span style="letter-spacing:0.2pt;"> </span>studies<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>any product<span style="letter-spacing:0.05pt;"> </span>candidate<span style="letter-spacing:0.1pt;"> </span>before<span style="letter-spacing:0.05pt;"> </span>it<span style="letter-spacing:0.05pt;"> </span>allows us<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>initiate<span style="letter-spacing:0.15pt;"> </span>subsequent<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trials<span style="letter-spacing:0.15pt;"> </span>under<span style="letter-spacing:0.1pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>IND,<span style="letter-spacing:0.05pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>lead<span style="letter-spacing:0.05pt;"> </span>to additional<span style="letter-spacing:0.1pt;"> </span>delays<span style="letter-spacing:0.05pt;"> </span>and increase<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>costs of our preclinical<span style="letter-spacing:0.15pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>programs.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Any<span style="letter-spacing:0.05pt;"> </span>delays<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>commencement<span style="letter-spacing:0.2pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>completion<span style="letter-spacing:0.15pt;"> </span>of our ongoing, planned<span style="letter-spacing:0.05pt;"> </span>or future<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>could significantly<span style="letter-spacing:0.2pt;"> </span>affect<span style="letter-spacing:0.15pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>costs.<span style="letter-spacing:0.05pt;"> </span>We may<span style="letter-spacing:0.05pt;"> </span>experience<span style="letter-spacing:0.1pt;"> </span>numerous<span style="letter-spacing:0.05pt;"> </span>unforeseen<span style="letter-spacing:0.1pt;"> </span>events<span style="letter-spacing:0.05pt;"> </span>during,<span style="letter-spacing:0.05pt;"> </span>or as a<span style="letter-spacing:0.85pt;"> </span>result<span style="letter-spacing:0.95pt;"> </span>of,<span style="letter-spacing:0.85pt;"> </span>clinical<span style="letter-spacing:0.95pt;"> </span>trials<span style="letter-spacing:0.95pt;"> </span>that<span style="letter-spacing:0.9pt;"> </span>could<span style="letter-spacing:0.85pt;"> </span>delay<span style="letter-spacing:0.85pt;"> </span>or<span style="letter-spacing:0.8pt;"> </span>prevent<span style="letter-spacing:0.85pt;"> </span>our<span style="letter-spacing:0.8pt;"> </span>ability<span style="letter-spacing:0.9pt;"> </span>to<span style="letter-spacing:0.8pt;"> </span>obtain<span style="letter-spacing:0.85pt;"> </span>marketing<span style="letter-spacing:0.9pt;"> </span>approval<span style="letter-spacing:0.85pt;"> </span>or<span style="letter-spacing:0.8pt;"> </span>commercialize our product<span style="letter-spacing:0.05pt;"> </span>candidates,<span style="letter-spacing:0.1pt;"> </span>including:</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">regulators,<span style="letter-spacing:0.6pt;"> </span>institutional<span style="letter-spacing:0.65pt;"> </span>review<span style="letter-spacing:0.55pt;"> </span>boards,<span style="letter-spacing:0.55pt;"> </span>or<span style="letter-spacing:0.5pt;"> </span>IRBs,<span style="letter-spacing:0.5pt;"> </span>or<span style="letter-spacing:0.5pt;"> </span>ethics<span style="letter-spacing:0.55pt;"> </span>committees,<span style="letter-spacing:0.65pt;"> </span>or<span style="letter-spacing:0.5pt;"> </span>ECs,<span style="letter-spacing:0.5pt;"> </span>may<span style="letter-spacing:0.55pt;"> </span>not<span style="letter-spacing:0.5pt;"> </span>authorize<span style="letter-spacing:0.6pt;"> </span>us<span style="letter-spacing:0.5pt;"> </span>or our investigators<span style="letter-spacing:0.15pt;"> </span>to commence<span style="letter-spacing:0.1pt;"> </span>a clinical<span style="letter-spacing:0.1pt;"> </span>trial<span style="letter-spacing:0.1pt;"> </span>or conduct<span style="letter-spacing:0.05pt;"> </span>a clinical<span style="letter-spacing:0.1pt;"> </span>trial<span style="letter-spacing:0.1pt;"> </span>at<span style="letter-spacing:0.05pt;"> </span>a prospective<span style="letter-spacing:0.1pt;"> </span>trial<span style="letter-spacing:0.1pt;"> </span>site&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the FDA may disagree as to the design or implementation of our clinical trials or with our recommended<span style="letter-spacing:0.1pt;"> </span>Phase 2 doses<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>any of our pipeline<span style="letter-spacing:0.1pt;"> </span>programs&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">we<span style="letter-spacing:0.45pt;"> </span>may<span style="letter-spacing:0.45pt;"> </span>experience<span style="letter-spacing:0.5pt;"> </span>delays<span style="letter-spacing:0.45pt;"> </span>in<span style="letter-spacing:0.4pt;"> </span>reaching,<span style="letter-spacing:0.45pt;"> </span>or<span style="letter-spacing:0.4pt;"> </span>fail<span style="letter-spacing:0.45pt;"> </span>to<span style="letter-spacing:0.4pt;"> </span>reach,<span style="letter-spacing:0.45pt;"> </span>agreement<span style="letter-spacing:0.5pt;"> </span>on<span style="letter-spacing:0.4pt;"> </span>acceptable<span style="letter-spacing:0.5pt;"> </span>clinical<span style="letter-spacing:0.5pt;"> </span>trial<span style="letter-spacing:0.5pt;"> </span>contracts or<span style="letter-spacing:1.3pt;"> </span>clinical<span style="letter-spacing:1.4pt;"> </span>trial<span style="letter-spacing:1.4pt;"> </span>protocols<span style="letter-spacing:1.4pt;"> </span>with<span style="letter-spacing:1.3pt;"> </span>prospective<span style="letter-spacing:1.35pt;"> </span>clinical<span style="letter-spacing:1.35pt;"> </span>research<span style="letter-spacing:1.35pt;"> </span>organizations,<span style="letter-spacing:1.35pt;"> </span>or<span style="letter-spacing:1.25pt;"> </span>CROs,<span style="letter-spacing:1.2pt;"> </span>and<span style="letter-spacing:1.25pt;"> </span>prospective trial<span style="letter-spacing:0.1pt;"> </span>sites&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">clinical<span style="letter-spacing:1.45pt;"> </span>trials<span style="letter-spacing:1.45pt;"> </span>for<span style="letter-spacing:1.4pt;"> </span>our<span style="letter-spacing:1.35pt;"> </span>product<span style="letter-spacing:1.4pt;"> </span>candidates<span style="letter-spacing:1.45pt;"> </span>may<span style="letter-spacing:1.4pt;"> </span>produce<span style="letter-spacing:1.4pt;"> </span>negative<span style="letter-spacing:1.4pt;"> </span>or<span style="letter-spacing:1.35pt;"> </span>inconclusive<span style="letter-spacing:1.45pt;"> </span>results,<span style="letter-spacing:1.45pt;"> </span>and<span style="letter-spacing:1.35pt;"> </span>we<span style="letter-spacing:1.35pt;"> </span>may decide,<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>regulators<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>require<span style="letter-spacing:0.15pt;"> </span>us,<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>conduct<span style="letter-spacing:0.1pt;"> </span>additional<span style="letter-spacing:0.15pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trials,<span style="letter-spacing:0.15pt;"> </span>delay<span style="letter-spacing:0.1pt;"> </span>or halt<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>or abandon product<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>programs&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">lack<span style="letter-spacing:0.05pt;"> </span>of adequate<span style="letter-spacing:0.05pt;"> </span>funding<span style="letter-spacing:0.05pt;"> </span>to continue<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trial&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:1.45pt;"> </span>number<span style="letter-spacing:1.45pt;"> </span>of<span style="letter-spacing:1.4pt;"> </span>patients<span style="letter-spacing:1.5pt;"> </span>required<span style="letter-spacing:1.5pt;"> </span>for<span style="letter-spacing:1.45pt;"> </span>clinical<span style="letter-spacing:1.45pt;"> </span>trials<span style="letter-spacing:1.45pt;"> </span>for<span style="letter-spacing:1.4pt;"> </span>our<span style="letter-spacing:1.35pt;"> </span>product<span style="letter-spacing:1.4pt;"> </span>candidates<span style="letter-spacing:1.45pt;"> </span>may<span style="letter-spacing:1.4pt;"> </span>be<span style="letter-spacing:1.35pt;"> </span>larger<span style="letter-spacing:1.45pt;"> </span>than<span style="letter-spacing:1.4pt;"> </span>we anticipate,<span style="letter-spacing:0.1pt;"> </span>enrollment<span style="letter-spacing:0.1pt;"> </span>in these<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be slower<span style="letter-spacing:0.05pt;"> </span>than<span style="letter-spacing:0.05pt;"> </span>we anticipate<span style="letter-spacing:0.1pt;"> </span>or may<span style="letter-spacing:0.05pt;"> </span>be lower than we anticipate<span style="letter-spacing:0.1pt;"> </span>due to challenges<span style="letter-spacing:0.1pt;"> </span>in recruiting<span style="letter-spacing:0.1pt;"> </span>and enrolling<span style="letter-spacing:0.1pt;"> </span>suitable<span style="letter-spacing:0.1pt;"> </span>patients<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>meet<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>study criteria, participants<span style="letter-spacing:0.2pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>drop<span style="letter-spacing:0.05pt;"> </span>out<span style="letter-spacing:0.05pt;"> </span>of these<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>at<span style="letter-spacing:0.05pt;"> </span>a higher<span style="letter-spacing:0.05pt;"> </span>rate<span style="letter-spacing:0.05pt;"> </span>than<span style="letter-spacing:0.05pt;"> </span>we anticipate<span style="letter-spacing:0.1pt;"> </span>or the<span style="letter-spacing:0.05pt;"> </span>duration<span style="letter-spacing:0.05pt;"> </span>of these<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be longer<span style="letter-spacing:0.05pt;"> </span>than<span style="letter-spacing:0.05pt;"> </span>we anticipate&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">competition<span style="letter-spacing:2.05pt;"> </span>for<span style="letter-spacing:1.95pt;"> </span>clinical<span style="letter-spacing:2pt;"> </span>trial<span style="letter-spacing:2pt;"> </span>participants<span style="letter-spacing:2.05pt;"> </span>from<span style="letter-spacing:1.95pt;"> </span>investigational<span style="letter-spacing:2.05pt;"> </span>and<span style="letter-spacing:1.9pt;"> </span>approved<span style="letter-spacing:1.95pt;"> </span>therapies<span style="letter-spacing:2pt;"> </span>may<span style="letter-spacing:1.95pt;"> </span>make<span style="letter-spacing:1.95pt;"> </span>it more<span style="letter-spacing:0.05pt;"> </span>difficult<span style="letter-spacing:0.15pt;"> </span>to enroll<span style="letter-spacing:0.05pt;"> </span>patients<span style="letter-spacing:0.1pt;"> </span>in our clinical<span style="letter-spacing:0.1pt;"> </span>trials&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">we may experience difficulties in maintaining contact with patients after treatment, resulting in incomplete<span style="letter-spacing:0.1pt;"> </span>data&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">we<span style="letter-spacing:0.4pt;"> </span>or<span style="letter-spacing:0.4pt;"> </span>third-party<span style="letter-spacing:0.55pt;"> </span>collaborators<span style="letter-spacing:0.55pt;"> </span>may<span style="letter-spacing:0.45pt;"> </span>fail<span style="letter-spacing:0.45pt;"> </span>to<span style="letter-spacing:0.4pt;"> </span>obtain<span style="letter-spacing:0.45pt;"> </span>regulatory<span style="letter-spacing:0.5pt;"> </span>approval<span style="letter-spacing:0.45pt;"> </span>of<span style="letter-spacing:0.4pt;"> </span>companion<span style="letter-spacing:0.4pt;"> </span>diagnostic<span style="letter-spacing:0.45pt;"> </span>tests,<span style="letter-spacing:0.4pt;"> </span>if required,<span style="letter-spacing:0.1pt;"> </span>on a timely<span style="letter-spacing:0.1pt;"> </span>basis,<span style="letter-spacing:0.05pt;"> </span>or at<span style="letter-spacing:0.05pt;"> </span>all&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">our<span style="letter-spacing:0.3pt;"> </span>third-party<span style="letter-spacing:0.45pt;"> </span>contractors<span style="letter-spacing:0.4pt;"> </span>may<span style="letter-spacing:0.35pt;"> </span>fail<span style="letter-spacing:0.35pt;"> </span>to<span style="letter-spacing:0.25pt;"> </span>meet<span style="letter-spacing:0.3pt;"> </span>their<span style="letter-spacing:0.3pt;"> </span>contractual<span style="letter-spacing:0.35pt;"> </span>obligations<span style="letter-spacing:0.35pt;"> </span>to<span style="letter-spacing:0.25pt;"> </span>us<span style="letter-spacing:0.25pt;"> </span>in<span style="letter-spacing:0.25pt;"> </span>a<span style="letter-spacing:0.25pt;"> </span>timely<span style="letter-spacing:0.35pt;"> </span>manner,<span style="letter-spacing:0.3pt;"> </span>or<span style="letter-spacing:0.25pt;"> </span>at all,<span style="letter-spacing:0.05pt;"> </span>or may<span style="letter-spacing:0.05pt;"> </span>fail<span style="letter-spacing:0.05pt;"> </span>to comply<span style="letter-spacing:0.05pt;"> </span>with regulatory<span style="letter-spacing:0.1pt;"> </span>requirements&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">we<span style="letter-spacing:1.55pt;"> </span>may<span style="letter-spacing:1.6pt;"> </span>have<span style="letter-spacing:1.55pt;"> </span>to<span style="letter-spacing:1.55pt;"> </span>suspend<span style="letter-spacing:1.6pt;"> </span>or<span style="letter-spacing:1.55pt;"> </span>terminate<span style="letter-spacing:1.7pt;"> </span>clinical<span style="letter-spacing:1.65pt;"> </span>trials<span style="letter-spacing:1.65pt;"> </span>for<span style="letter-spacing:1.6pt;"> </span>our<span style="letter-spacing:1.55pt;"> </span>product<span style="letter-spacing:1.55pt;"> </span>candidates<span style="letter-spacing:1.6pt;"> </span>for<span style="letter-spacing:1.55pt;"> </span>various<span style="letter-spacing:1.55pt;"> </span>reasons, including<span style="letter-spacing:0.05pt;"> </span>a finding<span style="letter-spacing:0.05pt;"> </span>by us or by a Data Monitoring<span style="letter-spacing:0.1pt;"> </span>Committee<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>a trial<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>participants<span style="letter-spacing:0.1pt;"> </span>are being exposed<span style="letter-spacing:0.05pt;"> </span>to unacceptable<span style="letter-spacing:0.1pt;"> </span>health<span style="letter-spacing:0.05pt;"> </span>risks&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">our product candidates may have undesirable or unexpected side effects or other unexpected characteristics,<span style="letter-spacing:1.9pt;"> </span>causing<span style="letter-spacing:1.75pt;"> </span>us<span style="letter-spacing:1.7pt;"> </span>or<span style="letter-spacing:1.7pt;"> </span>our<span style="letter-spacing:1.65pt;"> </span>investigators,<span style="letter-spacing:1.8pt;"> </span>regulators<span style="letter-spacing:1.75pt;"> </span>or<span style="letter-spacing:1.65pt;"> </span>IRBs/ECs<span style="letter-spacing:1.65pt;"> </span>to<span style="letter-spacing:1.65pt;"> </span>suspend<span style="letter-spacing:1.7pt;"> </span>or<span style="letter-spacing:1.65pt;"> </span>terminate<span style="letter-spacing:1.8pt;"> </span>the trials&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">26</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.05pt;"> </span>cost<span style="letter-spacing:0.05pt;"> </span>of clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be greater<span style="letter-spacing:0.1pt;"> </span>than<span style="letter-spacing:0.05pt;"> </span>we anticipate&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">changes<span style="letter-spacing:0.05pt;"> </span>to clinical<span style="letter-spacing:0.1pt;"> </span>trial<span style="letter-spacing:0.1pt;"> </span>protocol&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.1pt;"> </span>supply<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>quality<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>materials<span style="letter-spacing:0.2pt;"> </span>necessary<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>conduct<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>for our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>insufficient<span style="letter-spacing:0.2pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>inadequate<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>result<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>delays<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>suspension<span style="letter-spacing:0.1pt;"> </span>of our clinical<span style="letter-spacing:0.1pt;"> </span>trials&#59;<span style="letter-spacing:0.1pt;"> </span>and</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:1.9pt;"> </span>impact<span style="letter-spacing:1.95pt;"> </span>of<span style="letter-spacing:1.85pt;"> </span>the<span style="letter-spacing:1.85pt;"> </span>ongoing<span style="letter-spacing:1.8pt;"> </span>COVID-19<span style="letter-spacing:1.75pt;"> </span>pandemic,<span style="letter-spacing:1.85pt;"> </span>which<span style="letter-spacing:1.8pt;"> </span>may<span style="letter-spacing:1.85pt;"> </span>slow<span style="letter-spacing:1.8pt;"> </span>potential<span style="letter-spacing:1.9pt;"> </span>enrollment,<span style="letter-spacing:1.9pt;"> </span>reduce<span style="letter-spacing:1.85pt;"> </span>the number<span style="letter-spacing:0.05pt;"> </span>of eligible<span style="letter-spacing:0.1pt;"> </span>patients<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials,<span style="letter-spacing:0.1pt;"> </span>or reduce<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>number<span style="letter-spacing:0.05pt;"> </span>of patients<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>remain<span style="letter-spacing:0.1pt;"> </span>in our trials.</p></td></tr></table></div>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Delays,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.1pt;"> </span>delays<span style="letter-spacing:0.1pt;"> </span>caused<span style="letter-spacing:0.1pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>above factors,<span style="letter-spacing:0.1pt;"> </span>can be costly<span style="letter-spacing:0.05pt;"> </span>and could<span style="letter-spacing:0.05pt;"> </span>negatively<span style="letter-spacing:0.1pt;"> </span>affect<span style="letter-spacing:0.1pt;"> </span>our ability<span style="letter-spacing:0.1pt;"> </span>to complete<span style="letter-spacing:1.7pt;"> </span>a<span style="letter-spacing:1.55pt;"> </span>clinical<span style="letter-spacing:1.65pt;"> </span>trial<span style="letter-spacing:1.65pt;"> </span>or<span style="letter-spacing:1.55pt;"> </span>obtain<span style="letter-spacing:1.6pt;"> </span>timely<span style="letter-spacing:1.65pt;"> </span>marketing<span style="letter-spacing:1.65pt;"> </span>approvals.<span style="letter-spacing:1.6pt;"> </span>We<span style="letter-spacing:1.55pt;"> </span>do<span style="letter-spacing:1.55pt;"> </span>not<span style="letter-spacing:1.55pt;"> </span>know<span style="letter-spacing:1.55pt;"> </span>whether<span style="letter-spacing:1.6pt;"> </span>any<span style="letter-spacing:1.55pt;"> </span>of<span style="letter-spacing:1.55pt;"> </span>our<span style="letter-spacing:1.55pt;"> </span>planned preclinical<span style="letter-spacing:0.2pt;"> </span>studies<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trials<span style="letter-spacing:0.15pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>begin<span style="letter-spacing:0.1pt;"> </span>on a timely<span style="letter-spacing:0.1pt;"> </span>basis<span style="letter-spacing:0.05pt;"> </span>or at<span style="letter-spacing:0.05pt;"> </span>all,<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>need to be restructured<span style="letter-spacing:0.15pt;"> </span>or will<span style="letter-spacing:0.05pt;"> </span>be completed<span style="letter-spacing:0.2pt;"> </span>on<span style="letter-spacing:0.1pt;"> </span>schedule,<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.1pt;"> </span>at<span style="letter-spacing:0.15pt;"> </span>all.<span style="letter-spacing:0.15pt;"> </span>For<span style="letter-spacing:0.05pt;"> </span>example,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA may<span style="letter-spacing:0.1pt;"> </span>place<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>partial<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>full<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>hold<span style="letter-spacing:0.05pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our clinical trials for a variety of reasons, including safety concerns and noncompliance with regulatory requirements.<span style="letter-spacing:0.2pt;"> </span>If<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>able<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>complete<span style="letter-spacing:0.15pt;"> </span>successful<span style="letter-spacing:0.15pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trials,<span style="letter-spacing:0.15pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>able<span style="letter-spacing:0.1pt;"> </span>to obtain<span style="letter-spacing:0.05pt;"> </span>regulatory approval<span style="letter-spacing:0.05pt;"> </span>and will<span style="letter-spacing:0.05pt;"> </span>not be able<span style="letter-spacing:0.05pt;"> </span>to commercialize<span style="letter-spacing:0.2pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates.</p>
<p style="margin-top:0pt;line-height:10pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Significant<span style="letter-spacing:0.15pt;"> </span>preclinical<span style="letter-spacing:0.2pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trial<span style="letter-spacing:0.15pt;"> </span>delays<span style="letter-spacing:0.05pt;"> </span>also<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>shorten<span style="letter-spacing:0.05pt;"> </span>any periods<span style="letter-spacing:0.05pt;"> </span>during<span style="letter-spacing:0.05pt;"> </span>which we may<span style="letter-spacing:0.05pt;"> </span>have the exclusive<span style="letter-spacing:1.35pt;"> </span>right<span style="letter-spacing:1.3pt;"> </span>to<span style="letter-spacing:1.25pt;"> </span>commercialize<span style="letter-spacing:1.45pt;"> </span>our<span style="letter-spacing:1.2pt;"> </span>product<span style="letter-spacing:1.25pt;"> </span>candidates<span style="letter-spacing:1.3pt;"> </span>or<span style="letter-spacing:1.2pt;"> </span>allow<span style="letter-spacing:1.25pt;"> </span>our<span style="letter-spacing:1.2pt;"> </span>competitors<span style="letter-spacing:1.35pt;"> </span>to<span style="letter-spacing:1.2pt;"> </span>bring<span style="letter-spacing:1.25pt;"> </span>products<span style="letter-spacing:1.25pt;"> </span>to<span style="letter-spacing:1.2pt;"> </span>market before<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>do<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>impair<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>ability<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>successfully<span style="letter-spacing:0.15pt;"> </span>commercialize<span style="letter-spacing:0.25pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>and may<span style="letter-spacing:0.05pt;"> </span>harm<span style="letter-spacing:0.05pt;"> </span>our business<span style="letter-spacing:0.05pt;"> </span>and results<span style="letter-spacing:0.1pt;"> </span>of operations.</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">If<span style="letter-spacing:0.05pt;"> </span>we experience<span style="letter-spacing:0.05pt;"> </span>delays<span style="letter-spacing:0.05pt;"> </span>or difficulties<span style="letter-spacing:0.15pt;"> </span>in enrolling<span style="letter-spacing:0.05pt;"> </span>patients<span style="letter-spacing:0.05pt;"> </span>in our ongoing or planned clinical<span style="letter-spacing:0.1pt;"> </span>trials,<span style="letter-spacing:0.1pt;"> </span>our receipt<span style="letter-spacing:0.1pt;"> </span>of necessary<span style="letter-spacing:0.05pt;"> </span>regulatory<span style="letter-spacing:0.05pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>could be delayed<span style="letter-spacing:0.05pt;"> </span>or prevented.</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.5pt;"> </span>may<span style="letter-spacing:0.55pt;"> </span>not<span style="letter-spacing:0.5pt;"> </span>be<span style="letter-spacing:0.5pt;"> </span>able<span style="letter-spacing:0.55pt;"> </span>to<span style="letter-spacing:0.5pt;"> </span>initiate<span style="letter-spacing:0.6pt;"> </span>or<span style="letter-spacing:0.5pt;"> </span>continue<span style="letter-spacing:0.55pt;"> </span>our<span style="letter-spacing:0.45pt;"> </span>ongoing<span style="letter-spacing:0.45pt;"> </span>or<span style="letter-spacing:0.45pt;"> </span>planned<span style="letter-spacing:0.5pt;"> </span>clinical<span style="letter-spacing:0.55pt;"> </span>trials<span style="letter-spacing:0.55pt;"> </span>for<span style="letter-spacing:0.5pt;"> </span>our<span style="letter-spacing:0.45pt;"> </span>product<span style="letter-spacing:0.5pt;"> </span>candidates if<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>unable<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>identify<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>enroll<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>sufficient<span style="letter-spacing:0.2pt;"> </span>number<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>eligible<span style="letter-spacing:0.1pt;"> </span>patients<span style="letter-spacing:0.1pt;"> </span>to participate<span style="letter-spacing:0.15pt;"> </span>in these<span style="letter-spacing:0.05pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>as required<span style="letter-spacing:0.15pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA or<span style="letter-spacing:0.05pt;"> </span>comparable<span style="letter-spacing:0.15pt;"> </span>foreign<span style="letter-spacing:0.1pt;"> </span>regulatory<span style="letter-spacing:0.15pt;"> </span>authorities.<span style="letter-spacing:0.2pt;"> </span>In addition,<span style="letter-spacing:0.05pt;"> </span>some<span style="letter-spacing:0.05pt;"> </span>of our competitors<span style="letter-spacing:0.15pt;"> </span>currently have<span style="letter-spacing:0.05pt;"> </span>ongoing<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trials<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>would<span style="letter-spacing:0.05pt;"> </span>treat<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>same<span style="letter-spacing:0.1pt;"> </span>patients<span style="letter-spacing:0.15pt;"> </span>as our clinical<span style="letter-spacing:0.1pt;"> </span>product candidates,<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>patients<span style="letter-spacing:0.15pt;"> </span>who<span style="letter-spacing:0.05pt;"> </span>would<span style="letter-spacing:0.05pt;"> </span>otherwise<span style="letter-spacing:0.1pt;"> </span>be eligible<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>instead<span style="letter-spacing:0.05pt;"> </span>enroll<span style="letter-spacing:0.05pt;"> </span>in clinical<span style="letter-spacing:0.1pt;"> </span>trials of<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.1pt;"> </span>competitors&#8217;<span style="letter-spacing:0.25pt;"> </span>product<span style="letter-spacing:0.15pt;"> </span>candidates.<span style="letter-spacing:0.2pt;"> </span>This<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.15pt;"> </span>acutely<span style="letter-spacing:0.15pt;"> </span>relevant<span style="letter-spacing:0.2pt;"> </span>for<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.1pt;"> </span>development<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>PRT543 for<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>treatment of<span style="letter-spacing:0.05pt;"> </span>patients<span style="letter-spacing:0.15pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>myeloid<span style="letter-spacing:0.1pt;"> </span>malignancies<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>solid<span style="letter-spacing:0.1pt;"> </span>tumors,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.1pt;"> </span>adenoid<span style="letter-spacing:0.1pt;"> </span>cystic<span style="letter-spacing:0.1pt;"> </span>carcinoma,<span style="letter-spacing:0.15pt;"> </span>or ACC, indications<span style="letter-spacing:2.45pt;"> </span>for<span style="letter-spacing:2.4pt;"> </span>which<span style="letter-spacing:2.35pt;"> </span>investigational<span style="letter-spacing:2.45pt;"> </span>drugs<span style="letter-spacing:2.35pt;"> </span>by<span style="letter-spacing:2.3pt;"> </span>our<span style="letter-spacing:2.3pt;"> </span>competitors<span style="letter-spacing:2.45pt;"> </span>are<span style="letter-spacing:2.35pt;"> </span>competing<span style="letter-spacing:2.4pt;"> </span>for<span style="letter-spacing:2.35pt;"> </span>clinical<span style="letter-spacing:2.4pt;"> </span>trial<span style="letter-spacing:2.4pt;"> </span>participants. Patient<span style="letter-spacing:0.05pt;"> </span>enrollment<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>also<span style="letter-spacing:0.05pt;"> </span>affected<span style="letter-spacing:0.1pt;"> </span>by other<span style="letter-spacing:0.05pt;"> </span>factors,<span style="letter-spacing:0.1pt;"> </span>including:</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">severity<span style="letter-spacing:0.1pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>disease<span style="letter-spacing:0.05pt;"> </span>under<span style="letter-spacing:0.05pt;"> </span>investigation&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">our ability<span style="letter-spacing:0.1pt;"> </span>to recruit<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trial<span style="letter-spacing:0.1pt;"> </span>investigators<span style="letter-spacing:0.15pt;"> </span>of appropriate<span style="letter-spacing:0.1pt;"> </span>competencies<span style="letter-spacing:0.1pt;"> </span>and experience&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.05pt;"> </span>incidence<span style="letter-spacing:0.1pt;"> </span>and prevalence<span style="letter-spacing:0.1pt;"> </span>of our target<span style="letter-spacing:0.1pt;"> </span>indications&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">clinicians&#8217;<span style="letter-spacing:0.95pt;"> </span>and<span style="letter-spacing:0.8pt;"> </span>patients&#8217;<span style="letter-spacing:0.9pt;"> </span>awareness<span style="letter-spacing:0.85pt;"> </span>of,<span style="letter-spacing:0.8pt;"> </span>and<span style="letter-spacing:0.8pt;"> </span>perceptions<span style="letter-spacing:0.9pt;"> </span>as<span style="letter-spacing:0.8pt;"> </span>to<span style="letter-spacing:0.8pt;"> </span>the<span style="letter-spacing:0.85pt;"> </span>potential<span style="letter-spacing:0.9pt;"> </span>advantages<span style="letter-spacing:0.85pt;"> </span>and<span style="letter-spacing:0.8pt;"> </span>risks<span style="letter-spacing:0.85pt;"> </span>of<span style="letter-spacing:0.75pt;"> </span>our product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>relation<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>available<span style="letter-spacing:0.15pt;"> </span>therapies,<span style="letter-spacing:0.15pt;"> </span>including<span style="letter-spacing:0.1pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>new drugs<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be approved<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>indications<span style="letter-spacing:0.1pt;"> </span>we are<span style="letter-spacing:0.05pt;"> </span>investigating&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">competing<span style="letter-spacing:0.1pt;"> </span>studies<span style="letter-spacing:0.05pt;"> </span>or trials<span style="letter-spacing:0.1pt;"> </span>with similar<span style="letter-spacing:0.1pt;"> </span>eligibility<span style="letter-spacing:0.15pt;"> </span>criteria&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">invasive<span style="letter-spacing:2.45pt;"> </span>procedures<span style="letter-spacing:2.45pt;"> </span>required<span style="letter-spacing:2.45pt;"> </span>to<span style="letter-spacing:2.35pt;"> </span>enroll<span style="letter-spacing:2.4pt;"> </span>patients<span style="letter-spacing:2.45pt;"> </span>and<span style="letter-spacing:2.35pt;"> </span>to<span style="letter-spacing:2.35pt;"> </span>obtain<span style="letter-spacing:2.4pt;"> </span>evidence<span style="letter-spacing:2.4pt;"> </span>of<span style="letter-spacing:2.35pt;"> </span>the<span style="letter-spacing:2.4pt;"> </span>product<span style="letter-spacing:2.4pt;"> </span>candidate&#8217;s performance<span style="letter-spacing:0.1pt;"> </span>during<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trial&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">availability<span style="letter-spacing:0.15pt;"> </span>and efficacy<span style="letter-spacing:0.1pt;"> </span>of approved<span style="letter-spacing:0.05pt;"> </span>medications<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>disease<span style="letter-spacing:0.05pt;"> </span>under<span style="letter-spacing:0.05pt;"> </span>investigation&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">eligibility<span style="letter-spacing:0.15pt;"> </span>criteria<span style="letter-spacing:0.15pt;"> </span>defined<span style="letter-spacing:0.05pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>protocol<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>trial<span style="letter-spacing:0.1pt;"> </span>in question&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.05pt;"> </span>size<span style="letter-spacing:0.05pt;"> </span>and nature<span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>patient<span style="letter-spacing:0.1pt;"> </span>population<span style="letter-spacing:0.05pt;"> </span>required<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>analysis<span style="letter-spacing:0.1pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>trial&#8217;s<span style="letter-spacing:0.1pt;"> </span>primary<span style="letter-spacing:0.1pt;"> </span>endpoints&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">efforts<span style="letter-spacing:0.1pt;"> </span>to facilitate<span style="letter-spacing:0.15pt;"> </span>timely<span style="letter-spacing:0.1pt;"> </span>enrollment<span style="letter-spacing:0.1pt;"> </span>in clinical<span style="letter-spacing:0.1pt;"> </span>trials&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">whether<span style="letter-spacing:0.05pt;"> </span>we are<span style="letter-spacing:0.05pt;"> </span>subject<span style="letter-spacing:0.05pt;"> </span>to a partial<span style="letter-spacing:0.1pt;"> </span>or full<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>hold on any of our clinical<span style="letter-spacing:0.1pt;"> </span>trials&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">reluctance<span style="letter-spacing:0.1pt;"> </span>of physicians<span style="letter-spacing:0.1pt;"> </span>to encourage<span style="letter-spacing:0.05pt;"> </span>patient<span style="letter-spacing:0.1pt;"> </span>participation<span style="letter-spacing:0.15pt;"> </span>in clinical<span style="letter-spacing:0.1pt;"> </span>trials&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.05pt;"> </span>ability<span style="letter-spacing:0.1pt;"> </span>to monitor<span style="letter-spacing:0.1pt;"> </span>patients<span style="letter-spacing:0.1pt;"> </span>adequately<span style="letter-spacing:0.1pt;"> </span>during<span style="letter-spacing:0.05pt;"> </span>and after<span style="letter-spacing:0.1pt;"> </span>treatment&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">our ability<span style="letter-spacing:0.1pt;"> </span>to obtain<span style="letter-spacing:0.05pt;"> </span>and maintain<span style="letter-spacing:0.1pt;"> </span>patient<span style="letter-spacing:0.1pt;"> </span>consents&#59;<span style="letter-spacing:0.1pt;"> </span>and</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">proximity<span style="letter-spacing:0.1pt;"> </span>and availability<span style="letter-spacing:0.15pt;"> </span>of clinical<span style="letter-spacing:0.1pt;"> </span>trial<span style="letter-spacing:0.1pt;"> </span>sites<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>prospective<span style="letter-spacing:0.1pt;"> </span>patients.</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:10pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">27</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our<span style="letter-spacing:0.05pt;"> </span>inability<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>enroll<span style="letter-spacing:0.1pt;"> </span>and maintain<span style="letter-spacing:0.1pt;"> </span>a sufficient<span style="letter-spacing:0.15pt;"> </span>number<span style="letter-spacing:0.05pt;"> </span>of patients<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>would result<span style="letter-spacing:0.1pt;"> </span>in significant<span style="letter-spacing:0.2pt;"> </span>delays<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>require<span style="letter-spacing:0.15pt;"> </span>us<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>abandon<span style="letter-spacing:0.05pt;"> </span>one<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>more<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trials<span style="letter-spacing:0.15pt;"> </span>altogether.<span style="letter-spacing:0.15pt;"> </span>Enrollment<span style="letter-spacing:0.1pt;"> </span>delays<span style="letter-spacing:0.05pt;"> </span>in our clinical<span style="letter-spacing:2pt;"> </span>trials,<span style="letter-spacing:2pt;"> </span>including<span style="letter-spacing:1.95pt;"> </span>due<span style="letter-spacing:1.9pt;"> </span>to<span style="letter-spacing:1.9pt;"> </span>the<span style="letter-spacing:1.9pt;"> </span>COVID-19<span style="letter-spacing:1.8pt;"> </span>pandemic,<span style="letter-spacing:1.9pt;"> </span>may<span style="letter-spacing:1.9pt;"> </span>result<span style="letter-spacing:1.95pt;"> </span>in<span style="letter-spacing:1.85pt;"> </span>increased<span style="letter-spacing:1.95pt;"> </span>development<span style="letter-spacing:1.95pt;"> </span>costs,<span style="letter-spacing:1.9pt;"> </span>which would cause<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>value<span style="letter-spacing:0.05pt;"> </span>of our company<span style="letter-spacing:0.05pt;"> </span>to decline<span style="letter-spacing:0.05pt;"> </span>and limit<span style="letter-spacing:0.1pt;"> </span>our ability<span style="letter-spacing:0.1pt;"> </span>to obtain<span style="letter-spacing:0.05pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>financing.</p>
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">The COVID-19<span style="letter-spacing:-0.05pt;"> </span>pandemic<span style="letter-spacing:0.05pt;"> </span>could adversely<span style="letter-spacing:0.1pt;"> </span>impact<span style="letter-spacing:0.05pt;"> </span>our business,<span style="letter-spacing:0.05pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>our clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>and clinical trial<span style="letter-spacing:0.05pt;"> </span>operations.</p>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The<span style="letter-spacing:0.05pt;"> </span>COVID-19 pandemic<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>States<span style="letter-spacing:0.05pt;"> </span>and in other<span style="letter-spacing:0.05pt;"> </span>countries<span style="letter-spacing:0.1pt;"> </span>in which we have planned<span style="letter-spacing:0.05pt;"> </span>or have active<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trial<span style="letter-spacing:0.1pt;"> </span>sites<span style="letter-spacing:0.05pt;"> </span>and where our third-party<span style="letter-spacing:0.15pt;"> </span>manufacturers<span style="letter-spacing:0.1pt;"> </span>operate, could cause significant<span style="letter-spacing:0.1pt;"> </span>disruptions<span style="letter-spacing:0.05pt;"> </span>that could<span style="letter-spacing:0.05pt;"> </span>severely<span style="letter-spacing:0.1pt;"> </span>impact<span style="letter-spacing:0.1pt;"> </span>our business<span style="letter-spacing:0.05pt;"> </span>and clinical<span style="letter-spacing:0.1pt;"> </span>trials,<span style="letter-spacing:0.1pt;"> </span>including:</p>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">delays<span style="letter-spacing:0.05pt;"> </span>or difficulties<span style="letter-spacing:0.15pt;"> </span>in screening,<span style="letter-spacing:0.1pt;"> </span>enrolling<span style="letter-spacing:0.1pt;"> </span>and maintaining<span style="letter-spacing:0.1pt;"> </span>patients<span style="letter-spacing:0.1pt;"> </span>in our clinical<span style="letter-spacing:0.1pt;"> </span>trials&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">delays or difficulties in clinical site initiation, including difficulties in recruiting clinical site investigators<span style="letter-spacing:0.15pt;"> </span>and clinical<span style="letter-spacing:0.1pt;"> </span>site<span style="letter-spacing:0.05pt;"> </span>staff&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">diversion<span style="letter-spacing:1.25pt;"> </span>of<span style="letter-spacing:1.15pt;"> </span>healthcare<span style="letter-spacing:1.2pt;"> </span>resources<span style="letter-spacing:1.2pt;"> </span>away<span style="letter-spacing:1.1pt;"> </span>from<span style="letter-spacing:1.15pt;"> </span>the<span style="letter-spacing:1.15pt;"> </span>conduct<span style="letter-spacing:1.15pt;"> </span>of<span style="letter-spacing:1.1pt;"> </span>clinical<span style="letter-spacing:1.2pt;"> </span>trials,<span style="letter-spacing:1.2pt;"> </span>including<span style="letter-spacing:1.15pt;"> </span>the<span style="letter-spacing:1.15pt;"> </span>diversion<span style="letter-spacing:1.2pt;"> </span>of hospitals<span style="letter-spacing:0.1pt;"> </span>serving<span style="letter-spacing:0.05pt;"> </span>as our clinical<span style="letter-spacing:0.1pt;"> </span>trial<span style="letter-spacing:0.1pt;"> </span>sites<span style="letter-spacing:0.05pt;"> </span>and hospital<span style="letter-spacing:0.1pt;"> </span>staff<span style="letter-spacing:0.1pt;"> </span>supporting<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>conduct<span style="letter-spacing:0.05pt;"> </span>of our clinical<span style="letter-spacing:0.1pt;"> </span>trials&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">inability<span style="letter-spacing:0.1pt;"> </span>or unwillingness<span style="letter-spacing:0.1pt;"> </span>of subjects<span style="letter-spacing:0.1pt;"> </span>to travel<span style="letter-spacing:0.1pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trial<span style="letter-spacing:0.1pt;"> </span>sites&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">delays,<span style="letter-spacing:0.05pt;"> </span>difficulties,<span style="letter-spacing:0.15pt;"> </span>or incompleteness<span style="letter-spacing:0.15pt;"> </span>in data<span style="letter-spacing:0.05pt;"> </span>collection<span style="letter-spacing:0.1pt;"> </span>and analysis<span style="letter-spacing:0.1pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>related<span style="letter-spacing:0.1pt;"> </span>activities&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">decreased implementation of protocol required clinical trial activities and quality of source data verification<span style="letter-spacing:0.15pt;"> </span>at<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trial<span style="letter-spacing:0.1pt;"> </span>sites&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">interruption<span style="letter-spacing:1.2pt;"> </span>of<span style="letter-spacing:1.05pt;"> </span>key<span style="letter-spacing:1.05pt;"> </span>clinical<span style="letter-spacing:1.15pt;"> </span>trial<span style="letter-spacing:1.1pt;"> </span>activities,<span style="letter-spacing:1.15pt;"> </span>such<span style="letter-spacing:1pt;"> </span>as<span style="letter-spacing:1pt;"> </span>clinical<span style="letter-spacing:1.1pt;"> </span>trial<span style="letter-spacing:1.1pt;"> </span>site<span style="letter-spacing:1.05pt;"> </span>monitoring,<span style="letter-spacing:1.1pt;"> </span>due<span style="letter-spacing:1pt;"> </span>to<span style="letter-spacing:1pt;"> </span>limitations<span style="letter-spacing:1.15pt;"> </span>on travel<span style="letter-spacing:0.1pt;"> </span>imposed<span style="letter-spacing:0.05pt;"> </span>or recommended<span style="letter-spacing:0.1pt;"> </span>by federal<span style="letter-spacing:0.1pt;"> </span>or state<span style="letter-spacing:0.05pt;"> </span>governments,<span style="letter-spacing:0.1pt;"> </span>employers<span style="letter-spacing:0.1pt;"> </span>and others&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">limitations<span style="letter-spacing:0.6pt;"> </span>in<span style="letter-spacing:0.4pt;"> </span>employee<span style="letter-spacing:0.45pt;"> </span>resources<span style="letter-spacing:0.5pt;"> </span>that<span style="letter-spacing:0.45pt;"> </span>would<span style="letter-spacing:0.4pt;"> </span>otherwise<span style="letter-spacing:0.45pt;"> </span>be<span style="letter-spacing:0.4pt;"> </span>focused<span style="letter-spacing:0.45pt;"> </span>on<span style="letter-spacing:0.4pt;"> </span>the<span style="letter-spacing:0.45pt;"> </span>conduct<span style="letter-spacing:0.45pt;"> </span>of<span style="letter-spacing:0.4pt;"> </span>our<span style="letter-spacing:0.4pt;"> </span>clinical<span style="letter-spacing:0.5pt;"> </span>trials and<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.05pt;"> </span>research<span style="letter-spacing:0.1pt;"> </span>and development<span style="letter-spacing:0.1pt;"> </span>activities,<span style="letter-spacing:0.15pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>because<span style="letter-spacing:0.05pt;"> </span>of sickness<span style="letter-spacing:0.05pt;"> </span>of employees<span style="letter-spacing:0.1pt;"> </span>or their families<span style="letter-spacing:0.15pt;"> </span>or mitigation<span style="letter-spacing:0.15pt;"> </span>measures<span style="letter-spacing:0.1pt;"> </span>such as lock-downs<span style="letter-spacing:0.05pt;"> </span>and social<span style="letter-spacing:0.05pt;"> </span>distancing&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">delays due to production shortages resulting from any events affecting raw material supply or manufacturing<span style="letter-spacing:0.15pt;"> </span>capabilities<span style="letter-spacing:0.15pt;"> </span>domestically<span style="letter-spacing:0.15pt;"> </span>and abroad&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">delays<span style="letter-spacing:0.05pt;"> </span>in receiving<span style="letter-spacing:0.1pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>local<span style="letter-spacing:0.05pt;"> </span>regulatory<span style="letter-spacing:0.1pt;"> </span>authorities<span style="letter-spacing:0.15pt;"> </span>to initiate<span style="letter-spacing:0.1pt;"> </span>our planned<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">delays<span style="letter-spacing:0.05pt;"> </span>in clinical<span style="letter-spacing:0.1pt;"> </span>sites<span style="letter-spacing:0.05pt;"> </span>receiving<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>supplies<span style="letter-spacing:0.05pt;"> </span>and materials<span style="letter-spacing:0.15pt;"> </span>needed<span style="letter-spacing:0.05pt;"> </span>to conduct<span style="letter-spacing:0.05pt;"> </span>our clinical<span style="letter-spacing:0.1pt;"> </span>trials&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">interruption<span style="letter-spacing:1.55pt;"> </span>in<span style="letter-spacing:1.4pt;"> </span>global<span style="letter-spacing:1.45pt;"> </span>and<span style="letter-spacing:1.4pt;"> </span>domestic<span style="letter-spacing:1.5pt;"> </span>shipping<span style="letter-spacing:1.45pt;"> </span>that<span style="letter-spacing:1.4pt;"> </span>may<span style="letter-spacing:1.4pt;"> </span>affect<span style="letter-spacing:1.45pt;"> </span>the<span style="letter-spacing:1.4pt;"> </span>transport<span style="letter-spacing:1.45pt;"> </span>of<span style="letter-spacing:1.35pt;"> </span>clinical<span style="letter-spacing:1.45pt;"> </span>trial<span style="letter-spacing:1.45pt;"> </span>materials, such as investigational<span style="letter-spacing:0.15pt;"> </span>drug products<span style="letter-spacing:0.05pt;"> </span>used in our clinical<span style="letter-spacing:0.1pt;"> </span>trials&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">changes<span style="letter-spacing:0.5pt;"> </span>in<span style="letter-spacing:0.4pt;"> </span>local<span style="letter-spacing:0.45pt;"> </span>regulations<span style="letter-spacing:0.5pt;"> </span>as<span style="letter-spacing:0.4pt;"> </span>part<span style="letter-spacing:0.45pt;"> </span>of<span style="letter-spacing:0.4pt;"> </span>a<span style="letter-spacing:0.4pt;"> </span>response<span style="letter-spacing:0.45pt;"> </span>to<span style="letter-spacing:0.4pt;"> </span>the<span style="letter-spacing:0.45pt;"> </span>COVID-19<span style="letter-spacing:0.35pt;"> </span>pandemic<span style="letter-spacing:0.45pt;"> </span>which<span style="letter-spacing:0.4pt;"> </span>may<span style="letter-spacing:0.45pt;"> </span>require<span style="letter-spacing:0.5pt;"> </span>us<span style="letter-spacing:0.4pt;"> </span>to change<span style="letter-spacing:1.8pt;"> </span>the<span style="letter-spacing:1.8pt;"> </span>ways<span style="letter-spacing:1.75pt;"> </span>in<span style="letter-spacing:1.75pt;"> </span>which<span style="letter-spacing:1.75pt;"> </span>our<span style="letter-spacing:1.75pt;"> </span>clinical<span style="letter-spacing:1.85pt;"> </span>trials<span style="letter-spacing:1.85pt;"> </span>are<span style="letter-spacing:1.8pt;"> </span>conducted,<span style="letter-spacing:1.8pt;"> </span>which<span style="letter-spacing:1.75pt;"> </span>may<span style="letter-spacing:1.8pt;"> </span>result<span style="letter-spacing:1.85pt;"> </span>in<span style="letter-spacing:1.75pt;"> </span>unexpected<span style="letter-spacing:1.8pt;"> </span>costs, delays,<span style="letter-spacing:0.05pt;"> </span>or to discontinue<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>altogether&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">delays<span style="letter-spacing:0.8pt;"> </span>in<span style="letter-spacing:0.75pt;"> </span>necessary<span style="letter-spacing:0.85pt;"> </span>interactions<span style="letter-spacing:0.9pt;"> </span>with<span style="letter-spacing:0.75pt;"> </span>local<span style="letter-spacing:0.8pt;"> </span>regulators,<span style="letter-spacing:0.85pt;"> </span>ethics<span style="letter-spacing:0.75pt;"> </span>committees<span style="letter-spacing:0.85pt;"> </span>and<span style="letter-spacing:0.7pt;"> </span>other<span style="letter-spacing:0.75pt;"> </span>important<span style="letter-spacing:0.8pt;"> </span>agencies and contractors<span style="letter-spacing:0.1pt;"> </span>due to limitations<span style="letter-spacing:0.15pt;"> </span>in employee<span style="letter-spacing:0.05pt;"> </span>resources<span style="letter-spacing:0.1pt;"> </span>or forced<span style="letter-spacing:0.05pt;"> </span>furlough<span style="letter-spacing:0.05pt;"> </span>of government<span style="letter-spacing:0.1pt;"> </span>employees&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">refusal<span style="letter-spacing:0.6pt;"> </span>of<span style="letter-spacing:0.5pt;"> </span>regulatory<span style="letter-spacing:0.6pt;"> </span>authorities<span style="letter-spacing:0.65pt;"> </span>such<span style="letter-spacing:0.5pt;"> </span>as<span style="letter-spacing:0.5pt;"> </span>FDA<span style="letter-spacing:0.45pt;"> </span>or<span style="letter-spacing:0.5pt;"> </span>European<span style="letter-spacing:0.55pt;"> </span>Medicines<span style="letter-spacing:0.6pt;"> </span>Agency,<span style="letter-spacing:0.5pt;"> </span>or<span style="letter-spacing:0.5pt;"> </span>EMA,<span style="letter-spacing:0.5pt;"> </span>to<span style="letter-spacing:0.5pt;"> </span>accept<span style="letter-spacing:0.5pt;"> </span>data from<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>in affected<span style="letter-spacing:0.1pt;"> </span>geographies&#59;<span style="letter-spacing:0.1pt;"> </span>and</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">adverse<span style="letter-spacing:0.1pt;"> </span>impacts<span style="letter-spacing:0.15pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>global<span style="letter-spacing:0.1pt;"> </span>economic<span style="letter-spacing:0.1pt;"> </span>conditions<span style="letter-spacing:0.15pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>an<span style="letter-spacing:0.05pt;"> </span>adverse<span style="letter-spacing:0.1pt;"> </span>effect<span style="letter-spacing:0.15pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>business<span style="letter-spacing:0.05pt;"> </span>and financial<span style="letter-spacing:0.1pt;"> </span>condition,<span style="letter-spacing:0.05pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>impairing<span style="letter-spacing:0.1pt;"> </span>our ability<span style="letter-spacing:0.1pt;"> </span>to raise<span style="letter-spacing:0.05pt;"> </span>capital<span style="letter-spacing:0.1pt;"> </span>when needed.</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:12pt;margin-bottom:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Such<span style="letter-spacing:0.05pt;"> </span>disruptions<span style="letter-spacing:0.15pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>impede,<span style="letter-spacing:0.1pt;"> </span>delay,<span style="letter-spacing:0.1pt;"> </span>limit<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>prevent<span style="letter-spacing:0.1pt;"> </span>completion<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our ongoing clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>and preclinical<span style="letter-spacing:0.15pt;"> </span>studies<span style="letter-spacing:0.05pt;"> </span>or commencement<span style="letter-spacing:0.15pt;"> </span>of new clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>and ultimately<span style="letter-spacing:0.15pt;"> </span>lead<span style="letter-spacing:0.05pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>delay<span style="letter-spacing:0.05pt;"> </span>or denial<span style="letter-spacing:0.05pt;"> </span>of regulatory approval<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates,<span style="letter-spacing:0.15pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>would<span style="letter-spacing:0.05pt;"> </span>seriously<span style="letter-spacing:0.15pt;"> </span>harm<span style="letter-spacing:0.1pt;"> </span>our operations<span style="letter-spacing:0.1pt;"> </span>and financial<span style="letter-spacing:0.1pt;"> </span>condition<span style="letter-spacing:0.05pt;"> </span>and increase<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>costs<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>expenses.<span style="letter-spacing:0.1pt;"> </span>We<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>close<span style="letter-spacing:0.1pt;"> </span>contact<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>CROs, CMOs<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>sites<span style="letter-spacing:0.1pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>seek<span style="letter-spacing:0.1pt;"> </span>to mitigate<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>impact<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>COVID-19 on<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>studies<span style="letter-spacing:0.05pt;"> </span>and current<span style="letter-spacing:0.1pt;"> </span>timelines.<span style="letter-spacing:0.15pt;"> </span>Measures<span style="letter-spacing:0.1pt;"> </span>we have taken<span style="letter-spacing:0.05pt;"> </span>in response<span style="letter-spacing:0.05pt;"> </span>to COVID-19 include,<span style="letter-spacing:0.1pt;"> </span>where feasible,<span style="letter-spacing:0.1pt;"> </span>conducting<span style="letter-spacing:0.05pt;"> </span>remote<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trial<span style="letter-spacing:0.1pt;"> </span>site<span style="letter-spacing:0.05pt;"> </span>activations<span style="letter-spacing:0.1pt;"> </span>and data<span style="letter-spacing:0.05pt;"> </span>monitoring,<span style="letter-spacing:0.1pt;"> </span>and limiting<span style="letter-spacing:0.15pt;"> </span>on-site<span style="letter-spacing:0.15pt;"> </span>patient<span style="letter-spacing:0.15pt;"> </span>visits<span style="letter-spacing:0.1pt;"> </span>by adjusting<span style="letter-spacing:0.1pt;"> </span>patient<span style="letter-spacing:0.1pt;"> </span>assessments<span style="letter-spacing:0.1pt;"> </span>and protocol.<span style="letter-spacing:0.05pt;"> </span>However, despite<span style="letter-spacing:0.05pt;"> </span>these<span style="letter-spacing:0.05pt;"> </span>efforts,<span style="letter-spacing:0.1pt;"> </span>we have<span style="letter-spacing:0.05pt;"> </span>experienced<span style="letter-spacing:0.15pt;"> </span>limited<span style="letter-spacing:0.15pt;"> </span>delays<span style="letter-spacing:0.1pt;"> </span>in trial<span style="letter-spacing:0.1pt;"> </span>site<span style="letter-spacing:0.05pt;"> </span>initiations,<span style="letter-spacing:0.15pt;"> </span>patient<span style="letter-spacing:0.1pt;"> </span>participation<span style="letter-spacing:0.15pt;"> </span>and patient<span style="letter-spacing:0.1pt;"> </span>enrollment<span style="letter-spacing:0.1pt;"> </span>in some<span style="letter-spacing:0.05pt;"> </span>of our clinical<span style="letter-spacing:0.15pt;"> </span>trials<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>continue<span style="letter-spacing:0.1pt;"> </span>to experience<span style="letter-spacing:0.1pt;"> </span>some<span style="letter-spacing:0.05pt;"> </span>delays<span style="letter-spacing:0.05pt;"> </span>in our clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>and preclinical<span style="letter-spacing:0.15pt;"> </span>studies<span style="letter-spacing:0.05pt;"> </span>and delays<span style="letter-spacing:0.05pt;"> </span>in data<span style="letter-spacing:0.05pt;"> </span>collection<span style="letter-spacing:0.1pt;"> </span>and analysis.<span style="letter-spacing:0.1pt;"> </span>These delays<span style="letter-spacing:0.05pt;"> </span>so far<span style="letter-spacing:0.05pt;"> </span>have </p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">28</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">had a limited</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">impact,</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">but this</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">may</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">change</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">as the COVID-19 pandemic</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">response</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">such</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">COVID-19 pandemic</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">continues</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">evolve,</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and could</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">have an adverse</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">impact</span><span style="letter-spacing:0.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">on</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">timelines</span><span style="letter-spacing:0.25pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">business.</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">COVID-19 pandemic</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">also</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">affect</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">business</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the FDA, EMA</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">other</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">health</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">authorities,</span><span style="letter-spacing:0.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">which</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">result</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in delays</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in meetings</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">related</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to planned</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or completed clinical</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">trials</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">ultimately</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">reviews</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">approvals</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">product</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">candidates.</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">global</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">COVID-19 pandemic</span><span style="letter-spacing:1.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">continues</span><span style="letter-spacing:1.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:1.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">rapidly</span><span style="letter-spacing:1.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">evolve.</span><span style="letter-spacing:1.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The</span><span style="letter-spacing:1.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">extent</span><span style="letter-spacing:1.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:1.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">which</span><span style="letter-spacing:1.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="letter-spacing:1.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">COVID-19</span><span style="letter-spacing:0.95pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">pandemic</span><span style="letter-spacing:1.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">may</span><span style="letter-spacing:1.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">impact</span><span style="letter-spacing:1.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our</span><span style="letter-spacing:1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">business and</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">clinical</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">trials</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">will</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">depend</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">on</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">future</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">developments,</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">which are</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">highly</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">uncertain</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and cannot</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">be predicted</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">with confidence,</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">such</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">as</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">ultimate</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">geographic</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">spread</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">disease,</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">duration</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">pandemic,</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">travel restrictions</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">social</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">distancing</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">United</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">States</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">other</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">countries,</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">business</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">closures</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">business disruptions</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">effectiveness</span><span style="letter-spacing:0.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">actions</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">taken</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">United</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">States</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and other</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">countries</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to contain</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and treat</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the disease.</span></p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Adverse<span style="letter-spacing:0.05pt;"> </span>side<span style="letter-spacing:0.05pt;"> </span>effects<span style="letter-spacing:0.1pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>safety<span style="letter-spacing:0.05pt;"> </span>risks<span style="letter-spacing:0.05pt;"> </span>associated<span style="letter-spacing:0.1pt;"> </span>with PRT543,<span style="letter-spacing:-0.05pt;"> </span>PRT811,<span style="letter-spacing:-0.05pt;"> </span>PRT1419<span style="letter-spacing:-0.05pt;"> </span>or our other<span style="letter-spacing:0.05pt;"> </span>product candidates<span style="letter-spacing:0.05pt;"> </span>could delay<span style="letter-spacing:0.05pt;"> </span>or preclude<span style="letter-spacing:0.05pt;"> </span>approval,<span style="letter-spacing:0.05pt;"> </span>cause us to suspend or discontinue<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>or abandon further<span style="letter-spacing:0.05pt;"> </span>development,<span style="letter-spacing:0.1pt;"> </span>limit<span style="letter-spacing:0.1pt;"> </span>the commercial<span style="letter-spacing:0.1pt;"> </span>profile<span style="letter-spacing:0.1pt;"> </span>of an approved<span style="letter-spacing:0.05pt;"> </span>product,<span style="letter-spacing:0.05pt;"> </span>or result<span style="letter-spacing:0.05pt;"> </span>in significant<span style="letter-spacing:0.1pt;"> </span>negative<span style="letter-spacing:0.05pt;"> </span>consequences<span style="letter-spacing:0.05pt;"> </span>following<span style="letter-spacing:0.05pt;"> </span>marketing<span style="letter-spacing:0.05pt;"> </span>approval,<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>any.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">As<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>case<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>pharmaceuticals<span style="letter-spacing:0.15pt;"> </span>generally,<span style="letter-spacing:0.1pt;"> </span>we have observed<span style="letter-spacing:0.05pt;"> </span>side<span style="letter-spacing:0.05pt;"> </span>effects<span style="letter-spacing:0.1pt;"> </span>and adverse<span style="letter-spacing:0.05pt;"> </span>events<span style="letter-spacing:0.05pt;"> </span>associated with<span style="letter-spacing:0.65pt;"> </span>our<span style="letter-spacing:0.65pt;"> </span>clinical<span style="letter-spacing:0.75pt;"> </span>product<span style="letter-spacing:0.7pt;"> </span>candidate,<span style="letter-spacing:0.75pt;"> </span>PRT543.<span style="letter-spacing:0.6pt;"> </span>These<span style="letter-spacing:0.65pt;"> </span>side<span style="letter-spacing:0.7pt;"> </span>effects<span style="letter-spacing:0.75pt;"> </span>included<span style="letter-spacing:0.7pt;"> </span>diarrhea,<span style="letter-spacing:0.75pt;"> </span>nausea<span style="letter-spacing:0.65pt;"> </span>and<span style="letter-spacing:0.6pt;"> </span>fatigue,<span style="letter-spacing:0.7pt;"> </span>but<span style="letter-spacing:0.6pt;"> </span>none of<span style="letter-spacing:0.05pt;"> </span>these<span style="letter-spacing:0.1pt;"> </span>side<span style="letter-spacing:0.1pt;"> </span>effects<span style="letter-spacing:0.15pt;"> </span>were<span style="letter-spacing:0.05pt;"> </span>considered<span style="letter-spacing:0.15pt;"> </span>related<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>PRT543. At the<span style="letter-spacing:0.05pt;"> </span>highest<span style="letter-spacing:0.05pt;"> </span>dose level<span style="letter-spacing:0.05pt;"> </span>of our clinical<span style="letter-spacing:0.1pt;"> </span>product candidate,<span style="letter-spacing:0.95pt;"> </span>PRT543,<span style="letter-spacing:0.8pt;"> </span>there<span style="letter-spacing:0.9pt;"> </span>were<span style="letter-spacing:0.85pt;"> </span>occurrences<span style="letter-spacing:0.95pt;"> </span>of<span style="letter-spacing:0.85pt;"> </span>grade<span style="letter-spacing:0.9pt;"> </span>4<span style="letter-spacing:0.85pt;"> </span>thrombocytopenia<span style="letter-spacing:1pt;"> </span>that<span style="letter-spacing:0.9pt;"> </span>were<span style="letter-spacing:0.85pt;"> </span>deemed<span style="letter-spacing:0.9pt;"> </span>related<span style="letter-spacing:0.95pt;"> </span>to<span style="letter-spacing:0.85pt;"> </span>PRT543, but<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>toxicity<span style="letter-spacing:0.15pt;"> </span>was<span style="letter-spacing:0.05pt;"> </span>reversible<span style="letter-spacing:0.15pt;"> </span>after<span style="letter-spacing:0.15pt;"> </span>a one to two week drug holiday<span style="letter-spacing:0.05pt;"> </span>and the<span style="letter-spacing:0.05pt;"> </span>affected<span style="letter-spacing:0.1pt;"> </span>patients<span style="letter-spacing:0.1pt;"> </span>remained<span style="letter-spacing:0.1pt;"> </span>on the study<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>were<span style="letter-spacing:0.05pt;"> </span>restarted<span style="letter-spacing:0.15pt;"> </span>at<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>lower<span style="letter-spacing:0.1pt;"> </span>dose.<span style="letter-spacing:0.05pt;"> </span>We have also<span style="letter-spacing:0.05pt;"> </span>observed<span style="letter-spacing:0.05pt;"> </span>side<span style="letter-spacing:0.05pt;"> </span>effects<span style="letter-spacing:0.1pt;"> </span>and adverse<span style="letter-spacing:0.05pt;"> </span>effects<span style="letter-spacing:0.1pt;"> </span>associated<span style="letter-spacing:0.1pt;"> </span>with PRT811.<span style="letter-spacing:1.2pt;"> </span>These<span style="letter-spacing:1.25pt;"> </span>side<span style="letter-spacing:1.3pt;"> </span>effects<span style="letter-spacing:1.35pt;"> </span>included<span style="letter-spacing:1.3pt;"> </span>nausea,<span style="letter-spacing:1.25pt;"> </span>constipation,<span style="letter-spacing:1.3pt;"> </span>vomiting<span style="letter-spacing:1.3pt;"> </span>and<span style="letter-spacing:1.2pt;"> </span>hyponatremia,<span style="letter-spacing:1.3pt;"> </span>but<span style="letter-spacing:1.2pt;"> </span>none<span style="letter-spacing:1.2pt;"> </span>of<span style="letter-spacing:1.2pt;"> </span>these<span style="letter-spacing:1.25pt;"> </span>side effects<span style="letter-spacing:0.1pt;"> </span>were considered<span style="letter-spacing:0.1pt;"> </span>related<span style="letter-spacing:0.1pt;"> </span>to PRT811.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Results<span style="letter-spacing:0.05pt;"> </span>of our ongoing and planned<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>reveal<span style="letter-spacing:0.05pt;"> </span>a high and unacceptable<span style="letter-spacing:0.1pt;"> </span>severity<span style="letter-spacing:0.1pt;"> </span>and prevalence of side effects or unexpected characteristics. Undesirable side effects caused by our product candidates<span style="letter-spacing:0.3pt;"> </span>could<span style="letter-spacing:0.25pt;"> </span>result<span style="letter-spacing:0.3pt;"> </span>in<span style="letter-spacing:0.2pt;"> </span>the<span style="letter-spacing:0.25pt;"> </span>delay,<span style="letter-spacing:0.25pt;"> </span>suspension<span style="letter-spacing:0.25pt;"> </span>or<span style="letter-spacing:0.2pt;"> </span>termination<span style="letter-spacing:0.35pt;"> </span>of<span style="letter-spacing:0.2pt;"> </span>clinical<span style="letter-spacing:0.3pt;"> </span>trials<span style="letter-spacing:0.3pt;"> </span>by<span style="letter-spacing:0.2pt;"> </span>us<span style="letter-spacing:0.2pt;"> </span>or<span style="letter-spacing:0.2pt;"> </span>regulatory<span style="letter-spacing:0.3pt;"> </span>authorities<span style="letter-spacing:0.3pt;"> </span>for a number of reasons. Furthermore, clinical trials by their nature utilize a sample of the potential patient population.<span style="letter-spacing:0.9pt;"> </span>With<span style="letter-spacing:0.9pt;"> </span>a<span style="letter-spacing:0.85pt;"> </span>limited<span style="letter-spacing:0.9pt;"> </span>number<span style="letter-spacing:0.85pt;"> </span>of<span style="letter-spacing:0.8pt;"> </span>subjects<span style="letter-spacing:0.9pt;"> </span>and<span style="letter-spacing:0.8pt;"> </span>limited<span style="letter-spacing:0.9pt;"> </span>duration<span style="letter-spacing:0.85pt;"> </span>of<span style="letter-spacing:0.8pt;"> </span>exposure,<span style="letter-spacing:0.85pt;"> </span>rare<span style="letter-spacing:0.85pt;"> </span>and<span style="letter-spacing:0.8pt;"> </span>severe<span style="letter-spacing:0.85pt;"> </span>side<span style="letter-spacing:0.85pt;"> </span>effects<span style="letter-spacing:0.9pt;"> </span>of our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>or those<span style="letter-spacing:0.05pt;"> </span>of our competitors<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>only be uncovered<span style="letter-spacing:0.05pt;"> </span>with a significantly<span style="letter-spacing:0.15pt;"> </span>larger<span style="letter-spacing:0.1pt;"> </span>number<span style="letter-spacing:0.05pt;"> </span>of patients<span style="letter-spacing:0.1pt;"> </span>exposed<span style="letter-spacing:0.05pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>drug.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Additionally,<span style="letter-spacing:0.15pt;"> </span>due<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>high<span style="letter-spacing:0.05pt;"> </span>mortality<span style="letter-spacing:0.2pt;"> </span>rates<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>cancers<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>which we are<span style="letter-spacing:0.05pt;"> </span>initially<span style="letter-spacing:0.15pt;"> </span>pursuing<span style="letter-spacing:0.05pt;"> </span>development and<span style="letter-spacing:1.15pt;"> </span>the<span style="letter-spacing:1.2pt;"> </span>pretreated<span style="letter-spacing:1.25pt;"> </span>nature<span style="letter-spacing:1.2pt;"> </span>of<span style="letter-spacing:1.15pt;"> </span>many<span style="letter-spacing:1.2pt;"> </span>patients<span style="letter-spacing:1.25pt;"> </span>in<span style="letter-spacing:1.15pt;"> </span>our<span style="letter-spacing:1.1pt;"> </span>ongoing<span style="letter-spacing:1.1pt;"> </span>clinical<span style="letter-spacing:1.2pt;"> </span>trials<span style="letter-spacing:1.2pt;"> </span>of<span style="letter-spacing:1.1pt;"> </span>PRT543,<span style="letter-spacing:1.05pt;"> </span>PRT811<span style="letter-spacing:1.05pt;"> </span>and<span style="letter-spacing:1.1pt;"> </span>PRT1419,<span style="letter-spacing:1.05pt;"> </span>a material<span style="letter-spacing:0.15pt;"> </span>percentage<span style="letter-spacing:0.1pt;"> </span>of patients<span style="letter-spacing:0.1pt;"> </span>in these<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>die<span style="letter-spacing:0.05pt;"> </span>during<span style="letter-spacing:0.05pt;"> </span>a trial,<span style="letter-spacing:0.1pt;"> </span>which could<span style="letter-spacing:0.05pt;"> </span>impact<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.05pt;"> </span>of PRT543, PRT811 and<span style="letter-spacing:0.05pt;"> </span>PRT1419, respectively.<span style="letter-spacing:0.2pt;"> </span>If<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>elect<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>required<span style="letter-spacing:0.1pt;"> </span>to delay,<span style="letter-spacing:0.05pt;"> </span>suspend<span style="letter-spacing:0.05pt;"> </span>or terminate<span style="letter-spacing:0.15pt;"> </span>any clinical<span style="letter-spacing:0.15pt;"> </span>trial,<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>commercial<span style="letter-spacing:0.2pt;"> </span>prospects<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.15pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>harmed<span style="letter-spacing:0.1pt;"> </span>and our ability<span style="letter-spacing:0.1pt;"> </span>to generate product<span style="letter-spacing:1.25pt;"> </span>revenues<span style="letter-spacing:1.25pt;"> </span>from<span style="letter-spacing:1.25pt;"> </span>this<span style="letter-spacing:1.25pt;"> </span>product<span style="letter-spacing:1.25pt;"> </span>candidate<span style="letter-spacing:1.3pt;"> </span>will<span style="letter-spacing:1.2pt;"> </span>be<span style="letter-spacing:1.15pt;"> </span>delayed<span style="letter-spacing:1.2pt;"> </span>or<span style="letter-spacing:1.15pt;"> </span>eliminated.<span style="letter-spacing:1.3pt;"> </span>Serious<span style="letter-spacing:1.2pt;"> </span>adverse<span style="letter-spacing:1.2pt;"> </span>events,<span style="letter-spacing:1.2pt;"> </span>or<span style="letter-spacing:1.15pt;"> </span>SAEs, observed<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trials<span style="letter-spacing:0.15pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>hinder<span style="letter-spacing:0.1pt;"> </span>or prevent<span style="letter-spacing:0.05pt;"> </span>market<span style="letter-spacing:0.1pt;"> </span>acceptance<span style="letter-spacing:0.1pt;"> </span>of our product<span style="letter-spacing:0.05pt;"> </span>candidates.<span style="letter-spacing:0.1pt;"> </span>Any of these occurrences<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>harm<span style="letter-spacing:0.05pt;"> </span>our business,<span style="letter-spacing:0.05pt;"> </span>prospects,<span style="letter-spacing:0.1pt;"> </span>financial<span style="letter-spacing:0.1pt;"> </span>condition<span style="letter-spacing:0.05pt;"> </span>and results<span style="letter-spacing:0.1pt;"> </span>of operations<span style="letter-spacing:0.1pt;"> </span>significantly.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Moreover,<span style="letter-spacing:0.1pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.15pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>associated<span style="letter-spacing:0.1pt;"> </span>with undesirable<span style="letter-spacing:0.1pt;"> </span>side<span style="letter-spacing:0.05pt;"> </span>effects<span style="letter-spacing:0.1pt;"> </span>in clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>or have characteristics<span style="letter-spacing:0.25pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>unexpected,<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>elect<span style="letter-spacing:0.05pt;"> </span>to abandon or limit<span style="letter-spacing:0.1pt;"> </span>their<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>to more<span style="letter-spacing:0.05pt;"> </span>narrow<span style="letter-spacing:0.05pt;"> </span>uses<span style="letter-spacing:0.05pt;"> </span>or subpopulations<span style="letter-spacing:1.6pt;"> </span>in<span style="letter-spacing:1.45pt;"> </span>which<span style="letter-spacing:1.45pt;"> </span>the<span style="letter-spacing:1.5pt;"> </span>undesirable<span style="letter-spacing:1.55pt;"> </span>side<span style="letter-spacing:1.5pt;"> </span>effects<span style="letter-spacing:1.55pt;"> </span>or<span style="letter-spacing:1.45pt;"> </span>other<span style="letter-spacing:1.5pt;"> </span>characteristics<span style="letter-spacing:1.65pt;"> </span>are<span style="letter-spacing:1.5pt;"> </span>less<span style="letter-spacing:1.5pt;"> </span>prevalent,<span style="letter-spacing:1.55pt;"> </span>less<span style="letter-spacing:1.5pt;"> </span>severe<span style="letter-spacing:1.5pt;"> </span>or more<span style="letter-spacing:0.1pt;"> </span>acceptable<span style="letter-spacing:0.15pt;"> </span>from<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>risk-benefit<span style="letter-spacing:0.2pt;"> </span>perspective,<span style="letter-spacing:0.15pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>limit<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>commercial<span style="letter-spacing:0.15pt;"> </span>expectations<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our product candidates,<span style="letter-spacing:1.3pt;"> </span>if<span style="letter-spacing:1.25pt;"> </span>approved.<span style="letter-spacing:1.25pt;"> </span>We<span style="letter-spacing:1.15pt;"> </span>may<span style="letter-spacing:1.2pt;"> </span>also<span style="letter-spacing:1.2pt;"> </span>be<span style="letter-spacing:1.15pt;"> </span>required<span style="letter-spacing:1.25pt;"> </span>to<span style="letter-spacing:1.15pt;"> </span>modify<span style="letter-spacing:1.2pt;"> </span>our<span style="letter-spacing:1.15pt;"> </span>study<span style="letter-spacing:1.2pt;"> </span>plans<span style="letter-spacing:1.2pt;"> </span>based<span style="letter-spacing:1.2pt;"> </span>on<span style="letter-spacing:1.15pt;"> </span>findings<span style="letter-spacing:1.2pt;"> </span>in<span style="letter-spacing:1.15pt;"> </span>our<span style="letter-spacing:1.15pt;"> </span>clinical trials.<span style="letter-spacing:1.15pt;"> </span>Such<span style="letter-spacing:1.05pt;"> </span>side<span style="letter-spacing:1.1pt;"> </span>effects<span style="letter-spacing:1.15pt;"> </span>could<span style="letter-spacing:1.1pt;"> </span>also<span style="letter-spacing:1.1pt;"> </span>affect<span style="letter-spacing:1.15pt;"> </span>patient<span style="letter-spacing:1.15pt;"> </span>recruitment<span style="letter-spacing:1.2pt;"> </span>or<span style="letter-spacing:1.05pt;"> </span>the<span style="letter-spacing:1.1pt;"> </span>ability<span style="letter-spacing:1.15pt;"> </span>of<span style="letter-spacing:1.05pt;"> </span>enrolled<span style="letter-spacing:1.15pt;"> </span>patients<span style="letter-spacing:1.15pt;"> </span>to<span style="letter-spacing:1pt;"> </span>complete<span style="letter-spacing:1.1pt;"> </span>the trial.<span style="letter-spacing:0.15pt;"> </span>Many<span style="letter-spacing:0.05pt;"> </span>drugs<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>initially<span style="letter-spacing:0.2pt;"> </span>showed<span style="letter-spacing:0.05pt;"> </span>promise<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>early<span style="letter-spacing:0.1pt;"> </span>stage<span style="letter-spacing:0.1pt;"> </span>testing<span style="letter-spacing:0.1pt;"> </span>have later<span style="letter-spacing:0.1pt;"> </span>been found to cause<span style="letter-spacing:0.05pt;"> </span>side<span style="letter-spacing:0.05pt;"> </span>effects that<span style="letter-spacing:1.15pt;"> </span>prevented<span style="letter-spacing:1.1pt;"> </span>further<span style="letter-spacing:1.15pt;"> </span>development.<span style="letter-spacing:1.15pt;"> </span>In<span style="letter-spacing:1.05pt;"> </span>addition,<span style="letter-spacing:1.1pt;"> </span>regulatory<span style="letter-spacing:1.15pt;"> </span>authorities<span style="letter-spacing:1.2pt;"> </span>may<span style="letter-spacing:1.1pt;"> </span>draw<span style="letter-spacing:1.05pt;"> </span>different<span style="letter-spacing:1.15pt;"> </span>conclusions,<span style="letter-spacing:1.15pt;"> </span>require additional<span style="letter-spacing:0.6pt;"> </span>testing<span style="letter-spacing:0.6pt;"> </span>to<span style="letter-spacing:0.5pt;"> </span>confirm<span style="letter-spacing:0.6pt;"> </span>these<span style="letter-spacing:0.55pt;"> </span>determinations,<span style="letter-spacing:0.65pt;"> </span>require<span style="letter-spacing:0.6pt;"> </span>more<span style="letter-spacing:0.55pt;"> </span>restrictive<span style="letter-spacing:0.65pt;"> </span>labeling,<span style="letter-spacing:0.6pt;"> </span>or<span style="letter-spacing:0.5pt;"> </span>deny<span style="letter-spacing:0.45pt;"> </span>regulatory<span style="letter-spacing:0.55pt;"> </span>approval of the<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidate.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">It<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>possible<span style="letter-spacing:0.1pt;"> </span>that,<span style="letter-spacing:0.1pt;"> </span>as we test<span style="letter-spacing:0.05pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>in larger,<span style="letter-spacing:0.1pt;"> </span>longer<span style="letter-spacing:0.05pt;"> </span>and more<span style="letter-spacing:0.05pt;"> </span>extensive<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials, including<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>different<span style="letter-spacing:0.15pt;"> </span>dosing<span style="letter-spacing:0.1pt;"> </span>regimens,<span style="letter-spacing:0.1pt;"> </span>or as the<span style="letter-spacing:0.05pt;"> </span>use of our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>becomes<span style="letter-spacing:0.05pt;"> </span>more<span style="letter-spacing:0.05pt;"> </span>widespread following<span style="letter-spacing:0.1pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>regulatory<span style="letter-spacing:0.15pt;"> </span>approval,<span style="letter-spacing:0.1pt;"> </span>illnesses,<span style="letter-spacing:0.15pt;"> </span>injuries,<span style="letter-spacing:0.15pt;"> </span>discomforts<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>adverse<span style="letter-spacing:0.1pt;"> </span>events<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>were observed<span style="letter-spacing:0.05pt;"> </span>in earlier<span style="letter-spacing:0.1pt;"> </span>trials,<span style="letter-spacing:0.1pt;"> </span>as well<span style="letter-spacing:0.05pt;"> </span>as conditions<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>did not occur<span style="letter-spacing:0.05pt;"> </span>or went undetected<span style="letter-spacing:0.1pt;"> </span>in previous<span style="letter-spacing:0.05pt;"> </span>trials,<span style="letter-spacing:0.1pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>be reported<span style="letter-spacing:0.1pt;"> </span>by patients.<span style="letter-spacing:1.2pt;"> </span>If<span style="letter-spacing:1.15pt;"> </span>such<span style="letter-spacing:1.1pt;"> </span>side<span style="letter-spacing:1.15pt;"> </span>effects<span style="letter-spacing:1.2pt;"> </span>become<span style="letter-spacing:1.15pt;"> </span>known<span style="letter-spacing:1.1pt;"> </span>later<span style="letter-spacing:1.2pt;"> </span>in<span style="letter-spacing:1.1pt;"> </span>development<span style="letter-spacing:1.2pt;"> </span>or<span style="letter-spacing:1.1pt;"> </span>upon<span style="letter-spacing:1.1pt;"> </span>approval,<span style="letter-spacing:1.15pt;"> </span>if<span style="letter-spacing:1.15pt;"> </span>any,<span style="letter-spacing:1.1pt;"> </span>such<span style="letter-spacing:1.1pt;"> </span>findings<span style="letter-spacing:1.1pt;"> </span>may harm<span style="letter-spacing:0.05pt;"> </span>our business,<span style="letter-spacing:0.05pt;"> </span>financial<span style="letter-spacing:0.1pt;"> </span>condition,<span style="letter-spacing:0.05pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>of operations<span style="letter-spacing:0.1pt;"> </span>and prospects<span style="letter-spacing:0.1pt;"> </span>significantly.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In<span style="letter-spacing:0.05pt;"> </span>addition,<span style="letter-spacing:0.1pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>receive<span style="letter-spacing:0.1pt;"> </span>marketing<span style="letter-spacing:0.1pt;"> </span>approval,<span style="letter-spacing:0.05pt;"> </span>and we or others<span style="letter-spacing:0.05pt;"> </span>later<span style="letter-spacing:0.1pt;"> </span>identify undesirable<span style="letter-spacing:0.15pt;"> </span>side<span style="letter-spacing:0.05pt;"> </span>effects<span style="letter-spacing:0.1pt;"> </span>caused<span style="letter-spacing:0.05pt;"> </span>by treatment<span style="letter-spacing:0.15pt;"> </span>with such drug, a number<span style="letter-spacing:0.05pt;"> </span>of potentially<span style="letter-spacing:0.1pt;"> </span>significant<span style="letter-spacing:0.15pt;"> </span>negative consequences<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>result,<span style="letter-spacing:0.1pt;"> </span>including:</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">regulatory<span style="letter-spacing:0.1pt;"> </span>authorities<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>withdraw<span style="letter-spacing:0.05pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>drug&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">we may<span style="letter-spacing:0.05pt;"> </span>be required<span style="letter-spacing:0.1pt;"> </span>to recall<span style="letter-spacing:0.1pt;"> </span>a product<span style="letter-spacing:0.05pt;"> </span>or change<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>way the<span style="letter-spacing:0.05pt;"> </span>drug is<span style="letter-spacing:0.05pt;"> </span>administered<span style="letter-spacing:0.15pt;"> </span>to patients&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">29</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">regulatory<span style="letter-spacing:0.9pt;"> </span>authorities<span style="letter-spacing:0.95pt;"> </span>may<span style="letter-spacing:0.85pt;"> </span>require<span style="letter-spacing:0.9pt;"> </span>additional<span style="letter-spacing:0.9pt;"> </span>warnings<span style="letter-spacing:0.85pt;"> </span>in<span style="letter-spacing:0.8pt;"> </span>the<span style="letter-spacing:0.85pt;"> </span>labeling,<span style="letter-spacing:0.9pt;"> </span>such<span style="letter-spacing:0.8pt;"> </span>as<span style="letter-spacing:0.8pt;"> </span>a<span style="letter-spacing:0.75pt;"> </span>contraindication<span style="letter-spacing:0.9pt;"> </span>or<span style="letter-spacing:0.75pt;"> </span>a boxed<span style="letter-spacing:0.05pt;"> </span>warning,<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>issue<span style="letter-spacing:0.1pt;"> </span>safety<span style="letter-spacing:0.1pt;"> </span>alerts,<span style="letter-spacing:0.15pt;"> </span>Dear<span style="letter-spacing:0.05pt;"> </span>Healthcare<span style="letter-spacing:0.15pt;"> </span>Provider<span style="letter-spacing:0.1pt;"> </span>letters,<span style="letter-spacing:0.15pt;"> </span>press<span style="letter-spacing:0.05pt;"> </span>releases<span style="letter-spacing:0.1pt;"> </span>or other communications<span style="letter-spacing:0.15pt;"> </span>containing<span style="letter-spacing:0.1pt;"> </span>warnings<span style="letter-spacing:0.05pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>safety<span style="letter-spacing:0.05pt;"> </span>information<span style="letter-spacing:0.15pt;"> </span>about<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>product&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">we<span style="letter-spacing:1.25pt;"> </span>may<span style="letter-spacing:1.3pt;"> </span>be<span style="letter-spacing:1.25pt;"> </span>required<span style="letter-spacing:1.35pt;"> </span>to<span style="letter-spacing:1.25pt;"> </span>implement<span style="letter-spacing:1.35pt;"> </span>a<span style="letter-spacing:1.25pt;"> </span>Risk<span style="letter-spacing:1.25pt;"> </span>Evaluation<span style="letter-spacing:1.3pt;"> </span>and<span style="letter-spacing:1.25pt;"> </span>Mitigation<span style="letter-spacing:1.35pt;"> </span>Strategy,<span style="letter-spacing:1.3pt;"> </span>or<span style="letter-spacing:1.25pt;"> </span>REMS,<span style="letter-spacing:1.15pt;"> </span>or<span style="letter-spacing:1.2pt;"> </span>create<span style="letter-spacing:1.3pt;"> </span>a medication<span style="letter-spacing:0.1pt;"> </span>guide<span style="letter-spacing:0.05pt;"> </span>outlining<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>risks<span style="letter-spacing:0.05pt;"> </span>of such side<span style="letter-spacing:0.05pt;"> </span>effects<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>distribution<span style="letter-spacing:0.15pt;"> </span>to patients&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">additional<span style="letter-spacing:0.8pt;"> </span>restrictions<span style="letter-spacing:0.85pt;"> </span>may<span style="letter-spacing:0.75pt;"> </span>be<span style="letter-spacing:0.65pt;"> </span>imposed<span style="letter-spacing:0.7pt;"> </span>on<span style="letter-spacing:0.65pt;"> </span>the<span style="letter-spacing:0.7pt;"> </span>marketing<span style="letter-spacing:0.75pt;"> </span>or<span style="letter-spacing:0.65pt;"> </span>promotion<span style="letter-spacing:0.75pt;"> </span>of<span style="letter-spacing:0.65pt;"> </span>the<span style="letter-spacing:0.7pt;"> </span>particular<span style="letter-spacing:0.8pt;"> </span>product<span style="letter-spacing:0.7pt;"> </span>or<span style="letter-spacing:0.65pt;"> </span>the manufacturing<span style="letter-spacing:0.15pt;"> </span>processes<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>or any component<span style="letter-spacing:0.05pt;"> </span>thereof&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">we could<span style="letter-spacing:0.05pt;"> </span>be sued and held<span style="letter-spacing:0.05pt;"> </span>liable<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>harm<span style="letter-spacing:0.05pt;"> </span>caused<span style="letter-spacing:0.05pt;"> </span>to patients&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">we may<span style="letter-spacing:0.05pt;"> </span>be subject<span style="letter-spacing:0.05pt;"> </span>to regulatory<span style="letter-spacing:0.1pt;"> </span>investigations<span style="letter-spacing:0.15pt;"> </span>and government<span style="letter-spacing:0.1pt;"> </span>enforcement<span style="letter-spacing:0.1pt;"> </span>actions&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.05pt;"> </span>drug could<span style="letter-spacing:0.05pt;"> </span>become<span style="letter-spacing:0.05pt;"> </span>less<span style="letter-spacing:0.05pt;"> </span>competitive&#59;<span style="letter-spacing:0.15pt;"> </span>and</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">our reputation<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>suffer.</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:12pt;margin-bottom:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Any<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>these<span style="letter-spacing:0.1pt;"> </span>events<span style="letter-spacing:0.1pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>prevent<span style="letter-spacing:0.1pt;"> </span>us<span style="letter-spacing:0.05pt;"> </span>from<span style="letter-spacing:0.1pt;"> </span>achieving<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>maintaining<span style="letter-spacing:0.1pt;"> </span>market<span style="letter-spacing:0.1pt;"> </span>acceptance<span style="letter-spacing:0.1pt;"> </span>of our product candidates,<span style="letter-spacing:0.15pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>approved,<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>significantly<span style="letter-spacing:0.2pt;"> </span>harm<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>business,<span style="letter-spacing:0.1pt;"> </span>financial<span style="letter-spacing:0.15pt;"> </span>condition,<span style="letter-spacing:0.1pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>of operations<span style="letter-spacing:0.1pt;"> </span>and prospects.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Preliminary,<span style="letter-spacing:0.1pt;"> </span>interim<span style="letter-spacing:0.1pt;"> </span>and topline<span style="letter-spacing:0.05pt;"> </span>data from<span style="letter-spacing:0.05pt;"> </span>our clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we announce or publish<span style="letter-spacing:0.05pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>time<span style="letter-spacing:0.05pt;"> </span>to time<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>change as more<span style="letter-spacing:0.05pt;"> </span>patient<span style="letter-spacing:0.05pt;"> </span>data become<span style="letter-spacing:0.05pt;"> </span>available<span style="letter-spacing:0.1pt;"> </span>and are subject<span style="letter-spacing:0.05pt;"> </span>to audit<span style="letter-spacing:0.05pt;"> </span>and verification procedures<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>could result<span style="letter-spacing:0.05pt;"> </span>in material<span style="letter-spacing:0.1pt;"> </span>changes in the final<span style="letter-spacing:0.05pt;"> </span>data.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">From<span style="letter-spacing:1.2pt;"> </span>time<span style="letter-spacing:1.2pt;"> </span>to<span style="letter-spacing:1.15pt;"> </span>time,<span style="letter-spacing:1.2pt;"> </span>we<span style="letter-spacing:1.15pt;"> </span>may<span style="letter-spacing:1.2pt;"> </span>publicly<span style="letter-spacing:1.2pt;"> </span>disclose<span style="letter-spacing:1.25pt;"> </span>preliminary,<span style="letter-spacing:1.3pt;"> </span>interim<span style="letter-spacing:1.2pt;"> </span>or<span style="letter-spacing:1.1pt;"> </span>topline<span style="letter-spacing:1.15pt;"> </span>data<span style="letter-spacing:1.15pt;"> </span>from<span style="letter-spacing:1.15pt;"> </span>our<span style="letter-spacing:1.1pt;"> </span>clinical<span style="letter-spacing:1.2pt;"> </span>trials, such<span style="letter-spacing:0.1pt;"> </span>as<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>preliminary<span style="letter-spacing:0.25pt;"> </span>data<span style="letter-spacing:0.15pt;"> </span>analysis<span style="letter-spacing:0.2pt;"> </span>for<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>Phase<span style="letter-spacing:0.1pt;"> </span>1<span style="letter-spacing:0.1pt;"> </span>dose<span style="letter-spacing:0.05pt;"> </span>expansion<span style="letter-spacing:0.1pt;"> </span>portions<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>PRT543 and<span style="letter-spacing:0.05pt;"> </span>PRT811 trials. These<span style="letter-spacing:0.05pt;"> </span>updates<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>based<span style="letter-spacing:0.1pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>preliminary<span style="letter-spacing:0.2pt;"> </span>analysis<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>then-available<span style="letter-spacing:0.2pt;"> </span>data,<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>results<span style="letter-spacing:0.15pt;"> </span>and related<span style="letter-spacing:0.1pt;"> </span>findings<span style="letter-spacing:0.05pt;"> </span>and conclusions<span style="letter-spacing:0.15pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>subject<span style="letter-spacing:0.05pt;"> </span>to change<span style="letter-spacing:0.05pt;"> </span>following<span style="letter-spacing:0.05pt;"> </span>a more<span style="letter-spacing:0.05pt;"> </span>comprehensive<span style="letter-spacing:0.1pt;"> </span>review<span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>data<span style="letter-spacing:0.05pt;"> </span>related<span style="letter-spacing:0.1pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>particular study<span style="letter-spacing:0.4pt;"> </span>or<span style="letter-spacing:0.35pt;"> </span>trial.<span style="letter-spacing:0.4pt;"> </span>Additionally,<span style="letter-spacing:0.4pt;"> </span>interim<span style="letter-spacing:0.4pt;"> </span>data<span style="letter-spacing:0.35pt;"> </span>from<span style="letter-spacing:0.35pt;"> </span>clinical<span style="letter-spacing:0.4pt;"> </span>trials<span style="letter-spacing:0.4pt;"> </span>that<span style="letter-spacing:0.35pt;"> </span>we<span style="letter-spacing:0.3pt;"> </span>may<span style="letter-spacing:0.35pt;"> </span>complete<span style="letter-spacing:0.4pt;"> </span>are<span style="letter-spacing:0.35pt;"> </span>subject<span style="letter-spacing:0.35pt;"> </span>to<span style="letter-spacing:0.3pt;"> </span>the<span style="letter-spacing:0.35pt;"> </span>risk<span style="letter-spacing:0.35pt;"> </span>that<span style="letter-spacing:0.35pt;"> </span>one or<span style="letter-spacing:0.05pt;"> </span>more<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>outcomes<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>materially<span style="letter-spacing:0.2pt;"> </span>change<span style="letter-spacing:0.1pt;"> </span>as patient<span style="letter-spacing:0.1pt;"> </span>enrollment<span style="letter-spacing:0.1pt;"> </span>continues<span style="letter-spacing:0.05pt;"> </span>and more<span style="letter-spacing:0.05pt;"> </span>patient<span style="letter-spacing:0.1pt;"> </span>data become<span style="letter-spacing:0.1pt;"> </span>available.<span style="letter-spacing:0.15pt;"> </span>Therefore,<span style="letter-spacing:0.15pt;"> </span>positive<span style="letter-spacing:0.15pt;"> </span>interim<span style="letter-spacing:0.15pt;"> </span>results<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>ongoing<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trial<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>not be predictive<span style="letter-spacing:0.1pt;"> </span>of such results<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>completed<span style="letter-spacing:0.15pt;"> </span>study<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>trial.<span style="letter-spacing:0.15pt;"> </span>We<span style="letter-spacing:0.05pt;"> </span>also<span style="letter-spacing:0.1pt;"> </span>make<span style="letter-spacing:0.1pt;"> </span>assumptions,<span style="letter-spacing:0.1pt;"> </span>estimations,<span style="letter-spacing:0.15pt;"> </span>calculations<span style="letter-spacing:0.15pt;"> </span>and conclusions<span style="letter-spacing:0.1pt;"> </span>as part<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>analyses<span style="letter-spacing:0.05pt;"> </span>of data,<span style="letter-spacing:0.05pt;"> </span>and we may<span style="letter-spacing:0.05pt;"> </span>not have received<span style="letter-spacing:0.1pt;"> </span>or had the<span style="letter-spacing:0.05pt;"> </span>opportunity<span style="letter-spacing:0.1pt;"> </span>to fully<span style="letter-spacing:0.05pt;"> </span>and carefully<span style="letter-spacing:0.1pt;"> </span>evaluate all<span style="letter-spacing:0.1pt;"> </span>data.<span style="letter-spacing:0.1pt;"> </span>As<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>result,<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>topline<span style="letter-spacing:0.1pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we report<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>differ<span style="letter-spacing:0.1pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>future<span style="letter-spacing:0.05pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>same<span style="letter-spacing:0.05pt;"> </span>studies,<span style="letter-spacing:0.05pt;"> </span>or different<span style="letter-spacing:1.45pt;"> </span>conclusions<span style="letter-spacing:1.45pt;"> </span>or<span style="letter-spacing:1.3pt;"> </span>considerations<span style="letter-spacing:1.45pt;"> </span>may<span style="letter-spacing:1.35pt;"> </span>qualify<span style="letter-spacing:1.35pt;"> </span>such<span style="letter-spacing:1.3pt;"> </span>results,<span style="letter-spacing:1.4pt;"> </span>once<span style="letter-spacing:1.3pt;"> </span>additional<span style="letter-spacing:1.4pt;"> </span>data<span style="letter-spacing:1.35pt;"> </span>have<span style="letter-spacing:1.3pt;"> </span>been<span style="letter-spacing:1.3pt;"> </span>received<span style="letter-spacing:1.4pt;"> </span>and fully<span style="letter-spacing:0.55pt;"> </span>evaluated.<span style="letter-spacing:0.6pt;"> </span>Topline<span style="letter-spacing:0.55pt;"> </span>data<span style="letter-spacing:0.55pt;"> </span>also<span style="letter-spacing:0.5pt;"> </span>remain<span style="letter-spacing:0.55pt;"> </span>subject<span style="letter-spacing:0.5pt;"> </span>to<span style="letter-spacing:0.45pt;"> </span>audit<span style="letter-spacing:0.5pt;"> </span>and<span style="letter-spacing:0.45pt;"> </span>verification<span style="letter-spacing:0.6pt;"> </span>procedures<span style="letter-spacing:0.55pt;"> </span>that<span style="letter-spacing:0.5pt;"> </span>may<span style="letter-spacing:0.5pt;"> </span>result<span style="letter-spacing:0.55pt;"> </span>in<span style="letter-spacing:0.45pt;"> </span>the<span style="letter-spacing:0.5pt;"> </span>final data<span style="letter-spacing:2pt;"> </span>being<span style="letter-spacing:2pt;"> </span>materially<span style="letter-spacing:2.1pt;"> </span>different<span style="letter-spacing:2.05pt;"> </span>from<span style="letter-spacing:2pt;"> </span>the<span style="letter-spacing:1.95pt;"> </span>preliminary<span style="letter-spacing:2.05pt;"> </span>data<span style="letter-spacing:1.95pt;"> </span>we<span style="letter-spacing:1.9pt;"> </span>previously<span style="letter-spacing:2pt;"> </span>published.<span style="letter-spacing:1.95pt;"> </span>As<span style="letter-spacing:1.9pt;"> </span>a<span style="letter-spacing:1.9pt;"> </span>result,<span style="letter-spacing:2pt;"> </span>topline<span style="letter-spacing:1.95pt;"> </span>data should<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>viewed<span style="letter-spacing:0.05pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>caution<span style="letter-spacing:0.1pt;"> </span>until<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>final<span style="letter-spacing:0.1pt;"> </span>data<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>available.<span style="letter-spacing:0.15pt;"> </span>In<span style="letter-spacing:0.05pt;"> </span>addition,<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>report<span style="letter-spacing:0.05pt;"> </span>interim<span style="letter-spacing:0.1pt;"> </span>analyses<span style="letter-spacing:0.05pt;"> </span>of only<span style="letter-spacing:0.05pt;"> </span>certain<span style="letter-spacing:0.15pt;"> </span>endpoints<span style="letter-spacing:0.1pt;"> </span>rather<span style="letter-spacing:0.15pt;"> </span>than<span style="letter-spacing:0.1pt;"> </span>all<span style="letter-spacing:0.1pt;"> </span>endpoints.<span style="letter-spacing:0.1pt;"> </span>Adverse<span style="letter-spacing:0.1pt;"> </span>changes<span style="letter-spacing:0.1pt;"> </span>between<span style="letter-spacing:0.1pt;"> </span>preliminary<span style="letter-spacing:0.2pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>interim<span style="letter-spacing:0.15pt;"> </span>data<span style="letter-spacing:0.05pt;"> </span>and final data<span style="letter-spacing:0.7pt;"> </span>could<span style="letter-spacing:0.7pt;"> </span>significantly<span style="letter-spacing:0.8pt;"> </span>harm<span style="letter-spacing:0.7pt;"> </span>our<span style="letter-spacing:0.65pt;"> </span>business<span style="letter-spacing:0.7pt;"> </span>and<span style="letter-spacing:0.65pt;"> </span>prospects.<span style="letter-spacing:0.75pt;"> </span>Further,<span style="letter-spacing:0.7pt;"> </span>additional<span style="letter-spacing:0.75pt;"> </span>disclosure<span style="letter-spacing:0.75pt;"> </span>of<span style="letter-spacing:0.6pt;"> </span>interim<span style="letter-spacing:0.7pt;"> </span>data<span style="letter-spacing:0.65pt;"> </span>by<span style="letter-spacing:0.6pt;"> </span>us<span style="letter-spacing:0.6pt;"> </span>or by<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>competitors<span style="letter-spacing:0.2pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>future<span style="letter-spacing:0.1pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>result<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>volatility<span style="letter-spacing:0.2pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>price<span style="letter-spacing:0.05pt;"> </span>of our common<span style="letter-spacing:0.05pt;"> </span>stock.<span style="letter-spacing:0.1pt;"> </span>See the<span style="letter-spacing:1.3pt;"> </span>description<span style="letter-spacing:1.35pt;"> </span>of<span style="letter-spacing:1.25pt;"> </span>risks<span style="letter-spacing:1.3pt;"> </span>under<span style="letter-spacing:1.3pt;"> </span>the<span style="letter-spacing:1.25pt;"> </span>heading<span style="letter-spacing:1.25pt;"> </span>&#8220;Risks<span style="letter-spacing:1.25pt;"> </span>Related<span style="letter-spacing:1.25pt;"> </span>to<span style="letter-spacing:1.2pt;"> </span>our<span style="letter-spacing:1.2pt;"> </span>Common<span style="letter-spacing:1.2pt;"> </span>Stock&#8221;<span style="letter-spacing:1.3pt;"> </span>for<span style="letter-spacing:1.25pt;"> </span>more disclosure<span style="letter-spacing:0.1pt;"> </span>related<span style="letter-spacing:0.1pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>risk<span style="letter-spacing:0.05pt;"> </span>of volatility<span style="letter-spacing:0.15pt;"> </span>in our stock<span style="letter-spacing:0.05pt;"> </span>price.</p>
<p style="margin-top:0pt;line-height:9pt;margin-bottom:0pt;text-indent:0%;font-size:9pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Further,<span style="letter-spacing:0.1pt;"> </span>others,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.1pt;"> </span>regulatory<span style="letter-spacing:0.15pt;"> </span>agencies,<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>not accept<span style="letter-spacing:0.05pt;"> </span>or agree<span style="letter-spacing:0.05pt;"> </span>with our assumptions,<span style="letter-spacing:0.1pt;"> </span>estimates, calculations,<span style="letter-spacing:0.2pt;"> </span>conclusions<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>analyses<span style="letter-spacing:0.05pt;"> </span>or may<span style="letter-spacing:0.05pt;"> </span>interpret<span style="letter-spacing:0.1pt;"> </span>or weigh the<span style="letter-spacing:0.05pt;"> </span>importance<span style="letter-spacing:0.1pt;"> </span>of data<span style="letter-spacing:0.05pt;"> </span>differently,<span style="letter-spacing:0.15pt;"> </span>which could impact<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>value<span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>particular<span style="letter-spacing:0.15pt;"> </span>program,<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>approvability<span style="letter-spacing:0.1pt;"> </span>or commercialization<span style="letter-spacing:0.2pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>particular<span style="letter-spacing:0.15pt;"> </span>product candidate<span style="letter-spacing:1.3pt;"> </span>or<span style="letter-spacing:1.2pt;"> </span>product<span style="letter-spacing:1.25pt;"> </span>and<span style="letter-spacing:1.2pt;"> </span>our<span style="letter-spacing:1.2pt;"> </span>company<span style="letter-spacing:1.2pt;"> </span>in<span style="letter-spacing:1.15pt;"> </span>general.<span style="letter-spacing:1.2pt;"> </span>In<span style="letter-spacing:1.15pt;"> </span>addition,<span style="letter-spacing:1.2pt;"> </span>the<span style="letter-spacing:1.2pt;"> </span>information<span style="letter-spacing:1.3pt;"> </span>we<span style="letter-spacing:1.15pt;"> </span>choose<span style="letter-spacing:1.2pt;"> </span>to<span style="letter-spacing:1.15pt;"> </span>publicly<span style="letter-spacing:1.2pt;"> </span>disclose regarding<span style="letter-spacing:0.15pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>particular<span style="letter-spacing:0.2pt;"> </span>study<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trial<span style="letter-spacing:0.15pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>typically<span style="letter-spacing:0.15pt;"> </span>selected<span style="letter-spacing:0.15pt;"> </span>from<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>more<span style="letter-spacing:0.05pt;"> </span>extensive<span style="letter-spacing:0.1pt;"> </span>amount<span style="letter-spacing:0.05pt;"> </span>of available information.<span style="letter-spacing:0.2pt;"> </span>You<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>others<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>not agree<span style="letter-spacing:0.05pt;"> </span>with what we determine<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>material<span style="letter-spacing:0.15pt;"> </span>or otherwise<span style="letter-spacing:0.05pt;"> </span>appropriate information<span style="letter-spacing:1.35pt;"> </span>to<span style="letter-spacing:1.2pt;"> </span>include<span style="letter-spacing:1.25pt;"> </span>in<span style="letter-spacing:1.2pt;"> </span>our<span style="letter-spacing:1.2pt;"> </span>disclosure,<span style="letter-spacing:1.3pt;"> </span>and<span style="letter-spacing:1.2pt;"> </span>any<span style="letter-spacing:1.15pt;"> </span>information<span style="letter-spacing:1.3pt;"> </span>we<span style="letter-spacing:1.15pt;"> </span>determine<span style="letter-spacing:1.25pt;"> </span>not<span style="letter-spacing:1.15pt;"> </span>to<span style="letter-spacing:1.15pt;"> </span>disclose<span style="letter-spacing:1.25pt;"> </span>may<span style="letter-spacing:1.2pt;"> </span>ultimately<span style="letter-spacing:1.3pt;"> </span>be deemed<span style="letter-spacing:0.1pt;"> </span>significant<span style="letter-spacing:0.2pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>respect<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>future<span style="letter-spacing:0.1pt;"> </span>decisions,<span style="letter-spacing:0.1pt;"> </span>conclusions,<span style="letter-spacing:0.1pt;"> </span>views, activities<span style="letter-spacing:0.15pt;"> </span>or otherwise<span style="letter-spacing:0.05pt;"> </span>regarding<span style="letter-spacing:0.1pt;"> </span>a particular<span style="letter-spacing:0.2pt;"> </span>product,<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidate<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>business.<span style="letter-spacing:0.05pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>preliminary<span style="letter-spacing:0.15pt;"> </span>or topline<span style="letter-spacing:0.05pt;"> </span>data<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we report<span style="letter-spacing:0.05pt;"> </span>differ<span style="letter-spacing:0.1pt;"> </span>from late,<span style="letter-spacing:0.9pt;"> </span>final<span style="letter-spacing:0.9pt;"> </span>or<span style="letter-spacing:0.85pt;"> </span>actual<span style="letter-spacing:0.9pt;"> </span>results,<span style="letter-spacing:0.95pt;"> </span>or<span style="letter-spacing:0.85pt;"> </span>if<span style="letter-spacing:0.85pt;"> </span>others,<span style="letter-spacing:0.85pt;"> </span>including<span style="letter-spacing:0.85pt;"> </span>regulatory<span style="letter-spacing:0.9pt;"> </span>authorities,<span style="letter-spacing:0.95pt;"> </span>disagree<span style="letter-spacing:0.9pt;"> </span>with<span style="letter-spacing:0.8pt;"> </span>the<span style="letter-spacing:0.85pt;"> </span>conclusions<span style="letter-spacing:0.9pt;"> </span>reached, our<span style="letter-spacing:0.05pt;"> </span>ability<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>obtain<span style="letter-spacing:0.1pt;"> </span>approval<span style="letter-spacing:0.1pt;"> </span>for,<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>commercialize,<span style="letter-spacing:0.25pt;"> </span>PRT543, PRT811 or<span style="letter-spacing:0.05pt;"> </span>PRT1419, or<span style="letter-spacing:0.05pt;"> </span>any other<span style="letter-spacing:0.05pt;"> </span>product candidates<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>harmed,<span style="letter-spacing:0.1pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>harm<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>business,<span style="letter-spacing:0.1pt;"> </span>financial<span style="letter-spacing:0.1pt;"> </span>condition,<span style="letter-spacing:0.05pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>of operations<span style="letter-spacing:0.1pt;"> </span>and prospects.</p>
<p style="margin-top:0pt;line-height:13pt;margin-bottom:0pt;text-indent:0%;font-size:13pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">30</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We may<span style="letter-spacing:0.05pt;"> </span>expend our limited<span style="letter-spacing:0.1pt;"> </span>resources<span style="letter-spacing:0.05pt;"> </span>to pursue a particular<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidate<span style="letter-spacing:0.05pt;"> </span>or indication<span style="letter-spacing:0.05pt;"> </span>and fail<span style="letter-spacing:0.05pt;"> </span>to capitalize<span style="letter-spacing:0.1pt;"> </span>on product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.05pt;"> </span>or indications<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be more<span style="letter-spacing:0.05pt;"> </span>profitable<span style="letter-spacing:0.1pt;"> </span>or for<span style="letter-spacing:0.05pt;"> </span>which there<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>a greater likelihood<span style="letter-spacing:0.1pt;"> </span>of success.</p>
<p style="margin-top:4pt;margin-bottom:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Because<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>limited<span style="letter-spacing:0.15pt;"> </span>financial<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>managerial<span style="letter-spacing:0.15pt;"> </span>resources,<span style="letter-spacing:0.15pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>focus<span style="letter-spacing:0.1pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>research<span style="letter-spacing:0.1pt;"> </span>programs<span style="letter-spacing:0.1pt;"> </span>and product candidates<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we identify<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>specific<span style="letter-spacing:0.1pt;"> </span>indications.<span style="letter-spacing:0.1pt;"> </span>As a result,<span style="letter-spacing:0.1pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>forego<span style="letter-spacing:0.05pt;"> </span>or delay<span style="letter-spacing:0.05pt;"> </span>pursuit<span style="letter-spacing:0.05pt;"> </span>of opportunities with<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>indications<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>later<span style="letter-spacing:0.15pt;"> </span>prove<span style="letter-spacing:0.05pt;"> </span>to have greater<span style="letter-spacing:0.1pt;"> </span>commercial<span style="letter-spacing:0.15pt;"> </span>potential.<span style="letter-spacing:0.1pt;"> </span>Our resource<span style="letter-spacing:2pt;"> </span>allocation<span style="letter-spacing:2pt;"> </span>decisions<span style="letter-spacing:2pt;"> </span>may<span style="letter-spacing:1.95pt;"> </span>cause<span style="letter-spacing:1.95pt;"> </span>us<span style="letter-spacing:1.9pt;"> </span>to<span style="letter-spacing:1.9pt;"> </span>fail<span style="letter-spacing:1.95pt;"> </span>to<span style="letter-spacing:1.85pt;"> </span>capitalize<span style="letter-spacing:2pt;"> </span>on<span style="letter-spacing:1.85pt;"> </span>viable<span style="letter-spacing:1.9pt;"> </span>commercial<span style="letter-spacing:2pt;"> </span>products<span style="letter-spacing:1.9pt;"> </span>or<span style="letter-spacing:1.85pt;"> </span>profitable market<span style="letter-spacing:0.1pt;"> </span>opportunities.<span style="letter-spacing:0.1pt;"> </span>Our spending<span style="letter-spacing:0.05pt;"> </span>on current<span style="letter-spacing:0.1pt;"> </span>and future<span style="letter-spacing:0.05pt;"> </span>research<span style="letter-spacing:0.1pt;"> </span>and development<span style="letter-spacing:0.1pt;"> </span>programs<span style="letter-spacing:0.1pt;"> </span>and product candidates<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>specific<span style="letter-spacing:0.15pt;"> </span>indications<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>not yield<span style="letter-spacing:0.05pt;"> </span>any commercially<span style="letter-spacing:0.15pt;"> </span>viable<span style="letter-spacing:0.05pt;"> </span>products.<span style="letter-spacing:0.05pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>we do not accurately evaluate<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>commercial<span style="letter-spacing:0.15pt;"> </span>potential<span style="letter-spacing:0.1pt;"> </span>or target<span style="letter-spacing:0.1pt;"> </span>market<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>a particular<span style="letter-spacing:0.15pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidate,<span style="letter-spacing:0.1pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>relinquish<span style="letter-spacing:0.1pt;"> </span>valuable rights<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidate<span style="letter-spacing:0.15pt;"> </span>through<span style="letter-spacing:0.1pt;"> </span>collaboration,<span style="letter-spacing:0.2pt;"> </span>licensing<span style="letter-spacing:0.15pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>royalty<span style="letter-spacing:0.05pt;"> </span>arrangements<span style="letter-spacing:0.15pt;"> </span>in cases<span style="letter-spacing:0.05pt;"> </span>in which it would<span style="letter-spacing:0.05pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>been more<span style="letter-spacing:0.05pt;"> </span>advantageous<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>us to retain<span style="letter-spacing:0.1pt;"> </span>sole<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>and commercialization<span style="letter-spacing:0.2pt;"> </span>rights<span style="letter-spacing:0.05pt;"> </span>to such product<span style="letter-spacing:0.05pt;"> </span>candidate.</p>
<p style="margin-top:0pt;line-height:13pt;margin-bottom:0pt;text-indent:0%;font-size:13pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We may<span style="letter-spacing:0.05pt;"> </span>not be successful<span style="letter-spacing:0.1pt;"> </span>in our efforts<span style="letter-spacing:0.1pt;"> </span>to design<span style="letter-spacing:0.05pt;"> </span>additional<span style="letter-spacing:0.05pt;"> </span>potential<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates.</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">A<span style="letter-spacing:0.05pt;"> </span>key<span style="letter-spacing:0.05pt;"> </span>element<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>strategy<span style="letter-spacing:0.15pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>identify<span style="letter-spacing:0.1pt;"> </span>molecular<span style="letter-spacing:0.1pt;"> </span>targets<span style="letter-spacing:0.1pt;"> </span>and intervention<span style="letter-spacing:0.1pt;"> </span>points<span style="letter-spacing:0.05pt;"> </span>leading<span style="letter-spacing:0.05pt;"> </span>to treatment failure,<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>then<span style="letter-spacing:0.1pt;"> </span>apply<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>expertise<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>cancer<span style="letter-spacing:0.05pt;"> </span>biology<span style="letter-spacing:0.05pt;"> </span>and medicinal<span style="letter-spacing:0.1pt;"> </span>chemistry,<span style="letter-spacing:0.1pt;"> </span>as well<span style="letter-spacing:0.05pt;"> </span>as our in-depth understanding<span style="letter-spacing:0.65pt;"> </span>of<span style="letter-spacing:0.55pt;"> </span>the<span style="letter-spacing:0.6pt;"> </span>current<span style="letter-spacing:0.65pt;"> </span>landscape<span style="letter-spacing:0.6pt;"> </span>of<span style="letter-spacing:0.55pt;"> </span>oncology<span style="letter-spacing:0.6pt;"> </span>treatments,<span style="letter-spacing:0.7pt;"> </span>to<span style="letter-spacing:0.55pt;"> </span>design<span style="letter-spacing:0.55pt;"> </span>solutions<span style="letter-spacing:0.6pt;"> </span>that<span style="letter-spacing:0.55pt;"> </span>can<span style="letter-spacing:0.5pt;"> </span>be<span style="letter-spacing:0.5pt;"> </span>precisely<span style="letter-spacing:0.6pt;"> </span>tailored in<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>target<span style="letter-spacing:0.15pt;"> </span>class<span style="letter-spacing:0.1pt;"> </span>agnostic<span style="letter-spacing:0.05pt;"> </span>fashion.<span style="letter-spacing:0.05pt;"> </span>The therapeutic<span style="letter-spacing:0.1pt;"> </span>design<span style="letter-spacing:0.05pt;"> </span>and development<span style="letter-spacing:0.1pt;"> </span>activities<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we are<span style="letter-spacing:0.05pt;"> </span>conducting<span style="letter-spacing:0.05pt;"> </span>may not<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>successful<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>developing<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>safe<span style="letter-spacing:0.05pt;"> </span>and effective<span style="letter-spacing:0.1pt;"> </span>in treating<span style="letter-spacing:0.1pt;"> </span>cancer<span style="letter-spacing:0.05pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>diseases. Our<span style="letter-spacing:0.05pt;"> </span>research<span style="letter-spacing:0.15pt;"> </span>programs<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>initially<span style="letter-spacing:0.2pt;"> </span>show<span style="letter-spacing:0.05pt;"> </span>promise<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>identifying<span style="letter-spacing:0.15pt;"> </span>potential<span style="letter-spacing:0.15pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates,<span style="letter-spacing:0.1pt;"> </span>yet<span style="letter-spacing:0.05pt;"> </span>fail<span style="letter-spacing:0.05pt;"> </span>to yield product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>a number<span style="letter-spacing:0.05pt;"> </span>of reasons,<span style="letter-spacing:0.05pt;"> </span>including:</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-top:4pt;margin-bottom:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-top:4pt;margin-bottom:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-top:4pt;margin-bottom:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the target selection methodology used may not be successful in identifying potential product candidates&#59;</p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-top:4pt;margin-bottom:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-top:4pt;margin-bottom:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-top:4pt;margin-bottom:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">potential<span style="letter-spacing:1.7pt;"> </span>product<span style="letter-spacing:1.65pt;"> </span>candidates<span style="letter-spacing:1.7pt;"> </span>may,<span style="letter-spacing:1.6pt;"> </span>on<span style="letter-spacing:1.55pt;"> </span>further<span style="letter-spacing:1.65pt;"> </span>study,<span style="letter-spacing:1.6pt;"> </span>be<span style="letter-spacing:1.55pt;"> </span>shown<span style="letter-spacing:1.55pt;"> </span>to<span style="letter-spacing:1.55pt;"> </span>have<span style="letter-spacing:1.55pt;"> </span>harmful<span style="letter-spacing:1.65pt;"> </span>side<span style="letter-spacing:1.6pt;"> </span>effects<span style="letter-spacing:1.65pt;"> </span>or<span style="letter-spacing:1.55pt;"> </span>other characteristics<span style="letter-spacing:1.4pt;"> </span>that<span style="letter-spacing:1.25pt;"> </span>indicate<span style="letter-spacing:1.3pt;"> </span>that<span style="letter-spacing:1.25pt;"> </span>they<span style="letter-spacing:1.25pt;"> </span>are<span style="letter-spacing:1.25pt;"> </span>unlikely<span style="letter-spacing:1.25pt;"> </span>to<span style="letter-spacing:1.2pt;"> </span>be<span style="letter-spacing:1.15pt;"> </span>drugs<span style="letter-spacing:1.2pt;"> </span>that<span style="letter-spacing:1.2pt;"> </span>will<span style="letter-spacing:1.2pt;"> </span>obtain<span style="letter-spacing:1.2pt;"> </span>marketing<span style="letter-spacing:1.25pt;"> </span>approval<span style="letter-spacing:1.2pt;"> </span>or achieve<span style="letter-spacing:0.05pt;"> </span>market<span style="letter-spacing:0.1pt;"> </span>acceptance&#59;<span style="letter-spacing:0.1pt;"> </span>or</p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-top:4pt;margin-bottom:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-top:4pt;margin-bottom:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-top:4pt;margin-bottom:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">potential<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>not be effective<span style="letter-spacing:0.1pt;"> </span>in treating<span style="letter-spacing:0.1pt;"> </span>their<span style="letter-spacing:0.05pt;"> </span>targeted<span style="letter-spacing:0.1pt;"> </span>diseases.</p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Research<span style="letter-spacing:0.1pt;"> </span>programs<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>identify<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>design<span style="letter-spacing:0.05pt;"> </span>new product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>require<span style="letter-spacing:0.1pt;"> </span>substantial<span style="letter-spacing:0.1pt;"> </span>technical,<span style="letter-spacing:0.1pt;"> </span>financial<span style="letter-spacing:0.1pt;"> </span>and human<span style="letter-spacing:0.1pt;"> </span>resources.<span style="letter-spacing:0.15pt;"> </span>We may<span style="letter-spacing:0.05pt;"> </span>choose<span style="letter-spacing:0.05pt;"> </span>to focus<span style="letter-spacing:0.05pt;"> </span>our efforts<span style="letter-spacing:0.1pt;"> </span>and resources<span style="letter-spacing:0.1pt;"> </span>on a potential<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidate<span style="letter-spacing:0.1pt;"> </span>that ultimately<span style="letter-spacing:0.2pt;"> </span>proves<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>be unsuccessful.<span style="letter-spacing:0.1pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>we are<span style="letter-spacing:0.05pt;"> </span>unable<span style="letter-spacing:0.05pt;"> </span>to identify<span style="letter-spacing:0.1pt;"> </span>and design<span style="letter-spacing:0.05pt;"> </span>suitable<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>for preclinical<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>development,<span style="letter-spacing:0.15pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>not be able<span style="letter-spacing:0.05pt;"> </span>to obtain<span style="letter-spacing:0.05pt;"> </span>revenues<span style="letter-spacing:0.05pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>sale<span style="letter-spacing:0.05pt;"> </span>of products<span style="letter-spacing:0.05pt;"> </span>in future periods,<span style="letter-spacing:0.1pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>likely<span style="letter-spacing:0.1pt;"> </span>would<span style="letter-spacing:0.05pt;"> </span>result<span style="letter-spacing:0.15pt;"> </span>in significant<span style="letter-spacing:0.15pt;"> </span>harm<span style="letter-spacing:0.05pt;"> </span>to our financial<span style="letter-spacing:0.1pt;"> </span>position<span style="letter-spacing:0.05pt;"> </span>and adversely<span style="letter-spacing:0.1pt;"> </span>impact<span style="letter-spacing:0.1pt;"> </span>our stock price.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Risks Related<span style="letter-spacing:0.05pt;"> </span>to Government<span style="letter-spacing:0.05pt;"> </span>Regulation</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">The development<span style="letter-spacing:0.1pt;"> </span>and commercialization<span style="letter-spacing:0.2pt;"> </span>of pharmaceutical<span style="letter-spacing:0.1pt;"> </span>products<span style="letter-spacing:0.05pt;"> </span>are subject<span style="letter-spacing:0.05pt;"> </span>to extensive<span style="letter-spacing:0.1pt;"> </span>regulation, and we may<span style="letter-spacing:0.05pt;"> </span>not obtain<span style="letter-spacing:0.05pt;"> </span>regulatory<span style="letter-spacing:0.05pt;"> </span>approvals<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>PRT543,<span style="letter-spacing:-0.05pt;"> </span>PRT811,<span style="letter-spacing:-0.05pt;"> </span>PRT1419,<span style="letter-spacing:-0.05pt;"> </span>PRT2527<span style="letter-spacing:-0.05pt;"> </span>or any other product<span style="letter-spacing:0.05pt;"> </span>candidates,<span style="letter-spacing:0.05pt;"> </span>on a timely<span style="letter-spacing:0.1pt;"> </span>basis<span style="letter-spacing:0.05pt;"> </span>or at all.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The clinical<span style="letter-spacing:0.1pt;"> </span>development,<span style="letter-spacing:0.1pt;"> </span>manufacturing,<span style="letter-spacing:0.1pt;"> </span>labeling,<span style="letter-spacing:0.05pt;"> </span>packaging, storage, recordkeeping,<span style="letter-spacing:0.05pt;"> </span>advertising, promotion,<span style="letter-spacing:1.25pt;"> </span>export,<span style="letter-spacing:1.2pt;"> </span>import,<span style="letter-spacing:1.25pt;"> </span>marketing,<span style="letter-spacing:1.25pt;"> </span>distribution,<span style="letter-spacing:1.3pt;"> </span>adverse<span style="letter-spacing:1.15pt;"> </span>event<span style="letter-spacing:1.15pt;"> </span>reporting,<span style="letter-spacing:1.2pt;"> </span>including<span style="letter-spacing:1.15pt;"> </span>the<span style="letter-spacing:1.15pt;"> </span>submission<span style="letter-spacing:1.2pt;"> </span>of<span style="letter-spacing:1.1pt;"> </span>safety and<span style="letter-spacing:0.1pt;"> </span>other<span style="letter-spacing:0.15pt;"> </span>post-marketing<span style="letter-spacing:0.25pt;"> </span>information<span style="letter-spacing:0.25pt;"> </span>and<span style="letter-spacing:0.1pt;"> </span>reports,<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.1pt;"> </span>other<span style="letter-spacing:0.15pt;"> </span>possible<span style="letter-spacing:0.15pt;"> </span>activities<span style="letter-spacing:0.25pt;"> </span>relating<span style="letter-spacing:0.2pt;"> </span>to<span style="letter-spacing:0.1pt;"> </span>PRT543,<span style="letter-spacing:0.05pt;"> </span>PRT811 and PRT1419, currently<span style="letter-spacing:0.1pt;"> </span>our only product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>in planned<span style="letter-spacing:0.05pt;"> </span>or ongoing clinical<span style="letter-spacing:0.1pt;"> </span>trials,<span style="letter-spacing:0.1pt;"> </span>as well<span style="letter-spacing:0.05pt;"> </span>as any other<span style="letter-spacing:0.05pt;"> </span>product candidate<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>develop<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>future,<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>subject<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>extensive<span style="letter-spacing:0.15pt;"> </span>regulation.<span style="letter-spacing:0.15pt;"> </span>Marketing<span style="letter-spacing:0.1pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>of drugs<span style="letter-spacing:0.05pt;"> </span>in the<span style="letter-spacing:0.1pt;"> </span>United<span style="letter-spacing:0.1pt;"> </span>States<span style="letter-spacing:0.1pt;"> </span>requires<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>submission<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>an<span style="letter-spacing:0.05pt;"> </span>NDA to<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA, and<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>not permitted<span style="letter-spacing:0.1pt;"> </span>to market<span style="letter-spacing:0.1pt;"> </span>any product candidate<span style="letter-spacing:1.25pt;"> </span>in<span style="letter-spacing:1.15pt;"> </span>the<span style="letter-spacing:1.2pt;"> </span>United<span style="letter-spacing:1.2pt;"> </span>States<span style="letter-spacing:1.2pt;"> </span>until<span style="letter-spacing:1.15pt;"> </span>we<span style="letter-spacing:1.1pt;"> </span>obtain<span style="letter-spacing:1.15pt;"> </span>approval<span style="letter-spacing:1.15pt;"> </span>from<span style="letter-spacing:1.15pt;"> </span>the<span style="letter-spacing:1.15pt;"> </span>FDA<span style="letter-spacing:1.05pt;"> </span>of<span style="letter-spacing:1.1pt;"> </span>the<span style="letter-spacing:1.15pt;"> </span>NDA<span style="letter-spacing:1.05pt;"> </span>for<span style="letter-spacing:1.15pt;"> </span>that<span style="letter-spacing:1.15pt;"> </span>product.<span style="letter-spacing:1.15pt;"> </span>An<span style="letter-spacing:1.1pt;"> </span>NDA must<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>supported<span style="letter-spacing:0.1pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>extensive<span style="letter-spacing:0.15pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>and preclinical<span style="letter-spacing:0.15pt;"> </span>data,<span style="letter-spacing:0.05pt;"> </span>as well<span style="letter-spacing:0.05pt;"> </span>as extensive<span style="letter-spacing:0.1pt;"> </span>information<span style="letter-spacing:0.15pt;"> </span>regarding pharmacology,<span style="letter-spacing:0.15pt;"> </span>chemistry,<span style="letter-spacing:0.15pt;"> </span>manufacturing<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>controls.<span style="letter-spacing:0.15pt;"> </span>Our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>must<span style="letter-spacing:0.05pt;"> </span>be approved<span style="letter-spacing:0.05pt;"> </span>by comparable regulatory<span style="letter-spacing:0.1pt;"> </span>authorities<span style="letter-spacing:0.15pt;"> </span>in other<span style="letter-spacing:0.05pt;"> </span>jurisdictions<span style="letter-spacing:0.15pt;"> </span>prior<span style="letter-spacing:0.05pt;"> </span>to commercialization.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">FDA<span style="letter-spacing:0.05pt;"> </span>approval<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>an<span style="letter-spacing:0.05pt;"> </span>NDA is<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>guaranteed,<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>review<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>approval<span style="letter-spacing:0.1pt;"> </span>process<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>an<span style="letter-spacing:0.05pt;"> </span>expensive<span style="letter-spacing:0.1pt;"> </span>and uncertain<span style="letter-spacing:0.15pt;"> </span>process<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>take<span style="letter-spacing:0.1pt;"> </span>several<span style="letter-spacing:0.15pt;"> </span>years.<span style="letter-spacing:0.1pt;"> </span>Of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>large<span style="letter-spacing:0.1pt;"> </span>number<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>drugs<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.15pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>States, only<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.1pt;"> </span>small<span style="letter-spacing:0.2pt;"> </span>percentage<span style="letter-spacing:0.2pt;"> </span>will<span style="letter-spacing:0.15pt;"> </span>successfully<span style="letter-spacing:0.2pt;"> </span>complete<span style="letter-spacing:0.2pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA regulatory<span style="letter-spacing:0.15pt;"> </span>approval<span style="letter-spacing:0.1pt;"> </span>process<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>be commercialized. Accordingly, there can be no assurance that any of our product candidates will receive regulatory<span style="letter-spacing:0.1pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>States,<span style="letter-spacing:0.05pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>jurisdictions.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The<span style="letter-spacing:0.05pt;"> </span>FDA also<span style="letter-spacing:0.1pt;"> </span>has<span style="letter-spacing:0.05pt;"> </span>substantial<span style="letter-spacing:0.15pt;"> </span>discretion<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>approval<span style="letter-spacing:0.1pt;"> </span>process.<span style="letter-spacing:0.1pt;"> </span>The<span style="letter-spacing:0.05pt;"> </span>number<span style="letter-spacing:0.1pt;"> </span>and types<span style="letter-spacing:0.05pt;"> </span>of preclinical<span style="letter-spacing:0.15pt;"> </span>studies and<span style="letter-spacing:0.45pt;"> </span>clinical<span style="letter-spacing:0.55pt;"> </span>trials<span style="letter-spacing:0.55pt;"> </span>that<span style="letter-spacing:0.45pt;"> </span>will<span style="letter-spacing:0.45pt;"> </span>be<span style="letter-spacing:0.4pt;"> </span>required<span style="letter-spacing:0.5pt;"> </span>for<span style="letter-spacing:0.45pt;"> </span>NDA<span style="letter-spacing:0.35pt;"> </span>approval<span style="letter-spacing:0.45pt;"> </span>varies<span style="letter-spacing:0.45pt;"> </span>depending<span style="letter-spacing:0.45pt;"> </span>on<span style="letter-spacing:0.4pt;"> </span>the<span style="letter-spacing:0.45pt;"> </span>product<span style="letter-spacing:0.45pt;"> </span>candidate,<span style="letter-spacing:0.5pt;"> </span>the<span style="letter-spacing:0.45pt;"> </span>disease or<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>condition<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidate<span style="letter-spacing:0.15pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>designed<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>treat<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>regulations<span style="letter-spacing:0.1pt;"> </span>applicable<span style="letter-spacing:0.1pt;"> </span>to any particular product<span style="letter-spacing:0.1pt;"> </span>candidate.<span style="letter-spacing:0.15pt;"> </span>For<span style="letter-spacing:0.05pt;"> </span>example,<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>successful,<span style="letter-spacing:0.1pt;"> </span>we believe<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>expansion<span style="letter-spacing:0.05pt;"> </span>portions<span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>Phase 1 clinical<span style="letter-spacing:0.1pt;"> </span>trials of<span style="letter-spacing:0.05pt;"> </span>PRT543 or<span style="letter-spacing:0.05pt;"> </span>PRT811 may<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>sufficient<span style="letter-spacing:0.2pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>support<span style="letter-spacing:0.1pt;"> </span>FDA approval<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>an<span style="letter-spacing:0.05pt;"> </span>NDA for<span style="letter-spacing:0.1pt;"> </span>PRT543 or<span style="letter-spacing:0.05pt;"> </span>PRT811, respectively,<span style="letter-spacing:0.2pt;"> </span>but<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA may<span style="letter-spacing:0.1pt;"> </span>disagree<span style="letter-spacing:0.15pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>sufficiency<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our data<span style="letter-spacing:0.05pt;"> </span>and require<span style="letter-spacing:0.1pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials. </p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">31</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Additionally,</span><span style="letter-spacing:0.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">depending</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">upon</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">results</span><span style="letter-spacing:0.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">expansion</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">portions</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Phase</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">clinical</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">trials</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">PRT543 or PRT811,</span><span style="letter-spacing:1.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we</span><span style="letter-spacing:1.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">may</span><span style="letter-spacing:1.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">choose</span><span style="letter-spacing:1.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:1.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">seek</span><span style="letter-spacing:1.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Subpart</span><span style="letter-spacing:1.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">H</span><span style="letter-spacing:1.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">accelerated</span><span style="letter-spacing:1.3pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">approval</span><span style="letter-spacing:1.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">for</span><span style="letter-spacing:1.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">PRT543</span><span style="letter-spacing:1.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or</span><span style="letter-spacing:1.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">PRT811,</span><span style="letter-spacing:1.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">respectively,</span><span style="letter-spacing:1.3pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">which would require</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">completion</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of a confirmatory</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">trial</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to validate</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">clinical</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">benefit</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of the</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">drug. Despite</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">time and expense</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">associated</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">with</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">preclinical</span><span style="letter-spacing:0.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">studies</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">clinical</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">trials,</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">failure</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">can occur</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">at</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">any stage.</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The results</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of preclinical</span><span style="letter-spacing:0.25pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">early</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">clinical</span><span style="letter-spacing:0.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">trials</span><span style="letter-spacing:0.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">PRT543, PRT811, PRT1419, PRT2527 or</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">any</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">other</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">product</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">candidate</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">may not be predictive</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of the</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">results</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of our later-stage</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">clinical</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">trials.</span></p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Clinical<span style="letter-spacing:0.15pt;"> </span>trial<span style="letter-spacing:0.15pt;"> </span>failure<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>result<span style="letter-spacing:0.15pt;"> </span>from<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>multitude<span style="letter-spacing:0.1pt;"> </span>of factors<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>flaws<span style="letter-spacing:0.05pt;"> </span>in trial<span style="letter-spacing:0.1pt;"> </span>design,<span style="letter-spacing:0.05pt;"> </span>dose selection, placebo<span style="letter-spacing:2.1pt;"> </span>effect,<span style="letter-spacing:2.15pt;"> </span>patient<span style="letter-spacing:2.15pt;"> </span>enrollment<span style="letter-spacing:2.15pt;"> </span>criteria<span style="letter-spacing:2.2pt;"> </span>and<span style="letter-spacing:2.05pt;"> </span>failure<span style="letter-spacing:2.15pt;"> </span>to<span style="letter-spacing:2pt;"> </span>demonstrate<span style="letter-spacing:2.1pt;"> </span>favorable<span style="letter-spacing:2.1pt;"> </span>safety<span style="letter-spacing:2.05pt;"> </span>or<span style="letter-spacing:2pt;"> </span>efficacy<span style="letter-spacing:2.1pt;"> </span>traits,<span style="letter-spacing:2.1pt;"> </span>and failure<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>can occur<span style="letter-spacing:0.05pt;"> </span>at<span style="letter-spacing:0.05pt;"> </span>any stage.<span style="letter-spacing:0.05pt;"> </span>Companies<span style="letter-spacing:0.05pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>pharmaceutical<span style="letter-spacing:0.15pt;"> </span>industry<span style="letter-spacing:0.05pt;"> </span>frequently<span style="letter-spacing:0.1pt;"> </span>suffer setbacks<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>advancement<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trials<span style="letter-spacing:0.15pt;"> </span>due<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>lack<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>efficacy<span style="letter-spacing:0.1pt;"> </span>or adverse<span style="letter-spacing:0.05pt;"> </span>safety<span style="letter-spacing:0.05pt;"> </span>profiles,<span style="letter-spacing:0.1pt;"> </span>notwithstanding promising<span style="letter-spacing:0.15pt;"> </span>results<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>earlier<span style="letter-spacing:0.15pt;"> </span>trials.<span style="letter-spacing:0.15pt;"> </span>Based<span style="letter-spacing:0.05pt;"> </span>upon<span style="letter-spacing:0.05pt;"> </span>negative<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>inconclusive<span style="letter-spacing:0.15pt;"> </span>results,<span style="letter-spacing:0.15pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>decide,<span style="letter-spacing:0.05pt;"> </span>or regulators<span style="letter-spacing:0.1pt;"> </span>may require<span style="letter-spacing:0.15pt;"> </span>us,<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>conduct<span style="letter-spacing:0.1pt;"> </span>additional<span style="letter-spacing:0.15pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>or preclinical<span style="letter-spacing:0.15pt;"> </span>studies.<span style="letter-spacing:0.05pt;"> </span>In addition,<span style="letter-spacing:0.05pt;"> </span>data<span style="letter-spacing:0.05pt;"> </span>obtained<span style="letter-spacing:0.05pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials are<span style="letter-spacing:0.1pt;"> </span>susceptible<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>varying<span style="letter-spacing:0.1pt;"> </span>interpretations,<span style="letter-spacing:0.25pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>regulators<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>not interpret<span style="letter-spacing:0.1pt;"> </span>our data<span style="letter-spacing:0.05pt;"> </span>as favorably<span style="letter-spacing:0.1pt;"> </span>as we do, which may<span style="letter-spacing:0.05pt;"> </span>further<span style="letter-spacing:0.1pt;"> </span>delay,<span style="letter-spacing:0.05pt;"> </span>limit<span style="letter-spacing:0.1pt;"> </span>or prevent<span style="letter-spacing:0.05pt;"> </span>marketing<span style="letter-spacing:0.1pt;"> </span>approval.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The<span style="letter-spacing:0.9pt;"> </span>FDA<span style="letter-spacing:0.85pt;"> </span>could<span style="letter-spacing:0.95pt;"> </span>delay,<span style="letter-spacing:0.95pt;"> </span>limit<span style="letter-spacing:1pt;"> </span>or<span style="letter-spacing:0.9pt;"> </span>deny<span style="letter-spacing:0.9pt;"> </span>approval<span style="letter-spacing:0.95pt;"> </span>of<span style="letter-spacing:0.9pt;"> </span>a<span style="letter-spacing:0.9pt;"> </span>product<span style="letter-spacing:0.95pt;"> </span>candidate<span style="letter-spacing:1pt;"> </span>for<span style="letter-spacing:0.95pt;"> </span>many<span style="letter-spacing:0.95pt;"> </span>reasons,<span style="letter-spacing:0.95pt;"> </span>including<span style="letter-spacing:0.9pt;"> </span>because the<span style="letter-spacing:0.05pt;"> </span>FDA:</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">may<span style="letter-spacing:0.05pt;"> </span>not deem<span style="letter-spacing:0.05pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidate<span style="letter-spacing:0.1pt;"> </span>to be safe<span style="letter-spacing:0.05pt;"> </span>and effective&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">determines<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidate<span style="letter-spacing:0.1pt;"> </span>does not have an acceptable<span style="letter-spacing:0.1pt;"> </span>benefit-risk<span style="letter-spacing:0.15pt;"> </span>profile&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">determines in<span style="letter-spacing:2.45pt;"> </span>the case of<span style="letter-spacing:2.45pt;"> </span>an<span style="letter-spacing:2.45pt;"> </span>NDA<span style="letter-spacing:2.4pt;"> </span>seeking accelerated approval<span style="letter-spacing:2.45pt;"> </span>that<span style="letter-spacing:2.45pt;"> </span>the<span style="letter-spacing:2.45pt;"> </span>NDA<span style="letter-spacing:2.35pt;"> </span>does<span style="letter-spacing:2.4pt;"> </span>not<span style="letter-spacing:2.4pt;"> </span>provide evidence<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidate<span style="letter-spacing:0.1pt;"> </span>represents<span style="letter-spacing:0.1pt;"> </span>a meaningful<span style="letter-spacing:0.1pt;"> </span>advantage<span style="letter-spacing:0.05pt;"> </span>over<span style="letter-spacing:0.05pt;"> </span>available<span style="letter-spacing:0.1pt;"> </span>therapies&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">determines that the objective response rate, or ORR,<span style="letter-spacing:2.45pt;"> </span>and duration of response are not clinically meaningful&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">may<span style="letter-spacing:2.05pt;"> </span>not<span style="letter-spacing:2pt;"> </span>agree<span style="letter-spacing:2.05pt;"> </span>that<span style="letter-spacing:2.05pt;"> </span>the<span style="letter-spacing:2.05pt;"> </span>data<span style="letter-spacing:2.05pt;"> </span>collected<span style="letter-spacing:2.1pt;"> </span>from<span style="letter-spacing:2.05pt;"> </span>preclinical<span style="letter-spacing:2.15pt;"> </span>studies<span style="letter-spacing:2.05pt;"> </span>and<span style="letter-spacing:2pt;"> </span>clinical<span style="letter-spacing:2.1pt;"> </span>trials<span style="letter-spacing:2.05pt;"> </span>are<span style="letter-spacing:2pt;"> </span>acceptable<span style="letter-spacing:2.05pt;"> </span>or sufficient<span style="letter-spacing:0.2pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>support<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>submission<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>an<span style="letter-spacing:0.05pt;"> </span>NDA or<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>submission<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>obtain<span style="letter-spacing:0.1pt;"> </span>regulatory<span style="letter-spacing:0.15pt;"> </span>approval, and may<span style="letter-spacing:0.05pt;"> </span>impose<span style="letter-spacing:0.05pt;"> </span>requirements<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>preclinical<span style="letter-spacing:0.15pt;"> </span>studies<span style="letter-spacing:0.05pt;"> </span>or clinical<span style="letter-spacing:0.1pt;"> </span>trials&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">may determine that adverse events experienced by participants in our clinical trials represent an unacceptable<span style="letter-spacing:0.1pt;"> </span>level<span style="letter-spacing:0.05pt;"> </span>of risk&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">may determine that population studied in the clinical trial may not be sufficiently broad or representative<span style="letter-spacing:0.15pt;"> </span>to assure<span style="letter-spacing:0.05pt;"> </span>safety<span style="letter-spacing:0.05pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>full<span style="letter-spacing:0.05pt;"> </span>population<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>which we seek<span style="letter-spacing:0.05pt;"> </span>approval&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">may<span style="letter-spacing:0.4pt;"> </span>not<span style="letter-spacing:0.35pt;"> </span>accept<span style="letter-spacing:0.4pt;"> </span>clinical<span style="letter-spacing:0.45pt;"> </span>data<span style="letter-spacing:0.4pt;"> </span>from<span style="letter-spacing:0.4pt;"> </span>trials,<span style="letter-spacing:0.45pt;"> </span>which<span style="letter-spacing:0.35pt;"> </span>are<span style="letter-spacing:0.4pt;"> </span>conducted<span style="letter-spacing:0.4pt;"> </span>at<span style="letter-spacing:0.4pt;"> </span>clinical<span style="letter-spacing:0.45pt;"> </span>facilities<span style="letter-spacing:0.45pt;"> </span>or<span style="letter-spacing:0.3pt;"> </span>in<span style="letter-spacing:0.3pt;"> </span>countries<span style="letter-spacing:0.4pt;"> </span>where the<span style="letter-spacing:0.05pt;"> </span>standard<span style="letter-spacing:0.05pt;"> </span>of care<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>potentially<span style="letter-spacing:0.1pt;"> </span>different<span style="letter-spacing:0.1pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>States&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">may<span style="letter-spacing:0.05pt;"> </span>disagree<span style="letter-spacing:0.1pt;"> </span>regarding<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>formulation,<span style="letter-spacing:0.15pt;"> </span>labeling<span style="letter-spacing:0.1pt;"> </span>and/or<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>specifications&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">may<span style="letter-spacing:0.45pt;"> </span>not<span style="letter-spacing:0.4pt;"> </span>approve<span style="letter-spacing:0.45pt;"> </span>the<span style="letter-spacing:0.45pt;"> </span>manufacturing<span style="letter-spacing:0.55pt;"> </span>processes<span style="letter-spacing:0.5pt;"> </span>associated<span style="letter-spacing:0.5pt;"> </span>with<span style="letter-spacing:0.4pt;"> </span>our<span style="letter-spacing:0.4pt;"> </span>product<span style="letter-spacing:0.45pt;"> </span>candidate<span style="letter-spacing:0.45pt;"> </span>or<span style="letter-spacing:0.35pt;"> </span>may<span style="letter-spacing:0.4pt;"> </span>determine that<span style="letter-spacing:0.05pt;"> </span>a manufacturing<span style="letter-spacing:0.15pt;"> </span>facility<span style="letter-spacing:0.1pt;"> </span>does not have an acceptable<span style="letter-spacing:0.1pt;"> </span>compliance<span style="letter-spacing:0.1pt;"> </span>status&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">may<span style="letter-spacing:0.05pt;"> </span>change<span style="letter-spacing:0.05pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>policies<span style="letter-spacing:0.1pt;"> </span>or adopt<span style="letter-spacing:0.05pt;"> </span>new regulations&#59;<span style="letter-spacing:0.15pt;"> </span>or</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">may<span style="letter-spacing:0.05pt;"> </span>not file<span style="letter-spacing:0.05pt;"> </span>a submission<span style="letter-spacing:0.1pt;"> </span>due to, among<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.05pt;"> </span>reasons,<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>content<span style="letter-spacing:0.05pt;"> </span>or formatting<span style="letter-spacing:0.15pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>submission.</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:12pt;margin-bottom:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:1.15pt;"> </span>have<span style="letter-spacing:1.15pt;"> </span>not<span style="letter-spacing:1.15pt;"> </span>obtained<span style="letter-spacing:1.2pt;"> </span>FDA<span style="letter-spacing:1.1pt;"> </span>approval<span style="letter-spacing:1.2pt;"> </span>for<span style="letter-spacing:1.2pt;"> </span>any<span style="letter-spacing:1.15pt;"> </span>product.<span style="letter-spacing:1.2pt;"> </span>This<span style="letter-spacing:1.15pt;"> </span>lack<span style="letter-spacing:1.2pt;"> </span>of<span style="letter-spacing:1.15pt;"> </span>experience<span style="letter-spacing:1.25pt;"> </span>may<span style="letter-spacing:1.15pt;"> </span>impede<span style="letter-spacing:1.15pt;"> </span>our<span style="letter-spacing:1.1pt;"> </span>ability<span style="letter-spacing:1.2pt;"> </span>to obtain<span style="letter-spacing:0.05pt;"> </span>FDA<span style="letter-spacing:-0.05pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>in a timely<span style="letter-spacing:0.1pt;"> </span>manner,<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>at<span style="letter-spacing:0.05pt;"> </span>all,<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our clinical<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If<span style="letter-spacing:0.15pt;"> </span>we<span style="letter-spacing:0.1pt;"> </span>experience<span style="letter-spacing:0.2pt;"> </span>delays<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.1pt;"> </span>obtaining<span style="letter-spacing:0.15pt;"> </span>approval<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.1pt;"> </span>if<span style="letter-spacing:0.15pt;"> </span>we<span style="letter-spacing:0.1pt;"> </span>fail<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.1pt;"> </span>obtain<span style="letter-spacing:0.15pt;"> </span>approval<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.1pt;"> </span>PRT543, PRT811 or PRT1419, our<span style="letter-spacing:0.05pt;"> </span>commercial<span style="letter-spacing:0.2pt;"> </span>prospects<span style="letter-spacing:0.15pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>harmed<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>ability<span style="letter-spacing:0.15pt;"> </span>to generate<span style="letter-spacing:0.1pt;"> </span>revenues<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>be materially impaired<span style="letter-spacing:0.1pt;"> </span>which would adversely<span style="letter-spacing:0.1pt;"> </span>affect<span style="letter-spacing:0.1pt;"> </span>our business,<span style="letter-spacing:0.05pt;"> </span>prospects,<span style="letter-spacing:0.1pt;"> </span>financial<span style="letter-spacing:0.1pt;"> </span>condition<span style="letter-spacing:0.05pt;"> </span>and results<span style="letter-spacing:0.1pt;"> </span>of operations.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">The accelerated<span style="letter-spacing:0.1pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>pathway for<span style="letter-spacing:0.05pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>not lead<span style="letter-spacing:0.05pt;"> </span>to a faster<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>or regulatory<span style="letter-spacing:0.05pt;"> </span>review<span style="letter-spacing:0.05pt;"> </span>or approval<span style="letter-spacing:0.05pt;"> </span>process<span style="letter-spacing:0.05pt;"> </span>and does not increase<span style="letter-spacing:0.05pt;"> </span>the likelihood<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates will<span style="letter-spacing:0.05pt;"> </span>receive<span style="letter-spacing:0.1pt;"> </span>marketing<span style="letter-spacing:0.05pt;"> </span>approval.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Under<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA&#8217;s<span style="letter-spacing:0.05pt;"> </span>accelerated<span style="letter-spacing:0.2pt;"> </span>approval<span style="letter-spacing:0.1pt;"> </span>program,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA may<span style="letter-spacing:0.1pt;"> </span>approve<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>drug<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>serious<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>life- threatening<span style="letter-spacing:0.15pt;"> </span>illness<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>provides<span style="letter-spacing:0.05pt;"> </span>meaningful<span style="letter-spacing:0.1pt;"> </span>therapeutic<span style="letter-spacing:0.1pt;"> </span>benefit<span style="letter-spacing:0.1pt;"> </span>to patients<span style="letter-spacing:0.1pt;"> </span>over<span style="letter-spacing:0.05pt;"> </span>existing<span style="letter-spacing:0.1pt;"> </span>treatments<span style="letter-spacing:0.15pt;"> </span>based<span style="letter-spacing:0.05pt;"> </span>upon a surrogate<span style="letter-spacing:0.15pt;"> </span>endpoint<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>reasonably<span style="letter-spacing:0.15pt;"> </span>likely<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>predict<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>benefit,<span style="letter-spacing:0.1pt;"> </span>or on a clinical<span style="letter-spacing:0.1pt;"> </span>endpoint<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>can be measured<span style="letter-spacing:0.15pt;"> </span>earlier<span style="letter-spacing:0.15pt;"> </span>than<span style="letter-spacing:0.05pt;"> </span>irreversible<span style="letter-spacing:0.15pt;"> </span>morbidity<span style="letter-spacing:0.1pt;"> </span>or mortality,<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>reasonably<span style="letter-spacing:0.1pt;"> </span>likely<span style="letter-spacing:0.05pt;"> </span>to predict<span style="letter-spacing:0.1pt;"> </span>an effect<span style="letter-spacing:0.1pt;"> </span>on irreversible<span style="letter-spacing:0.2pt;"> </span>morbidity<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>mortality<span style="letter-spacing:0.2pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>benefit,<span style="letter-spacing:0.15pt;"> </span>taking<span style="letter-spacing:0.1pt;"> </span>into<span style="letter-spacing:0.05pt;"> </span>account<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>severity,<span style="letter-spacing:0.1pt;"> </span>rarity,<span style="letter-spacing:0.1pt;"> </span>or prevalence of<span style="letter-spacing:0.5pt;"> </span>the<span style="letter-spacing:0.55pt;"> </span>condition<span style="letter-spacing:0.55pt;"> </span>and<span style="letter-spacing:0.5pt;"> </span>the<span style="letter-spacing:0.55pt;"> </span>availability<span style="letter-spacing:0.6pt;"> </span>or<span style="letter-spacing:0.45pt;"> </span>lack<span style="letter-spacing:0.5pt;"> </span>of<span style="letter-spacing:0.45pt;"> </span>alternative<span style="letter-spacing:0.6pt;"> </span>treatments.<span style="letter-spacing:0.6pt;"> </span>We<span style="letter-spacing:0.45pt;"> </span>may<span style="letter-spacing:0.5pt;"> </span>seek<span style="letter-spacing:0.5pt;"> </span>accelerated<span style="letter-spacing:0.6pt;"> </span>approval<span style="letter-spacing:0.5pt;"> </span>for<span style="letter-spacing:0.5pt;"> </span>one or<span style="letter-spacing:0.1pt;"> </span>more<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.15pt;"> </span>candidates<span style="letter-spacing:0.2pt;"> </span>on<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>basis<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.1pt;"> </span>ORR with<span style="letter-spacing:0.05pt;"> </span>an<span style="letter-spacing:0.05pt;"> </span>acceptable<span style="letter-spacing:0.15pt;"> </span>duration<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>response,<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>surrogate endpoint<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we believe<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>reasonably<span style="letter-spacing:0.1pt;"> </span>likely<span style="letter-spacing:0.05pt;"> </span>to predict<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>benefit.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">32</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">For<span style="letter-spacing:0.05pt;"> </span>drugs<span style="letter-spacing:0.1pt;"> </span>granted<span style="letter-spacing:0.1pt;"> </span>accelerated<span style="letter-spacing:0.2pt;"> </span>approval,<span style="letter-spacing:0.1pt;"> </span>post-marketing<span style="letter-spacing:0.2pt;"> </span>confirmatory<span style="letter-spacing:0.15pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>required<span style="letter-spacing:0.1pt;"> </span>to describe<span style="letter-spacing:0.1pt;"> </span>the anticipated<span style="letter-spacing:0.75pt;"> </span>effect<span style="letter-spacing:0.75pt;"> </span>on<span style="letter-spacing:0.65pt;"> </span>irreversible<span style="letter-spacing:0.8pt;"> </span>morbidity<span style="letter-spacing:0.75pt;"> </span>or<span style="letter-spacing:0.65pt;"> </span>mortality<span style="letter-spacing:0.8pt;"> </span>or<span style="letter-spacing:0.65pt;"> </span>other<span style="letter-spacing:0.7pt;"> </span>clinical<span style="letter-spacing:0.75pt;"> </span>benefit.<span style="letter-spacing:0.75pt;"> </span>These<span style="letter-spacing:0.65pt;"> </span>confirmatory<span style="letter-spacing:0.8pt;"> </span>trials<span style="letter-spacing:0.7pt;"> </span>must be<span style="letter-spacing:0.95pt;"> </span>completed<span style="letter-spacing:1.05pt;"> </span>with<span style="letter-spacing:0.95pt;"> </span>due<span style="letter-spacing:0.95pt;"> </span>diligence<span style="letter-spacing:1.05pt;"> </span>and,<span style="letter-spacing:0.95pt;"> </span>in<span style="letter-spacing:0.95pt;"> </span>some<span style="letter-spacing:1pt;"> </span>cases,<span style="letter-spacing:1pt;"> </span>the<span style="letter-spacing:1pt;"> </span>FDA<span style="letter-spacing:0.9pt;"> </span>may<span style="letter-spacing:1pt;"> </span>require<span style="letter-spacing:1.05pt;"> </span>that<span style="letter-spacing:1pt;"> </span>the<span style="letter-spacing:1pt;"> </span>trial<span style="letter-spacing:1pt;"> </span>be<span style="letter-spacing:0.9pt;"> </span>designed,<span style="letter-spacing:0.95pt;"> </span>initiated, and/or<span style="letter-spacing:0.1pt;"> </span>fully<span style="letter-spacing:0.1pt;"> </span>enrolled<span style="letter-spacing:0.15pt;"> </span>prior<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>approval.<span style="letter-spacing:0.05pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>any of our competitors<span style="letter-spacing:0.15pt;"> </span>were to receive<span style="letter-spacing:0.1pt;"> </span>full<span style="letter-spacing:0.05pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>on the<span style="letter-spacing:0.05pt;"> </span>basis<span style="letter-spacing:0.05pt;"> </span>of a confirmatory<span style="letter-spacing:0.2pt;"> </span>trial<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>an<span style="letter-spacing:0.05pt;"> </span>indication<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>seeking<span style="letter-spacing:0.1pt;"> </span>accelerated<span style="letter-spacing:0.2pt;"> </span>approval<span style="letter-spacing:0.1pt;"> </span>before<span style="letter-spacing:0.05pt;"> </span>we receive<span style="letter-spacing:0.1pt;"> </span>accelerated approval,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>indication<span style="letter-spacing:0.15pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>seeking<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>no longer<span style="letter-spacing:0.05pt;"> </span>qualify<span style="letter-spacing:0.05pt;"> </span>as a condition<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>which there<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>an unmet<span style="letter-spacing:0.05pt;"> </span>medical need<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>accelerated<span style="letter-spacing:0.2pt;"> </span>approval<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidate<span style="letter-spacing:0.1pt;"> </span>would be more<span style="letter-spacing:0.05pt;"> </span>difficult<span style="letter-spacing:0.15pt;"> </span>or may<span style="letter-spacing:0.05pt;"> </span>not occur.<span style="letter-spacing:0.05pt;"> </span>Moreover,<span style="letter-spacing:0.05pt;"> </span>the FDA may<span style="letter-spacing:0.1pt;"> </span>withdraw<span style="letter-spacing:0.1pt;"> </span>approval<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidate<span style="letter-spacing:0.15pt;"> </span>approved<span style="letter-spacing:0.1pt;"> </span>under<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>accelerated<span style="letter-spacing:0.15pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>pathway if,<span style="letter-spacing:0.05pt;"> </span>for example:</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.6pt;"> </span>trial<span style="letter-spacing:0.65pt;"> </span>or<span style="letter-spacing:0.55pt;"> </span>trials<span style="letter-spacing:0.6pt;"> </span>required<span style="letter-spacing:0.6pt;"> </span>to<span style="letter-spacing:0.5pt;"> </span>verify<span style="letter-spacing:0.55pt;"> </span>the<span style="letter-spacing:0.55pt;"> </span>predicted<span style="letter-spacing:0.6pt;"> </span>clinical<span style="letter-spacing:0.6pt;"> </span>benefit<span style="letter-spacing:0.6pt;"> </span>of<span style="letter-spacing:0.5pt;"> </span>our<span style="letter-spacing:0.5pt;"> </span>product<span style="letter-spacing:0.55pt;"> </span>candidate<span style="letter-spacing:0.6pt;"> </span>fail<span style="letter-spacing:0.55pt;"> </span>to<span style="letter-spacing:0.5pt;"> </span>verify such<span style="letter-spacing:1.4pt;"> </span>benefit<span style="letter-spacing:1.5pt;"> </span>or<span style="letter-spacing:1.4pt;"> </span>do<span style="letter-spacing:1.4pt;"> </span>not<span style="letter-spacing:1.4pt;"> </span>demonstrate<span style="letter-spacing:1.5pt;"> </span>sufficient<span style="letter-spacing:1.55pt;"> </span>clinical<span style="letter-spacing:1.5pt;"> </span>benefit<span style="letter-spacing:1.5pt;"> </span>to<span style="letter-spacing:1.4pt;"> </span>justify<span style="letter-spacing:1.5pt;"> </span>the<span style="letter-spacing:1.45pt;"> </span>risks<span style="letter-spacing:1.45pt;"> </span>associated<span style="letter-spacing:1.5pt;"> </span>with<span style="letter-spacing:1.35pt;"> </span>the drug&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">other<span style="letter-spacing:0.8pt;"> </span>evidence<span style="letter-spacing:0.8pt;"> </span>demonstrates<span style="letter-spacing:0.9pt;"> </span>that<span style="letter-spacing:0.8pt;"> </span>our<span style="letter-spacing:0.75pt;"> </span>product<span style="letter-spacing:0.8pt;"> </span>candidate<span style="letter-spacing:0.85pt;"> </span>is<span style="letter-spacing:0.8pt;"> </span>not<span style="letter-spacing:0.75pt;"> </span>shown<span style="letter-spacing:0.75pt;"> </span>to<span style="letter-spacing:0.75pt;"> </span>be<span style="letter-spacing:0.75pt;"> </span>safe<span style="letter-spacing:0.8pt;"> </span>or<span style="letter-spacing:0.75pt;"> </span>effective<span style="letter-spacing:0.85pt;"> </span>under<span style="letter-spacing:0.8pt;"> </span>the conditions<span style="letter-spacing:0.1pt;"> </span>of use&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">we fail<span style="letter-spacing:0.05pt;"> </span>to conduct<span style="letter-spacing:0.05pt;"> </span>any required<span style="letter-spacing:0.1pt;"> </span>post-approval<span style="letter-spacing:0.1pt;"> </span>trial<span style="letter-spacing:0.1pt;"> </span>of our product<span style="letter-spacing:0.05pt;"> </span>candidate<span style="letter-spacing:0.1pt;"> </span>with due diligence&#59;<span style="letter-spacing:0.1pt;"> </span>or</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">we disseminate<span style="letter-spacing:0.15pt;"> </span>false<span style="letter-spacing:0.05pt;"> </span>or misleading<span style="letter-spacing:0.1pt;"> </span>promotional<span style="letter-spacing:0.1pt;"> </span>materials<span style="letter-spacing:0.15pt;"> </span>relating<span style="letter-spacing:0.1pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>relevant<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidate.</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Our failure<span style="letter-spacing:0.05pt;"> </span>to obtain<span style="letter-spacing:0.05pt;"> </span>marketing<span style="letter-spacing:0.05pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>in foreign<span style="letter-spacing:0.05pt;"> </span>jurisdictions<span style="letter-spacing:0.1pt;"> </span>would prevent<span style="letter-spacing:0.05pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates from<span style="letter-spacing:0.05pt;"> </span>being marketed<span style="letter-spacing:0.05pt;"> </span>in those<span style="letter-spacing:0.05pt;"> </span>jurisdictions,<span style="letter-spacing:0.1pt;"> </span>and any approval<span style="letter-spacing:0.05pt;"> </span>we are granted<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates in the United States<span style="letter-spacing:0.05pt;"> </span>would not assure<span style="letter-spacing:0.05pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>of product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.05pt;"> </span>in foreign<span style="letter-spacing:0.05pt;"> </span>jurisdictions.</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In<span style="letter-spacing:1.95pt;"> </span>order<span style="letter-spacing:2pt;"> </span>to<span style="letter-spacing:1.95pt;"> </span>market<span style="letter-spacing:2.05pt;"> </span>and<span style="letter-spacing:1.95pt;"> </span>sell<span style="letter-spacing:2pt;"> </span>our<span style="letter-spacing:1.95pt;"> </span>products<span style="letter-spacing:2pt;"> </span>in<span style="letter-spacing:1.95pt;"> </span>any<span style="letter-spacing:1.95pt;"> </span>jurisdiction<span style="letter-spacing:2.1pt;"> </span>outside<span style="letter-spacing:2pt;"> </span>the<span style="letter-spacing:2pt;"> </span>United<span style="letter-spacing:2pt;"> </span>States,<span style="letter-spacing:2pt;"> </span>we<span style="letter-spacing:1.9pt;"> </span>must<span style="letter-spacing:1.95pt;"> </span>obtain separate<span style="letter-spacing:0.15pt;"> </span>marketing<span style="letter-spacing:0.15pt;"> </span>approvals<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>comply<span style="letter-spacing:0.1pt;"> </span>with numerous<span style="letter-spacing:0.05pt;"> </span>and varying<span style="letter-spacing:0.05pt;"> </span>regulatory<span style="letter-spacing:0.1pt;"> </span>requirements.<span style="letter-spacing:0.15pt;"> </span>The approval procedure<span style="letter-spacing:0.1pt;"> </span>varies<span style="letter-spacing:0.1pt;"> </span>among<span style="letter-spacing:0.1pt;"> </span>countries<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>can<span style="letter-spacing:0.05pt;"> </span>involve<span style="letter-spacing:0.05pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>testing.<span style="letter-spacing:0.1pt;"> </span>The time<span style="letter-spacing:0.05pt;"> </span>required<span style="letter-spacing:0.1pt;"> </span>to obtain<span style="letter-spacing:0.05pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>may differ<span style="letter-spacing:2.05pt;"> </span>substantially<span style="letter-spacing:2.05pt;"> </span>from<span style="letter-spacing:1.95pt;"> </span>that<span style="letter-spacing:1.95pt;"> </span>required<span style="letter-spacing:2pt;"> </span>to<span style="letter-spacing:1.9pt;"> </span>obtain<span style="letter-spacing:1.95pt;"> </span>FDA<span style="letter-spacing:1.85pt;"> </span>approval.<span style="letter-spacing:1.95pt;"> </span>The<span style="letter-spacing:1.9pt;"> </span>regulatory<span style="letter-spacing:2pt;"> </span>approval<span style="letter-spacing:1.95pt;"> </span>process<span style="letter-spacing:1.95pt;"> </span>outside<span style="letter-spacing:1.95pt;"> </span>the United<span style="letter-spacing:0.15pt;"> </span>States<span style="letter-spacing:0.15pt;"> </span>generally<span style="letter-spacing:0.2pt;"> </span>includes<span style="letter-spacing:0.15pt;"> </span>all<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>risks<span style="letter-spacing:0.15pt;"> </span>associated<span style="letter-spacing:0.15pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>obtaining<span style="letter-spacing:0.1pt;"> </span>FDA approval.<span style="letter-spacing:0.1pt;"> </span>In<span style="letter-spacing:0.05pt;"> </span>addition,<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>many countries<span style="letter-spacing:0.15pt;"> </span>outside<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>United<span style="letter-spacing:0.1pt;"> </span>States,<span style="letter-spacing:0.1pt;"> </span>it<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>required<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>be approved<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>reimbursement<span style="letter-spacing:0.15pt;"> </span>before<span style="letter-spacing:0.05pt;"> </span>the product<span style="letter-spacing:2pt;"> </span>can<span style="letter-spacing:1.95pt;"> </span>be<span style="letter-spacing:1.95pt;"> </span>approved<span style="letter-spacing:1.95pt;"> </span>for<span style="letter-spacing:1.95pt;"> </span>sale<span style="letter-spacing:1.95pt;"> </span>in<span style="letter-spacing:1.9pt;"> </span>that<span style="letter-spacing:1.95pt;"> </span>country.<span style="letter-spacing:1.95pt;"> </span>We<span style="letter-spacing:1.9pt;"> </span>may<span style="letter-spacing:1.95pt;"> </span>not<span style="letter-spacing:1.9pt;"> </span>obtain<span style="letter-spacing:1.95pt;"> </span>approvals<span style="letter-spacing:1.95pt;"> </span>from<span style="letter-spacing:1.95pt;"> </span>regulatory<span style="letter-spacing:2pt;"> </span>authorities outside<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>United<span style="letter-spacing:0.15pt;"> </span>States<span style="letter-spacing:0.15pt;"> </span>on<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.1pt;"> </span>timely<span style="letter-spacing:0.2pt;"> </span>basis,<span style="letter-spacing:0.15pt;"> </span>if<span style="letter-spacing:0.15pt;"> </span>at<span style="letter-spacing:0.1pt;"> </span>all.<span style="letter-spacing:0.1pt;"> </span>Approval<span style="letter-spacing:0.1pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA does<span style="letter-spacing:0.05pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>ensure<span style="letter-spacing:0.1pt;"> </span>approval<span style="letter-spacing:0.1pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>regulatory authorities<span style="letter-spacing:0.2pt;"> </span>in other<span style="letter-spacing:0.05pt;"> </span>countries<span style="letter-spacing:0.1pt;"> </span>or jurisdictions,<span style="letter-spacing:0.15pt;"> </span>and approval<span style="letter-spacing:0.05pt;"> </span>by one regulatory<span style="letter-spacing:0.1pt;"> </span>authority<span style="letter-spacing:0.1pt;"> </span>outside<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>States does<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.1pt;"> </span>ensure<span style="letter-spacing:0.15pt;"> </span>approval<span style="letter-spacing:0.15pt;"> </span>by<span style="letter-spacing:0.1pt;"> </span>regulatory<span style="letter-spacing:0.2pt;"> </span>authorities<span style="letter-spacing:0.25pt;"> </span>in<span style="letter-spacing:0.1pt;"> </span>other<span style="letter-spacing:0.15pt;"> </span>countries<span style="letter-spacing:0.2pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>jurisdictions<span style="letter-spacing:0.2pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA. We<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>not be<span style="letter-spacing:2.3pt;"> </span>able<span style="letter-spacing:2.35pt;"> </span>to<span style="letter-spacing:2.3pt;"> </span>submit<span style="letter-spacing:2.35pt;"> </span>for<span style="letter-spacing:2.35pt;"> </span>marketing<span style="letter-spacing:2.4pt;"> </span>approvals<span style="letter-spacing:2.35pt;"> </span>and<span style="letter-spacing:2.3pt;"> </span>may<span style="letter-spacing:2.35pt;"> </span>not<span style="letter-spacing:2.3pt;"> </span>receive<span style="letter-spacing:2.4pt;"> </span>necessary<span style="letter-spacing:2.4pt;"> </span>approvals<span style="letter-spacing:2.35pt;"> </span>to<span style="letter-spacing:2.25pt;"> </span>commercialize<span style="letter-spacing:2.45pt;"> </span>our products<span style="letter-spacing:0.05pt;"> </span>in any market.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We may<span style="letter-spacing:0.05pt;"> </span>not be able<span style="letter-spacing:0.05pt;"> </span>to obtain<span style="letter-spacing:0.05pt;"> </span>or maintain<span style="letter-spacing:0.05pt;"> </span>orphan drug designation<span style="letter-spacing:0.05pt;"> </span>or exclusivity<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our product candidates.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Regulatory<span style="letter-spacing:0.05pt;"> </span>authorities<span style="letter-spacing:0.15pt;"> </span>in some<span style="letter-spacing:0.05pt;"> </span>jurisdictions,<span style="letter-spacing:0.15pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>the United States, may designate<span style="letter-spacing:0.05pt;"> </span>drugs for relatively small<span style="letter-spacing:0.2pt;"> </span>patient<span style="letter-spacing:0.2pt;"> </span>populations<span style="letter-spacing:0.2pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>&#8220;orphan<span style="letter-spacing:0.1pt;"> </span>drugs.&#8221;<span style="letter-spacing:0.1pt;"> </span>Under<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>Orphan<span style="letter-spacing:0.05pt;"> </span>Drug<span style="letter-spacing:0.05pt;"> </span>Act,<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA may<span style="letter-spacing:0.1pt;"> </span>designate<span style="letter-spacing:0.15pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>drug<span style="letter-spacing:0.05pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>an orphan<span style="letter-spacing:0.1pt;"> </span>drug<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>it<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>intended<span style="letter-spacing:0.05pt;"> </span>to treat<span style="letter-spacing:0.1pt;"> </span>a rare<span style="letter-spacing:0.05pt;"> </span>disease<span style="letter-spacing:0.05pt;"> </span>or condition,<span style="letter-spacing:0.05pt;"> </span>which is<span style="letter-spacing:0.05pt;"> </span>generally<span style="letter-spacing:0.1pt;"> </span>defined<span style="letter-spacing:0.05pt;"> </span>as a patient<span style="letter-spacing:0.1pt;"> </span>population of<span style="letter-spacing:0.05pt;"> </span>fewer<span style="letter-spacing:0.1pt;"> </span>than<span style="letter-spacing:0.1pt;"> </span>200,000<span style="letter-spacing:0.05pt;"> </span>individuals<span style="letter-spacing:0.1pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>States,<span style="letter-spacing:0.05pt;"> </span>or if<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>disease<span style="letter-spacing:0.05pt;"> </span>or condition<span style="letter-spacing:0.05pt;"> </span>affects<span style="letter-spacing:0.1pt;"> </span>more<span style="letter-spacing:0.05pt;"> </span>than<span style="letter-spacing:0.05pt;"> </span>200,000 individuals<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>United<span style="letter-spacing:0.1pt;"> </span>States<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>there<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>no<span style="letter-spacing:0.05pt;"> </span>reasonable<span style="letter-spacing:0.15pt;"> </span>expectation<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>cost<span style="letter-spacing:0.05pt;"> </span>of developing<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>drug for<span style="letter-spacing:0.05pt;"> </span>the type<span style="letter-spacing:0.05pt;"> </span>of disease<span style="letter-spacing:0.05pt;"> </span>or condition<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>be recovered<span style="letter-spacing:0.1pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>sales<span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>States.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Orphan<span style="letter-spacing:0.05pt;"> </span>drug<span style="letter-spacing:0.05pt;"> </span>designation<span style="letter-spacing:0.15pt;"> </span>entitles<span style="letter-spacing:0.15pt;"> </span>a party<span style="letter-spacing:0.05pt;"> </span>to financial<span style="letter-spacing:0.1pt;"> </span>incentives,<span style="letter-spacing:0.1pt;"> </span>such as opportunities<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>grant<span style="letter-spacing:0.05pt;"> </span>funding towards<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trial<span style="letter-spacing:0.1pt;"> </span>costs,<span style="letter-spacing:0.05pt;"> </span>tax<span style="letter-spacing:0.05pt;"> </span>advantages<span style="letter-spacing:0.05pt;"> </span>and user-fee<span style="letter-spacing:0.1pt;"> </span>waivers.<span style="letter-spacing:0.05pt;"> </span>Additionally,<span style="letter-spacing:0.1pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>a product<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>has orphan designation<span style="letter-spacing:0.15pt;"> </span>subsequently<span style="letter-spacing:0.15pt;"> </span>receives<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>first<span style="letter-spacing:0.15pt;"> </span>FDA approval<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>disease<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>condition<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>which it<span style="letter-spacing:0.05pt;"> </span>has such designation,<span style="letter-spacing:0.2pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>product<span style="letter-spacing:0.15pt;"> </span>is<span style="letter-spacing:0.15pt;"> </span>entitled<span style="letter-spacing:0.2pt;"> </span>to<span style="letter-spacing:0.1pt;"> </span>orphan<span style="letter-spacing:0.15pt;"> </span>drug<span style="letter-spacing:0.1pt;"> </span>exclusivity,<span style="letter-spacing:0.2pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>means<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA may<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>approve<span style="letter-spacing:0.1pt;"> </span>any other<span style="letter-spacing:0.1pt;"> </span>applications<span style="letter-spacing:0.1pt;"> </span>to market<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>same<span style="letter-spacing:0.05pt;"> </span>drug for<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>same<span style="letter-spacing:0.05pt;"> </span>indication<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>seven<span style="letter-spacing:0.05pt;"> </span>years,<span style="letter-spacing:0.05pt;"> </span>except<span style="letter-spacing:0.05pt;"> </span>in certain circumstances,<span style="letter-spacing:0.2pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>showing<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>superiority<span style="letter-spacing:0.1pt;"> </span>(i.e.,<span style="letter-spacing:0.05pt;"> </span>another<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>safer,<span style="letter-spacing:0.05pt;"> </span>more<span style="letter-spacing:0.05pt;"> </span>effective<span style="letter-spacing:0.1pt;"> </span>or makes<span style="letter-spacing:0.05pt;"> </span>a major<span style="letter-spacing:0.45pt;"> </span>contribution<span style="letter-spacing:0.5pt;"> </span>to<span style="letter-spacing:0.4pt;"> </span>patient<span style="letter-spacing:0.5pt;"> </span>care)<span style="letter-spacing:0.45pt;"> </span>over<span style="letter-spacing:0.45pt;"> </span>the<span style="letter-spacing:0.45pt;"> </span>product<span style="letter-spacing:0.45pt;"> </span>with<span style="letter-spacing:0.4pt;"> </span>orphan<span style="letter-spacing:0.45pt;"> </span>exclusivity<span style="letter-spacing:0.5pt;"> </span>or<span style="letter-spacing:0.4pt;"> </span>where<span style="letter-spacing:0.4pt;"> </span>the<span style="letter-spacing:0.45pt;"> </span>manufacturer<span style="letter-spacing:0.5pt;"> </span>is<span style="letter-spacing:0.4pt;"> </span>unable to<span style="letter-spacing:0.05pt;"> </span>assure<span style="letter-spacing:0.1pt;"> </span>sufficient<span style="letter-spacing:0.15pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>quantity.<span style="letter-spacing:0.05pt;"> </span>Competitors,<span style="letter-spacing:0.1pt;"> </span>however, may<span style="letter-spacing:0.05pt;"> </span>receive<span style="letter-spacing:0.1pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>of different<span style="letter-spacing:0.1pt;"> </span>products<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>the same<span style="letter-spacing:0.1pt;"> </span>indication<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>orphan<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>has exclusivity,<span style="letter-spacing:0.1pt;"> </span>or obtain<span style="letter-spacing:0.05pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>same<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>but for<span style="letter-spacing:0.05pt;"> </span>a different<span style="letter-spacing:0.1pt;"> </span>indication<span style="letter-spacing:0.1pt;"> </span>than<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>which the<span style="letter-spacing:0.05pt;"> </span>orphan<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>has exclusivity.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>apply<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>an<span style="letter-spacing:0.05pt;"> </span>orphan<span style="letter-spacing:0.05pt;"> </span>drug designation<span style="letter-spacing:0.1pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>States<span style="letter-spacing:0.05pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>geographies<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our product candidates<span style="letter-spacing:0.1pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>future.<span style="letter-spacing:0.05pt;"> </span>However, obtaining<span style="letter-spacing:0.05pt;"> </span>an orphan<span style="letter-spacing:0.05pt;"> </span>drug designation<span style="letter-spacing:0.1pt;"> </span>can be difficult,<span style="letter-spacing:0.15pt;"> </span>and we may<span style="letter-spacing:0.05pt;"> </span>not be successful<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>doing so. Even if<span style="letter-spacing:0.05pt;"> </span>we obtain<span style="letter-spacing:0.05pt;"> </span>orphan<span style="letter-spacing:0.05pt;"> </span>drug designation<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>in specific indications,<span style="letter-spacing:0.15pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>not be the<span style="letter-spacing:0.05pt;"> </span>first<span style="letter-spacing:0.1pt;"> </span>to obtain<span style="letter-spacing:0.05pt;"> </span>regulatory<span style="letter-spacing:0.1pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>of these<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>orphan- designated<span style="letter-spacing:0.15pt;"> </span>indication,<span style="letter-spacing:0.15pt;"> </span>due<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>uncertainties<span style="letter-spacing:0.2pt;"> </span>associated<span style="letter-spacing:0.15pt;"> </span>with developing<span style="letter-spacing:0.05pt;"> </span>pharmaceutical<span style="letter-spacing:0.15pt;"> </span>products.<span style="letter-spacing:0.05pt;"> </span>In addition, exclusive<span style="letter-spacing:0.1pt;"> </span>marketing<span style="letter-spacing:0.1pt;"> </span>rights<span style="letter-spacing:0.05pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>States<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be limited<span style="letter-spacing:0.1pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>we seek<span style="letter-spacing:0.05pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>an indication<span style="letter-spacing:0.05pt;"> </span>broader than the orphan-designated indication or may be lost if the FDA later determines that the request for orphan designation<span style="letter-spacing:0.15pt;"> </span>was<span style="letter-spacing:0.05pt;"> </span>materially<span style="letter-spacing:0.2pt;"> </span>defective<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>manufacturer<span style="letter-spacing:0.2pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>unable<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>assure<span style="letter-spacing:0.1pt;"> </span>sufficient<span style="letter-spacing:0.2pt;"> </span>quantities<span style="letter-spacing:0.1pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>product to meet<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>needs<span style="letter-spacing:0.05pt;"> </span>of patients<span style="letter-spacing:0.1pt;"> </span>with the<span style="letter-spacing:0.05pt;"> </span>rare<span style="letter-spacing:0.05pt;"> </span>disease<span style="letter-spacing:0.05pt;"> </span>or condition.<span style="letter-spacing:0.05pt;"> </span>Orphan drug designation<span style="letter-spacing:0.1pt;"> </span>does not ensure<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we will<span style="letter-spacing:0.1pt;"> </span>receive<span style="letter-spacing:0.15pt;"> </span>marketing<span style="letter-spacing:0.15pt;"> </span>exclusivity<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>particular<span style="letter-spacing:0.2pt;"> </span>market,<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>cannot<span style="letter-spacing:0.1pt;"> </span>assure<span style="letter-spacing:0.1pt;"> </span>you<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>any future<span style="letter-spacing:0.05pt;"> </span>application<span style="letter-spacing:0.1pt;"> </span>for orphan<span style="letter-spacing:0.1pt;"> </span>drug<span style="letter-spacing:0.05pt;"> </span>designation<span style="letter-spacing:0.15pt;"> </span>in any other<span style="letter-spacing:0.05pt;"> </span>geography<span style="letter-spacing:0.05pt;"> </span>or with respect<span style="letter-spacing:0.1pt;"> </span>to any other<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidate<span style="letter-spacing:0.1pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>be granted. Orphan drug designation<span style="letter-spacing:0.1pt;"> </span>neither<span style="letter-spacing:0.1pt;"> </span>shortens<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>time<span style="letter-spacing:0.05pt;"> </span>or regulatory<span style="letter-spacing:0.1pt;"> </span>review<span style="letter-spacing:0.05pt;"> </span>time<span style="letter-spacing:0.05pt;"> </span>of a drug, nor gives the drug any advantage<span style="letter-spacing:0.05pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>regulatory<span style="letter-spacing:0.1pt;"> </span>review<span style="letter-spacing:0.05pt;"> </span>or approval<span style="letter-spacing:0.05pt;"> </span>process.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">33</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">A Breakthrough Therapy Designation<span style="letter-spacing:0.05pt;"> </span>by the FDA<span style="letter-spacing:-0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>any of our current<span style="letter-spacing:0.05pt;"> </span>or future<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates may<span style="letter-spacing:0.05pt;"> </span>not lead<span style="letter-spacing:0.05pt;"> </span>to a faster<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>or regulatory<span style="letter-spacing:0.05pt;"> </span>review<span style="letter-spacing:0.05pt;"> </span>or approval<span style="letter-spacing:0.05pt;"> </span>process,<span style="letter-spacing:0.05pt;"> </span>and it<span style="letter-spacing:0.05pt;"> </span>would not increase the likelihood<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>the product<span style="letter-spacing:0.05pt;"> </span>candidate<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>receive<span style="letter-spacing:0.1pt;"> </span>marketing<span style="letter-spacing:0.05pt;"> </span>approval.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>seek<span style="letter-spacing:0.05pt;"> </span>a Breakthrough<span style="letter-spacing:0.05pt;"> </span>Therapy<span style="letter-spacing:0.05pt;"> </span>Designation<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>one or more<span style="letter-spacing:0.05pt;"> </span>of our current<span style="letter-spacing:0.1pt;"> </span>or future<span style="letter-spacing:0.05pt;"> </span>product candidates.<span style="letter-spacing:1.25pt;"> </span>A<span style="letter-spacing:1.15pt;"> </span>breakthrough<span style="letter-spacing:1.25pt;"> </span>therapy<span style="letter-spacing:1.2pt;"> </span>is<span style="letter-spacing:1.2pt;"> </span>defined<span style="letter-spacing:1.2pt;"> </span>as<span style="letter-spacing:1.15pt;"> </span>a<span style="letter-spacing:1.15pt;"> </span>drug<span style="letter-spacing:1.15pt;"> </span>that<span style="letter-spacing:1.2pt;"> </span>is<span style="letter-spacing:1.2pt;"> </span>intended,<span style="letter-spacing:1.15pt;"> </span>alone<span style="letter-spacing:1.15pt;"> </span>or<span style="letter-spacing:1.1pt;"> </span>in<span style="letter-spacing:1.1pt;"> </span>combination<span style="letter-spacing:1.2pt;"> </span>with<span style="letter-spacing:1.1pt;"> </span>one<span style="letter-spacing:1.1pt;"> </span>or more<span style="letter-spacing:0.1pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>drugs,<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>treat<span style="letter-spacing:0.15pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>serious<span style="letter-spacing:0.05pt;"> </span>or life-threatening<span style="letter-spacing:0.2pt;"> </span>disease<span style="letter-spacing:0.05pt;"> </span>or condition,<span style="letter-spacing:0.05pt;"> </span>and preliminary<span style="letter-spacing:0.15pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>evidence indicates that the drug may demonstrate substantial improvement over existing therapies on one or more clinically<span style="letter-spacing:0.15pt;"> </span>significant<span style="letter-spacing:0.15pt;"> </span>endpoints,<span style="letter-spacing:0.05pt;"> </span>such as substantial<span style="letter-spacing:0.1pt;"> </span>treatment<span style="letter-spacing:0.15pt;"> </span>effects<span style="letter-spacing:0.1pt;"> </span>observed<span style="letter-spacing:0.05pt;"> </span>early<span style="letter-spacing:0.05pt;"> </span>in clinical<span style="letter-spacing:0.05pt;"> </span>development.<span style="letter-spacing:0.05pt;"> </span>For drugs<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.15pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>been<span style="letter-spacing:0.05pt;"> </span>designated<span style="letter-spacing:0.15pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>breakthrough<span style="letter-spacing:0.15pt;"> </span>therapies,<span style="letter-spacing:0.15pt;"> </span>interaction<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>communication<span style="letter-spacing:0.2pt;"> </span>between<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA and the<span style="letter-spacing:0.05pt;"> </span>sponsor<span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>trial<span style="letter-spacing:0.1pt;"> </span>can help<span style="letter-spacing:0.05pt;"> </span>to identify<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>most<span style="letter-spacing:0.05pt;"> </span>efficient<span style="letter-spacing:0.15pt;"> </span>path<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>while<span style="letter-spacing:0.05pt;"> </span>minimizing<span style="letter-spacing:0.1pt;"> </span>the number<span style="letter-spacing:1.4pt;"> </span>of<span style="letter-spacing:1.35pt;"> </span>patients<span style="letter-spacing:1.45pt;"> </span>placed<span style="letter-spacing:1.4pt;"> </span>in<span style="letter-spacing:1.35pt;"> </span>ineffective<span style="letter-spacing:1.5pt;"> </span>control<span style="letter-spacing:1.4pt;"> </span>regimens.<span style="letter-spacing:1.45pt;"> </span>Drugs<span style="letter-spacing:1.35pt;"> </span>designated<span style="letter-spacing:1.45pt;"> </span>as<span style="letter-spacing:1.35pt;"> </span>breakthrough<span style="letter-spacing:1.45pt;"> </span>therapies<span style="letter-spacing:1.45pt;"> </span>by<span style="letter-spacing:1.3pt;"> </span>the FDA<span style="letter-spacing:-0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>also<span style="letter-spacing:0.05pt;"> </span>eligible<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>priority<span style="letter-spacing:0.1pt;"> </span>review<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>supported<span style="letter-spacing:0.05pt;"> </span>by clinical<span style="letter-spacing:0.1pt;"> </span>data<span style="letter-spacing:0.05pt;"> </span>at<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>time<span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>submission<span style="letter-spacing:0.1pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>NDA.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Designation<span style="letter-spacing:0.1pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>breakthrough<span style="letter-spacing:0.15pt;"> </span>therapy<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>at<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>discretion<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA. Accordingly,<span style="letter-spacing:0.1pt;"> </span>even<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>believe<span style="letter-spacing:0.1pt;"> </span>that one<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.15pt;"> </span>meets<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>criteria<span style="letter-spacing:0.2pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>designation<span style="letter-spacing:0.15pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>breakthrough<span style="letter-spacing:0.15pt;"> </span>therapy,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA may<span style="letter-spacing:0.1pt;"> </span>disagree and instead<span style="letter-spacing:0.05pt;"> </span>determine<span style="letter-spacing:0.1pt;"> </span>not to make<span style="letter-spacing:0.05pt;"> </span>such designation.<span style="letter-spacing:0.1pt;"> </span>In any event,<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>receipt<span style="letter-spacing:0.1pt;"> </span>of a Breakthrough Therapy Designation<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>drug<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>result<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>faster<span style="letter-spacing:0.15pt;"> </span>development<span style="letter-spacing:0.15pt;"> </span>process,<span style="letter-spacing:0.05pt;"> </span>review,<span style="letter-spacing:0.05pt;"> </span>or approval<span style="letter-spacing:0.05pt;"> </span>compared<span style="letter-spacing:0.05pt;"> </span>to drugs considered<span style="letter-spacing:1.25pt;"> </span>for<span style="letter-spacing:1.2pt;"> </span>approval<span style="letter-spacing:1.2pt;"> </span>under<span style="letter-spacing:1.2pt;"> </span>conventional<span style="letter-spacing:1.25pt;"> </span>FDA<span style="letter-spacing:1.1pt;"> </span>procedures<span style="letter-spacing:1.2pt;"> </span>and<span style="letter-spacing:1.1pt;"> </span>it<span style="letter-spacing:1.15pt;"> </span>would<span style="letter-spacing:1.1pt;"> </span>not<span style="letter-spacing:1.1pt;"> </span>assure<span style="letter-spacing:1.15pt;"> </span>ultimate<span style="letter-spacing:1.2pt;"> </span>approval<span style="letter-spacing:1.15pt;"> </span>by<span style="letter-spacing:1.1pt;"> </span>the FDA.<span style="letter-spacing:0.05pt;"> </span>In<span style="letter-spacing:0.1pt;"> </span>addition,<span style="letter-spacing:0.15pt;"> </span>even<span style="letter-spacing:0.1pt;"> </span>if<span style="letter-spacing:0.15pt;"> </span>one<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.1pt;"> </span>more<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.15pt;"> </span>candidates<span style="letter-spacing:0.2pt;"> </span>qualify<span style="letter-spacing:0.15pt;"> </span>as<span style="letter-spacing:0.1pt;"> </span>breakthrough<span style="letter-spacing:0.2pt;"> </span>therapies,<span style="letter-spacing:0.2pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA may later<span style="letter-spacing:0.1pt;"> </span>decide<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidate<span style="letter-spacing:0.1pt;"> </span>no longer<span style="letter-spacing:0.05pt;"> </span>meets<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>conditions<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>qualification<span style="letter-spacing:0.15pt;"> </span>or that<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>time<span style="letter-spacing:0.05pt;"> </span>period<span style="letter-spacing:0.05pt;"> </span>for FDA<span style="letter-spacing:-0.05pt;"> </span>review<span style="letter-spacing:0.05pt;"> </span>or approval<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>not be shortened.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">If<span style="letter-spacing:0.05pt;"> </span>we are unable to successfully<span style="letter-spacing:0.1pt;"> </span>develop,<span style="letter-spacing:0.05pt;"> </span>validate,<span style="letter-spacing:0.1pt;"> </span>obtain<span style="letter-spacing:0.05pt;"> </span>regulatory<span style="letter-spacing:0.05pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>of and commercialize companion<span style="letter-spacing:0.05pt;"> </span>diagnostic<span style="letter-spacing:0.05pt;"> </span>tests<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>any product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>require<span style="letter-spacing:0.05pt;"> </span>such tests,<span style="letter-spacing:0.05pt;"> </span>or experience<span style="letter-spacing:0.05pt;"> </span>significant delays<span style="letter-spacing:0.05pt;"> </span>in doing so, we may<span style="letter-spacing:0.05pt;"> </span>not realize<span style="letter-spacing:0.1pt;"> </span>the full<span style="letter-spacing:0.05pt;"> </span>commercial<span style="letter-spacing:0.1pt;"> </span>potential<span style="letter-spacing:0.1pt;"> </span>of these<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">A<span style="letter-spacing:1.15pt;"> </span>companion<span style="letter-spacing:1.2pt;"> </span>diagnostic<span style="letter-spacing:1.25pt;"> </span>is<span style="letter-spacing:1.2pt;"> </span>a<span style="letter-spacing:1.15pt;"> </span>medical<span style="letter-spacing:1.25pt;"> </span>device,<span style="letter-spacing:1.2pt;"> </span>often<span style="letter-spacing:1.2pt;"> </span>an<span style="letter-spacing:1.15pt;"> </span><span style="font-style:italic;">in</span><span style="font-style:italic;letter-spacing:1.1pt;"> </span><span style="font-style:italic;">vitro</span><span style="font-style:italic;letter-spacing:1.15pt;"> </span>device,<span style="letter-spacing:1.15pt;"> </span>which<span style="letter-spacing:1.1pt;"> </span>provides<span style="letter-spacing:1.15pt;"> </span>information<span style="letter-spacing:1.25pt;"> </span>that<span style="letter-spacing:1.15pt;"> </span>is essential<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>safe<span style="letter-spacing:0.05pt;"> </span>and effective<span style="letter-spacing:0.1pt;"> </span>use of a corresponding<span style="letter-spacing:0.1pt;"> </span>therapeutic<span style="letter-spacing:0.1pt;"> </span>drug product.<span style="letter-spacing:0.05pt;"> </span>A companion<span style="letter-spacing:0.05pt;"> </span>diagnostic<span style="letter-spacing:0.05pt;"> </span>can be<span style="letter-spacing:0.05pt;"> </span>used<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>identify<span style="letter-spacing:0.15pt;"> </span>patients<span style="letter-spacing:0.15pt;"> </span>who<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>most<span style="letter-spacing:0.1pt;"> </span>likely<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>benefit<span style="letter-spacing:0.15pt;"> </span>from<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>therapeutic<span style="letter-spacing:0.1pt;"> </span>product.<span style="letter-spacing:0.05pt;"> </span>In the<span style="letter-spacing:0.05pt;"> </span>future,<span style="letter-spacing:0.05pt;"> </span>we may evaluate<span style="letter-spacing:0.1pt;"> </span>opportunities<span style="letter-spacing:0.1pt;"> </span>to develop,<span style="letter-spacing:0.05pt;"> </span>either<span style="letter-spacing:0.1pt;"> </span>by ourselves<span style="letter-spacing:0.1pt;"> </span>or with collaborators,<span style="letter-spacing:0.15pt;"> </span>companion diagnostic<span style="letter-spacing:0.05pt;"> </span>tests for our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>certain<span style="letter-spacing:0.1pt;"> </span>indications.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">A<span style="letter-spacing:0.05pt;"> </span>companion<span style="letter-spacing:0.05pt;"> </span>diagnostic<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>generally<span style="letter-spacing:0.1pt;"> </span>developed<span style="letter-spacing:0.05pt;"> </span>in conjunction<span style="letter-spacing:0.1pt;"> </span>with the<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>program<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>an associated therapeutic<span style="letter-spacing:0.15pt;"> </span>product.<span style="letter-spacing:0.1pt;"> </span>To<span style="letter-spacing:0.05pt;"> </span>date,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA has required<span style="letter-spacing:0.1pt;"> </span>premarket<span style="letter-spacing:0.1pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>of the vast majority of<span style="letter-spacing:0.05pt;"> </span>companion<span style="letter-spacing:0.05pt;"> </span>diagnostics<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>cancer therapies.<span style="letter-spacing:0.15pt;"> </span>Generally,<span style="letter-spacing:0.1pt;"> </span>when<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>companion<span style="letter-spacing:0.1pt;"> </span>diagnostic<span style="letter-spacing:0.15pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>essential<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>safe<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>effective<span style="letter-spacing:0.15pt;"> </span>use<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>a drug product,<span style="letter-spacing:0.05pt;"> </span>the FDA requires<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>companion<span style="letter-spacing:0.1pt;"> </span>diagnostic<span style="letter-spacing:0.15pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>approved<span style="letter-spacing:0.1pt;"> </span>before<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>concurrent<span style="letter-spacing:0.1pt;"> </span>with approval<span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>therapeutic product<span style="letter-spacing:1.5pt;"> </span>and<span style="letter-spacing:1.45pt;"> </span>before<span style="letter-spacing:1.5pt;"> </span>a<span style="letter-spacing:1.45pt;"> </span>product<span style="letter-spacing:1.5pt;"> </span>can<span style="letter-spacing:1.45pt;"> </span>be<span style="letter-spacing:1.45pt;"> </span>commercialized.<span style="letter-spacing:1.65pt;"> </span>The<span style="letter-spacing:1.45pt;"> </span>approval<span style="letter-spacing:1.45pt;"> </span>of<span style="letter-spacing:1.4pt;"> </span>a<span style="letter-spacing:1.4pt;"> </span>companion<span style="letter-spacing:1.45pt;"> </span>diagnostic<span style="letter-spacing:1.5pt;"> </span>as<span style="letter-spacing:1.4pt;"> </span>part<span style="letter-spacing:1.45pt;"> </span>of<span style="letter-spacing:1.4pt;"> </span>the therapeutic<span style="letter-spacing:1.35pt;"> </span>product&#8217;s<span style="letter-spacing:1.35pt;"> </span>labeling<span style="letter-spacing:1.35pt;"> </span>limits<span style="letter-spacing:1.35pt;"> </span>the<span style="letter-spacing:1.3pt;"> </span>use<span style="letter-spacing:1.25pt;"> </span>of<span style="letter-spacing:1.25pt;"> </span>the<span style="letter-spacing:1.3pt;"> </span>therapeutic<span style="letter-spacing:1.3pt;"> </span>product<span style="letter-spacing:1.25pt;"> </span>to<span style="letter-spacing:1.2pt;"> </span>only<span style="letter-spacing:1.2pt;"> </span>those<span style="letter-spacing:1.25pt;"> </span>patients<span style="letter-spacing:1.3pt;"> </span>who<span style="letter-spacing:1.2pt;"> </span>express<span style="letter-spacing:1.25pt;"> </span>the specific<span style="letter-spacing:0.1pt;"> </span>genetic<span style="letter-spacing:0.05pt;"> </span>alteration<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>companion<span style="letter-spacing:0.05pt;"> </span>diagnostic<span style="letter-spacing:0.1pt;"> </span>was developed<span style="letter-spacing:0.05pt;"> </span>to detect.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Development<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>companion<span style="letter-spacing:0.1pt;"> </span>diagnostic<span style="letter-spacing:0.15pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>include<span style="letter-spacing:0.05pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>meetings<span style="letter-spacing:0.1pt;"> </span>with regulatory<span style="letter-spacing:0.1pt;"> </span>authorities,<span style="letter-spacing:0.15pt;"> </span>such as<span style="letter-spacing:0.9pt;"> </span>a<span style="letter-spacing:0.9pt;"> </span>pre-submission<span style="letter-spacing:1.05pt;"> </span>meeting<span style="letter-spacing:0.95pt;"> </span>and<span style="letter-spacing:0.85pt;"> </span>the<span style="letter-spacing:0.9pt;"> </span>requirement<span style="letter-spacing:1pt;"> </span>to<span style="letter-spacing:0.85pt;"> </span>submit<span style="letter-spacing:0.9pt;"> </span>an<span style="letter-spacing:0.85pt;"> </span>investigational<span style="letter-spacing:1pt;"> </span>device<span style="letter-spacing:0.9pt;"> </span>exemption<span style="letter-spacing:0.95pt;"> </span>application.<span style="letter-spacing:0.95pt;"> </span>In the<span style="letter-spacing:0.1pt;"> </span>case<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>companion<span style="letter-spacing:0.05pt;"> </span>diagnostic<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>designated<span style="letter-spacing:0.1pt;"> </span>as &#8220;significant<span style="letter-spacing:0.15pt;"> </span>risk<span style="letter-spacing:0.05pt;"> </span>device,&#8221;<span style="letter-spacing:0.05pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>of an investigational device<span style="letter-spacing:0.1pt;"> </span>exemption<span style="letter-spacing:0.15pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA and<span style="letter-spacing:0.05pt;"> </span>IRB<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>required<span style="letter-spacing:0.15pt;"> </span>before<span style="letter-spacing:0.1pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>diagnostic<span style="letter-spacing:0.15pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>used in conjunction<span style="letter-spacing:0.1pt;"> </span>with the<span style="letter-spacing:0.05pt;"> </span>clinical trials<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>a corresponding<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidate.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">To be successful<span style="letter-spacing:0.1pt;"> </span>in developing,<span style="letter-spacing:0.05pt;"> </span>validating,<span style="letter-spacing:0.1pt;"> </span>obtaining<span style="letter-spacing:0.05pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>of and commercializing<span style="letter-spacing:0.2pt;"> </span>a companion diagnostic,<span style="letter-spacing:0.15pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>collaborators<span style="letter-spacing:0.2pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>need<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>address<span style="letter-spacing:0.05pt;"> </span>a number<span style="letter-spacing:0.05pt;"> </span>of scientific,<span style="letter-spacing:0.15pt;"> </span>technical,<span style="letter-spacing:0.1pt;"> </span>regulatory<span style="letter-spacing:0.1pt;"> </span>and logistical challenges.<span style="letter-spacing:1.25pt;"> </span>We<span style="letter-spacing:1.15pt;"> </span>have<span style="letter-spacing:1.15pt;"> </span>no<span style="letter-spacing:1.15pt;"> </span>prior<span style="letter-spacing:1.2pt;"> </span>experience<span style="letter-spacing:1.25pt;"> </span>with<span style="letter-spacing:1.15pt;"> </span>medical<span style="letter-spacing:1.25pt;"> </span>device<span style="letter-spacing:1.2pt;"> </span>or<span style="letter-spacing:1.15pt;"> </span>diagnostic<span style="letter-spacing:1.2pt;"> </span>test<span style="letter-spacing:1.15pt;"> </span>development.<span style="letter-spacing:1.2pt;"> </span>If<span style="letter-spacing:1.15pt;"> </span>we<span style="letter-spacing:1.1pt;"> </span>choose<span style="letter-spacing:1.15pt;"> </span>to develop<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>seek<span style="letter-spacing:0.1pt;"> </span>FDA approval<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>companion<span style="letter-spacing:0.1pt;"> </span>diagnostic<span style="letter-spacing:0.15pt;"> </span>tests<span style="letter-spacing:0.1pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>own,<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>require<span style="letter-spacing:0.15pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>personnel. We<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>rely<span style="letter-spacing:0.1pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.1pt;"> </span>parties<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>design,<span style="letter-spacing:0.1pt;"> </span>development,<span style="letter-spacing:0.15pt;"> </span>testing,<span style="letter-spacing:0.15pt;"> </span>validation<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>manufacture<span style="letter-spacing:0.15pt;"> </span>of companion diagnostic<span style="letter-spacing:1pt;"> </span>tests<span style="letter-spacing:0.95pt;"> </span>for<span style="letter-spacing:0.9pt;"> </span>our<span style="letter-spacing:0.85pt;"> </span>therapeutic<span style="letter-spacing:0.95pt;"> </span>product<span style="letter-spacing:0.9pt;"> </span>candidates<span style="letter-spacing:0.95pt;"> </span>that<span style="letter-spacing:0.9pt;"> </span>require<span style="letter-spacing:0.95pt;"> </span>such<span style="letter-spacing:0.85pt;"> </span>tests,<span style="letter-spacing:0.9pt;"> </span>the<span style="letter-spacing:0.9pt;"> </span>application<span style="letter-spacing:0.95pt;"> </span>for<span style="letter-spacing:0.9pt;"> </span>and<span style="letter-spacing:0.85pt;"> </span>receipt<span style="letter-spacing:0.95pt;"> </span>of any<span style="letter-spacing:1.05pt;"> </span>required<span style="letter-spacing:1.15pt;"> </span>regulatory<span style="letter-spacing:1.15pt;"> </span>approvals,<span style="letter-spacing:1.1pt;"> </span>and<span style="letter-spacing:1.05pt;"> </span>the<span style="letter-spacing:1.1pt;"> </span>commercial<span style="letter-spacing:1.2pt;"> </span>supply<span style="letter-spacing:1.1pt;"> </span>of<span style="letter-spacing:1.05pt;"> </span>these<span style="letter-spacing:1.1pt;"> </span>companion<span style="letter-spacing:1.1pt;"> </span>diagnostics.<span style="letter-spacing:1.15pt;"> </span>If<span style="letter-spacing:1.1pt;"> </span>these<span style="letter-spacing:1.05pt;"> </span>parties are<span style="letter-spacing:0.1pt;"> </span>unable<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>successfully<span style="letter-spacing:0.15pt;"> </span>develop<span style="letter-spacing:0.1pt;"> </span>companion<span style="letter-spacing:0.1pt;"> </span>diagnostics<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>these<span style="letter-spacing:0.1pt;"> </span>therapeutic<span style="letter-spacing:0.15pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates,<span style="letter-spacing:0.1pt;"> </span>or experience delays<span style="letter-spacing:0.1pt;"> </span>in doing so, we may<span style="letter-spacing:0.05pt;"> </span>be unable<span style="letter-spacing:0.05pt;"> </span>to enroll<span style="letter-spacing:0.05pt;"> </span>enough patients<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our current<span style="letter-spacing:0.1pt;"> </span>and planned<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials,<span style="letter-spacing:0.1pt;"> </span>the development<span style="letter-spacing:0.1pt;"> </span>of these<span style="letter-spacing:0.05pt;"> </span>therapeutic<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be adversely<span style="letter-spacing:0.05pt;"> </span>affected,<span style="letter-spacing:0.05pt;"> </span>these therapeutic<span style="letter-spacing:0.05pt;"> </span>product candidates<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>obtain<span style="letter-spacing:0.1pt;"> </span>marketing<span style="letter-spacing:0.15pt;"> </span>approval,<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>realize<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>full<span style="letter-spacing:0.1pt;"> </span>commercial<span style="letter-spacing:0.2pt;"> </span>potential<span style="letter-spacing:0.15pt;"> </span>of any of these<span style="letter-spacing:0.1pt;"> </span>therapeutics<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>obtain<span style="letter-spacing:0.05pt;"> </span>marketing<span style="letter-spacing:0.1pt;"> </span>approval.<span style="letter-spacing:0.05pt;"> </span>For any product<span style="letter-spacing:0.05pt;"> </span>candidate<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>which a companion<span style="letter-spacing:0.05pt;"> </span>diagnostic<span style="letter-spacing:0.1pt;"> </span>is necessary<span style="letter-spacing:2.05pt;"> </span>to<span style="letter-spacing:1.95pt;"> </span>select<span style="letter-spacing:2pt;"> </span>patients<span style="letter-spacing:2pt;"> </span>who<span style="letter-spacing:1.9pt;"> </span>may<span style="letter-spacing:1.95pt;"> </span>benefit<span style="letter-spacing:2pt;"> </span>from<span style="letter-spacing:1.95pt;"> </span>use<span style="letter-spacing:1.9pt;"> </span>of<span style="letter-spacing:1.9pt;"> </span>the<span style="letter-spacing:1.95pt;"> </span>product<span style="letter-spacing:1.95pt;"> </span>candidate,<span style="letter-spacing:2pt;"> </span>any<span style="letter-spacing:1.9pt;"> </span>failure<span style="letter-spacing:2pt;"> </span>to<span style="letter-spacing:1.9pt;"> </span>successfully develop<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>companion<span style="letter-spacing:0.05pt;"> </span>diagnostic<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>cause<span style="letter-spacing:0.05pt;"> </span>or contribute<span style="letter-spacing:0.1pt;"> </span>to delayed<span style="letter-spacing:0.05pt;"> </span>enrollment<span style="letter-spacing:0.1pt;"> </span>of our clinical<span style="letter-spacing:0.1pt;"> </span>trials,<span style="letter-spacing:0.1pt;"> </span>and may prevent<span style="letter-spacing:1.1pt;"> </span>us<span style="letter-spacing:1pt;"> </span>from<span style="letter-spacing:1.05pt;"> </span>initiating<span style="letter-spacing:1.15pt;"> </span>a<span style="letter-spacing:1pt;"> </span>pivotal<span style="letter-spacing:1.05pt;"> </span>trial.<span style="letter-spacing:1.1pt;"> </span>In<span style="letter-spacing:1pt;"> </span>addition,<span style="letter-spacing:1.05pt;"> </span>the<span style="letter-spacing:1.05pt;"> </span>commercial<span style="letter-spacing:1.15pt;"> </span>success<span style="letter-spacing:1.05pt;"> </span>of<span style="letter-spacing:1pt;"> </span>any<span style="letter-spacing:1pt;"> </span>of<span style="letter-spacing:1pt;"> </span>our<span style="letter-spacing:1pt;"> </span>product<span style="letter-spacing:1.05pt;"> </span>candidates that<span style="letter-spacing:2.35pt;"> </span>require<span style="letter-spacing:2.4pt;"> </span>a<span style="letter-spacing:2.3pt;"> </span>companion<span style="letter-spacing:2.35pt;"> </span>diagnostic<span style="letter-spacing:2.4pt;"> </span>will<span style="letter-spacing:2.35pt;"> </span>be<span style="letter-spacing:2.3pt;"> </span>tied<span style="letter-spacing:2.35pt;"> </span>to<span style="letter-spacing:2.25pt;"> </span>and<span style="letter-spacing:2.25pt;"> </span>dependent<span style="letter-spacing:2.3pt;"> </span>upon<span style="letter-spacing:2.25pt;"> </span>the<span style="letter-spacing:2.3pt;"> </span>receipt<span style="letter-spacing:2.35pt;"> </span>of<span style="letter-spacing:2.25pt;"> </span>required<span style="letter-spacing:2.35pt;"> </span>regulatory approvals and the continued ability of such third parties to make the companion diagnostic commercially available<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>us on reasonable<span style="letter-spacing:0.1pt;"> </span>terms<span style="letter-spacing:0.1pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>relevant<span style="letter-spacing:0.1pt;"> </span>geographies.<span style="letter-spacing:0.1pt;"> </span>Any failure<span style="letter-spacing:0.1pt;"> </span>to do so could<span style="letter-spacing:0.05pt;"> </span>materially<span style="letter-spacing:0.15pt;"> </span>harm<span style="letter-spacing:0.05pt;"> </span>our business,<span style="letter-spacing:0.05pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>of operations<span style="letter-spacing:0.1pt;"> </span>and financial<span style="letter-spacing:0.1pt;"> </span>condition.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">34</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">If<span style="letter-spacing:0.05pt;"> </span>we decide<span style="letter-spacing:0.05pt;"> </span>to pursue a Fast Track Designation<span style="letter-spacing:0.05pt;"> </span>by the FDA,<span style="letter-spacing:-0.05pt;"> </span>it<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>not lead<span style="letter-spacing:0.05pt;"> </span>to a faster<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>or regulatory<span style="letter-spacing:0.05pt;"> </span>review<span style="letter-spacing:0.05pt;"> </span>or approval<span style="letter-spacing:0.05pt;"> </span>process.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>seek<span style="letter-spacing:0.1pt;"> </span>Fast<span style="letter-spacing:0.1pt;"> </span>Track<span style="letter-spacing:0.1pt;"> </span>Designation<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>one<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>more<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates.<span style="letter-spacing:0.15pt;"> </span>If<span style="letter-spacing:0.1pt;"> </span>a drug is<span style="letter-spacing:0.05pt;"> </span>intended<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>the treatment<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>serious<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>life-threatening<span style="letter-spacing:0.25pt;"> </span>condition<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>drug<span style="letter-spacing:0.05pt;"> </span>demonstrates<span style="letter-spacing:0.2pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>potential<span style="letter-spacing:0.15pt;"> </span>to address<span style="letter-spacing:0.05pt;"> </span>unmet medical<span style="letter-spacing:0.2pt;"> </span>needs<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.15pt;"> </span>this<span style="letter-spacing:0.15pt;"> </span>condition,<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>product<span style="letter-spacing:0.15pt;"> </span>sponsor<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.15pt;"> </span>apply<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.15pt;"> </span>FDA<span style="letter-spacing:0.05pt;"> </span>Fast<span style="letter-spacing:0.15pt;"> </span>Track<span style="letter-spacing:0.1pt;"> </span>Designation.<span style="letter-spacing:0.1pt;"> </span>The<span style="letter-spacing:0.05pt;"> </span>FDA has broad<span style="letter-spacing:0.05pt;"> </span>discretion<span style="letter-spacing:0.1pt;"> </span>whether<span style="letter-spacing:0.05pt;"> </span>to grant<span style="letter-spacing:0.05pt;"> </span>this<span style="letter-spacing:0.05pt;"> </span>designation,<span style="letter-spacing:0.1pt;"> </span>so even if<span style="letter-spacing:0.05pt;"> </span>we believe<span style="letter-spacing:0.05pt;"> </span>a particular<span style="letter-spacing:0.1pt;"> </span>product candidate<span style="letter-spacing:0.05pt;"> </span>is eligible for<span style="letter-spacing:1.25pt;"> </span>this<span style="letter-spacing:1.25pt;"> </span>designation,<span style="letter-spacing:1.3pt;"> </span>we<span style="letter-spacing:1.2pt;"> </span>cannot<span style="letter-spacing:1.25pt;"> </span>assure<span style="letter-spacing:1.25pt;"> </span>you<span style="letter-spacing:1.2pt;"> </span>that<span style="letter-spacing:1.25pt;"> </span>the<span style="letter-spacing:1.25pt;"> </span>FDA<span style="letter-spacing:1.15pt;"> </span>would<span style="letter-spacing:1.2pt;"> </span>decide<span style="letter-spacing:1.25pt;"> </span>to<span style="letter-spacing:1.2pt;"> </span>grant<span style="letter-spacing:1.25pt;"> </span>it.<span style="letter-spacing:1.25pt;"> </span>Even<span style="letter-spacing:1.2pt;"> </span>if<span style="letter-spacing:1.2pt;"> </span>we<span style="letter-spacing:1.15pt;"> </span>do<span style="letter-spacing:1.15pt;"> </span>receive<span style="letter-spacing:1.25pt;"> </span>Fast Track<span style="letter-spacing:0.1pt;"> </span>Designation,<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>experience<span style="letter-spacing:0.15pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>faster<span style="letter-spacing:0.15pt;"> </span>development<span style="letter-spacing:0.15pt;"> </span>process,<span style="letter-spacing:0.05pt;"> </span>review<span style="letter-spacing:0.05pt;"> </span>or approval<span style="letter-spacing:0.05pt;"> </span>compared<span style="letter-spacing:0.05pt;"> </span>to conventional<span style="letter-spacing:0.15pt;"> </span>FDA procedures.<span style="letter-spacing:0.15pt;"> </span>The<span style="letter-spacing:0.05pt;"> </span>FDA may<span style="letter-spacing:0.05pt;"> </span>withdraw<span style="letter-spacing:0.05pt;"> </span>Fast<span style="letter-spacing:0.05pt;"> </span>Track<span style="letter-spacing:0.05pt;"> </span>Designation<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>it<span style="letter-spacing:0.05pt;"> </span>believes<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>designation is<span style="letter-spacing:0.05pt;"> </span>no longer<span style="letter-spacing:0.05pt;"> </span>supported<span style="letter-spacing:0.05pt;"> </span>by data<span style="letter-spacing:0.05pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>our clinical<span style="letter-spacing:0.1pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>program.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Even if<span style="letter-spacing:0.05pt;"> </span>we obtain<span style="letter-spacing:0.05pt;"> </span>marketing<span style="letter-spacing:0.05pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates,<span style="letter-spacing:0.05pt;"> </span>the terms<span style="letter-spacing:0.05pt;"> </span>of approvals,<span style="letter-spacing:0.05pt;"> </span>ongoing regulation<span style="letter-spacing:0.05pt;"> </span>of our products<span style="letter-spacing:0.05pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>post-approval<span style="letter-spacing:0.1pt;"> </span>restrictions<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>limit<span style="letter-spacing:0.1pt;"> </span>how<span style="letter-spacing:-0.05pt;"> </span>we manufacture<span style="letter-spacing:0.05pt;"> </span>and market our products<span style="letter-spacing:0.05pt;"> </span>and compliance<span style="letter-spacing:0.1pt;"> </span>with such requirements<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>involve<span style="letter-spacing:0.05pt;"> </span>substantial<span style="letter-spacing:0.1pt;"> </span>resources,<span style="letter-spacing:0.05pt;"> </span>which could materially<span style="letter-spacing:0.15pt;"> </span>impair<span style="letter-spacing:0.05pt;"> </span>our ability<span style="letter-spacing:0.1pt;"> </span>to generate<span style="letter-spacing:0.05pt;"> </span>revenue.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Any<span style="letter-spacing:0.95pt;"> </span>product<span style="letter-spacing:0.95pt;"> </span>candidates<span style="letter-spacing:1pt;"> </span>for<span style="letter-spacing:0.95pt;"> </span>which<span style="letter-spacing:0.9pt;"> </span>we<span style="letter-spacing:0.9pt;"> </span>receive<span style="letter-spacing:1pt;"> </span>accelerated<span style="letter-spacing:1.05pt;"> </span>approval<span style="letter-spacing:0.95pt;"> </span>from<span style="letter-spacing:0.95pt;"> </span>the<span style="letter-spacing:0.95pt;"> </span>FDA<span style="letter-spacing:0.85pt;"> </span>are<span style="letter-spacing:0.95pt;"> </span>required<span style="letter-spacing:1pt;"> </span>to<span style="letter-spacing:0.9pt;"> </span>undergo one or more<span style="letter-spacing:0.05pt;"> </span>confirmatory<span style="letter-spacing:0.15pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials.<span style="letter-spacing:0.1pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>such a product<span style="letter-spacing:0.05pt;"> </span>candidate<span style="letter-spacing:0.1pt;"> </span>fails<span style="letter-spacing:0.1pt;"> </span>to meet<span style="letter-spacing:0.05pt;"> </span>its<span style="letter-spacing:0.05pt;"> </span>safety<span style="letter-spacing:0.05pt;"> </span>and efficacy<span style="letter-spacing:0.05pt;"> </span>endpoints in such confirmatory<span style="letter-spacing:0.15pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>regulatory<span style="letter-spacing:0.1pt;"> </span>authority<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>withdraw its conditional<span style="letter-spacing:0.05pt;"> </span>approval. There is no assurance<span style="letter-spacing:1.25pt;"> </span>that<span style="letter-spacing:1.2pt;"> </span>any<span style="letter-spacing:1.15pt;"> </span>such<span style="letter-spacing:1.15pt;"> </span>product<span style="letter-spacing:1.2pt;"> </span>will<span style="letter-spacing:1.2pt;"> </span>successfully<span style="letter-spacing:1.25pt;"> </span>advance<span style="letter-spacing:1.2pt;"> </span>through<span style="letter-spacing:1.2pt;"> </span>its<span style="letter-spacing:1.2pt;"> </span>confirmatory<span style="letter-spacing:1.3pt;"> </span>clinical<span style="letter-spacing:1.2pt;"> </span>trial(s).<span style="letter-spacing:1.25pt;"> </span>Therefore, even<span style="letter-spacing:0.1pt;"> </span>if<span style="letter-spacing:0.15pt;"> </span>a<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.15pt;"> </span>candidate<span style="letter-spacing:0.2pt;"> </span>receives<span style="letter-spacing:0.2pt;"> </span>accelerated<span style="letter-spacing:0.25pt;"> </span>approval<span style="letter-spacing:0.15pt;"> </span>from<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA, such<span style="letter-spacing:0.05pt;"> </span>approval<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>withdrawn<span style="letter-spacing:0.1pt;"> </span>at<span style="letter-spacing:0.1pt;"> </span>a later<span style="letter-spacing:0.1pt;"> </span>date.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Even<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>marketing<span style="letter-spacing:0.15pt;"> </span>approval<span style="letter-spacing:0.1pt;"> </span>of a product<span style="letter-spacing:0.05pt;"> </span>candidate<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>granted,<span style="letter-spacing:0.05pt;"> </span>an approved<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>and its<span style="letter-spacing:0.05pt;"> </span>manufacturer<span style="letter-spacing:0.15pt;"> </span>and marketer are subject to ongoing review and extensive regulation, which may include the requirement to implement<span style="letter-spacing:0.15pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>REMS or<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>conduct<span style="letter-spacing:0.1pt;"> </span>costly<span style="letter-spacing:0.1pt;"> </span>post-marketing<span style="letter-spacing:0.2pt;"> </span>studies<span style="letter-spacing:0.05pt;"> </span>or clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>and surveillance<span style="letter-spacing:0.15pt;"> </span>to monitor<span style="letter-spacing:0.1pt;"> </span>the safety<span style="letter-spacing:0.05pt;"> </span>or efficacy<span style="letter-spacing:0.1pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>product.</p>
<p style="margin-top:0pt;line-height:11pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.05pt;"> </span>must<span style="letter-spacing:0.1pt;"> </span>also<span style="letter-spacing:0.1pt;"> </span>comply<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>requirements<span style="letter-spacing:0.15pt;"> </span>concerning<span style="letter-spacing:0.05pt;"> </span>advertising<span style="letter-spacing:0.1pt;"> </span>and promotion<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>any of our product candidates<span style="letter-spacing:1.35pt;"> </span>for<span style="letter-spacing:1.3pt;"> </span>which<span style="letter-spacing:1.25pt;"> </span>we<span style="letter-spacing:1.25pt;"> </span>obtain<span style="letter-spacing:1.3pt;"> </span>marketing<span style="letter-spacing:1.35pt;"> </span>approval.<span style="letter-spacing:1.3pt;"> </span>Promotional<span style="letter-spacing:1.35pt;"> </span>communications<span style="letter-spacing:1.4pt;"> </span>with<span style="letter-spacing:1.25pt;"> </span>respect<span style="letter-spacing:1.35pt;"> </span>to<span style="letter-spacing:1.2pt;"> </span>prescription drugs<span style="letter-spacing:0.7pt;"> </span>are<span style="letter-spacing:0.7pt;"> </span>subject<span style="letter-spacing:0.7pt;"> </span>to<span style="letter-spacing:0.65pt;"> </span>a<span style="letter-spacing:0.65pt;"> </span>variety<span style="letter-spacing:0.75pt;"> </span>of<span style="letter-spacing:0.65pt;"> </span>legal<span style="letter-spacing:0.7pt;"> </span>and<span style="letter-spacing:0.6pt;"> </span>regulatory<span style="letter-spacing:0.7pt;"> </span>restrictions<span style="letter-spacing:0.75pt;"> </span>and<span style="letter-spacing:0.6pt;"> </span>must<span style="letter-spacing:0.65pt;"> </span>be<span style="letter-spacing:0.6pt;"> </span>consistent<span style="letter-spacing:0.7pt;"> </span>with<span style="letter-spacing:0.6pt;"> </span>the<span style="letter-spacing:0.65pt;"> </span>information<span style="letter-spacing:0.75pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>product&#8217;s<span style="letter-spacing:0.1pt;"> </span>approved<span style="letter-spacing:0.05pt;"> </span>labeling.<span style="letter-spacing:0.1pt;"> </span>Thus, we will<span style="letter-spacing:0.05pt;"> </span>not be able<span style="letter-spacing:0.05pt;"> </span>to promote<span style="letter-spacing:0.05pt;"> </span>any products<span style="letter-spacing:0.05pt;"> </span>we develop<span style="letter-spacing:0.05pt;"> </span>for indications<span style="letter-spacing:0.05pt;"> </span>or uses<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>which they<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>not approved.</p>
<p style="margin-top:0pt;line-height:11pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In<span style="letter-spacing:0.05pt;"> </span>addition,<span style="letter-spacing:0.1pt;"> </span>manufacturers<span style="letter-spacing:0.2pt;"> </span>of approved<span style="letter-spacing:0.05pt;"> </span>products<span style="letter-spacing:0.05pt;"> </span>and those<span style="letter-spacing:0.05pt;"> </span>manufacturers&#8217;<span style="letter-spacing:0.15pt;"> </span>facilities<span style="letter-spacing:0.15pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>required<span style="letter-spacing:0.1pt;"> </span>to ensure that<span style="letter-spacing:0.1pt;"> </span>quality<span style="letter-spacing:0.1pt;"> </span>control<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>manufacturing<span style="letter-spacing:0.2pt;"> </span>procedures<span style="letter-spacing:0.15pt;"> </span>conform<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>current<span style="letter-spacing:0.15pt;"> </span>good<span style="letter-spacing:0.05pt;"> </span>manufacturing<span style="letter-spacing:0.2pt;"> </span>practices,<span style="letter-spacing:0.15pt;"> </span>or cGMPs, which<span style="letter-spacing:0.05pt;"> </span>include<span style="letter-spacing:0.1pt;"> </span>requirements<span style="letter-spacing:0.2pt;"> </span>relating<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>quality<span style="letter-spacing:0.05pt;"> </span>control<span style="letter-spacing:0.05pt;"> </span>and quality<span style="letter-spacing:0.05pt;"> </span>assurance<span style="letter-spacing:0.1pt;"> </span>as well<span style="letter-spacing:0.05pt;"> </span>as the<span style="letter-spacing:0.05pt;"> </span>corresponding maintenance<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>records<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>documentation<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>reporting<span style="letter-spacing:0.15pt;"> </span>requirements.<span style="letter-spacing:0.2pt;"> </span>We and our contract<span style="letter-spacing:0.1pt;"> </span>manufacturing organizations,<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>CMOs,<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>subject<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>periodic<span style="letter-spacing:0.15pt;"> </span>unannounced<span style="letter-spacing:0.1pt;"> </span>inspections<span style="letter-spacing:0.1pt;"> </span>by the<span style="letter-spacing:0.05pt;"> </span>FDA<span style="letter-spacing:-0.05pt;"> </span>to monitor<span style="letter-spacing:0.1pt;"> </span>and ensure compliance<span style="letter-spacing:0.1pt;"> </span>with cGMPs.</p>
<p style="margin-top:0pt;line-height:11pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Accordingly,<span style="letter-spacing:0.1pt;"> </span>assuming<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>obtain<span style="letter-spacing:0.1pt;"> </span>marketing<span style="letter-spacing:0.15pt;"> </span>approval<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>one<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>more<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates,<span style="letter-spacing:0.15pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>and our CMOs<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>continue<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>expend<span style="letter-spacing:0.05pt;"> </span>time,<span style="letter-spacing:0.1pt;"> </span>money<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>effort<span style="letter-spacing:0.1pt;"> </span>in all<span style="letter-spacing:0.05pt;"> </span>areas<span style="letter-spacing:0.05pt;"> </span>of regulatory<span style="letter-spacing:0.1pt;"> </span>compliance,<span style="letter-spacing:0.1pt;"> </span>including manufacturing,<span style="letter-spacing:0.2pt;"> </span>production,<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>surveillance<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>quality<span style="letter-spacing:0.1pt;"> </span>control.<span style="letter-spacing:0.1pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>we are<span style="letter-spacing:0.05pt;"> </span>not able<span style="letter-spacing:0.05pt;"> </span>to comply<span style="letter-spacing:0.05pt;"> </span>with post- approval<span style="letter-spacing:0.1pt;"> </span>regulatory<span style="letter-spacing:0.15pt;"> </span>requirements,<span style="letter-spacing:0.2pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>marketing<span style="letter-spacing:0.1pt;"> </span>approvals<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our products<span style="letter-spacing:0.05pt;"> </span>withdrawn<span style="letter-spacing:0.05pt;"> </span>by regulatory<span style="letter-spacing:1.8pt;"> </span>authorities<span style="letter-spacing:1.85pt;"> </span>and<span style="letter-spacing:1.7pt;"> </span>our<span style="letter-spacing:1.7pt;"> </span>ability<span style="letter-spacing:1.8pt;"> </span>to<span style="letter-spacing:1.7pt;"> </span>market<span style="letter-spacing:1.8pt;"> </span>any<span style="letter-spacing:1.7pt;"> </span>future<span style="letter-spacing:1.75pt;"> </span>products<span style="letter-spacing:1.7pt;"> </span>could<span style="letter-spacing:1.7pt;"> </span>be<span style="letter-spacing:1.65pt;"> </span>limited,<span style="letter-spacing:1.75pt;"> </span>which<span style="letter-spacing:1.65pt;"> </span>could<span style="letter-spacing:1.7pt;"> </span>adversely affect<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>ability<span style="letter-spacing:0.1pt;"> </span>to achieve<span style="letter-spacing:0.05pt;"> </span>or sustain<span style="letter-spacing:0.05pt;"> </span>profitability.<span style="letter-spacing:0.15pt;"> </span>As a result,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>cost<span style="letter-spacing:0.05pt;"> </span>of compliance<span style="letter-spacing:0.1pt;"> </span>with post-approval regulations<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>have a negative<span style="letter-spacing:0.05pt;"> </span>effect<span style="letter-spacing:0.1pt;"> </span>on our operating<span style="letter-spacing:0.1pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>and financial<span style="letter-spacing:0.1pt;"> </span>condition.</p>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;text-indent:0%;font-size:6.5pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Any product<span style="letter-spacing:0.05pt;"> </span>candidate<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>which we obtain<span style="letter-spacing:0.05pt;"> </span>marketing<span style="letter-spacing:0.05pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>be subject<span style="letter-spacing:0.05pt;"> </span>to ongoing enforcement<span style="letter-spacing:0.1pt;"> </span>of post-marketing<span style="letter-spacing:0.1pt;"> </span>requirements<span style="letter-spacing:0.1pt;"> </span>by regulatory<span style="letter-spacing:0.05pt;"> </span>agencies,<span style="letter-spacing:0.05pt;"> </span>and we could be subject<span style="letter-spacing:0.05pt;"> </span>to substantial<span style="letter-spacing:0.1pt;"> </span>penalties, including<span style="letter-spacing:0.05pt;"> </span>withdrawal of our product<span style="letter-spacing:0.05pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>the market,<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>we fail<span style="letter-spacing:0.05pt;"> </span>to comply<span style="letter-spacing:0.05pt;"> </span>with all<span style="letter-spacing:0.05pt;"> </span>regulatory requirements<span style="letter-spacing:0.1pt;"> </span>or if<span style="letter-spacing:0.05pt;"> </span>we experience<span style="letter-spacing:0.05pt;"> </span>unanticipated<span style="letter-spacing:0.05pt;"> </span>problems<span style="letter-spacing:0.05pt;"> </span>with our products,<span style="letter-spacing:0.05pt;"> </span>when<span style="letter-spacing:-0.05pt;"> </span>and if<span style="letter-spacing:0.05pt;"> </span>any of them<span style="letter-spacing:0.05pt;"> </span>are approved.</p>
<p style="line-height:5pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Any<span style="letter-spacing:1.15pt;"> </span>product<span style="letter-spacing:1.2pt;"> </span>candidate<span style="letter-spacing:1.25pt;"> </span>for<span style="letter-spacing:1.2pt;"> </span>which<span style="letter-spacing:1.15pt;"> </span>we<span style="letter-spacing:1.15pt;"> </span>obtain<span style="letter-spacing:1.15pt;"> </span>marketing<span style="letter-spacing:1.2pt;"> </span>approval,<span style="letter-spacing:1.15pt;"> </span>along<span style="letter-spacing:1.15pt;"> </span>with<span style="letter-spacing:1.1pt;"> </span>the<span style="letter-spacing:1.15pt;"> </span>manufacturing<span style="letter-spacing:1.25pt;"> </span>processes, post-approval<span style="letter-spacing:0.15pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>data,<span style="letter-spacing:0.1pt;"> </span>labeling,<span style="letter-spacing:0.15pt;"> </span>advertising<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>promotional<span style="letter-spacing:0.15pt;"> </span>activities<span style="letter-spacing:0.2pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>such product,<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>be subject<span style="letter-spacing:0.05pt;"> </span>to continual<span style="letter-spacing:0.15pt;"> </span>requirements<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>review<span style="letter-spacing:0.1pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA and<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>regulatory<span style="letter-spacing:0.15pt;"> </span>authorities.<span style="letter-spacing:0.2pt;"> </span>These<span style="letter-spacing:0.05pt;"> </span>requirements<span style="letter-spacing:0.15pt;"> </span>include, but<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>limited<span style="letter-spacing:0.15pt;"> </span>to,<span style="letter-spacing:0.05pt;"> </span>restrictions<span style="letter-spacing:0.2pt;"> </span>governing<span style="letter-spacing:0.1pt;"> </span>promotion<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>an<span style="letter-spacing:0.05pt;"> </span>approved<span style="letter-spacing:0.1pt;"> </span>product,<span style="letter-spacing:0.1pt;"> </span>submissions<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>safety<span style="letter-spacing:0.1pt;"> </span>and other post-marketing<span style="letter-spacing:0.15pt;"> </span>information<span style="letter-spacing:0.15pt;"> </span>and reports,<span style="letter-spacing:0.1pt;"> </span>registration<span style="letter-spacing:0.15pt;"> </span>and listing<span style="letter-spacing:0.1pt;"> </span>requirements,<span style="letter-spacing:0.15pt;"> </span>cGMP requirements<span style="letter-spacing:0.15pt;"> </span>relating<span style="letter-spacing:0.05pt;"> </span>to manufacturing,<span style="letter-spacing:0.2pt;"> </span>quality<span style="letter-spacing:0.1pt;"> </span>control,<span style="letter-spacing:0.1pt;"> </span>quality<span style="letter-spacing:0.1pt;"> </span>assurance<span style="letter-spacing:0.15pt;"> </span>and corresponding<span style="letter-spacing:0.1pt;"> </span>maintenance<span style="letter-spacing:0.1pt;"> </span>of records<span style="letter-spacing:0.05pt;"> </span>and documents,<span style="letter-spacing:0.05pt;"> </span>and requirements<span style="letter-spacing:0.15pt;"> </span>regarding<span style="letter-spacing:0.1pt;"> </span>drug distribution<span style="letter-spacing:0.15pt;"> </span>and the<span style="letter-spacing:0.05pt;"> </span>distribution<span style="letter-spacing:0.15pt;"> </span>of samples<span style="letter-spacing:0.1pt;"> </span>to physicians<span style="letter-spacing:0.1pt;"> </span>and recordkeeping.</p>
<p style="margin-top:0pt;line-height:11pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">35</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The<span style="letter-spacing:0.05pt;"> </span>FDA and other<span style="letter-spacing:0.05pt;"> </span>federal<span style="letter-spacing:0.1pt;"> </span>and state<span style="letter-spacing:0.05pt;"> </span>agencies,<span style="letter-spacing:0.05pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>Department<span style="letter-spacing:0.1pt;"> </span>of Justice,<span style="letter-spacing:0.1pt;"> </span>closely<span style="letter-spacing:0.05pt;"> </span>regulate compliance<span style="letter-spacing:0.1pt;"> </span>with all<span style="letter-spacing:0.05pt;"> </span>requirements<span style="letter-spacing:0.15pt;"> </span>governing<span style="letter-spacing:0.05pt;"> </span>prescription<span style="letter-spacing:0.15pt;"> </span>drug products, including requirements<span style="letter-spacing:0.1pt;"> </span>pertaining<span style="letter-spacing:0.05pt;"> </span>to marketing<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>promotion<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>drugs<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>accordance<span style="letter-spacing:0.15pt;"> </span>with the<span style="letter-spacing:0.05pt;"> </span>provisions<span style="letter-spacing:0.1pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>approved<span style="letter-spacing:0.05pt;"> </span>labeling<span style="letter-spacing:0.1pt;"> </span>and manufacturing of<span style="letter-spacing:0.7pt;"> </span>products<span style="letter-spacing:0.75pt;"> </span>in<span style="letter-spacing:0.7pt;"> </span>accordance<span style="letter-spacing:0.8pt;"> </span>with<span style="letter-spacing:0.7pt;"> </span>cGMP<span style="letter-spacing:0.7pt;"> </span>requirements.<span style="letter-spacing:0.85pt;"> </span>For<span style="letter-spacing:0.7pt;"> </span>example,<span style="letter-spacing:0.7pt;"> </span>the<span style="letter-spacing:0.7pt;"> </span>FDA<span style="letter-spacing:0.6pt;"> </span>and<span style="letter-spacing:0.65pt;"> </span>other<span style="letter-spacing:0.7pt;"> </span>agencies<span style="letter-spacing:0.7pt;"> </span>actively<span style="letter-spacing:0.75pt;"> </span>enforce the<span style="letter-spacing:0.1pt;"> </span>laws<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>regulations<span style="letter-spacing:0.15pt;"> </span>prohibiting<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>promotion<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>off-label<span style="letter-spacing:0.15pt;"> </span>uses,<span style="letter-spacing:0.05pt;"> </span>and a company<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>found to have improperly<span style="letter-spacing:0.15pt;"> </span>promoted<span style="letter-spacing:0.1pt;"> </span>off-label<span style="letter-spacing:0.1pt;"> </span>uses<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be subject<span style="letter-spacing:0.05pt;"> </span>to significant<span style="letter-spacing:0.15pt;"> </span>liability.<span style="letter-spacing:0.15pt;"> </span>Violations<span style="letter-spacing:0.1pt;"> </span>of such requirements<span style="letter-spacing:0.15pt;"> </span>may lead<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.1pt;"> </span>investigations<span style="letter-spacing:0.25pt;"> </span>alleging<span style="letter-spacing:0.2pt;"> </span>violations<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>Federal<span style="letter-spacing:0.15pt;"> </span>Food,<span style="letter-spacing:0.1pt;"> </span>Drug,<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.1pt;"> </span>Cosmetic<span style="letter-spacing:0.15pt;"> </span>Act,<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>FDCA, and<span style="letter-spacing:0.05pt;"> </span>other statutes,<span style="letter-spacing:1.05pt;"> </span>including<span style="letter-spacing:1pt;"> </span>the<span style="letter-spacing:1pt;"> </span>False<span style="letter-spacing:1pt;"> </span>Claims<span style="letter-spacing:1pt;"> </span>Act<span style="letter-spacing:0.95pt;"> </span>and<span style="letter-spacing:0.95pt;"> </span>other<span style="letter-spacing:1pt;"> </span>federal<span style="letter-spacing:1.05pt;"> </span>and<span style="letter-spacing:0.9pt;"> </span>state<span style="letter-spacing:0.95pt;"> </span>healthcare<span style="letter-spacing:1pt;"> </span>fraud<span style="letter-spacing:0.95pt;"> </span>and<span style="letter-spacing:0.9pt;"> </span>abuse<span style="letter-spacing:0.95pt;"> </span>laws<span style="letter-spacing:0.9pt;"> </span>as<span style="letter-spacing:0.9pt;"> </span>well<span style="letter-spacing:0.95pt;"> </span>as state<span style="letter-spacing:1.2pt;"> </span>consumer<span style="letter-spacing:1.15pt;"> </span>protection<span style="letter-spacing:1.2pt;"> </span>laws.<span style="letter-spacing:1.1pt;"> </span>Our<span style="letter-spacing:1.1pt;"> </span>failure<span style="letter-spacing:1.2pt;"> </span>to<span style="letter-spacing:1.1pt;"> </span>comply<span style="letter-spacing:1.15pt;"> </span>with<span style="letter-spacing:1.1pt;"> </span>all<span style="letter-spacing:1.15pt;"> </span>regulatory<span style="letter-spacing:1.2pt;"> </span>requirements,<span style="letter-spacing:1.25pt;"> </span>and<span style="letter-spacing:1.1pt;"> </span>later<span style="letter-spacing:1.2pt;"> </span>discovery<span style="letter-spacing:1.15pt;"> </span>of previously<span style="letter-spacing:0.15pt;"> </span>unknown<span style="letter-spacing:0.05pt;"> </span>adverse<span style="letter-spacing:0.1pt;"> </span>events<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>problems<span style="letter-spacing:0.15pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>products,<span style="letter-spacing:0.1pt;"> </span>manufacturers<span style="letter-spacing:0.2pt;"> </span>or manufacturing processes,<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>yield<span style="letter-spacing:0.05pt;"> </span>various<span style="letter-spacing:0.05pt;"> </span>results,<span style="letter-spacing:0.1pt;"> </span>including:</p>
<p style="line-height:5pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;<span style="margin-left:45pt;">litigation</span><span style="letter-spacing:0.15pt;"> </span>involving<span style="letter-spacing:0.05pt;"> </span>patients<span style="letter-spacing:0.1pt;"> </span>taking<span style="letter-spacing:0.05pt;"> </span>our products&#59;</p>
<p style="margin-top:3pt;margin-bottom:0pt;margin-left:3.7%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;<span style="margin-left:45pt;">restrictions</span><span style="letter-spacing:0.15pt;"> </span>on such products,<span style="letter-spacing:0.05pt;"> </span>manufacturers<span style="letter-spacing:0.15pt;"> </span>or manufacturing<span style="letter-spacing:0.15pt;"> </span>processes&#59;</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;<span style="margin-left:45pt;">restrictions</span><span style="letter-spacing:0.15pt;"> </span>on the<span style="letter-spacing:0.05pt;"> </span>labeling<span style="letter-spacing:0.1pt;"> </span>or marketing<span style="letter-spacing:0.1pt;"> </span>of a product&#59;</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;<span style="margin-left:45pt;">restrictions</span><span style="letter-spacing:0.15pt;"> </span>on product<span style="letter-spacing:0.05pt;"> </span>distribution<span style="letter-spacing:0.15pt;"> </span>or use&#59;</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;<span style="margin-left:45pt;">requirements</span><span style="letter-spacing:0.15pt;"> </span>to conduct<span style="letter-spacing:0.05pt;"> </span>post-marketing<span style="letter-spacing:0.15pt;"> </span>studies<span style="letter-spacing:0.05pt;"> </span>or clinical<span style="letter-spacing:0.1pt;"> </span>trials&#59;</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;<span style="margin-left:45pt;">warning</span><span style="letter-spacing:0.05pt;"> </span>or untitled<span style="letter-spacing:0.1pt;"> </span>letters&#59;</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;<span style="margin-left:45pt;">withdrawal</span><span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>products<span style="letter-spacing:0.05pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>market&#59;</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;<span style="margin-left:45pt;">refusal</span><span style="letter-spacing:0.1pt;"> </span>to approve<span style="letter-spacing:0.05pt;"> </span>pending<span style="letter-spacing:0.05pt;"> </span>applications<span style="letter-spacing:0.1pt;"> </span>or supplements<span style="letter-spacing:0.1pt;"> </span>to approved<span style="letter-spacing:0.05pt;"> </span>applications<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we submit&#59;</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;<span style="margin-left:45pt;">recall</span><span style="letter-spacing:0.1pt;"> </span>of products&#59;</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;<span style="margin-left:45pt;">fines,</span><span style="letter-spacing:0.05pt;"> </span>restitution<span style="letter-spacing:0.15pt;"> </span>or disgorgement<span style="letter-spacing:0.1pt;"> </span>of profits<span style="letter-spacing:0.1pt;"> </span>or revenues&#59;</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:3.7%;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;<span style="margin-left:45pt;">suspension</span><span style="letter-spacing:0.05pt;"> </span>or withdrawal<span style="letter-spacing:0.05pt;"> </span>of marketing<span style="letter-spacing:0.1pt;"> </span>approvals&#59;</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:3.7%;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;<span style="margin-left:45pt;">damage</span><span style="letter-spacing:0.05pt;"> </span>to relationships<span style="letter-spacing:0.15pt;"> </span>with any potential<span style="letter-spacing:0.1pt;"> </span>collaborators&#59;</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:3.7%;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;<span style="margin-left:45pt;">unfavorable</span><span style="letter-spacing:0.1pt;"> </span>press<span style="letter-spacing:0.05pt;"> </span>coverage<span style="letter-spacing:0.05pt;"> </span>and damage<span style="letter-spacing:0.05pt;"> </span>to our reputation&#59;</p>
<p style="margin-top:0pt;margin-bottom:0pt;margin-left:3.7%;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;<span style="margin-left:45pt;">refusal</span><span style="letter-spacing:0.1pt;"> </span>to permit<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>import<span style="letter-spacing:0.1pt;"> </span>or export<span style="letter-spacing:0.05pt;"> </span>of our products&#59;</p>
<p style="margin-top:0pt;margin-bottom:0pt;margin-left:3.7%;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;<span style="margin-left:45pt;">product</span><span style="letter-spacing:0.05pt;"> </span>seizure&#59;<span style="letter-spacing:0.1pt;"> </span>or</p>
<p style="margin-top:0pt;margin-bottom:0pt;margin-left:3.7%;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;<span style="margin-left:45pt;">injunctions</span><span style="letter-spacing:0.1pt;"> </span>or the<span style="letter-spacing:0.05pt;"> </span>imposition<span style="letter-spacing:0.1pt;"> </span>of civil<span style="letter-spacing:0.05pt;"> </span>or criminal<span style="letter-spacing:0.1pt;"> </span>penalties.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Non-compliance<span style="letter-spacing:0.15pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>us<span style="letter-spacing:0.05pt;"> </span>or any future<span style="letter-spacing:0.05pt;"> </span>collaborator<span style="letter-spacing:0.15pt;"> </span>with regulatory<span style="letter-spacing:0.1pt;"> </span>requirements,<span style="letter-spacing:0.15pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>safety<span style="letter-spacing:0.05pt;"> </span>monitoring or pharmacovigilance,<span style="letter-spacing:0.15pt;"> </span>and with requirements<span style="letter-spacing:0.15pt;"> </span>related<span style="letter-spacing:0.1pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>of products<span style="letter-spacing:0.05pt;"> </span>for the pediatric<span style="letter-spacing:0.05pt;"> </span>population can also<span style="letter-spacing:0.05pt;"> </span>result<span style="letter-spacing:0.1pt;"> </span>in significant<span style="letter-spacing:0.15pt;"> </span>financial<span style="letter-spacing:0.1pt;"> </span>penalties.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Our current<span style="letter-spacing:0.05pt;"> </span>and future<span style="letter-spacing:0.05pt;"> </span>relationships<span style="letter-spacing:0.1pt;"> </span>with customers<span style="letter-spacing:0.1pt;"> </span>and third-party<span style="letter-spacing:0.1pt;"> </span>payors<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be subject<span style="letter-spacing:0.05pt;"> </span>to applicable anti-kickback,<span style="letter-spacing:0.1pt;"> </span>fraud and abuse, transparency,<span style="letter-spacing:0.05pt;"> </span>health<span style="letter-spacing:0.05pt;"> </span>privacy,<span style="letter-spacing:0.05pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>healthcare<span style="letter-spacing:0.05pt;"> </span>laws and regulations, which could expose<span style="letter-spacing:0.05pt;"> </span>us to significant<span style="letter-spacing:0.1pt;"> </span>penalties,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>criminal,<span style="letter-spacing:0.1pt;"> </span>civil,<span style="letter-spacing:0.1pt;"> </span>and administrative<span style="letter-spacing:0.15pt;"> </span>penalties, contractual<span style="letter-spacing:0.05pt;"> </span>damages,<span style="letter-spacing:0.05pt;"> </span>reputational<span style="letter-spacing:0.1pt;"> </span>harm and diminished<span style="letter-spacing:0.1pt;"> </span>profits<span style="letter-spacing:0.1pt;"> </span>and future<span style="letter-spacing:0.05pt;"> </span>earnings.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Healthcare<span style="letter-spacing:0.15pt;"> </span>providers,<span style="letter-spacing:0.15pt;"> </span>including<span style="letter-spacing:0.1pt;"> </span>physicians,<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>third-party<span style="letter-spacing:0.15pt;"> </span>payors<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>play<span style="letter-spacing:0.05pt;"> </span>a primary<span style="letter-spacing:0.1pt;"> </span>role<span style="letter-spacing:0.05pt;"> </span>in the recommendation<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>prescription<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>obtain<span style="letter-spacing:0.1pt;"> </span>marketing<span style="letter-spacing:0.15pt;"> </span>approval.<span style="letter-spacing:0.05pt;"> </span>Our current and<span style="letter-spacing:0.05pt;"> </span>future<span style="letter-spacing:0.1pt;"> </span>arrangements<span style="letter-spacing:0.2pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>healthcare<span style="letter-spacing:0.15pt;"> </span>providers,<span style="letter-spacing:0.15pt;"> </span>third-party<span style="letter-spacing:0.15pt;"> </span>payors<span style="letter-spacing:0.05pt;"> </span>and customers<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>expose<span style="letter-spacing:0.05pt;"> </span>us to broadly applicable<span style="letter-spacing:0.15pt;"> </span>fraud<span style="letter-spacing:0.1pt;"> </span>and abuse<span style="letter-spacing:0.05pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>healthcare<span style="letter-spacing:0.1pt;"> </span>laws and regulations<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>constrain<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>business<span style="letter-spacing:0.05pt;"> </span>or financial arrangements<span style="letter-spacing:1.1pt;"> </span>and<span style="letter-spacing:0.95pt;"> </span>relationships<span style="letter-spacing:1.05pt;"> </span>through<span style="letter-spacing:0.95pt;"> </span>which<span style="letter-spacing:0.9pt;"> </span>we<span style="letter-spacing:0.9pt;"> </span>research,<span style="letter-spacing:1pt;"> </span>as<span style="letter-spacing:0.9pt;"> </span>well<span style="letter-spacing:0.95pt;"> </span>as,<span style="letter-spacing:0.9pt;"> </span>market,<span style="letter-spacing:1pt;"> </span>sell<span style="letter-spacing:0.95pt;"> </span>and<span style="letter-spacing:0.9pt;"> </span>distribute<span style="letter-spacing:1pt;"> </span>any<span style="letter-spacing:0.9pt;"> </span>products for<span style="letter-spacing:0.1pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>obtain<span style="letter-spacing:0.1pt;"> </span>marketing<span style="letter-spacing:0.15pt;"> </span>approval.<span style="letter-spacing:0.05pt;"> </span>Restrictions<span style="letter-spacing:0.1pt;"> </span>under<span style="letter-spacing:0.05pt;"> </span>applicable<span style="letter-spacing:0.1pt;"> </span>federal<span style="letter-spacing:0.1pt;"> </span>and state<span style="letter-spacing:0.05pt;"> </span>healthcare<span style="letter-spacing:0.1pt;"> </span>laws and regulations<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be applicable<span style="letter-spacing:0.1pt;"> </span>to our business<span style="letter-spacing:0.05pt;"> </span>include<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>following:</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.4pt;"> </span>federal<span style="letter-spacing:0.4pt;"> </span>Anti-Kickback<span style="letter-spacing:0.35pt;"> </span>Statute<span style="letter-spacing:0.35pt;"> </span>prohibits,<span style="letter-spacing:0.4pt;"> </span>among<span style="letter-spacing:0.35pt;"> </span>other<span style="letter-spacing:0.35pt;"> </span>things,<span style="letter-spacing:0.35pt;"> </span>persons<span style="letter-spacing:0.35pt;"> </span>from<span style="letter-spacing:0.35pt;"> </span>knowingly<span style="letter-spacing:0.3pt;"> </span>and<span style="letter-spacing:0.3pt;"> </span>willfully soliciting,<span style="letter-spacing:1.25pt;"> </span>offering,<span style="letter-spacing:1.25pt;"> </span>receiving<span style="letter-spacing:1.25pt;"> </span>or<span style="letter-spacing:1.15pt;"> </span>providing<span style="letter-spacing:1.2pt;"> </span>remuneration,<span style="letter-spacing:1.3pt;"> </span>directly<span style="letter-spacing:1.25pt;"> </span>or<span style="letter-spacing:1.15pt;"> </span>indirectly,<span style="letter-spacing:1.25pt;"> </span>in<span style="letter-spacing:1.15pt;"> </span>cash<span style="letter-spacing:1.2pt;"> </span>or<span style="letter-spacing:1.15pt;"> </span>in<span style="letter-spacing:1.1pt;"> </span>kind,<span style="letter-spacing:1.1pt;"> </span>to induce<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>reward,<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>return<span style="letter-spacing:0.1pt;"> </span>for,<span style="letter-spacing:0.1pt;"> </span>either<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>referral<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>an<span style="letter-spacing:0.05pt;"> </span>individual<span style="letter-spacing:0.15pt;"> </span>for,<span style="letter-spacing:0.05pt;"> </span>or the<span style="letter-spacing:0.05pt;"> </span>purchase,<span style="letter-spacing:0.05pt;"> </span>order<span style="letter-spacing:0.05pt;"> </span>or recommendation<span style="letter-spacing:0.15pt;"> </span>of, any good or service,<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>which payment<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be made<span style="letter-spacing:0.05pt;"> </span>under<span style="letter-spacing:0.05pt;"> </span>a federal<span style="letter-spacing:0.1pt;"> </span>healthcare program<span style="letter-spacing:0.05pt;"> </span>such as Medicare<span style="letter-spacing:0.1pt;"> </span>and Medicaid&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;margin-bottom:0pt;margin-left:3.7%;text-indent:0%;font-size:5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.7pt;"> </span>federal<span style="letter-spacing:0.75pt;"> </span>civil and criminal false claims laws,<span style="letter-spacing:0.7pt;"> </span>including<span style="letter-spacing:0.7pt;"> </span>the<span style="letter-spacing:0.7pt;"> </span>False<span style="letter-spacing:0.7pt;"> </span>Claims<span style="letter-spacing:0.7pt;"> </span>Act,<span style="letter-spacing:0.65pt;"> </span>which<span style="letter-spacing:0.65pt;"> </span>can<span style="letter-spacing:0.65pt;"> </span>be<span style="letter-spacing:0.65pt;"> </span>enforced<span style="letter-spacing:0.7pt;"> </span>by<span style="letter-spacing:0.65pt;"> </span>civil<span style="letter-spacing:0.7pt;"> </span>whistleblower<span style="letter-spacing:0.75pt;"> </span>or<span style="letter-spacing:0.6pt;"> </span>qui tam<span style="letter-spacing:2.4pt;"> </span>actions<span style="letter-spacing:2.4pt;"> </span>on<span style="letter-spacing:2.35pt;"> </span>behalf<span style="letter-spacing:2.4pt;"> </span>of<span style="letter-spacing:2.35pt;"> </span>the<span style="letter-spacing:2.4pt;"> </span>government,<span style="letter-spacing:2.45pt;"> </span>and<span style="letter-spacing:2.35pt;"> </span>criminal<span style="letter-spacing:2.45pt;"> </span>false<span style="letter-spacing:2.4pt;"> </span>claims<span style="letter-spacing:2.45pt;"> </span>laws<span style="letter-spacing:2.35pt;"> </span>and<span style="letter-spacing:2.35pt;"> </span>the<span style="letter-spacing:2.4pt;"> </span>civil<span style="letter-spacing:2.4pt;"> </span>monetary penalties<span style="letter-spacing:0.15pt;"> </span>law,<span style="letter-spacing:0.05pt;"> </span>prohibit<span style="letter-spacing:0.15pt;"> </span>individuals<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>entities<span style="letter-spacing:0.15pt;"> </span>from,<span style="letter-spacing:0.1pt;"> </span>among<span style="letter-spacing:0.1pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>things,<span style="letter-spacing:0.1pt;"> </span>knowingly presenting,<span style="letter-spacing:0.1pt;"> </span>or causing<span style="letter-spacing:0.05pt;"> </span>to be presented<span style="letter-spacing:0.1pt;"> </span>false<span style="letter-spacing:0.05pt;"> </span>or fraudulent<span style="letter-spacing:0.1pt;"> </span>claims<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>payment<span style="letter-spacing:0.05pt;"> </span>by a federal<span style="letter-spacing:0.1pt;"> </span>government<span style="letter-spacing:0.05pt;"> </span>program, or making<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>false<span style="letter-spacing:0.1pt;"> </span>statement<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>record<span style="letter-spacing:0.1pt;"> </span>material<span style="letter-spacing:0.2pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>payment<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>false<span style="letter-spacing:0.1pt;"> </span>claim<span style="letter-spacing:0.1pt;"> </span>or avoiding,<span style="letter-spacing:0.05pt;"> </span>decreasing<span style="letter-spacing:0.1pt;"> </span>or concealing<span style="letter-spacing:0.1pt;"> </span>an obligation<span style="letter-spacing:0.1pt;"> </span>to pay money<span style="letter-spacing:0.05pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>federal<span style="letter-spacing:0.1pt;"> </span>government&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:3.7%;text-indent:0%;font-size:5pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">36</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.8pt;"> </span>federal<span style="letter-spacing:0.85pt;"> </span>Health<span style="letter-spacing:0.8pt;"> </span>Insurance<span style="letter-spacing:0.85pt;"> </span>Portability<span style="letter-spacing:0.85pt;"> </span>and<span style="letter-spacing:0.7pt;"> </span>Accountability<span style="letter-spacing:0.8pt;"> </span>Act<span style="letter-spacing:0.7pt;"> </span>of<span style="letter-spacing:0.7pt;"> </span>1996,<span style="letter-spacing:0.7pt;"> </span>or<span style="letter-spacing:0.7pt;"> </span>HIPAA,<span style="letter-spacing:0.65pt;"> </span>prohibits,<span style="letter-spacing:0.8pt;"> </span>among other<span style="letter-spacing:1.55pt;"> </span>things,<span style="letter-spacing:1.55pt;"> </span>knowingly<span style="letter-spacing:1.5pt;"> </span>and<span style="letter-spacing:1.5pt;"> </span>willfully<span style="letter-spacing:1.6pt;"> </span>executing,<span style="letter-spacing:1.55pt;"> </span>or<span style="letter-spacing:1.5pt;"> </span>attempting<span style="letter-spacing:1.55pt;"> </span>to<span style="letter-spacing:1.45pt;"> </span>execute,<span style="letter-spacing:1.5pt;"> </span>a<span style="letter-spacing:1.45pt;"> </span>scheme<span style="letter-spacing:1.5pt;"> </span>to<span style="letter-spacing:1.45pt;"> </span>defraud<span style="letter-spacing:1.5pt;"> </span>any healthcare<span style="letter-spacing:0.15pt;"> </span>benefit<span style="letter-spacing:0.15pt;"> </span>program,<span style="letter-spacing:0.1pt;"> </span>regardless<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>payor<span style="letter-spacing:0.05pt;"> </span>(e.g.<span style="letter-spacing:0.05pt;"> </span>public<span style="letter-spacing:0.05pt;"> </span>or private),<span style="letter-spacing:0.1pt;"> </span>and knowingly and willfully falsifying,<span style="letter-spacing:0.15pt;"> </span>concealing<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>covering<span style="letter-spacing:0.1pt;"> </span>up<span style="letter-spacing:0.05pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>trick<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>device<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>material<span style="letter-spacing:0.15pt;"> </span>fact<span style="letter-spacing:0.05pt;"> </span>or making<span style="letter-spacing:0.05pt;"> </span>any materially false,<span style="letter-spacing:0.1pt;"> </span>fictitious<span style="letter-spacing:0.2pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>fraudulent<span style="letter-spacing:0.15pt;"> </span>statements<span style="letter-spacing:0.2pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>connection<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>delivery<span style="letter-spacing:0.15pt;"> </span>of, or payment<span style="letter-spacing:0.05pt;"> </span>for,<span style="letter-spacing:0.05pt;"> </span>healthcare benefits,<span style="letter-spacing:0.1pt;"> </span>items<span style="letter-spacing:0.1pt;"> </span>or services<span style="letter-spacing:0.1pt;"> </span>relating<span style="letter-spacing:0.1pt;"> </span>to healthcare<span style="letter-spacing:0.1pt;"> </span>matters&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">HIPAA,<span style="letter-spacing:0.55pt;"> </span>as<span style="letter-spacing:0.6pt;"> </span>amended<span style="letter-spacing:0.65pt;"> </span>by<span style="letter-spacing:0.6pt;"> </span>the<span style="letter-spacing:0.65pt;"> </span>Health<span style="letter-spacing:0.65pt;"> </span>Information<span style="letter-spacing:0.75pt;"> </span>Technology<span style="letter-spacing:0.65pt;"> </span>for<span style="letter-spacing:0.65pt;"> </span>Economic<span style="letter-spacing:0.65pt;"> </span>and<span style="letter-spacing:0.6pt;"> </span>Clinical<span style="letter-spacing:0.7pt;"> </span>Health<span style="letter-spacing:0.65pt;"> </span>Act,<span style="letter-spacing:0.55pt;"> </span>or HITECH, and<span style="letter-spacing:0.05pt;"> </span>their<span style="letter-spacing:0.1pt;"> </span>implementing<span style="letter-spacing:0.2pt;"> </span>regulations,<span style="letter-spacing:0.15pt;"> </span>impose<span style="letter-spacing:0.1pt;"> </span>requirements<span style="letter-spacing:0.15pt;"> </span>on certain<span style="letter-spacing:0.1pt;"> </span>covered<span style="letter-spacing:0.05pt;"> </span>healthcare providers,<span style="letter-spacing:1.4pt;"> </span>health<span style="letter-spacing:1.35pt;"> </span>plans,<span style="letter-spacing:1.35pt;"> </span>and<span style="letter-spacing:1.3pt;"> </span>healthcare<span style="letter-spacing:1.4pt;"> </span>clearinghouses<span style="letter-spacing:1.35pt;"> </span>as<span style="letter-spacing:1.25pt;"> </span>well<span style="letter-spacing:1.3pt;"> </span>as<span style="letter-spacing:1.25pt;"> </span>their<span style="letter-spacing:1.3pt;"> </span>respective<span style="letter-spacing:1.35pt;"> </span>business<span style="letter-spacing:1.3pt;"> </span>associates and<span style="letter-spacing:0.05pt;"> </span>their<span style="letter-spacing:0.1pt;"> </span>subcontractors<span style="letter-spacing:0.2pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>perform<span style="letter-spacing:0.15pt;"> </span>services<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>them<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>involve<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>use, or disclosure<span style="letter-spacing:0.1pt;"> </span>of, individually<span style="letter-spacing:0.15pt;"> </span>identifiable<span style="letter-spacing:0.2pt;"> </span>health<span style="letter-spacing:0.1pt;"> </span>information,<span style="letter-spacing:0.2pt;"> </span>relating<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>privacy,<span style="letter-spacing:0.05pt;"> </span>security,<span style="letter-spacing:0.1pt;"> </span>and transmission<span style="letter-spacing:0.15pt;"> </span>of such individually<span style="letter-spacing:0.1pt;"> </span>identifiable<span style="letter-spacing:0.15pt;"> </span>health<span style="letter-spacing:0.05pt;"> </span>information&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the federal transparency requirements under the Patient Protection and Affordable Care Act, as amended<span style="letter-spacing:0.1pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>Health<span style="letter-spacing:0.1pt;"> </span>Care<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>Education<span style="letter-spacing:0.1pt;"> </span>Reconciliation<span style="letter-spacing:0.15pt;"> </span>Act<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>2010, collectively<span style="letter-spacing:0.15pt;"> </span>referred<span style="letter-spacing:0.1pt;"> </span>to as the ACA,<span style="letter-spacing:1.8pt;"> </span>requires<span style="letter-spacing:1.95pt;"> </span>certain<span style="letter-spacing:1.95pt;"> </span>manufacturers<span style="letter-spacing:1.95pt;"> </span>of<span style="letter-spacing:1.8pt;"> </span>drugs,<span style="letter-spacing:1.85pt;"> </span>devices,<span style="letter-spacing:1.85pt;"> </span>biologics<span style="letter-spacing:1.9pt;"> </span>and<span style="letter-spacing:1.8pt;"> </span>medical<span style="letter-spacing:1.9pt;"> </span>supplies<span style="letter-spacing:1.85pt;"> </span>to<span style="letter-spacing:1.8pt;"> </span>annually report<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>Centers<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>Medicare<span style="letter-spacing:0.15pt;"> </span>&#38;<span style="letter-spacing:0.05pt;"> </span>Medicaid<span style="letter-spacing:0.15pt;"> </span>Services,<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>CMS, information<span style="letter-spacing:0.15pt;"> </span>related<span style="letter-spacing:0.1pt;"> </span>to payments<span style="letter-spacing:0.05pt;"> </span>and other<span style="letter-spacing:2.35pt;"> </span>transfers<span style="letter-spacing:2.4pt;"> </span>of<span style="letter-spacing:2.3pt;"> </span>value<span style="letter-spacing:2.35pt;"> </span>provided<span style="letter-spacing:2.35pt;"> </span>to,<span style="letter-spacing:2.3pt;"> </span>and<span style="letter-spacing:2.3pt;"> </span>ownership<span style="letter-spacing:2.35pt;"> </span>and<span style="letter-spacing:2.3pt;"> </span>investment<span style="letter-spacing:2.4pt;"> </span>interests<span style="letter-spacing:2.4pt;"> </span>held<span style="letter-spacing:2.3pt;"> </span>by,<span style="letter-spacing:2.25pt;"> </span>physicians, defined<span style="letter-spacing:1.3pt;"> </span>to<span style="letter-spacing:1.25pt;"> </span>include<span style="letter-spacing:1.3pt;"> </span>doctors,<span style="letter-spacing:1.25pt;"> </span>dentists,<span style="letter-spacing:1.3pt;"> </span>optometrists,<span style="letter-spacing:1.35pt;"> </span>podiatrists<span style="letter-spacing:1.35pt;"> </span>and<span style="letter-spacing:1.2pt;"> </span>chiropractors,<span style="letter-spacing:1.2pt;"> </span>and<span style="letter-spacing:1.2pt;"> </span>their<span style="letter-spacing:1.25pt;"> </span>immediate family<span style="letter-spacing:0.15pt;"> </span>members.<span style="letter-spacing:0.1pt;"> </span>Beginning<span style="letter-spacing:0.05pt;"> </span>in 2022, applicable<span style="letter-spacing:0.1pt;"> </span>manufacturers<span style="letter-spacing:0.15pt;"> </span>also<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>be required<span style="letter-spacing:0.1pt;"> </span>to report<span style="letter-spacing:0.05pt;"> </span>such information<span style="letter-spacing:0.2pt;"> </span>regarding<span style="letter-spacing:0.15pt;"> </span>payments<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>transfers<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>value<span style="letter-spacing:0.05pt;"> </span>provided,<span style="letter-spacing:0.05pt;"> </span>as well<span style="letter-spacing:0.05pt;"> </span>as ownership<span style="letter-spacing:0.05pt;"> </span>and investment interests<span style="letter-spacing:0.1pt;"> </span>held,<span style="letter-spacing:0.05pt;"> </span>during<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>previous<span style="letter-spacing:0.05pt;"> </span>year<span style="letter-spacing:0.05pt;"> </span>to physician<span style="letter-spacing:0.05pt;"> </span>assistants,<span style="letter-spacing:0.1pt;"> </span>nurse practitioners,<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.05pt;"> </span>nurse specialists,<span style="letter-spacing:0.15pt;"> </span>anesthesiologist<span style="letter-spacing:0.15pt;"> </span>assistants,<span style="letter-spacing:0.1pt;"> </span>certified<span style="letter-spacing:0.15pt;"> </span>nurse<span style="letter-spacing:0.05pt;"> </span>anesthetists<span style="letter-spacing:0.15pt;"> </span>and certified<span style="letter-spacing:0.15pt;"> </span>nurse-midwives&#59;<span style="letter-spacing:0.15pt;"> </span>and</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">analogous<span style="letter-spacing:0.95pt;"> </span>state<span style="letter-spacing:0.95pt;"> </span>laws<span style="letter-spacing:0.85pt;"> </span>and<span style="letter-spacing:0.85pt;"> </span>regulations<span style="letter-spacing:0.95pt;"> </span>such<span style="letter-spacing:0.85pt;"> </span>as<span style="letter-spacing:0.85pt;"> </span>state<span style="letter-spacing:0.9pt;"> </span>anti-kickback<span style="letter-spacing:0.95pt;"> </span>and<span style="letter-spacing:0.85pt;"> </span>false<span style="letter-spacing:0.9pt;"> </span>claims<span style="letter-spacing:0.95pt;"> </span>laws<span style="letter-spacing:0.85pt;"> </span>and<span style="letter-spacing:0.85pt;"> </span>analogous non-U.S. fraud<span style="letter-spacing:0.05pt;"> </span>and abuse<span style="letter-spacing:0.05pt;"> </span>laws and regulations,<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>apply<span style="letter-spacing:0.05pt;"> </span>to sales<span style="letter-spacing:0.05pt;"> </span>or marketing<span style="letter-spacing:0.1pt;"> </span>arrangements<span style="letter-spacing:0.15pt;"> </span>and claims<span style="letter-spacing:0.15pt;"> </span>involving<span style="letter-spacing:0.1pt;"> </span>healthcare<span style="letter-spacing:0.15pt;"> </span>items<span style="letter-spacing:0.1pt;"> </span>or services<span style="letter-spacing:0.1pt;"> </span>reimbursed<span style="letter-spacing:0.1pt;"> </span>by non-governmental<span style="letter-spacing:0.15pt;"> </span>third-party<span style="letter-spacing:0.15pt;"> </span>payors, including<span style="letter-spacing:0.1pt;"> </span>private<span style="letter-spacing:0.15pt;"> </span>insurers.<span style="letter-spacing:0.15pt;"> </span>Some<span style="letter-spacing:0.05pt;"> </span>state<span style="letter-spacing:0.1pt;"> </span>laws<span style="letter-spacing:0.05pt;"> </span>require<span style="letter-spacing:0.1pt;"> </span>pharmaceutical<span style="letter-spacing:0.15pt;"> </span>companies<span style="letter-spacing:0.1pt;"> </span>to comply<span style="letter-spacing:0.05pt;"> </span>with the pharmaceutical<span style="letter-spacing:0.15pt;"> </span>industry&#8217;s<span style="letter-spacing:0.1pt;"> </span>voluntary<span style="letter-spacing:0.05pt;"> </span>compliance<span style="letter-spacing:0.1pt;"> </span>guidelines<span style="letter-spacing:0.1pt;"> </span>and the<span style="letter-spacing:0.05pt;"> </span>relevant<span style="letter-spacing:0.1pt;"> </span>compliance<span style="letter-spacing:0.05pt;"> </span>regulations promulgated<span style="letter-spacing:0.15pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>federal<span style="letter-spacing:0.15pt;"> </span>government<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>require<span style="letter-spacing:0.1pt;"> </span>drug manufacturers<span style="letter-spacing:0.15pt;"> </span>to report<span style="letter-spacing:0.05pt;"> </span>information related<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>payments<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>transfers<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>value<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>physicians<span style="letter-spacing:0.15pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>healthcare<span style="letter-spacing:0.1pt;"> </span>providers,<span style="letter-spacing:0.1pt;"> </span>marketing expenditures,<span style="letter-spacing:0.1pt;"> </span>or drug pricing,<span style="letter-spacing:0.05pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>price<span style="letter-spacing:0.05pt;"> </span>increases.<span style="letter-spacing:0.1pt;"> </span>State<span style="letter-spacing:0.05pt;"> </span>and local<span style="letter-spacing:0.05pt;"> </span>laws require<span style="letter-spacing:0.1pt;"> </span>the registration<span style="letter-spacing:0.1pt;"> </span>of pharmaceutical<span style="letter-spacing:0.2pt;"> </span>sales<span style="letter-spacing:0.1pt;"> </span>representatives.<span style="letter-spacing:0.2pt;"> </span>State<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>non-U.S.<span style="letter-spacing:0.05pt;"> </span>laws<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>also<span style="letter-spacing:0.05pt;"> </span>govern<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>privacy<span style="letter-spacing:0.05pt;"> </span>and security of<span style="letter-spacing:0.05pt;"> </span>health<span style="letter-spacing:0.1pt;"> </span>information<span style="letter-spacing:0.2pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>some<span style="letter-spacing:0.1pt;"> </span>circumstances,<span style="letter-spacing:0.2pt;"> </span>many<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>differ<span style="letter-spacing:0.15pt;"> </span>from<span style="letter-spacing:0.1pt;"> </span>each<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.05pt;"> </span>in significant<span style="letter-spacing:0.15pt;"> </span>ways and often<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>not preempted<span style="letter-spacing:0.1pt;"> </span>by HIPAA,<span style="letter-spacing:-0.05pt;"> </span>thus<span style="letter-spacing:0.05pt;"> </span>complicating<span style="letter-spacing:0.15pt;"> </span>compliance<span style="letter-spacing:0.1pt;"> </span>efforts.</p></td></tr></table></div>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Efforts<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>ensure<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>our business<span style="letter-spacing:0.05pt;"> </span>arrangements<span style="letter-spacing:0.15pt;"> </span>with third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.1pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>comply<span style="letter-spacing:0.05pt;"> </span>with applicable<span style="letter-spacing:0.1pt;"> </span>healthcare laws and regulations<span style="letter-spacing:0.1pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>involve<span style="letter-spacing:0.05pt;"> </span>substantial<span style="letter-spacing:0.1pt;"> </span>costs.<span style="letter-spacing:0.05pt;"> </span>It<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>possible<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>governmental<span style="letter-spacing:0.05pt;"> </span>authorities<span style="letter-spacing:0.1pt;"> </span>will conclude that our business practices may not comply with current or future statutes, regulations or case law involving applicable<span style="letter-spacing:0.15pt;"> </span>fraud<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>abuse<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>healthcare<span style="letter-spacing:0.15pt;"> </span>laws<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>regulations.<span style="letter-spacing:0.15pt;"> </span>If<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>operations<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>found to be in violation of<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>these<span style="letter-spacing:0.1pt;"> </span>laws or any other<span style="letter-spacing:0.05pt;"> </span>governmental<span style="letter-spacing:0.1pt;"> </span>regulations<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>apply<span style="letter-spacing:0.05pt;"> </span>to us, we may<span style="letter-spacing:0.05pt;"> </span>be subject<span style="letter-spacing:0.05pt;"> </span>to significant civil,<span style="letter-spacing:0.05pt;"> </span>criminal<span style="letter-spacing:0.1pt;"> </span>and administrative<span style="letter-spacing:0.2pt;"> </span>penalties,<span style="letter-spacing:0.1pt;"> </span>damages,<span style="letter-spacing:0.05pt;"> </span>fines,<span style="letter-spacing:0.05pt;"> </span>disgorgement,<span style="letter-spacing:0.1pt;"> </span>imprisonment,<span style="letter-spacing:0.15pt;"> </span>exclusion<span style="letter-spacing:0.05pt;"> </span>from government<span style="letter-spacing:0.15pt;"> </span>funded<span style="letter-spacing:0.1pt;"> </span>healthcare<span style="letter-spacing:0.15pt;"> </span>programs,<span style="letter-spacing:0.15pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>Medicare<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>Medicaid<span style="letter-spacing:0.15pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>federal<span style="letter-spacing:0.1pt;"> </span>healthcare<span style="letter-spacing:0.1pt;"> </span>programs, contractual<span style="letter-spacing:0.15pt;"> </span>damages,<span style="letter-spacing:0.1pt;"> </span>reputational<span style="letter-spacing:0.2pt;"> </span>harm,<span style="letter-spacing:0.1pt;"> </span>diminished<span style="letter-spacing:0.1pt;"> </span>profits<span style="letter-spacing:0.1pt;"> </span>and future<span style="letter-spacing:0.05pt;"> </span>earnings,<span style="letter-spacing:0.05pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>integrity<span style="letter-spacing:0.1pt;"> </span>reporting<span style="letter-spacing:0.1pt;"> </span>and oversight<span style="letter-spacing:0.15pt;"> </span>obligations,<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>curtailment<span style="letter-spacing:0.15pt;"> </span>or restructuring<span style="letter-spacing:0.15pt;"> </span>of our operations,<span style="letter-spacing:0.1pt;"> </span>any of which could<span style="letter-spacing:0.05pt;"> </span>adversely<span style="letter-spacing:0.1pt;"> </span>affect our<span style="letter-spacing:0.05pt;"> </span>ability<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>operate<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>business<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>results<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>operations.<span style="letter-spacing:0.1pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>any of the<span style="letter-spacing:0.05pt;"> </span>physicians<span style="letter-spacing:0.1pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>healthcare providers<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>entities<span style="letter-spacing:0.15pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>whom<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>expect<span style="letter-spacing:0.1pt;"> </span>to do business<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>found to be not in compliance<span style="letter-spacing:0.1pt;"> </span>with applicable<span style="letter-spacing:0.1pt;"> </span>laws, they<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>subject<span style="letter-spacing:0.05pt;"> </span>to significant<span style="letter-spacing:0.15pt;"> </span>criminal,<span style="letter-spacing:0.1pt;"> </span>civil<span style="letter-spacing:0.05pt;"> </span>and administrative<span style="letter-spacing:0.2pt;"> </span>sanctions,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>exclusions<span style="letter-spacing:0.1pt;"> </span>from government<span style="letter-spacing:0.15pt;"> </span>funded<span style="letter-spacing:0.05pt;"> </span>healthcare<span style="letter-spacing:0.1pt;"> </span>programs,<span style="letter-spacing:0.1pt;"> </span>which could<span style="letter-spacing:0.05pt;"> </span>have a material<span style="letter-spacing:0.15pt;"> </span>adverse<span style="letter-spacing:0.05pt;"> </span>effect<span style="letter-spacing:0.1pt;"> </span>on our business,<span style="letter-spacing:0.05pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>of operations,<span style="letter-spacing:0.1pt;"> </span>financial<span style="letter-spacing:0.1pt;"> </span>condition<span style="letter-spacing:0.05pt;"> </span>and prospects.</p>
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Recently<span style="letter-spacing:0.05pt;"> </span>enacted<span style="letter-spacing:0.05pt;"> </span>and future<span style="letter-spacing:0.05pt;"> </span>legislation<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>increase<span style="letter-spacing:0.05pt;"> </span>the difficulty<span style="letter-spacing:0.15pt;"> </span>and cost<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>us to obtain<span style="letter-spacing:0.05pt;"> </span>marketing approval<span style="letter-spacing:0.05pt;"> </span>of and commercialize<span style="letter-spacing:0.15pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.05pt;"> </span>and decrease<span style="letter-spacing:0.05pt;"> </span>the prices<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>obtain.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>United<span style="letter-spacing:0.1pt;"> </span>States<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>some<span style="letter-spacing:0.1pt;"> </span>foreign<span style="letter-spacing:0.1pt;"> </span>jurisdictions,<span style="letter-spacing:0.2pt;"> </span>there<span style="letter-spacing:0.1pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>been<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>number<span style="letter-spacing:0.05pt;"> </span>of legislative<span style="letter-spacing:0.15pt;"> </span>and regulatory changes<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>proposed<span style="letter-spacing:0.1pt;"> </span>changes<span style="letter-spacing:0.1pt;"> </span>regarding<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>healthcare<span style="letter-spacing:0.1pt;"> </span>system<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>prevent<span style="letter-spacing:0.05pt;"> </span>or delay<span style="letter-spacing:0.05pt;"> </span>marketing<span style="letter-spacing:0.1pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>of our<span style="letter-spacing:1.2pt;"> </span>product<span style="letter-spacing:1.25pt;"> </span>candidates,<span style="letter-spacing:1.3pt;"> </span>restrict<span style="letter-spacing:1.35pt;"> </span>or<span style="letter-spacing:1.2pt;"> </span>regulate<span style="letter-spacing:1.3pt;"> </span>post-approval<span style="letter-spacing:1.3pt;"> </span>activities<span style="letter-spacing:1.35pt;"> </span>and<span style="letter-spacing:1.2pt;"> </span>affect<span style="letter-spacing:1.3pt;"> </span>our<span style="letter-spacing:1.2pt;"> </span>ability<span style="letter-spacing:1.25pt;"> </span>to<span style="letter-spacing:1.15pt;"> </span>profitably<span style="letter-spacing:1.25pt;"> </span>sell<span style="letter-spacing:1.2pt;"> </span>any product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>which we obtain<span style="letter-spacing:0.05pt;"> </span>marketing<span style="letter-spacing:0.1pt;"> </span>approval.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">For<span style="letter-spacing:0.55pt;"> </span>example,<span style="letter-spacing:0.6pt;"> </span>he<span style="letter-spacing:0.55pt;"> </span>ACA was enacted,<span style="letter-spacing:0.45pt;"> </span>a<span style="letter-spacing:0.5pt;"> </span>sweeping<span style="letter-spacing:0.55pt;"> </span>law<span style="letter-spacing:0.5pt;"> </span>intended to<span style="letter-spacing:0.05pt;"> </span>broaden<span style="letter-spacing:0.1pt;"> </span>access<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>health<span style="letter-spacing:0.1pt;"> </span>insurance,<span style="letter-spacing:0.15pt;"> </span>reduce<span style="letter-spacing:0.05pt;"> </span>or constrain<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>growth of healthcare<span style="letter-spacing:0.1pt;"> </span>spending,<span style="letter-spacing:0.05pt;"> </span>enhance<span style="letter-spacing:0.05pt;"> </span>remedies against<span style="letter-spacing:0.1pt;"> </span>fraud<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>abuse,<span style="letter-spacing:0.1pt;"> </span>add<span style="letter-spacing:0.05pt;"> </span>new<span style="letter-spacing:0.05pt;"> </span>transparency<span style="letter-spacing:0.15pt;"> </span>requirements<span style="letter-spacing:0.2pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>healthcare<span style="letter-spacing:0.1pt;"> </span>and health<span style="letter-spacing:0.05pt;"> </span>insurance<span style="letter-spacing:0.1pt;"> </span>industries, impose<span style="letter-spacing:0.05pt;"> </span>new taxes<span style="letter-spacing:0.05pt;"> </span>and fees<span style="letter-spacing:0.05pt;"> </span>on the<span style="letter-spacing:0.05pt;"> </span>health<span style="letter-spacing:0.05pt;"> </span>industry<span style="letter-spacing:0.05pt;"> </span>and impose<span style="letter-spacing:0.05pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>health<span style="letter-spacing:0.05pt;"> </span>policy<span style="letter-spacing:0.05pt;"> </span>reforms.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Among the<span style="letter-spacing:0.05pt;"> </span>provisions<span style="letter-spacing:0.1pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>ACA<span style="letter-spacing:-0.05pt;"> </span>of importance<span style="letter-spacing:0.1pt;"> </span>to our potential<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>following:</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6.5pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">37</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">annual<span style="letter-spacing:0.05pt;"> </span>fees<span style="letter-spacing:0.05pt;"> </span>and taxes<span style="letter-spacing:0.05pt;"> </span>on manufacturers<span style="letter-spacing:0.15pt;"> </span>of certain<span style="letter-spacing:0.1pt;"> </span>branded<span style="letter-spacing:0.05pt;"> </span>prescription<span style="letter-spacing:0.15pt;"> </span>drugs&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">an<span style="letter-spacing:0.35pt;"> </span>annual,<span style="letter-spacing:0.4pt;"> </span>nondeductible<span style="letter-spacing:0.45pt;"> </span>fee<span style="letter-spacing:0.4pt;"> </span>on<span style="letter-spacing:0.35pt;"> </span>any<span style="letter-spacing:0.3pt;"> </span>entity<span style="letter-spacing:0.35pt;"> </span>that<span style="letter-spacing:0.35pt;"> </span>manufactures<span style="letter-spacing:0.45pt;"> </span>or<span style="letter-spacing:0.3pt;"> </span>imports<span style="letter-spacing:0.4pt;"> </span>specified<span style="letter-spacing:0.4pt;"> </span>branded<span style="letter-spacing:0.35pt;"> </span>prescription drugs<span style="letter-spacing:0.05pt;"> </span>and biologic<span style="letter-spacing:0.05pt;"> </span>products&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">a<span style="letter-spacing:1.3pt;"> </span>new<span style="letter-spacing:1.3pt;"> </span>Medicare<span style="letter-spacing:1.4pt;"> </span>Part<span style="letter-spacing:1.35pt;"> </span>D<span style="letter-spacing:1.3pt;"> </span>coverage<span style="letter-spacing:1.35pt;"> </span>gap<span style="letter-spacing:1.3pt;"> </span>discount<span style="letter-spacing:1.35pt;"> </span>program,<span style="letter-spacing:1.35pt;"> </span>in<span style="letter-spacing:1.3pt;"> </span>which<span style="letter-spacing:1.3pt;"> </span>manufacturers<span style="letter-spacing:1.45pt;"> </span>must<span style="letter-spacing:1.35pt;"> </span>now<span style="letter-spacing:1.25pt;"> </span>agree<span style="letter-spacing:1.3pt;"> </span>to offer 70% point-of-sale discounts off negotiated prices of applicable brand drugs to eligible beneficiaries<span style="letter-spacing:0.2pt;"> </span>during<span style="letter-spacing:0.1pt;"> </span>their<span style="letter-spacing:0.1pt;"> </span>coverage<span style="letter-spacing:0.1pt;"> </span>gap<span style="letter-spacing:0.05pt;"> </span>period,<span style="letter-spacing:0.1pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>a condition<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>manufacturer&#8217;s<span style="letter-spacing:0.15pt;"> </span>outpatient<span style="letter-spacing:0.1pt;"> </span>drugs<span style="letter-spacing:0.05pt;"> </span>to be covered<span style="letter-spacing:0.05pt;"> </span>under<span style="letter-spacing:0.05pt;"> </span>Medicare<span style="letter-spacing:0.1pt;"> </span>Part<span style="letter-spacing:0.05pt;"> </span>D&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">a new methodology by which rebates owed by manufacturers under the Medicaid Drug Rebate Program<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>calculated<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>drugs<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>inhaled,<span style="letter-spacing:0.05pt;"> </span>infused,<span style="letter-spacing:0.05pt;"> </span>instilled,<span style="letter-spacing:0.1pt;"> </span>implanted<span style="letter-spacing:0.1pt;"> </span>or injected&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">an<span style="letter-spacing:0.05pt;"> </span>increase<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>statutory<span style="letter-spacing:0.15pt;"> </span>minimum<span style="letter-spacing:0.15pt;"> </span>rebates<span style="letter-spacing:0.15pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>manufacturer<span style="letter-spacing:0.2pt;"> </span>must<span style="letter-spacing:0.1pt;"> </span>pay<span style="letter-spacing:0.05pt;"> </span>under<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>Medicaid<span style="letter-spacing:0.1pt;"> </span>Drug Rebate Program<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>extended<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>rebate<span style="letter-spacing:0.1pt;"> </span>program<span style="letter-spacing:0.1pt;"> </span>to individuals<span style="letter-spacing:0.1pt;"> </span>enrolled<span style="letter-spacing:0.1pt;"> </span>in Medicaid<span style="letter-spacing:0.1pt;"> </span>managed<span style="letter-spacing:0.05pt;"> </span>care organizations&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">expansion<span style="letter-spacing:1.35pt;"> </span>of<span style="letter-spacing:1.3pt;"> </span>healthcare<span style="letter-spacing:1.4pt;"> </span>fraud<span style="letter-spacing:1.35pt;"> </span>and<span style="letter-spacing:1.3pt;"> </span>abuse<span style="letter-spacing:1.35pt;"> </span>laws,<span style="letter-spacing:1.3pt;"> </span>including<span style="letter-spacing:1.35pt;"> </span>the<span style="letter-spacing:1.35pt;"> </span>False<span style="letter-spacing:1.35pt;"> </span>Claims<span style="letter-spacing:1.35pt;"> </span>Act<span style="letter-spacing:1.25pt;"> </span>and<span style="letter-spacing:1.25pt;"> </span>the<span style="letter-spacing:1.3pt;"> </span>federal<span style="letter-spacing:1.35pt;"> </span>Anti- Kickback<span style="letter-spacing:0.05pt;"> </span>Statute,<span style="letter-spacing:0.05pt;"> </span>new government<span style="letter-spacing:0.1pt;"> </span>investigative<span style="letter-spacing:0.15pt;"> </span>powers, and enhanced<span style="letter-spacing:0.05pt;"> </span>penalties<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>noncompliance&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">extension<span style="letter-spacing:0.05pt;"> </span>of manufacturers&#8217;<span style="letter-spacing:0.15pt;"> </span>Medicaid<span style="letter-spacing:0.1pt;"> </span>rebate<span style="letter-spacing:0.05pt;"> </span>liability&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">expansion<span style="letter-spacing:0.05pt;"> </span>of eligibility<span style="letter-spacing:0.15pt;"> </span>criteria<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>Medicaid<span style="letter-spacing:0.1pt;"> </span>programs&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">expansion<span style="letter-spacing:0.6pt;"> </span>of<span style="letter-spacing:0.55pt;"> </span>the<span style="letter-spacing:0.55pt;"> </span>entities<span style="letter-spacing:0.6pt;"> </span>eligible<span style="letter-spacing:0.6pt;"> </span>for<span style="letter-spacing:0.55pt;"> </span>discounts<span style="letter-spacing:0.55pt;"> </span>under<span style="letter-spacing:0.55pt;"> </span>the<span style="letter-spacing:0.55pt;"> </span>Public<span style="letter-spacing:0.55pt;"> </span>Health<span style="letter-spacing:0.55pt;"> </span>Service<span style="letter-spacing:0.55pt;"> </span>pharmaceutical<span style="letter-spacing:0.65pt;"> </span>pricing program&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">requirements<span style="letter-spacing:1.35pt;"> </span>to<span style="letter-spacing:1.2pt;"> </span>report<span style="letter-spacing:1.25pt;"> </span>financial<span style="letter-spacing:1.3pt;"> </span>arrangements<span style="letter-spacing:1.35pt;"> </span>with<span style="letter-spacing:1.2pt;"> </span>physicians,<span style="letter-spacing:1.3pt;"> </span>as<span style="letter-spacing:1.2pt;"> </span>defined<span style="letter-spacing:1.25pt;"> </span>by<span style="letter-spacing:1.2pt;"> </span>such<span style="letter-spacing:1.2pt;"> </span>law,<span style="letter-spacing:1.2pt;"> </span>and<span style="letter-spacing:1.2pt;"> </span>teaching hospitals&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">a requirement to annually report drug samples that manufacturers and distributors provide to physicians&#59;<span style="letter-spacing:0.1pt;"> </span>and</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">a Patient-Centered Outcomes Research Institute to oversee, identify priorities in, and conduct comparative<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>effectiveness<span style="letter-spacing:0.15pt;"> </span>research,<span style="letter-spacing:0.1pt;"> </span>along<span style="letter-spacing:0.05pt;"> </span>with funding<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>such research.</p></td></tr></table></div>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">There have been legislative and judicial efforts<span style="letter-spacing:0.2pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>repeal<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>replace<span style="letter-spacing:0.15pt;"> </span>certain<span style="letter-spacing:0.15pt;"> </span>aspects<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>ACA, including measures taken during the Trump administration. While<span style="letter-spacing:0.05pt;"> </span>Congress<span style="letter-spacing:0.05pt;"> </span>has not passed<span style="letter-spacing:0.05pt;"> </span>comprehensive<span style="letter-spacing:0.1pt;"> </span>repeal<span style="letter-spacing:0.05pt;"> </span>legislation,<span style="letter-spacing:0.15pt;"> </span>it<span style="letter-spacing:0.05pt;"> </span>has enacted<span style="letter-spacing:0.05pt;"> </span>laws that<span style="letter-spacing:0.05pt;"> </span>modify certain provisions<span style="letter-spacing:0.7pt;"> </span>of<span style="letter-spacing:0.6pt;"> </span>the<span style="letter-spacing:0.65pt;"> </span>ACA<span style="letter-spacing:0.55pt;"> </span>such<span style="letter-spacing:0.6pt;"> </span>as<span style="letter-spacing:0.6pt;"> </span>removing<span style="letter-spacing:0.65pt;"> </span>penalties, starting<span style="letter-spacing:0.7pt;"> </span>January<span style="letter-spacing:0.65pt;"> </span>1,<span style="letter-spacing:0.6pt;"> </span>2019,<span style="letter-spacing:0.55pt;"> </span>for<span style="letter-spacing:0.6pt;"> </span>not<span style="letter-spacing:0.55pt;"> </span>complying<span style="letter-spacing:0.6pt;"> </span>with<span style="letter-spacing:0.55pt;"> </span>the<span style="letter-spacing:0.6pt;"> </span>ACA&#8217;s individual<span style="letter-spacing:0.15pt;"> </span>mandate<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>carry<span style="letter-spacing:0.05pt;"> </span>health<span style="letter-spacing:0.05pt;"> </span>insurance,<span style="letter-spacing:0.1pt;"> </span>eliminating<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>implementation<span style="letter-spacing:0.15pt;"> </span>of certain<span style="letter-spacing:0.1pt;"> </span>ACA-mandated<span style="letter-spacing:0.05pt;"> </span>fees,<span style="letter-spacing:0.05pt;"> </span>and increasing<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>point-of-sale<span style="letter-spacing:0.2pt;"> </span>discount<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>owed<span style="letter-spacing:0.05pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>pharmaceutical<span style="letter-spacing:0.2pt;"> </span>manufacturers<span style="letter-spacing:0.2pt;"> </span>who participate<span style="letter-spacing:0.15pt;"> </span>in Medicare Part<span style="letter-spacing:0.1pt;"> </span>D.<span style="letter-spacing:0.05pt;"> </span>In November 2020, the United States Supreme Court <span style="letter-spacing:0.1pt;">held oral arguments on the U.S. Court of Appeals for the Fifth Circuit&#8217;s decision that held that the individual mandate is unconstitutional.</span><span style="letter-spacing:0.05pt;"> </span>It<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>unclear how such litigation<span style="letter-spacing:0.15pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>efforts<span style="letter-spacing:0.1pt;"> </span>to repeal<span style="letter-spacing:0.05pt;"> </span>and replace<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>ACA<span style="letter-spacing:-0.05pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>impact<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>ACA<span style="letter-spacing:-0.05pt;"> </span>and our business.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In<span style="letter-spacing:0.1pt;"> </span>addition,<span style="letter-spacing:0.15pt;"> </span>other<span style="letter-spacing:0.15pt;"> </span>legislative<span style="letter-spacing:0.25pt;"> </span>changes<span style="letter-spacing:0.15pt;"> </span>have<span style="letter-spacing:0.1pt;"> </span>been<span style="letter-spacing:0.1pt;"> </span>proposed<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.1pt;"> </span>adopted<span style="letter-spacing:0.15pt;"> </span>since<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>ACA was<span style="letter-spacing:0.05pt;"> </span>enacted.<span style="letter-spacing:0.1pt;"> </span>On August<span style="letter-spacing:1.15pt;"> </span>2,<span style="letter-spacing:1.15pt;"> </span>2011,<span style="letter-spacing:1.15pt;"> </span>the<span style="letter-spacing:1.2pt;"> </span>Budget<span style="letter-spacing:1.15pt;"> </span>Control<span style="letter-spacing:1.2pt;"> </span>Act<span style="letter-spacing:1.15pt;"> </span>of<span style="letter-spacing:1.15pt;"> </span>2011<span style="letter-spacing:1.15pt;"> </span>was<span style="letter-spacing:1.15pt;"> </span>signed<span style="letter-spacing:1.15pt;"> </span>into<span style="letter-spacing:1.15pt;"> </span>law,<span style="letter-spacing:1.1pt;"> </span>which,<span style="letter-spacing:1.1pt;"> </span>among<span style="letter-spacing:1.15pt;"> </span>other<span style="letter-spacing:1.15pt;"> </span>things,<span style="letter-spacing:1.15pt;"> </span>created<span style="letter-spacing:1.2pt;"> </span>the Joint<span style="letter-spacing:0.1pt;"> </span>Select<span style="letter-spacing:0.1pt;"> </span>Committee<span style="letter-spacing:0.15pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>Deficit<span style="letter-spacing:0.15pt;"> </span>Reduction<span style="letter-spacing:0.05pt;"> </span>to recommend<span style="letter-spacing:0.1pt;"> </span>to Congress<span style="letter-spacing:0.05pt;"> </span>proposals<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>spending<span style="letter-spacing:0.05pt;"> </span>reductions.<span style="letter-spacing:0.1pt;"> </span>The Joint Select Committee did not achieve a targeted deficit reduction, triggering the legislation&#8217;s automatic reduction<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>several<span style="letter-spacing:0.15pt;"> </span>government<span style="letter-spacing:0.15pt;"> </span>programs.<span style="letter-spacing:0.15pt;"> </span>These<span style="letter-spacing:0.05pt;"> </span>changes<span style="letter-spacing:0.1pt;"> </span>include<span style="letter-spacing:0.1pt;"> </span>aggregate<span style="letter-spacing:0.15pt;"> </span>reductions<span style="letter-spacing:0.1pt;"> </span>to Medicare<span style="letter-spacing:0.1pt;"> </span>payments<span style="letter-spacing:0.05pt;"> </span>to providers<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>up<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>2%<span style="letter-spacing:0.05pt;"> </span>per<span style="letter-spacing:0.1pt;"> </span>fiscal<span style="letter-spacing:0.1pt;"> </span>year,<span style="letter-spacing:0.05pt;"> </span>which began in 2013, and due to subsequent<span style="letter-spacing:0.05pt;"> </span>legislative<span style="letter-spacing:0.15pt;"> </span>amendments<span style="letter-spacing:0.1pt;"> </span>to the statute,<span style="letter-spacing:0.15pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>remain<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>effect<span style="letter-spacing:0.15pt;"> </span>through<span style="letter-spacing:0.1pt;"> </span>2030<span style="letter-spacing:0.05pt;"> </span>unless<span style="letter-spacing:0.1pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>Congressional<span style="letter-spacing:0.1pt;"> </span>action<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>taken.<span style="letter-spacing:0.05pt;"> </span>The Coronavirus<span style="letter-spacing:0.05pt;"> </span>Aid, Relief,<span style="letter-spacing:2.15pt;"> </span>and<span style="letter-spacing:2.1pt;"> </span>Economic<span style="letter-spacing:2.15pt;"> </span>Security<span style="letter-spacing:2.15pt;"> </span>Act,<span style="letter-spacing:2.1pt;"> </span>or<span style="letter-spacing:2.1pt;"> </span>the<span style="letter-spacing:2.15pt;"> </span>CARES<span style="letter-spacing:2pt;"> </span>Act,<span style="letter-spacing:2.1pt;"> </span>which<span style="letter-spacing:2.1pt;"> </span>was<span style="letter-spacing:2.1pt;"> </span>signed<span style="letter-spacing:2.15pt;"> </span>into<span style="letter-spacing:2.15pt;"> </span>law<span style="letter-spacing:2.1pt;"> </span>in<span style="letter-spacing:2.05pt;"> </span>March<span style="letter-spacing:2.1pt;"> </span>2020<span style="letter-spacing:2.05pt;"> </span>and<span style="letter-spacing:2.05pt;"> </span>is designed<span style="letter-spacing:0.05pt;"> </span>to provide<span style="letter-spacing:0.05pt;"> </span>financial<span style="letter-spacing:0.1pt;"> </span>support<span style="letter-spacing:0.05pt;"> </span>and resources<span style="letter-spacing:0.1pt;"> </span>to individuals<span style="letter-spacing:0.1pt;"> </span>and businesses<span style="letter-spacing:0.1pt;"> </span>affected<span style="letter-spacing:0.1pt;"> </span>by the COVID-19 pandemic,<span style="letter-spacing:0.85pt;"> </span>suspended<span style="letter-spacing:0.85pt;"> </span>the<span style="letter-spacing:0.8pt;"> </span>2%<span style="letter-spacing:0.75pt;"> </span>Medicare<span style="letter-spacing:0.85pt;"> </span>sequester<span style="letter-spacing:0.85pt;"> </span>from<span style="letter-spacing:0.8pt;"> </span>May<span style="letter-spacing:0.75pt;"> </span>1,<span style="letter-spacing:0.75pt;"> </span>2020<span style="letter-spacing:0.75pt;"> </span>through<span style="letter-spacing:0.8pt;"> </span>December<span style="letter-spacing:0.8pt;"> </span>31,<span style="letter-spacing:0.75pt;"> </span>2020,<span style="letter-spacing:0.75pt;"> </span>and<span style="letter-spacing:0.75pt;"> </span>extended the<span style="letter-spacing:0.1pt;"> </span>sequester<span style="letter-spacing:0.15pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>one<span style="letter-spacing:0.05pt;"> </span>year,<span style="letter-spacing:0.1pt;"> </span>through<span style="letter-spacing:0.1pt;"> </span>2030.<span style="letter-spacing:0.05pt;"> </span>The Consolidated Appropriations Act, 2021 extended the suspension of the 2% Medicare sequester through March 31, 2021. In January<span style="letter-spacing:0.05pt;"> </span>2013, the<span style="letter-spacing:0.05pt;"> </span>American<span style="letter-spacing:0.05pt;"> </span>Taxpayer<span style="letter-spacing:0.05pt;"> </span>Relief<span style="letter-spacing:0.05pt;"> </span>Act of 2012 was signed into<span style="letter-spacing:0.65pt;"> </span>law,<span style="letter-spacing:0.6pt;"> </span>which,<span style="letter-spacing:0.6pt;"> </span>among<span style="letter-spacing:0.65pt;"> </span>other<span style="letter-spacing:0.65pt;"> </span>things,<span style="letter-spacing:0.65pt;"> </span>reduced<span style="letter-spacing:0.65pt;"> </span>Medicare<span style="letter-spacing:0.7pt;"> </span>payments<span style="letter-spacing:0.65pt;"> </span>to<span style="letter-spacing:0.6pt;"> </span>several<span style="letter-spacing:0.7pt;"> </span>providers,<span style="letter-spacing:0.7pt;"> </span>and<span style="letter-spacing:0.6pt;"> </span>increased<span style="letter-spacing:0.65pt;"> </span>the<span style="letter-spacing:0.6pt;"> </span>statute of<span style="letter-spacing:1.1pt;"> </span>limitations<span style="letter-spacing:1.25pt;"> </span>period<span style="letter-spacing:1.15pt;"> </span>for<span style="letter-spacing:1.15pt;"> </span>the<span style="letter-spacing:1.15pt;"> </span>government<span style="letter-spacing:1.2pt;"> </span>to<span style="letter-spacing:1.05pt;"> </span>recover<span style="letter-spacing:1.1pt;"> </span>overpayments<span style="letter-spacing:1.15pt;"> </span>to<span style="letter-spacing:1.05pt;"> </span>providers<span style="letter-spacing:1.15pt;"> </span>from<span style="letter-spacing:1.1pt;"> </span>three<span style="letter-spacing:1.1pt;"> </span>to<span style="letter-spacing:1.05pt;"> </span>five<span style="letter-spacing:1.1pt;"> </span>years.<span style="letter-spacing:1.1pt;"> </span>These laws may<span style="letter-spacing:0.05pt;"> </span>result<span style="letter-spacing:0.1pt;"> </span>in additional<span style="letter-spacing:0.1pt;"> </span>reductions<span style="letter-spacing:0.1pt;"> </span>in Medicare<span style="letter-spacing:0.1pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>healthcare<span style="letter-spacing:0.1pt;"> </span>funding.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Further,<span style="letter-spacing:0.05pt;"> </span>there<span style="letter-spacing:0.05pt;"> </span>has been heightened<span style="letter-spacing:0.05pt;"> </span>governmental<span style="letter-spacing:0.1pt;"> </span>scrutiny<span style="letter-spacing:0.1pt;"> </span>recently<span style="letter-spacing:0.1pt;"> </span>over<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>manner<span style="letter-spacing:0.05pt;"> </span>in which drug manufacturers<span style="letter-spacing:0.2pt;"> </span>set<span style="letter-spacing:0.1pt;"> </span>prices<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>their<span style="letter-spacing:0.1pt;"> </span>marketed<span style="letter-spacing:0.15pt;"> </span>products,<span style="letter-spacing:0.1pt;"> </span>which has resulted<span style="letter-spacing:0.1pt;"> </span>in several<span style="letter-spacing:0.1pt;"> </span>Congressional<span style="letter-spacing:0.1pt;"> </span>inquiries<span style="letter-spacing:0.1pt;"> </span>and proposed<span style="letter-spacing:0.05pt;"> </span>and enacted<span style="letter-spacing:0.05pt;"> </span>federal<span style="letter-spacing:0.1pt;"> </span>and state<span style="letter-spacing:0.05pt;"> </span>legislation<span style="letter-spacing:0.15pt;"> </span>designed<span style="letter-spacing:0.05pt;"> </span>to, among<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.05pt;"> </span>things,<span style="letter-spacing:0.05pt;"> </span>bring<span style="letter-spacing:0.05pt;"> </span>more<span style="letter-spacing:0.05pt;"> </span>transparency<span style="letter-spacing:0.1pt;"> </span>to product<span style="letter-spacing:0.1pt;"> </span>pricing,<span style="letter-spacing:0.1pt;"> </span>review<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>relationship<span style="letter-spacing:0.15pt;"> </span>between<span style="letter-spacing:0.05pt;"> </span>pricing<span style="letter-spacing:0.05pt;"> </span>and manufacturer<span style="letter-spacing:0.15pt;"> </span>patient<span style="letter-spacing:0.1pt;"> </span>programs,<span style="letter-spacing:0.1pt;"> </span>and reform government<span style="letter-spacing:0.15pt;"> </span>program<span style="letter-spacing:0.1pt;"> </span>reimbursement<span style="letter-spacing:0.2pt;"> </span>methodologies<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>drug<span style="letter-spacing:0.05pt;"> </span>products.<span style="letter-spacing:0.05pt;"> </span>At the<span style="letter-spacing:0.05pt;"> </span>federal<span style="letter-spacing:0.1pt;"> </span>level,<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>Trump<span style="letter-spacing:0.1pt;"> </span>administration<span style="letter-spacing:0.2pt;"> </span>issued<span style="letter-spacing:0.1pt;"> </span>budget<span style="letter-spacing:0.05pt;"> </span>proposals<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>fiscal<span style="letter-spacing:0.1pt;"> </span>year<span style="letter-spacing:0.05pt;"> </span>2021 includes<span style="letter-spacing:0.05pt;"> </span>a $135 billion<span style="letter-spacing:0.1pt;"> </span>allowance<span style="letter-spacing:0.05pt;"> </span>to support<span style="letter-spacing:0.1pt;"> </span>legislative<span style="letter-spacing:0.2pt;"> </span>proposals<span style="letter-spacing:0.1pt;"> </span>seeking<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>reduce<span style="letter-spacing:0.1pt;"> </span>drug<span style="letter-spacing:0.05pt;"> </span>prices,<span style="letter-spacing:0.05pt;"> </span>increase<span style="letter-spacing:0.1pt;"> </span>competition,<span style="letter-spacing:0.1pt;"> </span>lower<span style="letter-spacing:0.05pt;"> </span>out-of-pocket<span style="letter-spacing:0.1pt;"> </span>drug costs for<span style="letter-spacing:1.65pt;"> </span>patients,<span style="letter-spacing:1.7pt;"> </span>and<span style="letter-spacing:1.6pt;"> </span>increase<span style="letter-spacing:1.7pt;"> </span>patient<span style="letter-spacing:1.7pt;"> </span>access<span style="letter-spacing:1.65pt;"> </span>to<span style="letter-spacing:1.6pt;"> </span>lower-cost<span style="letter-spacing:1.7pt;"> </span>generic<span style="letter-spacing:1.65pt;"> </span>and<span style="letter-spacing:1.6pt;"> </span>biosimilar<span style="letter-spacing:1.7pt;"> </span>drugs.<span style="letter-spacing:1.6pt;"> </span></p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">38</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In particular, on<span style="letter-spacing:0.1pt;"> </span>July<span style="letter-spacing:0.15pt;"> </span>24,<span style="letter-spacing:0.1pt;"> </span>2020<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.1pt;"> </span>September<span style="letter-spacing:0.2pt;"> </span>13,<span style="letter-spacing:0.1pt;"> </span>2020,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>Trump administration<span style="letter-spacing:0.15pt;"> </span>announced<span style="letter-spacing:0.1pt;"> </span>several<span style="letter-spacing:0.15pt;"> </span>executive<span style="letter-spacing:0.15pt;"> </span>orders related<span style="letter-spacing:0.15pt;"> </span>to prescription<span style="letter-spacing:0.15pt;"> </span>drug pricing<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>seek<span style="letter-spacing:0.05pt;"> </span>to implement<span style="letter-spacing:0.1pt;"> </span>several<span style="letter-spacing:0.1pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>administration&#8217;s<span style="letter-spacing:0.2pt;"> </span>proposals.<span style="letter-spacing:0.05pt;"> </span>As a result, the<span style="letter-spacing:0.1pt;"> </span>FDA also<span style="letter-spacing:0.1pt;"> </span>released<span style="letter-spacing:0.15pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>final<span style="letter-spacing:0.1pt;"> </span>rule<span style="letter-spacing:0.1pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>September<span style="letter-spacing:0.15pt;"> </span>24,<span style="letter-spacing:0.05pt;"> </span>2020<span style="letter-spacing:0.05pt;"> </span>providing<span style="letter-spacing:0.1pt;"> </span>guidance<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>states<span style="letter-spacing:0.1pt;"> </span>to build<span style="letter-spacing:0.05pt;"> </span>and submit importation<span style="letter-spacing:0.25pt;"> </span>plans<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>drugs<span style="letter-spacing:0.1pt;"> </span>from<span style="letter-spacing:0.1pt;"> </span>Canada.<span style="letter-spacing:0.05pt;"> The Trump and Biden administrations both issued executive orders intended to favor government procurement from domestic manufacturers. In addition, the Trump administration issued an executive order specifically aimed at the procurement of pharmaceutical products, which instructed the federal government to develop a list of &#8220;essential&#8221; medicines and then buy those and other medical supplies that are manufactured, including the manufacture of the API, in the United States. </span>On July 9, 2021, President Biden issued an executive order supporting the importation of drugs from Canada as an effort to reduce prescription drug costs, requesting that the Department of Health and Human Services develop a plan to address drug pricing by the end of the summer of 2021 and encouraging the Federal Trade Commission to use its rulemaking authority to combat unfair anticompetitive conduct related to the introduction of generic drugs and biosimilars to the market. <span style="letter-spacing:0.05pt;">It is unclear whether this executive order or something similar will be implemented by the Biden Administration.</span></p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-top:3pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Further,<span style="letter-spacing:0.1pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>November<span style="letter-spacing:0.1pt;"> </span>20,<span style="letter-spacing:0.05pt;"> </span>2020,<span style="letter-spacing:0.05pt;"> </span>HHS finalized<span style="letter-spacing:0.15pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>regulation<span style="letter-spacing:0.15pt;"> </span>removing safe<span style="letter-spacing:0.1pt;"> </span>harbor<span style="letter-spacing:0.1pt;"> </span>protection<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>price<span style="letter-spacing:0.05pt;"> </span>reductions<span style="letter-spacing:0.1pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>pharmaceutical<span style="letter-spacing:0.15pt;"> </span>manufacturers<span style="letter-spacing:0.15pt;"> </span>to plan<span style="letter-spacing:0.05pt;"> </span>sponsors<span style="letter-spacing:0.05pt;"> </span>under<span style="letter-spacing:0.05pt;"> </span>Part<span style="letter-spacing:0.05pt;"> </span>D, either<span style="letter-spacing:0.15pt;"> </span>directly<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>through<span style="letter-spacing:0.05pt;"> </span>pharmacy<span style="letter-spacing:0.05pt;"> </span>benefit<span style="letter-spacing:0.1pt;"> </span>managers,<span style="letter-spacing:0.1pt;"> </span>unless<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>price<span style="letter-spacing:0.05pt;"> </span>reduction<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>required<span style="letter-spacing:0.1pt;"> </span>by law. The rule<span style="letter-spacing:0.05pt;"> </span>also creates<span style="letter-spacing:0.15pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>new<span style="letter-spacing:0.05pt;"> </span>safe<span style="letter-spacing:0.1pt;"> </span>harbor<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>price<span style="letter-spacing:0.1pt;"> </span>reductions<span style="letter-spacing:0.15pt;"> </span>reflected<span style="letter-spacing:0.15pt;"> </span>at<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>point-of-sale,<span style="letter-spacing:0.15pt;"> </span>as well<span style="letter-spacing:0.05pt;"> </span>as a safe<span style="letter-spacing:0.05pt;"> </span>harbor<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>certain fixed<span style="letter-spacing:0.15pt;"> </span>fee<span style="letter-spacing:0.15pt;"> </span>arrangements<span style="letter-spacing:0.25pt;"> </span>between<span style="letter-spacing:0.15pt;"> </span>pharmacy<span style="letter-spacing:0.15pt;"> </span>benefit<span style="letter-spacing:0.2pt;"> </span>managers<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>manufacturers.<span style="letter-spacing:0.2pt;"> </span>The<span style="letter-spacing:0.05pt;"> Centers for Medicare and Medicaid Services, or CMS</span><span style="letter-spacing:1.15pt;"> </span>also<span style="letter-spacing:1.25pt;"> </span>published<span style="letter-spacing:1.25pt;"> </span>an<span style="letter-spacing:1.2pt;"> </span>interim<span style="letter-spacing:1.3pt;"> </span>final<span style="letter-spacing:1.25pt;"> </span>rule<span style="letter-spacing:1.25pt;"> </span>that<span style="letter-spacing:1.25pt;"> </span>establishes<span style="letter-spacing:1.3pt;"> </span>a<span style="letter-spacing:1.2pt;"> </span>Most<span style="letter-spacing:1.25pt;"> </span>Favored<span style="letter-spacing:1.25pt;"> </span>Nation,<span style="letter-spacing:1.2pt;"> </span>or MFN, Model for Medicare Part B drug payment. This regulation would substantially change the drug reimbursement landscape as<span style="letter-spacing:2.45pt;"> </span>it bases<span style="letter-spacing:2.45pt;"> </span>Medicare Part<span style="letter-spacing:2.45pt;"> </span>B<span style="letter-spacing:2.4pt;"> </span>payment<span style="letter-spacing:2.45pt;"> </span>for<span style="letter-spacing:2.45pt;"> </span>50<span style="letter-spacing:2.4pt;"> </span>selected drugs<span style="letter-spacing:2.45pt;"> </span>on<span style="letter-spacing:2.4pt;"> </span>prices<span style="letter-spacing:2.45pt;"> </span>in<span style="letter-spacing:2.4pt;"> </span>foreign countries<span style="letter-spacing:0.8pt;"> </span>instead<span style="letter-spacing:0.75pt;"> </span>of<span style="letter-spacing:0.7pt;"> </span>average<span style="letter-spacing:0.75pt;"> </span>sales<span style="letter-spacing:0.75pt;"> </span>price,<span style="letter-spacing:0.7pt;"> </span>or<span style="letter-spacing:0.65pt;"> </span>ASP,<span style="letter-spacing:0.6pt;"> </span>and<span style="letter-spacing:0.65pt;"> </span>establishes<span style="letter-spacing:0.75pt;"> </span>a<span style="letter-spacing:0.65pt;"> </span>fixed<span style="letter-spacing:0.7pt;"> </span>add-on<span style="letter-spacing:0.7pt;"> </span>payment<span style="letter-spacing:0.7pt;"> </span>in<span style="letter-spacing:0.65pt;"> </span>place<span style="letter-spacing:0.7pt;"> </span>of<span style="letter-spacing:0.65pt;"> </span>the<span style="letter-spacing:0.7pt;"> </span>current 6<span style="letter-spacing:0.05pt;"> </span>percent<span style="letter-spacing:0.1pt;"> </span>(4.3<span style="letter-spacing:0.05pt;"> </span>percent<span style="letter-spacing:0.1pt;"> </span>after<span style="letter-spacing:0.15pt;"> </span>sequestration)<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>ASP. The<span style="letter-spacing:0.05pt;"> </span>MFN drug payment<span style="letter-spacing:0.05pt;"> </span>amount<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>expected<span style="letter-spacing:0.05pt;"> </span>to be lower<span style="letter-spacing:0.05pt;"> </span>than the<span style="letter-spacing:0.75pt;"> </span>current<span style="letter-spacing:0.8pt;"> </span>ASP-based<span style="letter-spacing:0.7pt;"> </span>payment<span style="letter-spacing:0.75pt;"> </span>limit<span style="letter-spacing:0.8pt;"> </span>because<span style="letter-spacing:0.75pt;"> </span>U.S.<span style="letter-spacing:0.65pt;"> </span>drug<span style="letter-spacing:0.7pt;"> </span>prices<span style="letter-spacing:0.75pt;"> </span>are<span style="letter-spacing:0.75pt;"> </span>generally<span style="letter-spacing:0.8pt;"> </span>the<span style="letter-spacing:0.75pt;"> </span>highest<span style="letter-spacing:0.75pt;"> </span>in<span style="letter-spacing:0.7pt;"> </span>the<span style="letter-spacing:0.75pt;"> </span>world.<span style="letter-spacing:0.7pt;"> </span>On December 28, 2020, the United States District Court in Northern California issued a nationwide preliminary injunction against implementation of the interim final rule, and it<span style="letter-spacing:0.05pt;"> </span>faces<span style="letter-spacing:0.05pt;"> </span>uncertain<span style="letter-spacing:0.1pt;"> </span>prospects<span style="letter-spacing:0.1pt;"> </span>for implementation.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">At<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>state<span style="letter-spacing:0.1pt;"> </span>level,<span style="letter-spacing:0.1pt;"> </span>individual<span style="letter-spacing:0.15pt;"> </span>states<span style="letter-spacing:0.1pt;"> </span>have increasingly<span style="letter-spacing:0.1pt;"> </span>passed<span style="letter-spacing:0.05pt;"> </span>legislation<span style="letter-spacing:0.15pt;"> </span>and implemented<span style="letter-spacing:0.15pt;"> </span>regulations designed<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>control<span style="letter-spacing:0.1pt;"> </span>pharmaceutical<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>biological<span style="letter-spacing:0.15pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>pricing,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>price<span style="letter-spacing:0.05pt;"> </span>or patient<span style="letter-spacing:0.1pt;"> </span>reimbursement constraints,<span style="letter-spacing:0.15pt;"> </span>discounts,<span style="letter-spacing:0.05pt;"> </span>restrictions<span style="letter-spacing:0.15pt;"> </span>on certain<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>access<span style="letter-spacing:0.05pt;"> </span>and marketing<span style="letter-spacing:0.1pt;"> </span>cost<span style="letter-spacing:0.05pt;"> </span>disclosure<span style="letter-spacing:0.1pt;"> </span>and transparency measures,<span style="letter-spacing:0.1pt;"> </span>and, in some<span style="letter-spacing:0.05pt;"> </span>cases,<span style="letter-spacing:0.05pt;"> </span>designed<span style="letter-spacing:0.05pt;"> </span>to encourage<span style="letter-spacing:0.05pt;"> </span>importation<span style="letter-spacing:0.15pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.05pt;"> </span>countries<span style="letter-spacing:0.1pt;"> </span>and bulk purchasing.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.05pt;"> </span>expect<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>ACA,<span style="letter-spacing:-0.05pt;"> </span>as well<span style="letter-spacing:0.05pt;"> </span>as other<span style="letter-spacing:0.05pt;"> </span>healthcare<span style="letter-spacing:0.1pt;"> </span>reform<span style="letter-spacing:0.1pt;"> </span>measures<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be adopted<span style="letter-spacing:0.05pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>future,<span style="letter-spacing:0.05pt;"> </span>may result<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>more<span style="letter-spacing:0.1pt;"> </span>rigorous<span style="letter-spacing:0.1pt;"> </span>coverage<span style="letter-spacing:0.1pt;"> </span>criteria<span style="letter-spacing:0.15pt;"> </span>and in additional<span style="letter-spacing:0.1pt;"> </span>downward pressure<span style="letter-spacing:0.1pt;"> </span>on the<span style="letter-spacing:0.05pt;"> </span>price<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we receive<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>any approved<span style="letter-spacing:0.05pt;"> </span>product.<span style="letter-spacing:0.05pt;"> </span>The implementation<span style="letter-spacing:0.15pt;"> </span>of cost<span style="letter-spacing:0.05pt;"> </span>containment<span style="letter-spacing:0.1pt;"> </span>measures<span style="letter-spacing:0.1pt;"> </span>or other healthcare<span style="letter-spacing:0.05pt;"> </span>reforms<span style="letter-spacing:0.05pt;"> </span>may prevent us from<span style="letter-spacing:0.05pt;"> </span>being<span style="letter-spacing:0.05pt;"> </span>able<span style="letter-spacing:0.05pt;"> </span>to generate<span style="letter-spacing:0.1pt;"> </span>revenue,<span style="letter-spacing:0.05pt;"> </span>attain<span style="letter-spacing:0.1pt;"> </span>profitability,<span style="letter-spacing:0.15pt;"> </span>or commercialize<span style="letter-spacing:0.2pt;"> </span>our products.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Legislative<span style="letter-spacing:1.9pt;"> </span>and<span style="letter-spacing:1.8pt;"> </span>regulatory<span style="letter-spacing:1.9pt;"> </span>proposals<span style="letter-spacing:1.85pt;"> </span>have<span style="letter-spacing:1.8pt;"> </span>been<span style="letter-spacing:1.8pt;"> </span>made<span style="letter-spacing:1.85pt;"> </span>to<span style="letter-spacing:1.8pt;"> </span>expand<span style="letter-spacing:1.75pt;"> </span>post-approval<span style="letter-spacing:1.85pt;"> </span>requirements<span style="letter-spacing:1.9pt;"> </span>and<span style="letter-spacing:1.75pt;"> </span>restrict sales<span style="letter-spacing:1.15pt;"> </span>and<span style="letter-spacing:1.1pt;"> </span>promotional<span style="letter-spacing:1.2pt;"> </span>activities<span style="letter-spacing:1.25pt;"> </span>for<span style="letter-spacing:1.15pt;"> </span>pharmaceutical<span style="letter-spacing:1.25pt;"> </span>products.<span style="letter-spacing:1.15pt;"> </span>We<span style="letter-spacing:1.05pt;"> </span>cannot<span style="letter-spacing:1.1pt;"> </span>be<span style="letter-spacing:1.05pt;"> </span>sure<span style="letter-spacing:1.1pt;"> </span>whether<span style="letter-spacing:1.1pt;"> </span>additional<span style="letter-spacing:1.15pt;"> </span>legislative changes<span style="letter-spacing:1pt;"> </span>will<span style="letter-spacing:1pt;"> </span>be<span style="letter-spacing:0.95pt;"> </span>enacted,<span style="letter-spacing:1pt;"> </span>or<span style="letter-spacing:0.9pt;"> </span>whether<span style="letter-spacing:0.95pt;"> </span>the<span style="letter-spacing:0.95pt;"> </span>FDA<span style="letter-spacing:0.85pt;"> </span>regulations,<span style="letter-spacing:1pt;"> </span>guidance<span style="letter-spacing:0.95pt;"> </span>or<span style="letter-spacing:0.9pt;"> </span>interpretations<span style="letter-spacing:1.1pt;"> </span>will<span style="letter-spacing:0.95pt;"> </span>be<span style="letter-spacing:0.9pt;"> </span>changed,<span style="letter-spacing:0.95pt;"> </span>or<span style="letter-spacing:0.9pt;"> </span>what the<span style="letter-spacing:0.1pt;"> </span>impact<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>changes<span style="letter-spacing:0.1pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>marketing<span style="letter-spacing:0.15pt;"> </span>approvals<span style="letter-spacing:0.1pt;"> </span>of our product<span style="letter-spacing:0.05pt;"> </span>candidates,<span style="letter-spacing:0.1pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>any, may<span style="letter-spacing:0.05pt;"> </span>be. In addition, increased<span style="letter-spacing:0.15pt;"> </span>scrutiny<span style="letter-spacing:0.15pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>U.S. Congress<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA&#8217;s<span style="letter-spacing:0.05pt;"> </span>approval<span style="letter-spacing:0.1pt;"> </span>process<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>significantly<span style="letter-spacing:0.2pt;"> </span>delay<span style="letter-spacing:0.1pt;"> </span>or prevent marketing<span style="letter-spacing:0.1pt;"> </span>approval,<span style="letter-spacing:0.05pt;"> </span>as well<span style="letter-spacing:0.05pt;"> </span>as subject<span style="letter-spacing:0.05pt;"> </span>us to more<span style="letter-spacing:0.05pt;"> </span>stringent<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>labeling<span style="letter-spacing:0.1pt;"> </span>and post-marketing<span style="letter-spacing:0.15pt;"> </span>testing<span style="letter-spacing:0.1pt;"> </span>and other requirements.<span style="letter-spacing:0.15pt;"> </span>It<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>also<span style="letter-spacing:0.05pt;"> </span>possible<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>governmental<span style="letter-spacing:0.1pt;"> </span>action<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>taken<span style="letter-spacing:0.05pt;"> </span>to address<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>COVID-19<span style="letter-spacing:-0.05pt;"> </span>pandemic.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Governments<span style="letter-spacing:0.05pt;"> </span>outside<span style="letter-spacing:0.05pt;"> </span>of the United States<span style="letter-spacing:0.05pt;"> </span>tend to impose<span style="letter-spacing:0.05pt;"> </span>strict<span style="letter-spacing:0.1pt;"> </span>price<span style="letter-spacing:0.05pt;"> </span>controls,<span style="letter-spacing:0.05pt;"> </span>which may<span style="letter-spacing:0.05pt;"> </span>adversely<span style="letter-spacing:0.1pt;"> </span>affect our revenues,<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>any.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In<span style="letter-spacing:0.1pt;"> </span>some<span style="letter-spacing:0.15pt;"> </span>countries,<span style="letter-spacing:0.2pt;"> </span>particularly<span style="letter-spacing:0.25pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>countries<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>European<span style="letter-spacing:0.1pt;"> </span>Union,<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>EU, the<span style="letter-spacing:0.1pt;"> </span>pricing<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>prescription pharmaceuticals<span style="letter-spacing:1.3pt;"> </span>is<span style="letter-spacing:1.2pt;"> </span>subject<span style="letter-spacing:1.2pt;"> </span>to<span style="letter-spacing:1.15pt;"> </span>governmental<span style="letter-spacing:1.25pt;"> </span>control.<span style="letter-spacing:1.15pt;"> </span>In<span style="letter-spacing:1.1pt;"> </span>these<span style="letter-spacing:1.15pt;"> </span>countries,<span style="letter-spacing:1.2pt;"> </span>pricing<span style="letter-spacing:1.15pt;"> </span>negotiations<span style="letter-spacing:1.2pt;"> </span>with<span style="letter-spacing:1.1pt;"> </span>governmental authorities<span style="letter-spacing:0.2pt;"> </span>can<span style="letter-spacing:0.05pt;"> </span>take<span style="letter-spacing:0.1pt;"> </span>considerable<span style="letter-spacing:0.1pt;"> </span>time<span style="letter-spacing:0.05pt;"> </span>after<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>receipt<span style="letter-spacing:0.1pt;"> </span>of marketing<span style="letter-spacing:0.1pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>a product.<span style="letter-spacing:0.05pt;"> </span>To obtain reimbursement or pricing approval in<span style="letter-spacing:2.45pt;"> </span>some countries, we<span style="letter-spacing:2.45pt;"> </span>may be<span style="letter-spacing:2.45pt;"> </span>required to<span style="letter-spacing:2.45pt;"> </span>conduct a<span style="letter-spacing:2.45pt;"> </span>clinical trial that compares<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>cost-effectiveness<span style="letter-spacing:0.25pt;"> </span>of our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>to other<span style="letter-spacing:0.05pt;"> </span>available<span style="letter-spacing:0.1pt;"> </span>therapies.<span style="letter-spacing:0.1pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>reimbursement<span style="letter-spacing:0.15pt;"> </span>of our products<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>unavailable<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>limited<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>scope<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>amount,<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>pricing<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>set<span style="letter-spacing:0.1pt;"> </span>at<span style="letter-spacing:0.1pt;"> </span>unsatisfactory<span style="letter-spacing:0.15pt;"> </span>levels,<span style="letter-spacing:0.05pt;"> </span>our business could<span style="letter-spacing:0.05pt;"> </span>be harmed.<span style="letter-spacing:0.05pt;"> </span>Political,<span style="letter-spacing:0.1pt;"> </span>economic<span style="letter-spacing:0.05pt;"> </span>and regulatory<span style="letter-spacing:0.1pt;"> </span>developments<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>further<span style="letter-spacing:0.1pt;"> </span>complicate<span style="letter-spacing:0.05pt;"> </span>pricing negotiations, and<span style="letter-spacing:0.05pt;"> </span>pricing<span style="letter-spacing:0.1pt;"> </span>negotiations<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>continue<span style="letter-spacing:0.1pt;"> </span>after<span style="letter-spacing:0.15pt;"> </span>reimbursement<span style="letter-spacing:0.2pt;"> </span>has<span style="letter-spacing:0.05pt;"> </span>been<span style="letter-spacing:0.05pt;"> </span>obtained.<span style="letter-spacing:0.1pt;"> </span>Reference<span style="letter-spacing:0.1pt;"> </span>pricing<span style="letter-spacing:0.1pt;"> </span>used<span style="letter-spacing:0.05pt;"> </span>by various EU member<span style="letter-spacing:0.15pt;"> </span>states,<span style="letter-spacing:0.15pt;"> </span>and parallel<span style="letter-spacing:0.1pt;"> </span>trade,<span style="letter-spacing:0.05pt;"> </span>such as arbitrage<span style="letter-spacing:0.1pt;"> </span>between<span style="letter-spacing:0.05pt;"> </span>low-priced<span style="letter-spacing:0.1pt;"> </span>and high-priced<span style="letter-spacing:0.1pt;"> </span>member<span style="letter-spacing:0.1pt;"> </span>states,<span style="letter-spacing:0.1pt;"> </span>can further<span style="letter-spacing:0.15pt;"> </span>reduce<span style="letter-spacing:0.1pt;"> </span>prices.<span style="letter-spacing:0.1pt;"> </span>There<span style="letter-spacing:0.05pt;"> </span>can be no assurance<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>any country<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>has price<span style="letter-spacing:0.05pt;"> </span>controls<span style="letter-spacing:0.1pt;"> </span>or reimbursement limitations<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>pharmaceutical<span style="letter-spacing:0.15pt;"> </span>products<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>allow<span style="letter-spacing:0.05pt;"> </span>favorable<span style="letter-spacing:0.1pt;"> </span>reimbursement<span style="letter-spacing:0.15pt;"> </span>and pricing<span style="letter-spacing:0.05pt;"> </span>arrangements<span style="letter-spacing:0.15pt;"> </span>for any products,<span style="letter-spacing:1.8pt;"> </span>if<span style="letter-spacing:1.75pt;"> </span>approved<span style="letter-spacing:1.75pt;"> </span>in<span style="letter-spacing:1.7pt;"> </span>those<span style="letter-spacing:1.75pt;"> </span>countries.<span style="letter-spacing:1.8pt;"> </span>In<span style="letter-spacing:1.7pt;"> </span>addition,<span style="letter-spacing:1.75pt;"> </span>the<span style="letter-spacing:1.75pt;"> </span>recent<span style="letter-spacing:1.75pt;"> </span>withdrawal<span style="letter-spacing:1.75pt;"> </span>of<span style="letter-spacing:1.7pt;"> </span>the<span style="letter-spacing:1.75pt;"> </span>United<span style="letter-spacing:1.75pt;"> </span>Kingdom<span style="letter-spacing:1.7pt;"> </span>from<span style="letter-spacing:1.75pt;"> </span>its membership<span style="letter-spacing:0.2pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>EU, often<span style="letter-spacing:0.1pt;"> </span>referred<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>&#8220;Brexit&#8221;,<span style="letter-spacing:0.1pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>lead<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>legal<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>regulatory<span style="letter-spacing:0.15pt;"> </span>uncertainty<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>United Kingdom<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.15pt;"> </span>lead<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>United<span style="letter-spacing:0.15pt;"> </span>Kingdom<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>EU adopting<span style="letter-spacing:0.1pt;"> </span>divergent<span style="letter-spacing:0.15pt;"> </span>laws<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>regulations,<span style="letter-spacing:0.15pt;"> </span>including<span style="letter-spacing:0.1pt;"> </span>those related<span style="letter-spacing:0.2pt;"> </span>to<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>pricing<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.1pt;"> </span>prescription<span style="letter-spacing:0.25pt;"> </span>pharmaceuticals,<span style="letter-spacing:0.25pt;"> </span>as<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>United<span style="letter-spacing:0.15pt;"> </span>Kingdom<span style="letter-spacing:0.1pt;"> </span>determines<span style="letter-spacing:0.15pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>EU laws<span style="letter-spacing:0.05pt;"> </span>to replicate<span style="letter-spacing:0.1pt;"> </span>or replace.<span style="letter-spacing:0.1pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>Kingdom were to significantly<span style="letter-spacing:0.15pt;"> </span>alter<span style="letter-spacing:0.05pt;"> </span>its regulations<span style="letter-spacing:0.05pt;"> </span>affecting<span style="letter-spacing:0.05pt;"> </span>the pricing of prescription<span style="letter-spacing:0.2pt;"> </span>pharmaceuticals,<span style="letter-spacing:0.2pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>face<span style="letter-spacing:0.1pt;"> </span>significant<span style="letter-spacing:0.2pt;"> </span>new<span style="letter-spacing:0.05pt;"> </span>costs.<span style="letter-spacing:0.1pt;"> </span>As<span style="letter-spacing:0.05pt;"> </span>a result,<span style="letter-spacing:0.1pt;"> </span>Brexit<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>impair<span style="letter-spacing:0.1pt;"> </span>our ability<span style="letter-spacing:0.1pt;"> </span>to transact<span style="letter-spacing:0.1pt;"> </span>business<span style="letter-spacing:0.05pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>EU<span style="letter-spacing:-0.05pt;"> </span>and the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>Kingdom.</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">39</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Laws and regulations<span style="letter-spacing:0.05pt;"> </span>governing<span style="letter-spacing:0.05pt;"> </span>any international<span style="letter-spacing:0.1pt;"> </span>operations<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>have in the future<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>preclude<span style="letter-spacing:0.05pt;"> </span>us from<span style="letter-spacing:0.05pt;"> </span>developing,<span style="letter-spacing:0.05pt;"> </span>manufacturing<span style="letter-spacing:0.05pt;"> </span>and selling<span style="letter-spacing:0.05pt;"> </span>certain<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.05pt;"> </span>and products<span style="letter-spacing:0.05pt;"> </span>outside<span style="letter-spacing:0.05pt;"> </span>of the United States<span style="letter-spacing:0.05pt;"> </span>and require<span style="letter-spacing:0.05pt;"> </span>us to develop<span style="letter-spacing:0.05pt;"> </span>and implement<span style="letter-spacing:0.1pt;"> </span>costly<span style="letter-spacing:0.05pt;"> </span>compliance<span style="letter-spacing:0.1pt;"> </span>programs.</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>expand<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>operations<span style="letter-spacing:0.15pt;"> </span>outside<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>United<span style="letter-spacing:0.1pt;"> </span>States,<span style="letter-spacing:0.05pt;"> </span>we must<span style="letter-spacing:0.05pt;"> </span>dedicate<span style="letter-spacing:0.1pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>resources<span style="letter-spacing:0.1pt;"> </span>to comply with<span style="letter-spacing:0.05pt;"> </span>numerous<span style="letter-spacing:0.1pt;"> </span>laws<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>regulations<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>each<span style="letter-spacing:0.05pt;"> </span>jurisdiction<span style="letter-spacing:0.15pt;"> </span>in which we plan<span style="letter-spacing:0.05pt;"> </span>to operate.<span style="letter-spacing:0.05pt;"> </span>The Foreign<span style="letter-spacing:0.05pt;"> </span>Corrupt Practices<span style="letter-spacing:0.2pt;"> </span>Act,<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.1pt;"> </span>FCPA,<span style="letter-spacing:0.05pt;"> </span>prohibits<span style="letter-spacing:0.15pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>U.S. individual<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>business<span style="letter-spacing:0.1pt;"> </span>from<span style="letter-spacing:0.1pt;"> </span>paying,<span style="letter-spacing:0.1pt;"> </span>offering,<span style="letter-spacing:0.15pt;"> </span>authorizing<span style="letter-spacing:0.15pt;"> </span>payment<span style="letter-spacing:0.1pt;"> </span>or offering<span style="letter-spacing:1.95pt;"> </span>anything<span style="letter-spacing:1.9pt;"> </span>of<span style="letter-spacing:1.85pt;"> </span>value,<span style="letter-spacing:1.9pt;"> </span>directly<span style="letter-spacing:1.95pt;"> </span>or<span style="letter-spacing:1.85pt;"> </span>indirectly,<span style="letter-spacing:1.95pt;"> </span>to<span style="letter-spacing:1.85pt;"> </span>any<span style="letter-spacing:1.85pt;"> </span>foreign<span style="letter-spacing:1.85pt;"> </span>official,<span style="letter-spacing:1.9pt;"> </span>political<span style="letter-spacing:1.9pt;"> </span>party<span style="letter-spacing:1.85pt;"> </span>or<span style="letter-spacing:1.8pt;"> </span>candidate<span style="letter-spacing:1.9pt;"> </span>for<span style="letter-spacing:1.85pt;"> </span>the purpose<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>influencing<span style="letter-spacing:0.15pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>act<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>decision<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.1pt;"> </span>party<span style="letter-spacing:0.1pt;"> </span>in order<span style="letter-spacing:0.05pt;"> </span>to assist<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>individual<span style="letter-spacing:0.1pt;"> </span>or business<span style="letter-spacing:0.05pt;"> </span>in obtaining or retaining business. The FCPA also obligates companies whose securities are listed in the United<span style="letter-spacing:0.1pt;"> </span>States<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>comply<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>certain<span style="letter-spacing:0.15pt;"> </span>accounting<span style="letter-spacing:0.1pt;"> </span>provisions<span style="letter-spacing:0.15pt;"> </span>requiring<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>company<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>maintain<span style="letter-spacing:0.15pt;"> </span>books<span style="letter-spacing:0.05pt;"> </span>and records that<span style="letter-spacing:1.8pt;"> </span>accurately<span style="letter-spacing:1.85pt;"> </span>and<span style="letter-spacing:1.75pt;"> </span>fairly<span style="letter-spacing:1.85pt;"> </span>reflect<span style="letter-spacing:1.85pt;"> </span>all<span style="letter-spacing:1.8pt;"> </span>transactions<span style="letter-spacing:1.9pt;"> </span>of<span style="letter-spacing:1.75pt;"> </span>the<span style="letter-spacing:1.8pt;"> </span>company,<span style="letter-spacing:1.8pt;"> </span>including<span style="letter-spacing:1.8pt;"> </span>international<span style="letter-spacing:1.9pt;"> </span>subsidiaries,<span style="letter-spacing:1.9pt;"> </span>and<span style="letter-spacing:1.75pt;"> </span>to devise<span style="letter-spacing:0.05pt;"> </span>and maintain<span style="letter-spacing:0.1pt;"> </span>an adequate<span style="letter-spacing:0.05pt;"> </span>system<span style="letter-spacing:0.05pt;"> </span>of internal<span style="letter-spacing:0.1pt;"> </span>accounting<span style="letter-spacing:0.05pt;"> </span>controls<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>international<span style="letter-spacing:0.15pt;"> </span>operations.</p>
<p style="margin-top:0pt;line-height:10pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Compliance<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FCPA is<span style="letter-spacing:0.1pt;"> </span>expensive<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>difficult,<span style="letter-spacing:0.2pt;"> </span>particularly<span style="letter-spacing:0.2pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>countries<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>which corruption<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>a recognized problem. In addition, the FCPA presents particular challenges in the pharmaceutical industry, because,<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>many<span style="letter-spacing:0.1pt;"> </span>countries,<span style="letter-spacing:0.15pt;"> </span>hospitals<span style="letter-spacing:0.15pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>operated<span style="letter-spacing:0.1pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>government,<span style="letter-spacing:0.1pt;"> </span>and doctors<span style="letter-spacing:0.05pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>hospital<span style="letter-spacing:0.1pt;"> </span>employees are<span style="letter-spacing:0.1pt;"> </span>considered<span style="letter-spacing:0.15pt;"> </span>foreign<span style="letter-spacing:0.1pt;"> </span>officials.<span style="letter-spacing:0.2pt;"> </span>Certain<span style="letter-spacing:0.1pt;"> </span>payments<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>hospitals<span style="letter-spacing:0.1pt;"> </span>in connection<span style="letter-spacing:0.05pt;"> </span>with clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>work have been deemed<span style="letter-spacing:0.05pt;"> </span>to be improper<span style="letter-spacing:0.1pt;"> </span>payments<span style="letter-spacing:0.05pt;"> </span>to government<span style="letter-spacing:0.1pt;"> </span>officials<span style="letter-spacing:0.15pt;"> </span>and have led<span style="letter-spacing:0.05pt;"> </span>to FCPA<span style="letter-spacing:-0.05pt;"> </span>enforcement<span style="letter-spacing:0.1pt;"> </span>actions.</p>
<p style="margin-top:0pt;line-height:10pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Various laws, regulations and executive orders also restrict the use and dissemination outside of the United<span style="letter-spacing:0.05pt;"> </span>States,<span style="letter-spacing:0.05pt;"> </span>or the<span style="letter-spacing:0.05pt;"> </span>sharing<span style="letter-spacing:0.05pt;"> </span>with certain<span style="letter-spacing:0.1pt;"> </span>non-U.S. nationals,<span style="letter-spacing:0.1pt;"> </span>of information<span style="letter-spacing:0.15pt;"> </span>classified<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>national<span style="letter-spacing:0.05pt;"> </span>security purposes,<span style="letter-spacing:1.25pt;"> </span>as<span style="letter-spacing:1.2pt;"> </span>well<span style="letter-spacing:1.25pt;"> </span>as<span style="letter-spacing:1.2pt;"> </span>certain<span style="letter-spacing:1.3pt;"> </span>products<span style="letter-spacing:1.25pt;"> </span>and<span style="letter-spacing:1.2pt;"> </span>technical<span style="letter-spacing:1.3pt;"> </span>data<span style="letter-spacing:1.25pt;"> </span>relating<span style="letter-spacing:1.3pt;"> </span>to<span style="letter-spacing:1.15pt;"> </span>those<span style="letter-spacing:1.2pt;"> </span>products.<span style="letter-spacing:1.2pt;"> </span>If<span style="letter-spacing:1.2pt;"> </span>we<span style="letter-spacing:1.15pt;"> </span>expand<span style="letter-spacing:1.15pt;"> </span>our<span style="letter-spacing:1.15pt;"> </span>presence outside<span style="letter-spacing:1.1pt;"> </span>of<span style="letter-spacing:1.05pt;"> </span>the<span style="letter-spacing:1.1pt;"> </span>United<span style="letter-spacing:1.1pt;"> </span>States,<span style="letter-spacing:1.1pt;"> </span>it<span style="letter-spacing:1.1pt;"> </span>will<span style="letter-spacing:1.1pt;"> </span>require<span style="letter-spacing:1.15pt;"> </span>us<span style="letter-spacing:1.05pt;"> </span>to<span style="letter-spacing:1.05pt;"> </span>dedicate<span style="letter-spacing:1.15pt;"> </span>additional<span style="letter-spacing:1.1pt;"> </span>resources<span style="letter-spacing:1.1pt;"> </span>to<span style="letter-spacing:1pt;"> </span>comply<span style="letter-spacing:1.05pt;"> </span>with<span style="letter-spacing:1pt;"> </span>these<span style="letter-spacing:1.05pt;"> </span>laws,<span style="letter-spacing:1pt;"> </span>and these<span style="letter-spacing:0.1pt;"> </span>laws<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>preclude<span style="letter-spacing:0.1pt;"> </span>us<span style="letter-spacing:0.05pt;"> </span>from<span style="letter-spacing:0.1pt;"> </span>developing,<span style="letter-spacing:0.05pt;"> </span>manufacturing<span style="letter-spacing:0.15pt;"> </span>or selling<span style="letter-spacing:0.1pt;"> </span>certain<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>and products outside<span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>States,<span style="letter-spacing:0.05pt;"> </span>which could<span style="letter-spacing:0.05pt;"> </span>limit<span style="letter-spacing:0.1pt;"> </span>our growth potential<span style="letter-spacing:0.1pt;"> </span>and increase<span style="letter-spacing:0.1pt;"> </span>our development<span style="letter-spacing:0.1pt;"> </span>costs.</p>
<p style="margin-top:0pt;line-height:10pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The<span style="letter-spacing:1.2pt;"> </span>failure<span style="letter-spacing:1.3pt;"> </span>to<span style="letter-spacing:1.2pt;"> </span>comply<span style="letter-spacing:1.2pt;"> </span>with<span style="letter-spacing:1.15pt;"> </span>laws<span style="letter-spacing:1.15pt;"> </span>governing<span style="letter-spacing:1.2pt;"> </span>international<span style="letter-spacing:1.3pt;"> </span>business<span style="letter-spacing:1.2pt;"> </span>practices<span style="letter-spacing:1.25pt;"> </span>may<span style="letter-spacing:1.2pt;"> </span>result<span style="letter-spacing:1.25pt;"> </span>in<span style="letter-spacing:1.15pt;"> </span>substantial<span style="letter-spacing:1.25pt;"> </span>civil and<span style="letter-spacing:0.05pt;"> </span>criminal<span style="letter-spacing:0.15pt;"> </span>penalties<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>suspension<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>debarment<span style="letter-spacing:0.15pt;"> </span>from<span style="letter-spacing:0.1pt;"> </span>government<span style="letter-spacing:0.15pt;"> </span>contracting.<span style="letter-spacing:0.1pt;"> </span>The Securities<span style="letter-spacing:0.1pt;"> </span>and Exchange Commission, or the SEC, also may suspend or bar issuers from trading securities on U.S.<span style="letter-spacing:2.45pt;"> </span>exchanges for violations<span style="letter-spacing:0.1pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>FCPA&#8217;s<span style="letter-spacing:-0.05pt;"> </span>accounting<span style="letter-spacing:0.05pt;"> </span>provisions.</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">If<span style="letter-spacing:0.05pt;"> </span>we fail<span style="letter-spacing:0.05pt;"> </span>to comply<span style="letter-spacing:0.05pt;"> </span>with environmental,<span style="letter-spacing:0.1pt;"> </span>health<span style="letter-spacing:0.05pt;"> </span>and safety<span style="letter-spacing:0.05pt;"> </span>laws and regulations,<span style="letter-spacing:0.05pt;"> </span>we could become<span style="letter-spacing:0.05pt;"> </span>subject to fines<span style="letter-spacing:0.05pt;"> </span>or penalties<span style="letter-spacing:0.1pt;"> </span>or incur costs<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>could harm our business.</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>third-party<span style="letter-spacing:0.2pt;"> </span>contractors<span style="letter-spacing:0.15pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>subject<span style="letter-spacing:0.05pt;"> </span>to numerous<span style="letter-spacing:0.05pt;"> </span>foreign,<span style="letter-spacing:0.05pt;"> </span>federal,<span style="letter-spacing:0.1pt;"> </span>state<span style="letter-spacing:0.05pt;"> </span>and local<span style="letter-spacing:0.05pt;"> </span>environmental, health<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>safety<span style="letter-spacing:0.05pt;"> </span>laws and regulations,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>those<span style="letter-spacing:0.05pt;"> </span>governing<span style="letter-spacing:0.05pt;"> </span>laboratory<span style="letter-spacing:0.1pt;"> </span>procedures<span style="letter-spacing:0.1pt;"> </span>and the<span style="letter-spacing:0.05pt;"> </span>handling,<span style="letter-spacing:0.05pt;"> </span>use, storage,<span style="letter-spacing:0.1pt;"> </span>treatment<span style="letter-spacing:0.15pt;"> </span>and disposal<span style="letter-spacing:0.05pt;"> </span>of hazardous<span style="letter-spacing:0.05pt;"> </span>materials<span style="letter-spacing:0.15pt;"> </span>and wastes.<span style="letter-spacing:0.05pt;"> </span>Our operations<span style="letter-spacing:0.1pt;"> </span>involve<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>use of hazardous and flammable<span style="letter-spacing:0.15pt;"> </span>materials,<span style="letter-spacing:0.15pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>chemicals<span style="letter-spacing:0.1pt;"> </span>and biological<span style="letter-spacing:0.1pt;"> </span>materials.<span style="letter-spacing:0.15pt;"> </span>Our operations<span style="letter-spacing:0.05pt;"> </span>also produce hazardous waste<span style="letter-spacing:1.9pt;"> </span>products.<span style="letter-spacing:1.9pt;"> </span>We<span style="letter-spacing:1.85pt;"> </span>generally<span style="letter-spacing:1.95pt;"> </span>contract<span style="letter-spacing:1.95pt;"> </span>with<span style="letter-spacing:1.85pt;"> </span>third<span style="letter-spacing:1.85pt;"> </span>parties<span style="letter-spacing:1.9pt;"> </span>for<span style="letter-spacing:1.85pt;"> </span>the<span style="letter-spacing:1.85pt;"> </span>disposal<span style="letter-spacing:1.85pt;"> </span>of<span style="letter-spacing:1.8pt;"> </span>these<span style="letter-spacing:1.85pt;"> </span>materials<span style="letter-spacing:1.95pt;"> </span>and<span style="letter-spacing:1.8pt;"> </span>wastes.<span style="letter-spacing:1.85pt;"> </span>We cannot<span style="letter-spacing:0.1pt;"> </span>eliminate<span style="letter-spacing:0.2pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>risk<span style="letter-spacing:0.1pt;"> </span>of contamination<span style="letter-spacing:0.15pt;"> </span>or injury<span style="letter-spacing:0.05pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>these<span style="letter-spacing:0.05pt;"> </span>materials.<span style="letter-spacing:0.15pt;"> </span>In the<span style="letter-spacing:0.05pt;"> </span>event<span style="letter-spacing:0.05pt;"> </span>of contamination<span style="letter-spacing:0.15pt;"> </span>or injury resulting<span style="letter-spacing:2.1pt;"> </span>from<span style="letter-spacing:2.05pt;"> </span>our<span style="letter-spacing:2pt;"> </span>use<span style="letter-spacing:2pt;"> </span>of<span style="letter-spacing:1.95pt;"> </span>hazardous<span style="letter-spacing:2pt;"> </span>materials,<span style="letter-spacing:2.1pt;"> </span>we<span style="letter-spacing:1.95pt;"> </span>could<span style="letter-spacing:2pt;"> </span>be<span style="letter-spacing:1.95pt;"> </span>held<span style="letter-spacing:2pt;"> </span>liable<span style="letter-spacing:2.05pt;"> </span>for<span style="letter-spacing:2pt;"> </span>any<span style="letter-spacing:1.95pt;"> </span>resulting<span style="letter-spacing:2.05pt;"> </span>damages,<span style="letter-spacing:2pt;"> </span>and<span style="letter-spacing:1.95pt;"> </span>any liability<span style="letter-spacing:0.15pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>exceed<span style="letter-spacing:0.05pt;"> </span>our resources,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>any available<span style="letter-spacing:0.1pt;"> </span>insurance.</p>
<p style="margin-top:0pt;line-height:10pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In<span style="letter-spacing:0.05pt;"> </span>addition,<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>leasing<span style="letter-spacing:0.05pt;"> </span>and operation<span style="letter-spacing:0.1pt;"> </span>of real<span style="letter-spacing:0.05pt;"> </span>property<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>subject<span style="letter-spacing:0.05pt;"> </span>us to liability<span style="letter-spacing:0.15pt;"> </span>pursuant<span style="letter-spacing:0.05pt;"> </span>to certain<span style="letter-spacing:0.1pt;"> </span>of these laws<span style="letter-spacing:1.9pt;"> </span>or<span style="letter-spacing:1.9pt;"> </span>regulations.<span style="letter-spacing:2pt;"> </span>Under<span style="letter-spacing:1.9pt;"> </span>existing<span style="letter-spacing:2pt;"> </span>U.S.<span style="letter-spacing:1.85pt;"> </span>environmental<span style="letter-spacing:2.05pt;"> </span>laws<span style="letter-spacing:1.9pt;"> </span>and<span style="letter-spacing:1.9pt;"> </span>regulations,<span style="letter-spacing:2pt;"> </span>current<span style="letter-spacing:2pt;"> </span>or<span style="letter-spacing:1.9pt;"> </span>previous<span style="letter-spacing:1.9pt;"> </span>owners<span style="letter-spacing:1.85pt;"> </span>or operators<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>real<span style="letter-spacing:0.1pt;"> </span>property<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>entities<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>disposed<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>arranged<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>disposal<span style="letter-spacing:0.1pt;"> </span>of hazardous<span style="letter-spacing:0.05pt;"> </span>substances<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be held<span style="letter-spacing:0.1pt;"> </span>strictly,<span style="letter-spacing:0.15pt;"> </span>jointly<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>severally<span style="letter-spacing:0.15pt;"> </span>liable<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>cost<span style="letter-spacing:0.05pt;"> </span>of investigating<span style="letter-spacing:0.15pt;"> </span>or remediating<span style="letter-spacing:0.15pt;"> </span>contamination<span style="letter-spacing:0.15pt;"> </span>caused<span style="letter-spacing:0.05pt;"> </span>by hazardous<span style="letter-spacing:0.05pt;"> </span>substance<span style="letter-spacing:0.05pt;"> </span>releases,<span style="letter-spacing:0.1pt;"> </span>even if<span style="letter-spacing:0.05pt;"> </span>they<span style="letter-spacing:0.05pt;"> </span>did not know of and were not responsible<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>releases.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>incur<span style="letter-spacing:0.1pt;"> </span>significant<span style="letter-spacing:0.2pt;"> </span>costs<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>liabilities<span style="letter-spacing:0.2pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>adversely<span style="letter-spacing:0.1pt;"> </span>affect<span style="letter-spacing:0.1pt;"> </span>our financial<span style="letter-spacing:0.1pt;"> </span>condition<span style="letter-spacing:0.05pt;"> </span>and operating<span style="letter-spacing:1.3pt;"> </span>results<span style="letter-spacing:1.3pt;"> </span>for<span style="letter-spacing:1.25pt;"> </span>failure<span style="letter-spacing:1.3pt;"> </span>to<span style="letter-spacing:1.2pt;"> </span>comply<span style="letter-spacing:1.25pt;"> </span>with<span style="letter-spacing:1.2pt;"> </span>such<span style="letter-spacing:1.2pt;"> </span>laws<span style="letter-spacing:1.15pt;"> </span>and<span style="letter-spacing:1.15pt;"> </span>regulations,<span style="letter-spacing:1.25pt;"> </span>including,<span style="letter-spacing:1.2pt;"> </span>among<span style="letter-spacing:1.2pt;"> </span>other<span style="letter-spacing:1.2pt;"> </span>things,<span style="letter-spacing:1.2pt;"> </span>civil<span style="letter-spacing:1.2pt;"> </span>or criminal<span style="letter-spacing:0.15pt;"> </span>fines<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>penalties,<span style="letter-spacing:0.15pt;"> </span>property<span style="letter-spacing:0.1pt;"> </span>damage<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>personal<span style="letter-spacing:0.1pt;"> </span>injury<span style="letter-spacing:0.1pt;"> </span>claims,<span style="letter-spacing:0.15pt;"> </span>costs<span style="letter-spacing:0.1pt;"> </span>associated<span style="letter-spacing:0.15pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>upgrades<span style="letter-spacing:0.1pt;"> </span>to our facilities<span style="letter-spacing:0.15pt;"> </span>or changes<span style="letter-spacing:0.05pt;"> </span>to our operating<span style="letter-spacing:0.1pt;"> </span>procedures,<span style="letter-spacing:0.1pt;"> </span>or injunctions<span style="letter-spacing:0.1pt;"> </span>limiting<span style="letter-spacing:0.1pt;"> </span>or altering<span style="letter-spacing:0.1pt;"> </span>our operations.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Although<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>maintain<span style="letter-spacing:0.15pt;"> </span>liability<span style="letter-spacing:0.2pt;"> </span>insurance<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>cover<span style="letter-spacing:0.1pt;"> </span>us<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>costs<span style="letter-spacing:0.05pt;"> </span>and expenses<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>incur<span style="letter-spacing:0.05pt;"> </span>due to injuries<span style="letter-spacing:0.1pt;"> </span>to our employees, this insurance may not provide adequate coverage against potential liabilities. We do not maintain<span style="letter-spacing:0.15pt;"> </span>insurance<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>environmental<span style="letter-spacing:0.2pt;"> </span>liability<span style="letter-spacing:0.2pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>toxic<span style="letter-spacing:0.1pt;"> </span>tort<span style="letter-spacing:0.1pt;"> </span>claims<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be asserted<span style="letter-spacing:0.1pt;"> </span>against<span style="letter-spacing:0.05pt;"> </span>us in connection with our storage<span style="letter-spacing:0.05pt;"> </span>or disposal<span style="letter-spacing:0.05pt;"> </span>of biological,<span style="letter-spacing:0.1pt;"> </span>hazardous<span style="letter-spacing:0.05pt;"> </span>or radioactive<span style="letter-spacing:0.1pt;"> </span>materials.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">40</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In<span style="letter-spacing:0.05pt;"> </span>addition,<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>incur<span style="letter-spacing:0.05pt;"> </span>substantial<span style="letter-spacing:0.1pt;"> </span>costs<span style="letter-spacing:0.05pt;"> </span>in order<span style="letter-spacing:0.05pt;"> </span>to comply<span style="letter-spacing:0.05pt;"> </span>with current<span style="letter-spacing:0.1pt;"> </span>or future<span style="letter-spacing:0.05pt;"> </span>environmental,<span style="letter-spacing:0.15pt;"> </span>health and<span style="letter-spacing:0.05pt;"> </span>safety<span style="letter-spacing:0.1pt;"> </span>laws and regulations.<span style="letter-spacing:0.1pt;"> </span>These current<span style="letter-spacing:0.1pt;"> </span>or future<span style="letter-spacing:0.05pt;"> </span>laws and regulations,<span style="letter-spacing:0.1pt;"> </span>which are<span style="letter-spacing:0.05pt;"> </span>becoming<span style="letter-spacing:0.05pt;"> </span>increasingly more<span style="letter-spacing:1.25pt;"> </span>stringent,<span style="letter-spacing:1.3pt;"> </span>may<span style="letter-spacing:1.25pt;"> </span>impair<span style="letter-spacing:1.25pt;"> </span>our<span style="letter-spacing:1.15pt;"> </span>research,<span style="letter-spacing:1.25pt;"> </span>development<span style="letter-spacing:1.25pt;"> </span>or<span style="letter-spacing:1.15pt;"> </span>production<span style="letter-spacing:1.2pt;"> </span>efforts.<span style="letter-spacing:1.25pt;"> </span>Our<span style="letter-spacing:1.15pt;"> </span>failure<span style="letter-spacing:1.25pt;"> </span>to<span style="letter-spacing:1.15pt;"> </span>comply<span style="letter-spacing:1.2pt;"> </span>with<span style="letter-spacing:1.15pt;"> </span>these laws and regulations<span style="letter-spacing:0.1pt;"> </span>also<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>result<span style="letter-spacing:0.1pt;"> </span>in substantial<span style="letter-spacing:0.1pt;"> </span>fines,<span style="letter-spacing:0.05pt;"> </span>penalties<span style="letter-spacing:0.1pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>sanctions.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.73%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We are subject<span style="letter-spacing:0.05pt;"> </span>to certain<span style="letter-spacing:0.05pt;"> </span>U.S.<span style="letter-spacing:-0.05pt;"> </span>and certain<span style="letter-spacing:0.05pt;"> </span>foreign<span style="letter-spacing:0.05pt;"> </span>anti-corruption,<span style="letter-spacing:0.1pt;"> </span>anti-money<span style="letter-spacing:0.1pt;"> </span>laundering,<span style="letter-spacing:0.05pt;"> </span>export</p>
<p style="margin-top:0pt;margin-bottom:0pt;margin-left:3.73%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">control,<span style="letter-spacing:0.05pt;"> </span>sanctions<span style="letter-spacing:0.05pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>trade<span style="letter-spacing:0.05pt;"> </span>laws and regulations.<span style="letter-spacing:0.05pt;"> </span>We can face<span style="letter-spacing:0.05pt;"> </span>serious<span style="letter-spacing:0.05pt;"> </span>consequences<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>violations.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:3.73%;text-indent:0%;font-size:6.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">U.S. and<span style="letter-spacing:0.05pt;"> </span>foreign<span style="letter-spacing:0.1pt;"> </span>anti-corruption,<span style="letter-spacing:0.2pt;"> </span>anti-money<span style="letter-spacing:0.15pt;"> </span>laundering,<span style="letter-spacing:0.15pt;"> </span>export<span style="letter-spacing:0.1pt;"> </span>control,<span style="letter-spacing:0.1pt;"> </span>sanctions<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.05pt;"> </span>trade<span style="letter-spacing:0.05pt;"> </span>laws and regulations<span style="letter-spacing:0.2pt;"> </span>prohibit,<span style="letter-spacing:0.2pt;"> </span>among<span style="letter-spacing:0.15pt;"> </span>other<span style="letter-spacing:0.15pt;"> </span>things,<span style="letter-spacing:0.15pt;"> </span>companies<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.1pt;"> </span>their<span style="letter-spacing:0.1pt;"> </span>employees,<span style="letter-spacing:0.15pt;"> </span>agents,<span style="letter-spacing:0.1pt;"> </span>CROs, CMOs,<span style="letter-spacing:0.05pt;"> </span>legal<span style="letter-spacing:0.1pt;"> </span>counsel, accountants,<span style="letter-spacing:0.15pt;"> </span>consultants,<span style="letter-spacing:0.15pt;"> </span>contractors<span style="letter-spacing:0.15pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>partners<span style="letter-spacing:0.1pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>authorizing,<span style="letter-spacing:0.1pt;"> </span>promising,<span style="letter-spacing:0.1pt;"> </span>offering,<span style="letter-spacing:0.1pt;"> </span>providing, soliciting,<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>receiving<span style="letter-spacing:0.15pt;"> </span>directly<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>indirectly,<span style="letter-spacing:0.15pt;"> </span>corrupt<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>improper<span style="letter-spacing:0.15pt;"> </span>payments<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>anything<span style="letter-spacing:0.1pt;"> </span>else<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>value<span style="letter-spacing:0.05pt;"> </span>to or from recipients<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>public<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>private<span style="letter-spacing:0.15pt;"> </span>sector.<span style="letter-spacing:0.1pt;"> </span>Violations<span style="letter-spacing:0.1pt;"> </span>of these<span style="letter-spacing:0.05pt;"> </span>laws can result<span style="letter-spacing:0.1pt;"> </span>in substantial<span style="letter-spacing:0.1pt;"> </span>criminal<span style="letter-spacing:0.1pt;"> </span>fines<span style="letter-spacing:0.05pt;"> </span>and civil penalties,<span style="letter-spacing:0.15pt;"> </span>imprisonment,<span style="letter-spacing:0.2pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>loss<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>trade<span style="letter-spacing:0.1pt;"> </span>privileges,<span style="letter-spacing:0.15pt;"> </span>debarment,<span style="letter-spacing:0.15pt;"> </span>tax<span style="letter-spacing:0.1pt;"> </span>reassessments,<span style="letter-spacing:0.2pt;"> </span>breach<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>contract<span style="letter-spacing:0.1pt;"> </span>and fraud litigation,<span style="letter-spacing:0.2pt;"> </span>reputational<span style="letter-spacing:0.2pt;"> </span>harm<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>consequences.<span style="letter-spacing:0.1pt;"> </span>We<span style="letter-spacing:0.05pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>direct<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>indirect<span style="letter-spacing:0.15pt;"> </span>interactions<span style="letter-spacing:0.15pt;"> </span>with officials<span style="letter-spacing:0.15pt;"> </span>and employees<span style="letter-spacing:0.1pt;"> </span>of government<span style="letter-spacing:0.1pt;"> </span>agencies<span style="letter-spacing:0.05pt;"> </span>or government-affiliated<span style="letter-spacing:0.25pt;"> </span>hospitals,<span style="letter-spacing:0.1pt;"> </span>universities<span style="letter-spacing:0.15pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>organizations.<span style="letter-spacing:0.05pt;"> </span>We also<span style="letter-spacing:2.4pt;"> </span>expect<span style="letter-spacing:2.4pt;"> </span>our<span style="letter-spacing:2.35pt;"> </span>non-U.S.<span style="letter-spacing:2.35pt;"> </span>activities to<span style="letter-spacing:2.35pt;"> </span>increase<span style="letter-spacing:2.45pt;"> </span>over<span style="letter-spacing:2.4pt;"> </span>time.<span style="letter-spacing:2.4pt;"> </span>We<span style="letter-spacing:2.35pt;"> </span>expect<span style="letter-spacing:2.4pt;"> </span>to<span style="letter-spacing:2.35pt;"> </span>rely<span style="letter-spacing:2.4pt;"> </span>on<span style="letter-spacing:2.35pt;"> </span>third<span style="letter-spacing:2.4pt;"> </span>parties<span style="letter-spacing:2.45pt;"> </span>for<span style="letter-spacing:2.4pt;"> </span>research, preclinical<span style="letter-spacing:0.15pt;"> </span>studies<span style="letter-spacing:0.05pt;"> </span>and clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>and/or<span style="letter-spacing:0.05pt;"> </span>to obtain<span style="letter-spacing:0.05pt;"> </span>necessary<span style="letter-spacing:0.1pt;"> </span>permits,<span style="letter-spacing:0.1pt;"> </span>licenses,<span style="letter-spacing:0.1pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>registrations<span style="letter-spacing:0.15pt;"> </span>and other marketing<span style="letter-spacing:0.15pt;"> </span>approvals.<span style="letter-spacing:0.1pt;"> </span>We<span style="letter-spacing:0.05pt;"> </span>can<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>held<span style="letter-spacing:0.1pt;"> </span>liable<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>corrupt<span style="letter-spacing:0.05pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>illegal<span style="letter-spacing:0.1pt;"> </span>activities<span style="letter-spacing:0.15pt;"> </span>of our personnel,<span style="letter-spacing:0.05pt;"> </span>agents,<span style="letter-spacing:0.05pt;"> </span>or partners,<span style="letter-spacing:0.1pt;"> </span>even if<span style="letter-spacing:0.05pt;"> </span>we do not explicitly<span style="letter-spacing:0.1pt;"> </span>authorize<span style="letter-spacing:0.1pt;"> </span>or have prior<span style="letter-spacing:0.05pt;"> </span>knowledge of such activities.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Any<span style="letter-spacing:0.05pt;"> </span>violations<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>laws<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>regulations<span style="letter-spacing:0.1pt;"> </span>described<span style="letter-spacing:0.1pt;"> </span>above may<span style="letter-spacing:0.05pt;"> </span>result<span style="letter-spacing:0.1pt;"> </span>in substantial<span style="letter-spacing:0.1pt;"> </span>civil<span style="letter-spacing:0.05pt;"> </span>and criminal<span style="letter-spacing:0.1pt;"> </span>fines and<span style="letter-spacing:0.05pt;"> </span>penalties,<span style="letter-spacing:0.15pt;"> </span>imprisonment,<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>loss<span style="letter-spacing:0.05pt;"> </span>of export<span style="letter-spacing:0.05pt;"> </span>or import<span style="letter-spacing:0.1pt;"> </span>privileges,<span style="letter-spacing:0.1pt;"> </span>debarment,<span style="letter-spacing:0.1pt;"> </span>tax<span style="letter-spacing:0.05pt;"> </span>reassessments,<span style="letter-spacing:0.15pt;"> </span>breach<span style="letter-spacing:0.05pt;"> </span>of contract<span style="letter-spacing:0.1pt;"> </span>and fraud<span style="letter-spacing:0.05pt;"> </span>litigation,<span style="letter-spacing:0.15pt;"> </span>reputational<span style="letter-spacing:0.15pt;"> </span>harm<span style="letter-spacing:0.05pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>consequences.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Risks Related<span style="letter-spacing:0.05pt;"> </span>to Our Reliance<span style="letter-spacing:0.05pt;"> </span>on Third Parties</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We rely,<span style="letter-spacing:0.05pt;"> </span>and intend<span style="letter-spacing:0.05pt;"> </span>to continue<span style="letter-spacing:0.05pt;"> </span>to rely,<span style="letter-spacing:0.05pt;"> </span>on third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.05pt;"> </span>to conduct our clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>and perform<span style="letter-spacing:0.05pt;"> </span>some<span style="letter-spacing:0.05pt;"> </span>of our research<span style="letter-spacing:0.05pt;"> </span>and preclinical<span style="letter-spacing:0.1pt;"> </span>studies.<span style="letter-spacing:0.05pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>these<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.05pt;"> </span>do not satisfactorily<span style="letter-spacing:0.15pt;"> </span>carry<span style="letter-spacing:0.05pt;"> </span>out their<span style="letter-spacing:0.05pt;"> </span>contractual duties,<span style="letter-spacing:0.05pt;"> </span>fail<span style="letter-spacing:0.05pt;"> </span>to comply<span style="letter-spacing:0.05pt;"> </span>with applicable<span style="letter-spacing:0.1pt;"> </span>regulatory<span style="letter-spacing:0.05pt;"> </span>requirements<span style="letter-spacing:0.1pt;"> </span>or do not meet<span style="letter-spacing:0.05pt;"> </span>expected<span style="letter-spacing:0.05pt;"> </span>deadlines,<span style="letter-spacing:0.05pt;"> </span>our development<span style="letter-spacing:0.1pt;"> </span>programs<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be delayed<span style="letter-spacing:0.05pt;"> </span>or subject<span style="letter-spacing:0.05pt;"> </span>to increased<span style="letter-spacing:0.05pt;"> </span>costs<span style="letter-spacing:0.05pt;"> </span>or we may<span style="letter-spacing:0.05pt;"> </span>be unable to obtain regulatory<span style="letter-spacing:0.05pt;"> </span>approval,<span style="letter-spacing:0.05pt;"> </span>each of which may<span style="letter-spacing:0.05pt;"> </span>have an adverse<span style="letter-spacing:0.05pt;"> </span>effect<span style="letter-spacing:0.1pt;"> </span>on our business,<span style="letter-spacing:0.05pt;"> </span>financial<span style="letter-spacing:0.05pt;"> </span>condition, results<span style="letter-spacing:0.05pt;"> </span>of operations<span style="letter-spacing:0.05pt;"> </span>and prospects.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.05pt;"> </span>do<span style="letter-spacing:0.05pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>ability<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>independently<span style="letter-spacing:0.15pt;"> </span>conduct<span style="letter-spacing:0.1pt;"> </span>all<span style="letter-spacing:0.1pt;"> </span>aspects<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>preclinical<span style="letter-spacing:0.15pt;"> </span>testing<span style="letter-spacing:0.1pt;"> </span>or clinical<span style="letter-spacing:0.1pt;"> </span>trials ourselves.<span style="letter-spacing:0.1pt;"> </span>As a result,<span style="letter-spacing:0.1pt;"> </span>we are<span style="letter-spacing:0.05pt;"> </span>dependent<span style="letter-spacing:0.05pt;"> </span>on third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.1pt;"> </span>to conduct<span style="letter-spacing:0.05pt;"> </span>our ongoing and planned<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.05pt;"> </span>of PRT543,<span style="letter-spacing:0.05pt;"> </span>PRT811<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.1pt;"> </span>PRT1419, and<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>preclinical<span style="letter-spacing:0.2pt;"> </span>studies<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trials<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates. The<span style="letter-spacing:1.4pt;"> </span>timing<span style="letter-spacing:1.5pt;"> </span>of<span style="letter-spacing:1.4pt;"> </span>the<span style="letter-spacing:1.45pt;"> </span>initiation<span style="letter-spacing:1.55pt;"> </span>and<span style="letter-spacing:1.4pt;"> </span>completion<span style="letter-spacing:1.5pt;"> </span>of<span style="letter-spacing:1.4pt;"> </span>these<span style="letter-spacing:1.45pt;"> </span>trials<span style="letter-spacing:1.5pt;"> </span>will<span style="letter-spacing:1.45pt;"> </span>therefore<span style="letter-spacing:1.5pt;"> </span>be<span style="letter-spacing:1.4pt;"> </span>partially<span style="letter-spacing:1.5pt;"> </span>controlled<span style="letter-spacing:1.45pt;"> </span>by<span style="letter-spacing:1.35pt;"> </span>such<span style="letter-spacing:1.35pt;"> </span>third parties and may result in delays to our development programs. Specifically, we expect CROs, clinical investigators<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>consultants<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>play<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>significant<span style="letter-spacing:0.15pt;"> </span>role<span style="letter-spacing:0.05pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>conduct<span style="letter-spacing:0.05pt;"> </span>of these<span style="letter-spacing:0.05pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>and the<span style="letter-spacing:0.05pt;"> </span>subsequent<span style="letter-spacing:0.05pt;"> </span>collection and<span style="letter-spacing:0.05pt;"> </span>analysis<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>data.<span style="letter-spacing:0.1pt;"> </span>However,<span style="letter-spacing:0.05pt;"> </span>these<span style="letter-spacing:0.1pt;"> </span>CROs and<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>not our employees,<span style="letter-spacing:0.1pt;"> </span>and we will<span style="letter-spacing:0.05pt;"> </span>not be able to control<span style="letter-spacing:0.05pt;"> </span>all<span style="letter-spacing:0.05pt;"> </span>aspects<span style="letter-spacing:0.05pt;"> </span>of their<span style="letter-spacing:0.05pt;"> </span>activities.<span style="letter-spacing:0.15pt;"> </span>Nevertheless,<span style="letter-spacing:0.1pt;"> </span>we are<span style="letter-spacing:0.05pt;"> </span>responsible<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>ensuring<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>each<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trial<span style="letter-spacing:0.05pt;"> </span>is conducted<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>accordance<span style="letter-spacing:0.1pt;"> </span>with the<span style="letter-spacing:0.05pt;"> </span>applicable<span style="letter-spacing:0.1pt;"> </span>protocol<span style="letter-spacing:0.05pt;"> </span>and legal,<span style="letter-spacing:0.05pt;"> </span>regulatory<span style="letter-spacing:0.1pt;"> </span>and scientific<span style="letter-spacing:0.15pt;"> </span>standards,<span style="letter-spacing:0.1pt;"> </span>and our reliance<span style="letter-spacing:0.15pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>CROs and<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>third<span style="letter-spacing:0.1pt;"> </span>parties<span style="letter-spacing:0.15pt;"> </span>does<span style="letter-spacing:0.05pt;"> </span>not relieve<span style="letter-spacing:0.1pt;"> </span>us of our regulatory<span style="letter-spacing:0.1pt;"> </span>responsibilities.<span style="letter-spacing:0.2pt;"> </span>We and our CROs<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.15pt;"> </span>required<span style="letter-spacing:0.2pt;"> </span>to<span style="letter-spacing:0.1pt;"> </span>comply<span style="letter-spacing:0.15pt;"> </span>with<span style="letter-spacing:0.1pt;"> </span>good<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>practices,<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>GCP, requirements,<span style="letter-spacing:0.2pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>regulations<span style="letter-spacing:0.15pt;"> </span>and guidelines<span style="letter-spacing:0.15pt;"> </span>enforced<span style="letter-spacing:0.1pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA for<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>in clinical<span style="letter-spacing:0.1pt;"> </span>development.<span style="letter-spacing:0.1pt;"> </span>Regulatory<span style="letter-spacing:0.05pt;"> </span>authorities<span style="letter-spacing:0.15pt;"> </span>enforce these<span style="letter-spacing:0.1pt;"> </span>GCP requirements<span style="letter-spacing:0.2pt;"> </span>through<span style="letter-spacing:0.1pt;"> </span>periodic<span style="letter-spacing:0.15pt;"> </span>inspections<span style="letter-spacing:0.1pt;"> </span>of trial<span style="letter-spacing:0.1pt;"> </span>sponsors,<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trial<span style="letter-spacing:0.1pt;"> </span>investigators<span style="letter-spacing:0.15pt;"> </span>and clinical<span style="letter-spacing:0.1pt;"> </span>trial sites.<span style="letter-spacing:0.1pt;"> </span>If<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>CROs or<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trial<span style="letter-spacing:0.15pt;"> </span>sites<span style="letter-spacing:0.1pt;"> </span>fail<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>comply<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>applicable<span style="letter-spacing:0.15pt;"> </span>GCP requirements,<span style="letter-spacing:0.2pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>data generated<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trials<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>deemed<span style="letter-spacing:0.1pt;"> </span>unreliable,<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA may<span style="letter-spacing:0.1pt;"> </span>require<span style="letter-spacing:0.1pt;"> </span>us to perform<span style="letter-spacing:0.1pt;"> </span>additional clinical<span style="letter-spacing:0.15pt;"> </span>trials<span style="letter-spacing:0.15pt;"> </span>before<span style="letter-spacing:0.1pt;"> </span>approving<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>marketing<span style="letter-spacing:0.15pt;"> </span>applications.<span style="letter-spacing:0.15pt;"> </span>We<span style="letter-spacing:0.05pt;"> </span>cannot<span style="letter-spacing:0.1pt;"> </span>assure<span style="letter-spacing:0.1pt;"> </span>you<span style="letter-spacing:0.05pt;"> </span>that,<span style="letter-spacing:0.1pt;"> </span>upon inspection,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>FDA will<span style="letter-spacing:0.1pt;"> </span>determine<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trials<span style="letter-spacing:0.15pt;"> </span>comply<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>GCPs. In addition,<span style="letter-spacing:0.05pt;"> </span>our clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>must<span style="letter-spacing:0.05pt;"> </span>be conducted<span style="letter-spacing:0.05pt;"> </span>with product<span style="letter-spacing:0.05pt;"> </span>produced<span style="letter-spacing:0.05pt;"> </span>under<span style="letter-spacing:0.05pt;"> </span>cGMP regulations.<span style="letter-spacing:0.1pt;"> </span>Our failure<span style="letter-spacing:0.1pt;"> </span>or the<span style="letter-spacing:0.05pt;"> </span>failure<span style="letter-spacing:0.1pt;"> </span>of third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.1pt;"> </span>on whom we rely<span style="letter-spacing:0.05pt;"> </span>to comply with<span style="letter-spacing:0.05pt;"> </span>these<span style="letter-spacing:0.1pt;"> </span>regulations<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>require<span style="letter-spacing:0.15pt;"> </span>us<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>stop<span style="letter-spacing:0.1pt;"> </span>and/or<span style="letter-spacing:0.1pt;"> </span>repeat<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials,<span style="letter-spacing:0.1pt;"> </span>which would delay<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>marketing approval<span style="letter-spacing:0.05pt;"> </span>process.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">There<span style="letter-spacing:0.15pt;"> </span>is<span style="letter-spacing:0.15pt;"> </span>no<span style="letter-spacing:0.1pt;"> </span>guarantee<span style="letter-spacing:0.2pt;"> </span>that<span style="letter-spacing:0.15pt;"> </span>any<span style="letter-spacing:0.1pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>CROs, clinical<span style="letter-spacing:0.15pt;"> </span>trial<span style="letter-spacing:0.15pt;"> </span>investigators<span style="letter-spacing:0.2pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>third<span style="letter-spacing:0.1pt;"> </span>parties<span style="letter-spacing:0.15pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>rely will<span style="letter-spacing:0.1pt;"> </span>devote<span style="letter-spacing:0.1pt;"> </span>adequate<span style="letter-spacing:0.1pt;"> </span>time<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>resources<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>activities<span style="letter-spacing:0.15pt;"> </span>or perform<span style="letter-spacing:0.1pt;"> </span>as contractually<span style="letter-spacing:0.15pt;"> </span>required.<span style="letter-spacing:0.1pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>any of<span style="letter-spacing:0.05pt;"> </span>these<span style="letter-spacing:0.1pt;"> </span>third<span style="letter-spacing:0.1pt;"> </span>parties<span style="letter-spacing:0.1pt;"> </span>fail<span style="letter-spacing:0.05pt;"> </span>to meet<span style="letter-spacing:0.05pt;"> </span>expected<span style="letter-spacing:0.05pt;"> </span>deadlines,<span style="letter-spacing:0.1pt;"> </span>adhere<span style="letter-spacing:0.05pt;"> </span>to our clinical<span style="letter-spacing:0.1pt;"> </span>protocols<span style="letter-spacing:0.1pt;"> </span>or meet<span style="letter-spacing:0.05pt;"> </span>regulatory requirements,<span style="letter-spacing:0.2pt;"> </span>otherwise<span style="letter-spacing:0.05pt;"> </span>perform<span style="letter-spacing:0.1pt;"> </span>in a substandard<span style="letter-spacing:0.1pt;"> </span>manner,<span style="letter-spacing:0.05pt;"> </span>or terminate<span style="letter-spacing:0.15pt;"> </span>their<span style="letter-spacing:0.05pt;"> </span>engagements<span style="letter-spacing:0.1pt;"> </span>with us, the<span style="letter-spacing:0.05pt;"> </span>timelines for<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.15pt;"> </span>programs<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>extended<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>delayed<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>activities<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be suspended<span style="letter-spacing:0.05pt;"> </span>or terminated. If our clinical trial site terminates for any reason, we may experience the loss of follow-up information<span style="letter-spacing:0.2pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>subjects<span style="letter-spacing:0.15pt;"> </span>enrolled<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trial<span style="letter-spacing:0.15pt;"> </span>unless<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>able<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>transfer<span style="letter-spacing:0.15pt;"> </span>those<span style="letter-spacing:0.1pt;"> </span>subjects<span style="letter-spacing:0.1pt;"> </span>to another qualified<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trial<span style="letter-spacing:0.1pt;"> </span>site,<span style="letter-spacing:0.05pt;"> </span>which may<span style="letter-spacing:0.05pt;"> </span>be difficult<span style="letter-spacing:0.15pt;"> </span>or impossible.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">41</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Furthermore,<span style="letter-spacing:0.15pt;"> </span>these<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>also<span style="letter-spacing:0.05pt;"> </span>have relationships<span style="letter-spacing:0.15pt;"> </span>with other<span style="letter-spacing:0.05pt;"> </span>entities,<span style="letter-spacing:0.1pt;"> </span>some<span style="letter-spacing:0.05pt;"> </span>of which may<span style="letter-spacing:0.05pt;"> </span>be our competitors<span style="letter-spacing:0.2pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>whom<span style="letter-spacing:0.05pt;"> </span>they<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>also<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>conducting<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>pharmaceutical<span style="letter-spacing:0.15pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>development activities<span style="letter-spacing:0.2pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>harm<span style="letter-spacing:0.05pt;"> </span>our competitive<span style="letter-spacing:0.15pt;"> </span>position.<span style="letter-spacing:0.05pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>these<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.1pt;"> </span>do not successfully<span style="letter-spacing:0.1pt;"> </span>carry<span style="letter-spacing:0.05pt;"> </span>out their contractual<span style="letter-spacing:0.15pt;"> </span>duties,<span style="letter-spacing:0.1pt;"> </span>meet<span style="letter-spacing:0.1pt;"> </span>expected<span style="letter-spacing:0.1pt;"> </span>deadlines<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>conduct<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>in accordance<span style="letter-spacing:0.1pt;"> </span>with regulatory requirements<span style="letter-spacing:0.2pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>our stated<span style="letter-spacing:0.05pt;"> </span>protocols,<span style="letter-spacing:0.1pt;"> </span>we will<span style="letter-spacing:0.05pt;"> </span>not be able<span style="letter-spacing:0.05pt;"> </span>to obtain,<span style="letter-spacing:0.05pt;"> </span>or may<span style="letter-spacing:0.05pt;"> </span>be delayed<span style="letter-spacing:0.05pt;"> </span>in obtaining,<span style="letter-spacing:0.05pt;"> </span>marketing approvals<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>PRT543, PRT811, PRT1419 or<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>able<span style="letter-spacing:0.1pt;"> </span>to,<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>be delayed<span style="letter-spacing:0.05pt;"> </span>in our efforts<span style="letter-spacing:0.1pt;"> </span>to, successfully<span style="letter-spacing:0.1pt;"> </span>commercialize<span style="letter-spacing:0.2pt;"> </span>our products.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Manufacturing<span style="letter-spacing:0.05pt;"> </span>pharmaceutical<span style="letter-spacing:0.1pt;"> </span>products<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>complex<span style="letter-spacing:0.05pt;"> </span>and subject<span style="letter-spacing:0.05pt;"> </span>to product<span style="letter-spacing:0.05pt;"> </span>loss<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>a variety<span style="letter-spacing:0.1pt;"> </span>of reasons. We rely<span style="letter-spacing:0.05pt;"> </span>on third-party<span style="letter-spacing:0.1pt;"> </span>suppliers,<span style="letter-spacing:0.05pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>single<span style="letter-spacing:0.05pt;"> </span>source<span style="letter-spacing:0.05pt;"> </span>suppliers,<span style="letter-spacing:0.05pt;"> </span>to manufacture<span style="letter-spacing:0.05pt;"> </span>preclinical<span style="letter-spacing:0.1pt;"> </span>and clinical<span style="letter-spacing:0.1pt;"> </span>supplies<span style="letter-spacing:0.05pt;"> </span>of our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.05pt;"> </span>and we intend<span style="letter-spacing:0.05pt;"> </span>to rely<span style="letter-spacing:0.05pt;"> </span>on third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.05pt;"> </span>to produce commercial supplies<span style="letter-spacing:0.05pt;"> </span>of any approved<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidate.<span style="letter-spacing:0.05pt;"> </span>This reliance<span style="letter-spacing:0.05pt;"> </span>on third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.05pt;"> </span>increases<span style="letter-spacing:0.05pt;"> </span>the risk<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we will not have sufficient<span style="letter-spacing:0.1pt;"> </span>quantities<span style="letter-spacing:0.1pt;"> </span>of our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.05pt;"> </span>or products<span style="letter-spacing:0.05pt;"> </span>or such quantities<span style="letter-spacing:0.1pt;"> </span>at an acceptable cost<span style="letter-spacing:0.05pt;"> </span>or quality,<span style="letter-spacing:0.05pt;"> </span>which could delay,<span style="letter-spacing:0.05pt;"> </span>prevent<span style="letter-spacing:0.05pt;"> </span>or impair<span style="letter-spacing:0.05pt;"> </span>our development<span style="letter-spacing:0.1pt;"> </span>or commercialization<span style="letter-spacing:0.2pt;"> </span>efforts.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.05pt;"> </span>do<span style="letter-spacing:0.05pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>manufacturing<span style="letter-spacing:0.2pt;"> </span>facilities.<span style="letter-spacing:0.2pt;"> </span>We<span style="letter-spacing:0.05pt;"> </span>rely,<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>expect<span style="letter-spacing:0.1pt;"> </span>to continue<span style="letter-spacing:0.05pt;"> </span>to rely,<span style="letter-spacing:0.05pt;"> </span>on third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>the manufacture<span style="letter-spacing:0.1pt;"> </span>of our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>preclinical<span style="letter-spacing:0.15pt;"> </span>and clinical<span style="letter-spacing:0.1pt;"> </span>testing,<span style="letter-spacing:0.1pt;"> </span>product development<span style="letter-spacing:0.05pt;"> </span>purposes, to support<span style="letter-spacing:0.1pt;"> </span>regulatory<span style="letter-spacing:0.15pt;"> </span>application<span style="letter-spacing:0.15pt;"> </span>submissions,<span style="letter-spacing:0.15pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>well<span style="letter-spacing:0.1pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>commercial<span style="letter-spacing:0.2pt;"> </span>manufacture<span style="letter-spacing:0.15pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>of our product candidates<span style="letter-spacing:0.15pt;"> </span>obtain<span style="letter-spacing:0.1pt;"> </span>marketing<span style="letter-spacing:0.15pt;"> </span>approval.<span style="letter-spacing:0.1pt;"> </span>In<span style="letter-spacing:0.05pt;"> </span>addition,<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>expect<span style="letter-spacing:0.05pt;"> </span>to contract<span style="letter-spacing:0.1pt;"> </span>with analytical<span style="letter-spacing:0.1pt;"> </span>laboratories<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>release and<span style="letter-spacing:0.05pt;"> </span>stability<span style="letter-spacing:0.15pt;"> </span>testing<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates.<span style="letter-spacing:0.15pt;"> </span>This<span style="letter-spacing:0.05pt;"> </span>reliance<span style="letter-spacing:0.15pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.1pt;"> </span>parties<span style="letter-spacing:0.15pt;"> </span>increases<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>risk<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we will<span style="letter-spacing:0.05pt;"> </span>not have<span style="letter-spacing:0.05pt;"> </span>sufficient<span style="letter-spacing:0.2pt;"> </span>quantities<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>products<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>quantities<span style="letter-spacing:0.15pt;"> </span>at<span style="letter-spacing:0.1pt;"> </span>an<span style="letter-spacing:0.05pt;"> </span>acceptable<span style="letter-spacing:0.1pt;"> </span>cost<span style="letter-spacing:0.05pt;"> </span>or quality, which<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>delay,<span style="letter-spacing:0.1pt;"> </span>prevent<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>impair<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>or commercialization<span style="letter-spacing:0.2pt;"> </span>efforts.<span style="letter-spacing:0.1pt;"> </span>In addition,<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>ongoing COVID-19 pandemic<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>result<span style="letter-spacing:0.1pt;"> </span>in disruptions<span style="letter-spacing:0.1pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>operations<span style="letter-spacing:0.1pt;"> </span>or an extended<span style="letter-spacing:0.05pt;"> </span>shutdown of certain<span style="letter-spacing:0.1pt;"> </span>businesses, which could<span style="letter-spacing:0.05pt;"> </span>include<span style="letter-spacing:0.05pt;"> </span>certain<span style="letter-spacing:0.1pt;"> </span>of our contract<span style="letter-spacing:0.1pt;"> </span>manufacturers.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>unable<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>establish<span style="letter-spacing:0.15pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>agreements<span style="letter-spacing:0.15pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>third-party<span style="letter-spacing:0.2pt;"> </span>manufacturers<span style="letter-spacing:0.2pt;"> </span>or do so on favorable<span style="letter-spacing:0.1pt;"> </span>terms. Even<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>able<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>establish<span style="letter-spacing:0.15pt;"> </span>agreements<span style="letter-spacing:0.15pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>third-party<span style="letter-spacing:0.2pt;"> </span>manufacturers,<span style="letter-spacing:0.15pt;"> </span>reliance<span style="letter-spacing:0.1pt;"> </span>on third-party<span style="letter-spacing:0.15pt;"> </span>manufacturers entails<span style="letter-spacing:0.1pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>risks,<span style="letter-spacing:0.05pt;"> </span>including:</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">reliance<span style="letter-spacing:0.1pt;"> </span>on the<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.05pt;"> </span>party<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>regulatory,<span style="letter-spacing:0.1pt;"> </span>compliance<span style="letter-spacing:0.1pt;"> </span>and quality<span style="letter-spacing:0.05pt;"> </span>assurance&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">reliance<span style="letter-spacing:0.95pt;"> </span>on<span style="letter-spacing:0.85pt;"> </span>the<span style="letter-spacing:0.9pt;"> </span>third<span style="letter-spacing:0.85pt;"> </span>party<span style="letter-spacing:0.85pt;"> </span>for<span style="letter-spacing:0.85pt;"> </span>product<span style="letter-spacing:0.85pt;"> </span>development,<span style="letter-spacing:0.9pt;"> </span>analytical<span style="letter-spacing:0.9pt;"> </span>testing,<span style="letter-spacing:0.9pt;"> </span>and<span style="letter-spacing:0.8pt;"> </span>data<span style="letter-spacing:0.85pt;"> </span>generation<span style="letter-spacing:0.9pt;"> </span>to<span style="letter-spacing:0.8pt;"> </span>support regulatory<span style="letter-spacing:0.1pt;"> </span>applications&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">operations<span style="letter-spacing:0.85pt;"> </span>of<span style="letter-spacing:0.75pt;"> </span>our<span style="letter-spacing:0.75pt;"> </span>third-party<span style="letter-spacing:0.9pt;"> </span>manufacturers<span style="letter-spacing:0.9pt;"> </span>or<span style="letter-spacing:0.75pt;"> </span>suppliers<span style="letter-spacing:0.8pt;"> </span>could<span style="letter-spacing:0.75pt;"> </span>be<span style="letter-spacing:0.7pt;"> </span>disrupted<span style="letter-spacing:0.8pt;"> </span>by<span style="letter-spacing:0.7pt;"> </span>conditions<span style="letter-spacing:0.8pt;"> </span>unrelated<span style="letter-spacing:0.8pt;"> </span>to our business<span style="letter-spacing:0.05pt;"> </span>or operations,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>bankruptcy<span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>manufacturer<span style="letter-spacing:0.15pt;"> </span>or supplier,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>issuance<span style="letter-spacing:0.05pt;"> </span>of an FDA<span style="letter-spacing:0.05pt;"> </span>Form<span style="letter-spacing:0.15pt;"> </span>483<span style="letter-spacing:0.1pt;"> </span>notice<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>warning<span style="letter-spacing:0.1pt;"> </span>letter,<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>enforcement<span style="letter-spacing:0.15pt;"> </span>action<span style="letter-spacing:0.1pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>FDA or<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>regulatory authority&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.05pt;"> </span>possible<span style="letter-spacing:0.05pt;"> </span>breach<span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>manufacturing<span style="letter-spacing:0.15pt;"> </span>agreement<span style="letter-spacing:0.1pt;"> </span>by the<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.05pt;"> </span>party&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the possible misappropriation of our proprietary information, including our trade secrets and know-how&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:1pt;"> </span>possible<span style="letter-spacing:1pt;"> </span>termination<span style="letter-spacing:1.1pt;"> </span>or<span style="letter-spacing:0.95pt;"> </span>nonrenewal<span style="letter-spacing:1pt;"> </span>of<span style="letter-spacing:0.95pt;"> </span>the<span style="letter-spacing:1pt;"> </span>agreement<span style="letter-spacing:1.05pt;"> </span>by<span style="letter-spacing:0.95pt;"> </span>the<span style="letter-spacing:1pt;"> </span>third<span style="letter-spacing:1pt;"> </span>party<span style="letter-spacing:1pt;"> </span>at<span style="letter-spacing:1pt;"> </span>a<span style="letter-spacing:0.9pt;"> </span>time<span style="letter-spacing:0.95pt;"> </span>that<span style="letter-spacing:0.95pt;"> </span>is<span style="letter-spacing:0.95pt;"> </span>costly<span style="letter-spacing:0.95pt;"> </span>or inconvenient<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>us&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">carrier<span style="letter-spacing:0.1pt;"> </span>disruptions<span style="letter-spacing:0.1pt;"> </span>or increased<span style="letter-spacing:0.1pt;"> </span>costs<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>beyond our control&#59;<span style="letter-spacing:0.1pt;"> </span>and</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">failure<span style="letter-spacing:0.1pt;"> </span>to deliver<span style="letter-spacing:0.1pt;"> </span>our drugs<span style="letter-spacing:0.05pt;"> </span>under<span style="letter-spacing:0.05pt;"> </span>specified<span style="letter-spacing:0.1pt;"> </span>storage<span style="letter-spacing:0.05pt;"> </span>conditions<span style="letter-spacing:0.1pt;"> </span>and in a timely<span style="letter-spacing:0.1pt;"> </span>manner.</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:12pt;margin-bottom:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.05pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>only<span style="letter-spacing:0.05pt;"> </span>limited<span style="letter-spacing:0.15pt;"> </span>supply<span style="letter-spacing:0.1pt;"> </span>arrangements<span style="letter-spacing:0.2pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>place<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>respect<span style="letter-spacing:0.15pt;"> </span>to our product<span style="letter-spacing:0.05pt;"> </span>candidates,<span style="letter-spacing:0.1pt;"> </span>and these arrangements<span style="letter-spacing:0.4pt;"> </span>do<span style="letter-spacing:0.25pt;"> </span>not<span style="letter-spacing:0.25pt;"> </span>extend<span style="letter-spacing:0.3pt;"> </span>to<span style="letter-spacing:0.25pt;"> </span>commercial<span style="letter-spacing:0.4pt;"> </span>supply.<span style="letter-spacing:0.3pt;"> </span>We<span style="letter-spacing:0.25pt;"> </span>acquire<span style="letter-spacing:0.3pt;"> </span>many<span style="letter-spacing:0.3pt;"> </span>key<span style="letter-spacing:0.2pt;"> </span>materials<span style="letter-spacing:0.35pt;"> </span>on<span style="letter-spacing:0.2pt;"> </span>a<span style="letter-spacing:0.2pt;"> </span>purchase<span style="letter-spacing:0.25pt;"> </span>order<span style="letter-spacing:0.25pt;"> </span>basis.<span style="letter-spacing:0.25pt;"> </span>As a<span style="letter-spacing:0.05pt;"> </span>result,<span style="letter-spacing:0.1pt;"> </span>we do not have long-term<span style="letter-spacing:0.1pt;"> </span>committed<span style="letter-spacing:0.1pt;"> </span>arrangements<span style="letter-spacing:0.15pt;"> </span>with respect<span style="letter-spacing:0.1pt;"> </span>to our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>and other materials.<span style="letter-spacing:0.2pt;"> </span>We<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>need<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>establish<span style="letter-spacing:0.15pt;"> </span>one or more<span style="letter-spacing:0.05pt;"> </span>agreements<span style="letter-spacing:0.1pt;"> </span>with third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.1pt;"> </span>to develop<span style="letter-spacing:0.05pt;"> </span>and scale<span style="letter-spacing:0.05pt;"> </span>up the<span style="letter-spacing:0.05pt;"> </span>drug manufacturing<span style="letter-spacing:0.2pt;"> </span>process,<span style="letter-spacing:0.1pt;"> </span>conduct<span style="letter-spacing:0.1pt;"> </span>drug<span style="letter-spacing:0.05pt;"> </span>testing,<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>generate<span style="letter-spacing:0.15pt;"> </span>data<span style="letter-spacing:0.05pt;"> </span>to support<span style="letter-spacing:0.05pt;"> </span>a regulatory<span style="letter-spacing:0.1pt;"> </span>submission.<span style="letter-spacing:0.1pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>we obtain marketing<span style="letter-spacing:1.25pt;"> </span>approval<span style="letter-spacing:1.2pt;"> </span>for<span style="letter-spacing:1.2pt;"> </span>any<span style="letter-spacing:1.1pt;"> </span>of<span style="letter-spacing:1.1pt;"> </span>our<span style="letter-spacing:1.1pt;"> </span>product<span style="letter-spacing:1.15pt;"> </span>candidates,<span style="letter-spacing:1.2pt;"> </span>we<span style="letter-spacing:1.1pt;"> </span>will<span style="letter-spacing:1.15pt;"> </span>need<span style="letter-spacing:1.1pt;"> </span>to<span style="letter-spacing:1.1pt;"> </span>establish<span style="letter-spacing:1.2pt;"> </span>an<span style="letter-spacing:1.1pt;"> </span>agreement<span style="letter-spacing:1.2pt;"> </span>for<span style="letter-spacing:1.15pt;"> </span>commercial manufacture<span style="letter-spacing:0.1pt;"> </span>with a third<span style="letter-spacing:0.05pt;"> </span>party.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In<span style="letter-spacing:0.25pt;"> </span>addition,<span style="letter-spacing:0.3pt;"> </span>we<span style="letter-spacing:0.25pt;"> </span>are<span style="letter-spacing:0.3pt;"> </span>dependent<span style="letter-spacing:0.3pt;"> </span>on<span style="letter-spacing:0.25pt;"> </span>a<span style="letter-spacing:0.25pt;"> </span>sole<span style="letter-spacing:0.3pt;"> </span>supplier<span style="letter-spacing:0.35pt;"> </span>for<span style="letter-spacing:0.3pt;"> </span>certain<span style="letter-spacing:0.3pt;"> </span>components<span style="letter-spacing:0.25pt;"> </span>of<span style="letter-spacing:0.2pt;"> </span>our<span style="letter-spacing:0.2pt;"> </span>manufacturing<span style="letter-spacing:0.35pt;"> </span>process.<span style="letter-spacing:0.25pt;"> </span>Even if<span style="letter-spacing:1.5pt;"> </span>we<span style="letter-spacing:1.45pt;"> </span>are<span style="letter-spacing:1.5pt;"> </span>able<span style="letter-spacing:1.5pt;"> </span>to<span style="letter-spacing:1.4pt;"> </span>replace<span style="letter-spacing:1.5pt;"> </span>any<span style="letter-spacing:1.4pt;"> </span>raw<span style="letter-spacing:1.4pt;"> </span>materials<span style="letter-spacing:1.55pt;"> </span>or<span style="letter-spacing:1.4pt;"> </span>other<span style="letter-spacing:1.45pt;"> </span>materials<span style="letter-spacing:1.55pt;"> </span>with<span style="letter-spacing:1.4pt;"> </span>an<span style="letter-spacing:1.4pt;"> </span>alternative,<span style="letter-spacing:1.55pt;"> </span>such<span style="letter-spacing:1.4pt;"> </span>alternatives<span style="letter-spacing:1.55pt;"> </span>may<span style="letter-spacing:1.45pt;"> </span>cost more,<span style="letter-spacing:0.45pt;"> </span>result<span style="letter-spacing:0.5pt;"> </span>in<span style="letter-spacing:0.4pt;"> </span>lower<span style="letter-spacing:0.45pt;"> </span>yields<span style="letter-spacing:0.45pt;"> </span>or<span style="letter-spacing:0.4pt;"> </span>not<span style="letter-spacing:0.4pt;"> </span>be<span style="letter-spacing:0.4pt;"> </span>as<span style="letter-spacing:0.4pt;"> </span>suitable<span style="letter-spacing:0.5pt;"> </span>for<span style="letter-spacing:0.45pt;"> </span>our<span style="letter-spacing:0.4pt;"> </span>purposes.<span style="letter-spacing:0.4pt;"> </span>In<span style="letter-spacing:0.35pt;"> </span>addition,<span style="letter-spacing:0.4pt;"> </span>some<span style="letter-spacing:0.4pt;"> </span>of<span style="letter-spacing:0.35pt;"> </span>the<span style="letter-spacing:0.4pt;"> </span>materials<span style="letter-spacing:0.5pt;"> </span>that<span style="letter-spacing:0.4pt;"> </span>we<span style="letter-spacing:0.35pt;"> </span>use to<span style="letter-spacing:0.05pt;"> </span>manufacture<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>complex<span style="letter-spacing:0.05pt;"> </span>materials,<span style="letter-spacing:0.15pt;"> </span>which may<span style="letter-spacing:0.05pt;"> </span>be more<span style="letter-spacing:0.05pt;"> </span>difficult<span style="letter-spacing:0.15pt;"> </span>to substitute. Therefore,<span style="letter-spacing:0.15pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>disruptions<span style="letter-spacing:0.15pt;"> </span>arising<span style="letter-spacing:0.15pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>our sole<span style="letter-spacing:0.05pt;"> </span>suppliers<span style="letter-spacing:0.1pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>result<span style="letter-spacing:0.1pt;"> </span>in delays<span style="letter-spacing:0.05pt;"> </span>and additional<span style="letter-spacing:0.1pt;"> </span>regulatory submissions.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">42</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Third-party<span style="letter-spacing:0.15pt;"> </span>manufacturers<span style="letter-spacing:0.2pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>able<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>comply<span style="letter-spacing:0.05pt;"> </span>with cGMP regulations<span style="letter-spacing:0.1pt;"> </span>or similar<span style="letter-spacing:0.1pt;"> </span>regulatory requirements<span style="letter-spacing:0.2pt;"> </span>outside<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>United<span style="letter-spacing:0.1pt;"> </span>States.<span style="letter-spacing:0.1pt;"> </span>If<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA determines<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>CMOs<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>not in compliance<span style="letter-spacing:0.1pt;"> </span>with FDA laws<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.1pt;"> </span>regulations,<span style="letter-spacing:0.2pt;"> </span>including<span style="letter-spacing:0.15pt;"> </span>those<span style="letter-spacing:0.1pt;"> </span>governing<span style="letter-spacing:0.1pt;"> </span>cGMPs,<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA may<span style="letter-spacing:0.1pt;"> </span>deny<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>new<span style="letter-spacing:0.05pt;"> </span>drug<span style="letter-spacing:0.05pt;"> </span>application,<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>NDA, approval until the deficiencies are corrected or we replace the manufacturer in our application with a manufacturer<span style="letter-spacing:0.2pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>in compliance.<span style="letter-spacing:0.1pt;"> </span>Moreover,<span style="letter-spacing:0.05pt;"> </span>our failure,<span style="letter-spacing:0.1pt;"> </span>or the<span style="letter-spacing:0.05pt;"> </span>failure<span style="letter-spacing:0.1pt;"> </span>of our third-party<span style="letter-spacing:0.15pt;"> </span>manufacturers<span style="letter-spacing:0.15pt;"> </span>and suppliers,<span style="letter-spacing:0.1pt;"> </span>to comply<span style="letter-spacing:0.05pt;"> </span>with applicable<span style="letter-spacing:0.1pt;"> </span>regulations<span style="letter-spacing:0.1pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>result<span style="letter-spacing:0.1pt;"> </span>in sanctions<span style="letter-spacing:0.1pt;"> </span>being<span style="letter-spacing:0.05pt;"> </span>imposed<span style="letter-spacing:0.05pt;"> </span>on us, including<span style="letter-spacing:0.05pt;"> </span>clinical holds, fines, injunctions, civil penalties, seizures or recalls of product candidates or products, operating restrictions<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>criminal<span style="letter-spacing:0.15pt;"> </span>prosecutions,<span style="letter-spacing:0.15pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>of which could<span style="letter-spacing:0.05pt;"> </span>significantly<span style="letter-spacing:0.15pt;"> </span>and adversely<span style="letter-spacing:0.1pt;"> </span>affect<span style="letter-spacing:0.1pt;"> </span>supplies<span style="letter-spacing:0.05pt;"> </span>of our products.<span style="letter-spacing:2.4pt;"> </span>In<span style="letter-spacing:2.35pt;"> </span>addition,<span style="letter-spacing:2.4pt;"> </span>approved<span style="letter-spacing:2.4pt;"> </span>products<span style="letter-spacing:2.4pt;"> </span>and<span style="letter-spacing:2.35pt;"> </span>the<span style="letter-spacing:2.4pt;"> </span>facilities at<span style="letter-spacing:2.4pt;"> </span>which<span style="letter-spacing:2.35pt;"> </span>they<span style="letter-spacing:2.35pt;"> </span>are<span style="letter-spacing:2.35pt;"> </span>manufactured<span style="letter-spacing:2.4pt;"> </span>are<span style="letter-spacing:2.35pt;"> </span>required<span style="letter-spacing:2.4pt;"> </span>to maintain<span style="letter-spacing:0.2pt;"> </span>ongoing<span style="letter-spacing:0.1pt;"> </span>compliance<span style="letter-spacing:0.15pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>extensive<span style="letter-spacing:0.15pt;"> </span>FDA requirements<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>requirements<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>similar<span style="letter-spacing:0.15pt;"> </span>agencies, including<span style="letter-spacing:0.1pt;"> </span>ensuring<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>quality<span style="letter-spacing:0.1pt;"> </span>control<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>manufacturing<span style="letter-spacing:0.2pt;"> </span>procedures<span style="letter-spacing:0.15pt;"> </span>conform<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>cGMP<span style="letter-spacing:0.05pt;"> </span>requirements.<span style="letter-spacing:0.15pt;"> </span>As such, our<span style="letter-spacing:0.05pt;"> </span>CMOs<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>subject<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>continual<span style="letter-spacing:0.15pt;"> </span>review<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>periodic<span style="letter-spacing:0.15pt;"> </span>inspections<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>assess<span style="letter-spacing:0.1pt;"> </span>compliance<span style="letter-spacing:0.1pt;"> </span>with cGMPs. Furthermore,<span style="letter-spacing:0.8pt;"> </span>although<span style="letter-spacing:0.75pt;"> </span>we<span style="letter-spacing:0.7pt;"> </span>do<span style="letter-spacing:0.7pt;"> </span>not<span style="letter-spacing:0.7pt;"> </span>have<span style="letter-spacing:0.7pt;"> </span>day-to-day<span style="letter-spacing:0.8pt;"> </span>control<span style="letter-spacing:0.75pt;"> </span>over<span style="letter-spacing:0.75pt;"> </span>the<span style="letter-spacing:0.75pt;"> </span>operations<span style="letter-spacing:0.8pt;"> </span>of<span style="letter-spacing:0.7pt;"> </span>our<span style="letter-spacing:0.65pt;"> </span>CMOs,<span style="letter-spacing:0.65pt;"> </span>we<span style="letter-spacing:0.65pt;"> </span>are<span style="letter-spacing:0.7pt;"> </span>responsible for<span style="letter-spacing:0.05pt;"> </span>ensuring<span style="letter-spacing:0.05pt;"> </span>compliance<span style="letter-spacing:0.1pt;"> </span>with applicable<span style="letter-spacing:0.1pt;"> </span>laws and regulations,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>cGMPs.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In<span style="letter-spacing:0.05pt;"> </span>addition,<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>third-party<span style="letter-spacing:0.2pt;"> </span>manufacturers<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>suppliers<span style="letter-spacing:0.15pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>subject<span style="letter-spacing:0.1pt;"> </span>to numerous<span style="letter-spacing:0.05pt;"> </span>environmental,<span style="letter-spacing:0.15pt;"> </span>health<span style="letter-spacing:0.05pt;"> </span>and safety<span style="letter-spacing:0.1pt;"> </span>laws<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>regulations,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>those<span style="letter-spacing:0.05pt;"> </span>governing<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>handling,<span style="letter-spacing:0.05pt;"> </span>use, storage,<span style="letter-spacing:0.05pt;"> </span>treatment<span style="letter-spacing:0.15pt;"> </span>and disposal<span style="letter-spacing:0.05pt;"> </span>of waste products,<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>failure<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>comply<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>laws<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>regulations<span style="letter-spacing:0.1pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>result<span style="letter-spacing:0.1pt;"> </span>in significant<span style="letter-spacing:0.15pt;"> </span>costs<span style="letter-spacing:0.05pt;"> </span>associated<span style="letter-spacing:0.1pt;"> </span>with civil<span style="letter-spacing:0.05pt;"> </span>or criminal<span style="letter-spacing:0.1pt;"> </span>fines<span style="letter-spacing:0.05pt;"> </span>and penalties<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>such third<span style="letter-spacing:0.05pt;"> </span>parties.<span style="letter-spacing:0.1pt;"> </span>Based on the<span style="letter-spacing:0.05pt;"> </span>severity<span style="letter-spacing:0.1pt;"> </span>of regulatory<span style="letter-spacing:0.1pt;"> </span>actions<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be brought<span style="letter-spacing:1.2pt;"> </span>against<span style="letter-spacing:1.2pt;"> </span>these<span style="letter-spacing:1.2pt;"> </span>third<span style="letter-spacing:1.2pt;"> </span>parties<span style="letter-spacing:1.25pt;"> </span>in<span style="letter-spacing:1.15pt;"> </span>the<span style="letter-spacing:1.2pt;"> </span>future,<span style="letter-spacing:1.2pt;"> </span>our<span style="letter-spacing:1.1pt;"> </span>clinical<span style="letter-spacing:1.2pt;"> </span>or<span style="letter-spacing:1.1pt;"> </span>commercial<span style="letter-spacing:1.25pt;"> </span>supply<span style="letter-spacing:1.15pt;"> </span>of<span style="letter-spacing:1.1pt;"> </span>drug<span style="letter-spacing:1.1pt;"> </span>and<span style="letter-spacing:1.1pt;"> </span>packaging<span style="letter-spacing:1.15pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>services<span style="letter-spacing:0.1pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>be interrupted<span style="letter-spacing:0.1pt;"> </span>or limited,<span style="letter-spacing:0.1pt;"> </span>which could<span style="letter-spacing:0.05pt;"> </span>harm<span style="letter-spacing:0.05pt;"> </span>our business.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>products<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>develop<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>compete<span style="letter-spacing:0.05pt;"> </span>with other<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates and<span style="letter-spacing:0.05pt;"> </span>products<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>access<span style="letter-spacing:0.1pt;"> </span>to manufacturing<span style="letter-spacing:0.15pt;"> </span>facilities.<span style="letter-spacing:0.15pt;"> </span>As a result,<span style="letter-spacing:0.1pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>not obtain<span style="letter-spacing:0.05pt;"> </span>access<span style="letter-spacing:0.05pt;"> </span>to these<span style="letter-spacing:0.05pt;"> </span>facilities<span style="letter-spacing:0.15pt;"> </span>on a priority<span style="letter-spacing:0.15pt;"> </span>basis<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>at<span style="letter-spacing:0.1pt;"> </span>all.<span style="letter-spacing:0.1pt;"> </span>There<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>limited<span style="letter-spacing:0.1pt;"> </span>number<span style="letter-spacing:0.05pt;"> </span>of manufacturers<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>operate<span style="letter-spacing:0.05pt;"> </span>under<span style="letter-spacing:0.05pt;"> </span>cGMP regulations<span style="letter-spacing:0.1pt;"> </span>and that might<span style="letter-spacing:0.05pt;"> </span>be capable<span style="letter-spacing:0.05pt;"> </span>of manufacturing<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>us.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">As<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>prepare<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>later-stage<span style="letter-spacing:0.2pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trials<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>potential<span style="letter-spacing:0.15pt;"> </span>commercialization,<span style="letter-spacing:0.2pt;"> </span>we will<span style="letter-spacing:0.05pt;"> </span>need to take<span style="letter-spacing:0.05pt;"> </span>steps<span style="letter-spacing:0.05pt;"> </span>to increase<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>scale<span style="letter-spacing:0.05pt;"> </span>of production<span style="letter-spacing:0.05pt;"> </span>of our product<span style="letter-spacing:0.05pt;"> </span>candidates.<span style="letter-spacing:0.1pt;"> </span>We have not yet<span style="letter-spacing:0.05pt;"> </span>scaled<span style="letter-spacing:0.05pt;"> </span>up the manufacturing<span style="letter-spacing:0.1pt;"> </span>process for<span style="letter-spacing:0.05pt;"> </span>any of our product<span style="letter-spacing:0.05pt;"> </span>candidates.<span style="letter-spacing:0.1pt;"> </span>Third<span style="letter-spacing:0.05pt;"> </span>party<span style="letter-spacing:0.05pt;"> </span>manufacturers<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be unable<span style="letter-spacing:0.05pt;"> </span>to successfully<span style="letter-spacing:0.1pt;"> </span>increase<span style="letter-spacing:0.1pt;"> </span>the manufacturing<span style="letter-spacing:0.2pt;"> </span>capacity<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.15pt;"> </span>in a timely<span style="letter-spacing:0.1pt;"> </span>or cost-effective<span style="letter-spacing:0.2pt;"> </span>manner,<span style="letter-spacing:0.05pt;"> </span>or at<span style="letter-spacing:0.05pt;"> </span>all.<span style="letter-spacing:0.05pt;"> </span>In addition,<span style="letter-spacing:1.2pt;"> </span>quality<span style="letter-spacing:1.2pt;"> </span>issues<span style="letter-spacing:1.2pt;"> </span>may<span style="letter-spacing:1.2pt;"> </span>arise<span style="letter-spacing:1.2pt;"> </span>during<span style="letter-spacing:1.2pt;"> </span>scale-up<span style="letter-spacing:1.25pt;"> </span>or<span style="letter-spacing:1.15pt;"> </span>commercial<span style="letter-spacing:1.3pt;"> </span>activities.<span style="letter-spacing:1.25pt;"> </span>For<span style="letter-spacing:1.1pt;"> </span>example,<span style="letter-spacing:1.15pt;"> </span>if<span style="letter-spacing:1.15pt;"> </span>microbial,<span style="letter-spacing:1.2pt;"> </span>viral<span style="letter-spacing:1.15pt;"> </span>or other<span style="letter-spacing:0.1pt;"> </span>contaminations<span style="letter-spacing:0.2pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>discovered<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.15pt;"> </span>or in the<span style="letter-spacing:0.05pt;"> </span>manufacturing<span style="letter-spacing:0.15pt;"> </span>facilities<span style="letter-spacing:0.15pt;"> </span>in which our product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.15pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>made,<span style="letter-spacing:0.1pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>manufacturing<span style="letter-spacing:0.2pt;"> </span>facilities<span style="letter-spacing:0.2pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>need to be closed<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>an extended<span style="letter-spacing:0.05pt;"> </span>period<span style="letter-spacing:0.05pt;"> </span>of time to investigate<span style="letter-spacing:0.1pt;"> </span>and remedy<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>contamination.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Any performance failure on the part of our existing or future manufacturers could delay clinical development<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>marketing<span style="letter-spacing:0.15pt;"> </span>approval.<span style="letter-spacing:0.1pt;"> </span>We<span style="letter-spacing:0.05pt;"> </span>do<span style="letter-spacing:0.05pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>currently<span style="letter-spacing:0.15pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>arrangements<span style="letter-spacing:0.2pt;"> </span>in place<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>redundant<span style="letter-spacing:0.05pt;"> </span>supply<span style="letter-spacing:0.05pt;"> </span>or a second<span style="letter-spacing:0.1pt;"> </span>source<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>bulk<span style="letter-spacing:0.05pt;"> </span>drug<span style="letter-spacing:0.05pt;"> </span>substance.<span style="letter-spacing:0.1pt;"> </span>If<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>current<span style="letter-spacing:0.15pt;"> </span>CMOs for<span style="letter-spacing:0.05pt;"> </span>preclinical<span style="letter-spacing:0.15pt;"> </span>and clinical<span style="letter-spacing:0.1pt;"> </span>testing<span style="letter-spacing:0.1pt;"> </span>cannot<span style="letter-spacing:0.05pt;"> </span>perform<span style="letter-spacing:0.1pt;"> </span>as agreed, we may be required to replace such CMOs. Although we believe that there are several potential alternative<span style="letter-spacing:0.85pt;"> </span>manufacturers<span style="letter-spacing:0.85pt;"> </span>who<span style="letter-spacing:0.7pt;"> </span>could<span style="letter-spacing:0.75pt;"> </span>manufacture<span style="letter-spacing:0.8pt;"> </span>our<span style="letter-spacing:0.7pt;"> </span>product<span style="letter-spacing:0.75pt;"> </span>candidates,<span style="letter-spacing:0.8pt;"> </span>we<span style="letter-spacing:0.65pt;"> </span>may<span style="letter-spacing:0.7pt;"> </span>incur<span style="letter-spacing:0.7pt;"> </span>added<span style="letter-spacing:0.65pt;"> </span>costs<span style="letter-spacing:0.7pt;"> </span>and<span style="letter-spacing:0.65pt;"> </span>delays in<span style="letter-spacing:0.05pt;"> </span>identifying<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>qualifying<span style="letter-spacing:0.15pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>replacement<span style="letter-spacing:0.15pt;"> </span>manufacturer<span style="letter-spacing:0.15pt;"> </span>or be able<span style="letter-spacing:0.05pt;"> </span>to reach<span style="letter-spacing:0.05pt;"> </span>agreement<span style="letter-spacing:0.1pt;"> </span>with any alternative<span style="letter-spacing:0.2pt;"> </span>manufacturer.<span style="letter-spacing:0.2pt;"> </span>Further,<span style="letter-spacing:0.1pt;"> </span>our third-party<span style="letter-spacing:0.15pt;"> </span>manufacturers<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>experience<span style="letter-spacing:0.1pt;"> </span>manufacturing<span style="letter-spacing:0.15pt;"> </span>or shipping difficulties<span style="letter-spacing:0.2pt;"> </span>due<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>resource<span style="letter-spacing:0.15pt;"> </span>constraints<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>result<span style="letter-spacing:0.1pt;"> </span>of natural<span style="letter-spacing:0.1pt;"> </span>disasters,<span style="letter-spacing:0.1pt;"> </span>labor<span style="letter-spacing:0.05pt;"> </span>disputes,<span style="letter-spacing:0.05pt;"> </span>unstable<span style="letter-spacing:0.05pt;"> </span>political environments,<span style="letter-spacing:0.2pt;"> </span>or<span style="letter-spacing:0.1pt;"> </span>public<span style="letter-spacing:0.15pt;"> </span>health<span style="letter-spacing:0.15pt;"> </span>epidemics<span style="letter-spacing:0.2pt;"> </span>such<span style="letter-spacing:0.1pt;"> </span>as<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>COVID-19 pandemic.<span style="letter-spacing:0.1pt;"> </span>If<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>current<span style="letter-spacing:0.15pt;"> </span>third-party manufacturers<span style="letter-spacing:1.75pt;"> </span>cannot<span style="letter-spacing:1.65pt;"> </span>perform<span style="letter-spacing:1.7pt;"> </span>as<span style="letter-spacing:1.6pt;"> </span>agreed,<span style="letter-spacing:1.65pt;"> </span>we<span style="letter-spacing:1.6pt;"> </span>may<span style="letter-spacing:1.6pt;"> </span>be<span style="letter-spacing:1.55pt;"> </span>required<span style="letter-spacing:1.65pt;"> </span>to<span style="letter-spacing:1.55pt;"> </span>replace<span style="letter-spacing:1.65pt;"> </span>such<span style="letter-spacing:1.55pt;"> </span>manufacturers<span style="letter-spacing:1.7pt;"> </span>and<span style="letter-spacing:1.55pt;"> </span>we<span style="letter-spacing:1.55pt;"> </span>may<span style="letter-spacing:1.6pt;"> </span>be unable<span style="letter-spacing:0.05pt;"> </span>to replace<span style="letter-spacing:0.1pt;"> </span>them<span style="letter-spacing:0.05pt;"> </span>on a timely<span style="letter-spacing:0.1pt;"> </span>basis<span style="letter-spacing:0.05pt;"> </span>or at<span style="letter-spacing:0.05pt;"> </span>all.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our<span style="letter-spacing:0.05pt;"> </span>current<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>anticipated<span style="letter-spacing:0.15pt;"> </span>future<span style="letter-spacing:0.1pt;"> </span>dependence<span style="letter-spacing:0.1pt;"> </span>upon<span style="letter-spacing:0.05pt;"> </span>others<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>manufacture<span style="letter-spacing:0.1pt;"> </span>of our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>or products<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>adversely<span style="letter-spacing:0.15pt;"> </span>affect<span style="letter-spacing:0.1pt;"> </span>our future<span style="letter-spacing:0.05pt;"> </span>profit<span style="letter-spacing:0.1pt;"> </span>margins<span style="letter-spacing:0.1pt;"> </span>and our ability<span style="letter-spacing:0.1pt;"> </span>to commercialize<span style="letter-spacing:0.2pt;"> </span>any products<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>obtain marketing<span style="letter-spacing:0.1pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>on a timely<span style="letter-spacing:0.1pt;"> </span>and competitive<span style="letter-spacing:0.15pt;"> </span>basis.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We may<span style="letter-spacing:0.05pt;"> </span>enter<span style="letter-spacing:0.05pt;"> </span>into<span style="letter-spacing:0.05pt;"> </span>collaborations<span style="letter-spacing:0.1pt;"> </span>with third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>the development<span style="letter-spacing:0.1pt;"> </span>and commercialization<span style="letter-spacing:0.2pt;"> </span>of our product<span style="letter-spacing:0.05pt;"> </span>candidates.<span style="letter-spacing:0.05pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>those<span style="letter-spacing:0.05pt;"> </span>collaborations<span style="letter-spacing:0.1pt;"> </span>are not successful,<span style="letter-spacing:0.1pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>not be able<span style="letter-spacing:0.05pt;"> </span>to capitalize<span style="letter-spacing:0.1pt;"> </span>on the market<span style="letter-spacing:0.05pt;"> </span>potential<span style="letter-spacing:0.1pt;"> </span>of these<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>seek<span style="letter-spacing:0.1pt;"> </span>third-party<span style="letter-spacing:0.2pt;"> </span>collaborators<span style="letter-spacing:0.2pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>development<span style="letter-spacing:0.15pt;"> </span>and commercialization<span style="letter-spacing:0.2pt;"> </span>of some<span style="letter-spacing:0.05pt;"> </span>of our product candidates<span style="letter-spacing:0.15pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>select<span style="letter-spacing:0.15pt;"> </span>basis.<span style="letter-spacing:0.1pt;"> </span>We<span style="letter-spacing:0.05pt;"> </span>have not entered<span style="letter-spacing:0.05pt;"> </span>into<span style="letter-spacing:0.05pt;"> </span>any collaborations<span style="letter-spacing:0.15pt;"> </span>to date.<span style="letter-spacing:0.05pt;"> </span>Our likely<span style="letter-spacing:0.05pt;"> </span>collaborators<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>any future<span style="letter-spacing:1.25pt;"> </span>collaboration<span style="letter-spacing:1.35pt;"> </span>arrangements<span style="letter-spacing:1.35pt;"> </span>include<span style="letter-spacing:1.25pt;"> </span>large<span style="letter-spacing:1.25pt;"> </span>and<span style="letter-spacing:1.15pt;"> </span>mid-size<span style="letter-spacing:1.25pt;"> </span>pharmaceutical<span style="letter-spacing:1.3pt;"> </span>companies,<span style="letter-spacing:1.25pt;"> </span>regional<span style="letter-spacing:1.25pt;"> </span>and<span style="letter-spacing:1.15pt;"> </span>national pharmaceutical<span style="letter-spacing:0.2pt;"> </span>companies<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>biotechnology<span style="letter-spacing:0.15pt;"> </span>companies.<span style="letter-spacing:0.1pt;"> </span>We face<span style="letter-spacing:0.05pt;"> </span>significant<span style="letter-spacing:0.15pt;"> </span>competition<span style="letter-spacing:0.1pt;"> </span>in seeking<span style="letter-spacing:0.05pt;"> </span>appropriate collaborators.<span style="letter-spacing:0.2pt;"> </span>Our<span style="letter-spacing:0.05pt;"> </span>ability<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>reach<span style="letter-spacing:0.05pt;"> </span>a definitive<span style="letter-spacing:0.1pt;"> </span>agreement<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>a future<span style="letter-spacing:0.05pt;"> </span>collaboration<span style="letter-spacing:0.15pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>depend, among<span style="letter-spacing:0.05pt;"> </span>other things,<span style="letter-spacing:0.1pt;"> </span>upon<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>assessment<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>future<span style="letter-spacing:0.1pt;"> </span>collaborator&#8217;s<span style="letter-spacing:0.2pt;"> </span>resources<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>expertise,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>terms<span style="letter-spacing:0.1pt;"> </span>and conditions<span style="letter-spacing:0.1pt;"> </span>of the proposed<span style="letter-spacing:0.05pt;"> </span>collaboration<span style="letter-spacing:0.15pt;"> </span>and the<span style="letter-spacing:0.05pt;"> </span>proposed<span style="letter-spacing:0.05pt;"> </span>collaborator&#8217;s<span style="letter-spacing:0.15pt;"> </span>evaluation<span style="letter-spacing:0.1pt;"> </span>of a number<span style="letter-spacing:0.05pt;"> </span>of factors.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">43</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>do<span style="letter-spacing:0.05pt;"> </span>enter<span style="letter-spacing:0.1pt;"> </span>into<span style="letter-spacing:0.1pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>arrangements<span style="letter-spacing:0.2pt;"> </span>with any third<span style="letter-spacing:0.05pt;"> </span>parties,<span style="letter-spacing:0.1pt;"> </span>we will<span style="letter-spacing:0.05pt;"> </span>likely<span style="letter-spacing:0.05pt;"> </span>have limited<span style="letter-spacing:0.1pt;"> </span>control<span style="letter-spacing:0.05pt;"> </span>over<span style="letter-spacing:0.05pt;"> </span>the amount<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>timing<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>resources<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>future<span style="letter-spacing:0.05pt;"> </span>collaborators<span style="letter-spacing:0.15pt;"> </span>dedicate<span style="letter-spacing:0.1pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>or commercialization<span style="letter-spacing:0.2pt;"> </span>of our<span style="letter-spacing:1.7pt;"> </span>product<span style="letter-spacing:1.75pt;"> </span>candidates.<span style="letter-spacing:1.8pt;"> </span>Our<span style="letter-spacing:1.7pt;"> </span>ability<span style="letter-spacing:1.8pt;"> </span>to<span style="letter-spacing:1.7pt;"> </span>generate<span style="letter-spacing:1.8pt;"> </span>revenues<span style="letter-spacing:1.75pt;"> </span>from<span style="letter-spacing:1.75pt;"> </span>these<span style="letter-spacing:1.75pt;"> </span>arrangements<span style="letter-spacing:1.85pt;"> </span>will<span style="letter-spacing:1.7pt;"> </span>depend<span style="letter-spacing:1.65pt;"> </span>on<span style="letter-spacing:1.65pt;"> </span>our<span style="letter-spacing:1.65pt;"> </span>future collaborators&#8217;<span style="letter-spacing:0.15pt;"> </span>abilities<span style="letter-spacing:0.15pt;"> </span>and efforts<span style="letter-spacing:0.1pt;"> </span>to successfully<span style="letter-spacing:0.1pt;"> </span>perform<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>functions<span style="letter-spacing:0.1pt;"> </span>assigned<span style="letter-spacing:0.05pt;"> </span>to them<span style="letter-spacing:0.05pt;"> </span>in these arrangements. Collaborations<span style="letter-spacing:0.15pt;"> </span>with future<span style="letter-spacing:0.05pt;"> </span>collaborators<span style="letter-spacing:0.15pt;"> </span>involving<span style="letter-spacing:0.05pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>would pose numerous<span style="letter-spacing:0.05pt;"> </span>risks<span style="letter-spacing:0.05pt;"> </span>to us, including<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>following:</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">collaborators<span style="letter-spacing:0.4pt;"> </span>have<span style="letter-spacing:0.25pt;"> </span>significant<span style="letter-spacing:0.35pt;"> </span>discretion<span style="letter-spacing:0.3pt;"> </span>in<span style="letter-spacing:0.2pt;"> </span>determining<span style="letter-spacing:0.3pt;"> </span>the<span style="letter-spacing:0.25pt;"> </span>efforts<span style="letter-spacing:0.3pt;"> </span>and<span style="letter-spacing:0.2pt;"> </span>resources<span style="letter-spacing:0.3pt;"> </span>that<span style="letter-spacing:0.25pt;"> </span>they<span style="letter-spacing:0.25pt;"> </span>will<span style="letter-spacing:0.25pt;"> </span>apply<span style="letter-spacing:0.25pt;"> </span>to these<span style="letter-spacing:0.05pt;"> </span>collaborations<span style="letter-spacing:0.15pt;"> </span>and may<span style="letter-spacing:0.05pt;"> </span>not perform<span style="letter-spacing:0.1pt;"> </span>their<span style="letter-spacing:0.05pt;"> </span>obligations<span style="letter-spacing:0.1pt;"> </span>as expected&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">collaborators<span style="letter-spacing:2.25pt;"> </span>may<span style="letter-spacing:2.15pt;"> </span>de-emphasize<span style="letter-spacing:2.2pt;"> </span>or<span style="letter-spacing:2.1pt;"> </span>not<span style="letter-spacing:2.1pt;"> </span>pursue<span style="letter-spacing:2.1pt;"> </span>development<span style="letter-spacing:2.15pt;"> </span>and<span style="letter-spacing:2.05pt;"> </span>commercialization<span style="letter-spacing:2.25pt;"> </span>of<span style="letter-spacing:2.05pt;"> </span>our<span style="letter-spacing:2.05pt;"> </span>product candidates<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>elect<span style="letter-spacing:0.05pt;"> </span>not to continue<span style="letter-spacing:0.05pt;"> </span>or renew development<span style="letter-spacing:0.1pt;"> </span>or commercialization<span style="letter-spacing:0.2pt;"> </span>programs<span style="letter-spacing:0.1pt;"> </span>based<span style="letter-spacing:0.05pt;"> </span>on clinical<span style="letter-spacing:0.15pt;"> </span>trial<span style="letter-spacing:0.1pt;"> </span>results,<span style="letter-spacing:0.1pt;"> </span>changes<span style="letter-spacing:0.05pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>collaborators&#8217;<span style="letter-spacing:0.15pt;"> </span>strategic<span style="letter-spacing:0.1pt;"> </span>focus,<span style="letter-spacing:0.05pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>as a result<span style="letter-spacing:0.1pt;"> </span>of a sale<span style="letter-spacing:0.05pt;"> </span>or disposition<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>business<span style="letter-spacing:0.1pt;"> </span>unit<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.15pt;"> </span>function,<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>available<span style="letter-spacing:0.15pt;"> </span>funding<span style="letter-spacing:0.1pt;"> </span>or external<span style="letter-spacing:0.1pt;"> </span>factors<span style="letter-spacing:0.1pt;"> </span>such as an acquisition<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>diverts<span style="letter-spacing:0.1pt;"> </span>resources<span style="letter-spacing:0.1pt;"> </span>or creates<span style="letter-spacing:0.1pt;"> </span>competing<span style="letter-spacing:0.1pt;"> </span>priorities&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">collaborators<span style="letter-spacing:0.95pt;"> </span>may<span style="letter-spacing:0.85pt;"> </span>delay<span style="letter-spacing:0.8pt;"> </span>clinical<span style="letter-spacing:0.85pt;"> </span>trials,<span style="letter-spacing:0.85pt;"> </span>provide<span style="letter-spacing:0.8pt;"> </span>insufficient<span style="letter-spacing:0.9pt;"> </span>funding<span style="letter-spacing:0.8pt;"> </span>for<span style="letter-spacing:0.8pt;"> </span>a<span style="letter-spacing:0.75pt;"> </span>clinical<span style="letter-spacing:0.85pt;"> </span>trial<span style="letter-spacing:0.85pt;"> </span>program,<span style="letter-spacing:0.8pt;"> </span>stop<span style="letter-spacing:0.8pt;"> </span>a clinical<span style="letter-spacing:0.15pt;"> </span>trial<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>abandon a product<span style="letter-spacing:0.05pt;"> </span>candidate,<span style="letter-spacing:0.1pt;"> </span>repeat<span style="letter-spacing:0.05pt;"> </span>or conduct<span style="letter-spacing:0.05pt;"> </span>new clinical<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>or require<span style="letter-spacing:0.1pt;"> </span>a new formulation<span style="letter-spacing:0.15pt;"> </span>of a product<span style="letter-spacing:0.05pt;"> </span>candidate<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>testing&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">collaborators<span style="letter-spacing:0.2pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>independently<span style="letter-spacing:0.15pt;"> </span>develop,<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>develop<span style="letter-spacing:0.05pt;"> </span>with third<span style="letter-spacing:0.05pt;"> </span>parties,<span style="letter-spacing:0.1pt;"> </span>products<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>compete<span style="letter-spacing:0.05pt;"> </span>directly or indirectly<span style="letter-spacing:0.1pt;"> </span>with our products<span style="letter-spacing:0.05pt;"> </span>or product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>if the collaborators<span style="letter-spacing:0.1pt;"> </span>believe that competitive products<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>more<span style="letter-spacing:0.05pt;"> </span>likely<span style="letter-spacing:0.05pt;"> </span>to be successfully<span style="letter-spacing:0.1pt;"> </span>developed<span style="letter-spacing:0.05pt;"> </span>or can be commercialized<span style="letter-spacing:0.2pt;"> </span>under<span style="letter-spacing:0.05pt;"> </span>terms<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>are more<span style="letter-spacing:0.05pt;"> </span>economically<span style="letter-spacing:0.1pt;"> </span>attractive<span style="letter-spacing:0.15pt;"> </span>than<span style="letter-spacing:0.05pt;"> </span>ours&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">a<span style="letter-spacing:1.1pt;"> </span>collaborator<span style="letter-spacing:1.25pt;"> </span>with<span style="letter-spacing:1.1pt;"> </span>marketing<span style="letter-spacing:1.2pt;"> </span>and<span style="letter-spacing:1.1pt;"> </span>distribution<span style="letter-spacing:1.25pt;"> </span>rights<span style="letter-spacing:1.15pt;"> </span>to<span style="letter-spacing:1.1pt;"> </span>multiple<span style="letter-spacing:1.2pt;"> </span>products<span style="letter-spacing:1.15pt;"> </span>may<span style="letter-spacing:1.15pt;"> </span>not<span style="letter-spacing:1.1pt;"> </span>commit<span style="letter-spacing:1.15pt;"> </span>sufficient resources<span style="letter-spacing:0.1pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>marketing<span style="letter-spacing:0.1pt;"> </span>and distribution<span style="letter-spacing:0.15pt;"> </span>of our product<span style="letter-spacing:0.05pt;"> </span>relative<span style="letter-spacing:0.1pt;"> </span>to other<span style="letter-spacing:0.05pt;"> </span>products&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">collaborators<span style="letter-spacing:1.2pt;"> </span>may<span style="letter-spacing:1.1pt;"> </span>not<span style="letter-spacing:1.05pt;"> </span>properly<span style="letter-spacing:1.1pt;"> </span>obtain,<span style="letter-spacing:1.1pt;"> </span>maintain,<span style="letter-spacing:1.1pt;"> </span>defend<span style="letter-spacing:1.05pt;"> </span>or<span style="letter-spacing:1pt;"> </span>enforce<span style="letter-spacing:1.05pt;"> </span>our<span style="letter-spacing:1pt;"> </span>intellectual<span style="letter-spacing:1.15pt;"> </span>property<span style="letter-spacing:1.05pt;"> </span>rights<span style="letter-spacing:1.05pt;"> </span>or may<span style="letter-spacing:0.1pt;"> </span>use<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>proprietary<span style="letter-spacing:0.15pt;"> </span>information<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>intellectual<span style="letter-spacing:0.15pt;"> </span>property<span style="letter-spacing:0.05pt;"> </span>in such a way as to invite<span style="letter-spacing:0.05pt;"> </span>litigation<span style="letter-spacing:0.15pt;"> </span>or other<span style="letter-spacing:0.1pt;"> </span>intellectual<span style="letter-spacing:0.2pt;"> </span>property<span style="letter-spacing:0.1pt;"> </span>related<span style="letter-spacing:0.15pt;"> </span>proceedings<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>jeopardize<span style="letter-spacing:0.1pt;"> </span>or invalidate<span style="letter-spacing:0.1pt;"> </span>our proprietary information<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>intellectual<span style="letter-spacing:0.2pt;"> </span>property<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>expose<span style="letter-spacing:0.1pt;"> </span>us<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>potential<span style="letter-spacing:0.1pt;"> </span>litigation<span style="letter-spacing:0.15pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>intellectual<span style="letter-spacing:0.15pt;"> </span>property related<span style="letter-spacing:0.1pt;"> </span>proceedings&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">disputes<span style="letter-spacing:2.05pt;"> </span>may<span style="letter-spacing:2.05pt;"> </span>arise<span style="letter-spacing:2.05pt;"> </span>between<span style="letter-spacing:2pt;"> </span>the<span style="letter-spacing:2pt;"> </span>collaborators<span style="letter-spacing:2.1pt;"> </span>and<span style="letter-spacing:1.95pt;"> </span>us<span style="letter-spacing:1.95pt;"> </span>that<span style="letter-spacing:2pt;"> </span>result<span style="letter-spacing:2.05pt;"> </span>in<span style="letter-spacing:1.95pt;"> </span>the<span style="letter-spacing:2pt;"> </span>delay<span style="letter-spacing:2pt;"> </span>or<span style="letter-spacing:1.95pt;"> </span>termination<span style="letter-spacing:2.1pt;"> </span>of<span style="letter-spacing:1.95pt;"> </span>the research,<span style="letter-spacing:1.8pt;"> </span>development<span style="letter-spacing:1.8pt;"> </span>or<span style="letter-spacing:1.7pt;"> </span>commercialization<span style="letter-spacing:1.9pt;"> </span>of<span style="letter-spacing:1.7pt;"> </span>our<span style="letter-spacing:1.7pt;"> </span>products<span style="letter-spacing:1.75pt;"> </span>or<span style="letter-spacing:1.7pt;"> </span>product<span style="letter-spacing:1.75pt;"> </span>candidates<span style="letter-spacing:1.75pt;"> </span>or<span style="letter-spacing:1.65pt;"> </span>that<span style="letter-spacing:1.7pt;"> </span>result<span style="letter-spacing:1.75pt;"> </span>in costly<span style="letter-spacing:0.05pt;"> </span>litigation<span style="letter-spacing:0.15pt;"> </span>or arbitration<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>diverts<span style="letter-spacing:0.1pt;"> </span>management<span style="letter-spacing:0.1pt;"> </span>attention<span style="letter-spacing:0.1pt;"> </span>and resources&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">collaborations<span style="letter-spacing:1.95pt;"> </span>may<span style="letter-spacing:1.85pt;"> </span>be<span style="letter-spacing:1.8pt;"> </span>terminated<span style="letter-spacing:1.95pt;"> </span>and,<span style="letter-spacing:1.8pt;"> </span>if<span style="letter-spacing:1.85pt;"> </span>terminated,<span style="letter-spacing:1.9pt;"> </span>may<span style="letter-spacing:1.8pt;"> </span>result<span style="letter-spacing:1.85pt;"> </span>in<span style="letter-spacing:1.75pt;"> </span>a<span style="letter-spacing:1.75pt;"> </span>need<span style="letter-spacing:1.75pt;"> </span>for<span style="letter-spacing:1.8pt;"> </span>additional<span style="letter-spacing:1.85pt;"> </span>capital<span style="letter-spacing:1.85pt;"> </span>to pursue<span style="letter-spacing:0.05pt;"> </span>further<span style="letter-spacing:0.1pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>or commercialization<span style="letter-spacing:0.2pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>applicable<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">collaboration<span style="letter-spacing:0.95pt;"> </span>agreements<span style="letter-spacing:0.9pt;"> </span>may<span style="letter-spacing:0.8pt;"> </span>not<span style="letter-spacing:0.75pt;"> </span>lead<span style="letter-spacing:0.8pt;"> </span>to<span style="letter-spacing:0.75pt;"> </span>development<span style="letter-spacing:0.85pt;"> </span>or<span style="letter-spacing:0.75pt;"> </span>commercialization<span style="letter-spacing:0.95pt;"> </span>of<span style="letter-spacing:0.75pt;"> </span>product<span style="letter-spacing:0.8pt;"> </span>candidates<span style="letter-spacing:0.85pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>most<span style="letter-spacing:0.05pt;"> </span>efficient<span style="letter-spacing:0.15pt;"> </span>manner<span style="letter-spacing:0.05pt;"> </span>or at<span style="letter-spacing:0.05pt;"> </span>all&#59;<span style="letter-spacing:0.05pt;"> </span>and</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">if<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>future<span style="letter-spacing:0.1pt;"> </span>collaborator<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>ours<span style="letter-spacing:0.1pt;"> </span>were to be involved<span style="letter-spacing:0.05pt;"> </span>in a business<span style="letter-spacing:0.05pt;"> </span>combination,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>continued<span style="letter-spacing:0.05pt;"> </span>pursuit<span style="letter-spacing:0.05pt;"> </span>and emphasis<span style="letter-spacing:0.1pt;"> </span>on our product<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>or commercialization<span style="letter-spacing:0.2pt;"> </span>program<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>be delayed,<span style="letter-spacing:0.05pt;"> </span>diminished<span style="letter-spacing:0.1pt;"> </span>or terminated.</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:11pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>establish<span style="letter-spacing:0.15pt;"> </span>one<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>more<span style="letter-spacing:0.1pt;"> </span>collaborations,<span style="letter-spacing:0.2pt;"> </span>all<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>risks<span style="letter-spacing:0.05pt;"> </span>relating<span style="letter-spacing:0.1pt;"> </span>to product<span style="letter-spacing:0.05pt;"> </span>development,<span style="letter-spacing:0.1pt;"> </span>regulatory approval<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>commercialization<span style="letter-spacing:0.25pt;"> </span>described<span style="letter-spacing:0.15pt;"> </span>herein<span style="letter-spacing:0.1pt;"> </span>would<span style="letter-spacing:0.05pt;"> </span>also<span style="letter-spacing:0.05pt;"> </span>apply<span style="letter-spacing:0.05pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>activities<span style="letter-spacing:0.15pt;"> </span>of any such future collaborators.</p>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;text-indent:0%;font-size:6.5pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Risks Related<span style="letter-spacing:0.05pt;"> </span>to Commercialization<span style="letter-spacing:0.15pt;"> </span>of our Product Candidates</p>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">The incidence<span style="letter-spacing:0.05pt;"> </span>and prevalence<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>target<span style="letter-spacing:0.05pt;"> </span>patient<span style="letter-spacing:0.05pt;"> </span>populations<span style="letter-spacing:0.05pt;"> </span>of our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.05pt;"> </span>have not been established<span style="letter-spacing:0.1pt;"> </span>with precision.<span style="letter-spacing:0.05pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>the market<span style="letter-spacing:0.05pt;"> </span>opportunities<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.05pt;"> </span>are smaller<span style="letter-spacing:0.1pt;"> </span>than we estimate<span style="letter-spacing:0.1pt;"> </span>or if<span style="letter-spacing:0.05pt;"> </span>any approval<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we obtain<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>based on a narrower definition<span style="letter-spacing:0.1pt;"> </span>of the patient<span style="letter-spacing:0.05pt;"> </span>population,<span style="letter-spacing:0.05pt;"> </span>our revenue<span style="letter-spacing:0.05pt;"> </span>potential<span style="letter-spacing:0.1pt;"> </span>and ability<span style="letter-spacing:0.1pt;"> </span>to achieve<span style="letter-spacing:0.05pt;"> </span>profitability<span style="letter-spacing:0.15pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>be adversely<span style="letter-spacing:0.1pt;"> </span>affected.</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The<span style="letter-spacing:0.1pt;"> </span>total<span style="letter-spacing:0.15pt;"> </span>addressable<span style="letter-spacing:0.2pt;"> </span>market<span style="letter-spacing:0.2pt;"> </span>opportunity<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>PRT543, PRT811, PRT1419 and<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates we<span style="letter-spacing:1.35pt;"> </span>may<span style="letter-spacing:1.4pt;"> </span>develop<span style="letter-spacing:1.4pt;"> </span>will<span style="letter-spacing:1.4pt;"> </span>ultimately<span style="letter-spacing:1.5pt;"> </span>depend<span style="letter-spacing:1.35pt;"> </span>upon,<span style="letter-spacing:1.35pt;"> </span>among<span style="letter-spacing:1.4pt;"> </span>other<span style="letter-spacing:1.4pt;"> </span>things,<span style="letter-spacing:1.4pt;"> </span>the<span style="letter-spacing:1.4pt;"> </span>diagnosis<span style="letter-spacing:1.35pt;"> </span>criteria<span style="letter-spacing:1.45pt;"> </span>included<span style="letter-spacing:1.35pt;"> </span>in<span style="letter-spacing:1.3pt;"> </span>the<span style="letter-spacing:1.35pt;"> </span>final labeling<span style="letter-spacing:1.25pt;"> </span>for<span style="letter-spacing:1.2pt;"> </span>each<span style="letter-spacing:1.2pt;"> </span>such<span style="letter-spacing:1.15pt;"> </span>product<span style="letter-spacing:1.2pt;"> </span>candidate<span style="letter-spacing:1.25pt;"> </span>if<span style="letter-spacing:1.2pt;"> </span>our<span style="letter-spacing:1.15pt;"> </span>product<span style="letter-spacing:1.2pt;"> </span>candidates<span style="letter-spacing:1.25pt;"> </span>are<span style="letter-spacing:1.2pt;"> </span>approved<span style="letter-spacing:1.2pt;"> </span>for<span style="letter-spacing:1.2pt;"> </span>sale<span style="letter-spacing:1.2pt;"> </span>for<span style="letter-spacing:1.15pt;"> </span>these<span style="letter-spacing:1.15pt;"> </span>indications, acceptance<span style="letter-spacing:1.3pt;"> </span>by<span style="letter-spacing:1.2pt;"> </span>the<span style="letter-spacing:1.25pt;"> </span>medical<span style="letter-spacing:1.3pt;"> </span>community,<span style="letter-spacing:1.3pt;"> </span>patient<span style="letter-spacing:1.3pt;"> </span>access,<span style="letter-spacing:1.2pt;"> </span>drug<span style="letter-spacing:1.15pt;"> </span>and<span style="letter-spacing:1.15pt;"> </span>any<span style="letter-spacing:1.15pt;"> </span>related<span style="letter-spacing:1.25pt;"> </span>companion<span style="letter-spacing:1.2pt;"> </span>diagnostic<span style="letter-spacing:1.25pt;"> </span>pricing<span style="letter-spacing:1.2pt;"> </span>and their<span style="letter-spacing:0.9pt;"> </span>reimbursement.<span style="letter-spacing:1pt;"> </span>We<span style="letter-spacing:0.85pt;"> </span>may<span style="letter-spacing:0.9pt;"> </span>initially<span style="letter-spacing:1pt;"> </span>seek<span style="letter-spacing:0.9pt;"> </span>regulatory<span style="letter-spacing:0.95pt;"> </span>approval<span style="letter-spacing:0.85pt;"> </span>of<span style="letter-spacing:0.8pt;"> </span>some<span style="letter-spacing:0.85pt;"> </span>of<span style="letter-spacing:0.8pt;"> </span>our<span style="letter-spacing:0.8pt;"> </span>product<span style="letter-spacing:0.85pt;"> </span>candidates<span style="letter-spacing:0.9pt;"> </span>as<span style="letter-spacing:0.8pt;"> </span>therapies for<span style="letter-spacing:1.35pt;"> </span>relapsed<span style="letter-spacing:1.4pt;"> </span>or<span style="letter-spacing:1.3pt;"> </span>refractory<span style="letter-spacing:1.45pt;"> </span>patients.<span style="letter-spacing:1.4pt;"> </span>The<span style="letter-spacing:1.3pt;"> </span>number<span style="letter-spacing:1.3pt;"> </span>of<span style="letter-spacing:1.25pt;"> </span>patients<span style="letter-spacing:1.35pt;"> </span>in<span style="letter-spacing:1.25pt;"> </span>our<span style="letter-spacing:1.25pt;"> </span>targeted<span style="letter-spacing:1.35pt;"> </span>commercial<span style="letter-spacing:1.4pt;"> </span>markets<span style="letter-spacing:1.35pt;"> </span>and<span style="letter-spacing:1.25pt;"> </span>elsewhere may<span style="letter-spacing:0.1pt;"> </span>turn<span style="letter-spacing:0.1pt;"> </span>out<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>lower<span style="letter-spacing:0.1pt;"> </span>than<span style="letter-spacing:0.1pt;"> </span>expected,<span style="letter-spacing:0.05pt;"> </span>patients<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>not be otherwise<span style="letter-spacing:0.05pt;"> </span>amenable<span style="letter-spacing:0.1pt;"> </span>to treatment<span style="letter-spacing:0.15pt;"> </span>with our drugs,<span style="letter-spacing:0.05pt;"> </span>or new<span style="letter-spacing:0.05pt;"> </span>patients<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>become<span style="letter-spacing:0.1pt;"> </span>increasingly<span style="letter-spacing:0.15pt;"> </span>difficult<span style="letter-spacing:0.2pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>identify<span style="letter-spacing:0.1pt;"> </span>or gain<span style="letter-spacing:0.05pt;"> </span>access<span style="letter-spacing:0.05pt;"> </span>to, all<span style="letter-spacing:0.05pt;"> </span>of which would adversely<span style="letter-spacing:0.1pt;"> </span>affect our results<span style="letter-spacing:0.1pt;"> </span>of operations<span style="letter-spacing:0.1pt;"> </span>and our business.</p>
<p style="margin-top:0pt;line-height:7pt;margin-bottom:0pt;text-indent:0%;font-size:7pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">44</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Even if<span style="letter-spacing:0.05pt;"> </span>any of our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.05pt;"> </span>receives<span style="letter-spacing:0.1pt;"> </span>marketing<span style="letter-spacing:0.05pt;"> </span>approval,<span style="letter-spacing:0.05pt;"> </span>it<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>fail<span style="letter-spacing:0.05pt;"> </span>to achieve<span style="letter-spacing:0.05pt;"> </span>the degree<span style="letter-spacing:0.05pt;"> </span>of market<span style="letter-spacing:0.05pt;"> </span>acceptance<span style="letter-spacing:0.05pt;"> </span>by physicians,<span style="letter-spacing:0.05pt;"> </span>patients,<span style="letter-spacing:0.05pt;"> </span>third-party<span style="letter-spacing:0.1pt;"> </span>payors<span style="letter-spacing:0.05pt;"> </span>and others<span style="letter-spacing:0.05pt;"> </span>in the medical<span style="letter-spacing:0.1pt;"> </span>community necessary<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>commercial<span style="letter-spacing:0.1pt;"> </span>success.</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If<span style="letter-spacing:1.8pt;"> </span>any<span style="letter-spacing:1.75pt;"> </span>of<span style="letter-spacing:1.75pt;"> </span>our<span style="letter-spacing:1.75pt;"> </span>product<span style="letter-spacing:1.8pt;"> </span>candidates<span style="letter-spacing:1.8pt;"> </span>receives<span style="letter-spacing:1.8pt;"> </span>marketing<span style="letter-spacing:1.8pt;"> </span>approval,<span style="letter-spacing:1.75pt;"> </span>it<span style="letter-spacing:1.75pt;"> </span>may<span style="letter-spacing:1.75pt;"> </span>nonetheless<span style="letter-spacing:1.8pt;"> </span>fail<span style="letter-spacing:1.75pt;"> </span>to<span style="letter-spacing:1.7pt;"> </span>gain<span style="letter-spacing:1.75pt;"> </span>sufficient market<span style="letter-spacing:0.15pt;"> </span>acceptance<span style="letter-spacing:0.15pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>physicians,<span style="letter-spacing:0.15pt;"> </span>patients,<span style="letter-spacing:0.15pt;"> </span>third-party<span style="letter-spacing:0.2pt;"> </span>payors<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>others<span style="letter-spacing:0.1pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>medical<span style="letter-spacing:0.1pt;"> </span>community.<span style="letter-spacing:0.1pt;"> </span>For example, current<span style="letter-spacing:0.15pt;"> </span>cancer<span style="letter-spacing:0.1pt;"> </span>treatments,<span style="letter-spacing:0.2pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>existing<span style="letter-spacing:0.15pt;"> </span>targeted<span style="letter-spacing:0.15pt;"> </span>therapies,<span style="letter-spacing:0.15pt;"> </span>chemotherapy,<span style="letter-spacing:0.1pt;"> </span>and radiation<span style="letter-spacing:0.1pt;"> </span>therapy,<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>well established<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>medical<span style="letter-spacing:0.15pt;"> </span>community,<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>doctors<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>continue<span style="letter-spacing:0.1pt;"> </span>to rely<span style="letter-spacing:0.05pt;"> </span>on these<span style="letter-spacing:0.05pt;"> </span>treatments.<span style="letter-spacing:0.15pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>our product candidates<span style="letter-spacing:0.1pt;"> </span>do not achieve<span style="letter-spacing:0.05pt;"> </span>an adequate<span style="letter-spacing:0.05pt;"> </span>level<span style="letter-spacing:0.05pt;"> </span>of acceptance,<span style="letter-spacing:0.1pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>not generate<span style="letter-spacing:0.1pt;"> </span>significant<span style="letter-spacing:0.15pt;"> </span>product revenues and we may<span style="letter-spacing:0.05pt;"> </span>not become<span style="letter-spacing:0.05pt;"> </span>profitable.<span style="letter-spacing:0.1pt;"> </span>The degree<span style="letter-spacing:0.05pt;"> </span>of market<span style="letter-spacing:0.1pt;"> </span>acceptance<span style="letter-spacing:0.1pt;"> </span>of our product<span style="letter-spacing:0.05pt;"> </span>candidates,<span style="letter-spacing:0.05pt;"> </span>if approved for commercial<span style="letter-spacing:0.15pt;"> </span>sale,<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>depend on a number<span style="letter-spacing:0.05pt;"> </span>of factors,<span style="letter-spacing:0.1pt;"> </span>including:</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.05pt;"> </span>efficacy<span style="letter-spacing:0.1pt;"> </span>and potential<span style="letter-spacing:0.1pt;"> </span>advantages<span style="letter-spacing:0.05pt;"> </span>compared<span style="letter-spacing:0.05pt;"> </span>to alternative<span style="letter-spacing:0.15pt;"> </span>treatments&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.05pt;"> </span>acceptance<span style="letter-spacing:0.1pt;"> </span>of our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>as front-line<span style="letter-spacing:0.15pt;"> </span>treatment<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>various<span style="letter-spacing:0.05pt;"> </span>indications&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.05pt;"> </span>prevalence<span style="letter-spacing:0.1pt;"> </span>and severity<span style="letter-spacing:0.1pt;"> </span>of any side<span style="letter-spacing:0.05pt;"> </span>effects,<span style="letter-spacing:0.1pt;"> </span>in particular<span style="letter-spacing:0.15pt;"> </span>compared<span style="letter-spacing:0.05pt;"> </span>to alternative<span style="letter-spacing:0.15pt;"> </span>treatments&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">limitations<span style="letter-spacing:0.15pt;"> </span>or warnings<span style="letter-spacing:0.05pt;"> </span>contained<span style="letter-spacing:0.05pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>labeling<span style="letter-spacing:0.1pt;"> </span>approved<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>by the<span style="letter-spacing:0.05pt;"> </span>FDA&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.05pt;"> </span>size<span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>target<span style="letter-spacing:0.1pt;"> </span>patient<span style="letter-spacing:0.1pt;"> </span>population&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.25pt;"> </span>willingness<span style="letter-spacing:0.25pt;"> </span>of<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.2pt;"> </span>target<span style="letter-spacing:0.25pt;"> </span>patient<span style="letter-spacing:0.25pt;"> </span>population<span style="letter-spacing:0.2pt;"> </span>to<span style="letter-spacing:0.15pt;"> </span>try<span style="letter-spacing:0.2pt;"> </span>new<span style="letter-spacing:0.15pt;"> </span>therapies<span style="letter-spacing:0.25pt;"> </span>and<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.15pt;"> </span>physicians<span style="letter-spacing:0.25pt;"> </span>to<span style="letter-spacing:0.15pt;"> </span>prescribe<span style="letter-spacing:0.25pt;"> </span>these therapies&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">our ability<span style="letter-spacing:0.1pt;"> </span>to offer<span style="letter-spacing:0.05pt;"> </span>our products<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>sale<span style="letter-spacing:0.05pt;"> </span>at<span style="letter-spacing:0.05pt;"> </span>competitive<span style="letter-spacing:0.15pt;"> </span>prices&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.05pt;"> </span>convenience<span style="letter-spacing:0.05pt;"> </span>and ease<span style="letter-spacing:0.05pt;"> </span>of administration<span style="letter-spacing:0.15pt;"> </span>compared<span style="letter-spacing:0.05pt;"> </span>to alternative<span style="letter-spacing:0.15pt;"> </span>treatments&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.05pt;"> </span>strength<span style="letter-spacing:0.1pt;"> </span>of marketing<span style="letter-spacing:0.1pt;"> </span>and distribution<span style="letter-spacing:0.15pt;"> </span>support&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">publicity<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>and competing<span style="letter-spacing:0.1pt;"> </span>products<span style="letter-spacing:0.05pt;"> </span>and treatments&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.05pt;"> </span>existence<span style="letter-spacing:0.1pt;"> </span>of distribution<span style="letter-spacing:0.15pt;"> </span>and/or<span style="letter-spacing:0.05pt;"> </span>use restrictions,<span style="letter-spacing:0.15pt;"> </span>such as through<span style="letter-spacing:0.05pt;"> </span>a REMS&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.05pt;"> </span>availability<span style="letter-spacing:0.15pt;"> </span>of third-party<span style="letter-spacing:0.15pt;"> </span>payor<span style="letter-spacing:0.05pt;"> </span>coverage<span style="letter-spacing:0.05pt;"> </span>and adequate<span style="letter-spacing:0.05pt;"> </span>reimbursement&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.05pt;"> </span>timing<span style="letter-spacing:0.1pt;"> </span>of any marketing<span style="letter-spacing:0.1pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>in relation<span style="letter-spacing:0.1pt;"> </span>to other<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>approvals&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">support<span style="letter-spacing:0.05pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>patient<span style="letter-spacing:0.1pt;"> </span>advocacy<span style="letter-spacing:0.05pt;"> </span>groups&#59;<span style="letter-spacing:0.05pt;"> </span>and</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">any restrictions<span style="letter-spacing:0.15pt;"> </span>on the<span style="letter-spacing:0.05pt;"> </span>use of our products<span style="letter-spacing:0.05pt;"> </span>together<span style="letter-spacing:0.1pt;"> </span>with other<span style="letter-spacing:0.05pt;"> </span>medications.</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:7pt;margin-bottom:0pt;text-indent:0%;font-size:7.5pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We currently<span style="letter-spacing:0.05pt;"> </span>have no marketing<span style="letter-spacing:0.05pt;"> </span>and sales<span style="letter-spacing:0.05pt;"> </span>organization<span style="letter-spacing:0.05pt;"> </span>and have no experience<span style="letter-spacing:0.05pt;"> </span>as a company<span style="letter-spacing:0.05pt;"> </span>in commercializing<span style="letter-spacing:0.15pt;"> </span>products<span style="letter-spacing:0.05pt;"> </span>and we may<span style="letter-spacing:0.05pt;"> </span>have to invest<span style="letter-spacing:0.05pt;"> </span>significant<span style="letter-spacing:0.1pt;"> </span>resources<span style="letter-spacing:0.05pt;"> </span>to develop<span style="letter-spacing:0.05pt;"> </span>these<span style="letter-spacing:0.05pt;"> </span>capabilities.<span style="letter-spacing:0.15pt;"> </span>If we are unable to establish<span style="letter-spacing:0.1pt;"> </span>sales<span style="letter-spacing:0.05pt;"> </span>and marketing<span style="letter-spacing:0.05pt;"> </span>capabilities<span style="letter-spacing:0.15pt;"> </span>or enter<span style="letter-spacing:0.05pt;"> </span>into<span style="letter-spacing:0.05pt;"> </span>agreements<span style="letter-spacing:0.1pt;"> </span>with third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.05pt;"> </span>to market<span style="letter-spacing:0.05pt;"> </span>and sell<span style="letter-spacing:0.05pt;"> </span>our products,<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>not be able<span style="letter-spacing:0.05pt;"> </span>to generate<span style="letter-spacing:0.05pt;"> </span>revenue.</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.05pt;"> </span>currently<span style="letter-spacing:0.15pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>no<span style="letter-spacing:0.05pt;"> </span>sales<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>marketing<span style="letter-spacing:0.15pt;"> </span>infrastructure<span style="letter-spacing:0.25pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>no<span style="letter-spacing:0.05pt;"> </span>experience<span style="letter-spacing:0.1pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>sale,<span style="letter-spacing:0.05pt;"> </span>marketing<span style="letter-spacing:0.1pt;"> </span>or distribution<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>pharmaceutical<span style="letter-spacing:0.2pt;"> </span>products.<span style="letter-spacing:0.1pt;"> </span>To<span style="letter-spacing:0.05pt;"> </span>achieve<span style="letter-spacing:0.1pt;"> </span>commercial<span style="letter-spacing:0.2pt;"> </span>success<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>which we obtain marketing<span style="letter-spacing:0.1pt;"> </span>approval,<span style="letter-spacing:0.05pt;"> </span>we will<span style="letter-spacing:0.05pt;"> </span>need to establish<span style="letter-spacing:0.1pt;"> </span>sales,<span style="letter-spacing:0.05pt;"> </span>marketing<span style="letter-spacing:0.1pt;"> </span>and distribution<span style="letter-spacing:0.15pt;"> </span>capabilities,<span style="letter-spacing:0.1pt;"> </span>either<span style="letter-spacing:0.05pt;"> </span>ourselves<span style="letter-spacing:0.05pt;"> </span>or through<span style="letter-spacing:0.05pt;"> </span>collaboration<span style="letter-spacing:0.15pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>arrangements<span style="letter-spacing:0.15pt;"> </span>with third<span style="letter-spacing:0.05pt;"> </span>parties.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">There<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>risks<span style="letter-spacing:0.1pt;"> </span>involved<span style="letter-spacing:0.1pt;"> </span>with establishing<span style="letter-spacing:0.1pt;"> </span>our own sales<span style="letter-spacing:0.05pt;"> </span>and marketing<span style="letter-spacing:0.1pt;"> </span>capabilities.<span style="letter-spacing:0.15pt;"> </span>For example,<span style="letter-spacing:0.05pt;"> </span>recruiting and training a sales force is expensive and time-consuming and could delay any product launch. If the commercial<span style="letter-spacing:0.55pt;"> </span>launch<span style="letter-spacing:0.45pt;"> </span>of<span style="letter-spacing:0.35pt;"> </span>a<span style="letter-spacing:0.35pt;"> </span>product<span style="letter-spacing:0.4pt;"> </span>candidate<span style="letter-spacing:0.45pt;"> </span>for<span style="letter-spacing:0.4pt;"> </span>which<span style="letter-spacing:0.35pt;"> </span>we<span style="letter-spacing:0.35pt;"> </span>recruit<span style="letter-spacing:0.45pt;"> </span>a<span style="letter-spacing:0.35pt;"> </span>sales<span style="letter-spacing:0.4pt;"> </span>force<span style="letter-spacing:0.4pt;"> </span>and<span style="letter-spacing:0.35pt;"> </span>establish<span style="letter-spacing:0.45pt;"> </span>marketing<span style="letter-spacing:0.45pt;"> </span>capabilities is<span style="letter-spacing:0.05pt;"> </span>delayed<span style="letter-spacing:0.05pt;"> </span>or does not occur<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>any reason,<span style="letter-spacing:0.05pt;"> </span>we would have prematurely<span style="letter-spacing:0.15pt;"> </span>or unnecessarily<span style="letter-spacing:0.05pt;"> </span>incurred<span style="letter-spacing:0.05pt;"> </span>these commercialization<span style="letter-spacing:0.25pt;"> </span>expenses.<span style="letter-spacing:0.1pt;"> </span>These efforts<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>expected<span style="letter-spacing:0.05pt;"> </span>to be costly,<span style="letter-spacing:0.05pt;"> </span>and our investment<span style="letter-spacing:0.1pt;"> </span>would be lost<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>we cannot<span style="letter-spacing:0.05pt;"> </span>retain<span style="letter-spacing:0.1pt;"> </span>or reposition<span style="letter-spacing:0.1pt;"> </span>our sales<span style="letter-spacing:0.05pt;"> </span>and marketing<span style="letter-spacing:0.1pt;"> </span>personnel.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Factors<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>inhibit<span style="letter-spacing:0.1pt;"> </span>our efforts<span style="letter-spacing:0.1pt;"> </span>to commercialize<span style="letter-spacing:0.2pt;"> </span>our products<span style="letter-spacing:0.05pt;"> </span>on our own include:</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">our inability<span style="letter-spacing:0.1pt;"> </span>to recruit,<span style="letter-spacing:0.1pt;"> </span>train<span style="letter-spacing:0.05pt;"> </span>and retain<span style="letter-spacing:0.1pt;"> </span>adequate<span style="letter-spacing:0.05pt;"> </span>numbers<span style="letter-spacing:0.05pt;"> </span>of effective<span style="letter-spacing:0.1pt;"> </span>sales<span style="letter-spacing:0.05pt;"> </span>and marketing<span style="letter-spacing:0.1pt;"> </span>personnel&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">our inability<span style="letter-spacing:0.1pt;"> </span>to raise<span style="letter-spacing:0.05pt;"> </span>financing<span style="letter-spacing:0.1pt;"> </span>necessary<span style="letter-spacing:0.1pt;"> </span>to build<span style="letter-spacing:0.05pt;"> </span>our commercialization<span style="letter-spacing:0.2pt;"> </span>infrastructure&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:2.35pt;"> </span>inability<span style="letter-spacing:2.4pt;"> </span>of<span style="letter-spacing:2.3pt;"> </span>sales<span style="letter-spacing:2.35pt;"> </span>personnel<span style="letter-spacing:2.35pt;"> </span>to<span style="letter-spacing:2.3pt;"> </span>obtain<span style="letter-spacing:2.35pt;"> </span>access<span style="letter-spacing:2.35pt;"> </span>to<span style="letter-spacing:2.3pt;"> </span>physicians<span style="letter-spacing:2.4pt;"> </span>or<span style="letter-spacing:2.3pt;"> </span>educate<span style="letter-spacing:2.35pt;"> </span>an<span style="letter-spacing:2.3pt;"> </span>adequate<span style="letter-spacing:2.35pt;"> </span>number<span style="letter-spacing:2.35pt;"> </span>of physicians<span style="letter-spacing:0.1pt;"> </span>as to the<span style="letter-spacing:0.05pt;"> </span>benefits<span style="letter-spacing:0.1pt;"> </span>of our products&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">unfavorable<span style="letter-spacing:0.1pt;"> </span>third-party<span style="letter-spacing:0.15pt;"> </span>payor<span style="letter-spacing:0.05pt;"> </span>coverage<span style="letter-spacing:0.05pt;"> </span>and reimbursement<span style="letter-spacing:0.15pt;"> </span>in any geography&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">45</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the lack of complementary products to be offered by sales personnel, which may put us at a competitive<span style="letter-spacing:0.15pt;"> </span>disadvantage<span style="letter-spacing:0.1pt;"> </span>relative<span style="letter-spacing:0.1pt;"> </span>to companies<span style="letter-spacing:0.1pt;"> </span>with more<span style="letter-spacing:0.05pt;"> </span>extensive<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>lines&#59;<span style="letter-spacing:0.1pt;"> </span>and</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">unforeseen costs and expenses associated with creating an independent sales and marketing organization.</p></td></tr></table></div>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If<span style="letter-spacing:2.3pt;"> </span>we<span style="letter-spacing:2.25pt;"> </span>enter<span style="letter-spacing:2.3pt;"> </span>into<span style="letter-spacing:2.3pt;"> </span>arrangements<span style="letter-spacing:2.4pt;"> </span>with<span style="letter-spacing:2.25pt;"> </span>third<span style="letter-spacing:2.3pt;"> </span>parties<span style="letter-spacing:2.35pt;"> </span>to<span style="letter-spacing:2.25pt;"> </span>perform<span style="letter-spacing:2.35pt;"> </span>sales<span style="letter-spacing:2.3pt;"> </span>and<span style="letter-spacing:2.2pt;"> </span>marketing<span style="letter-spacing:2.3pt;"> </span>services,<span style="letter-spacing:2.3pt;"> </span>our<span style="letter-spacing:2.2pt;"> </span>product revenues<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>profitability,<span style="letter-spacing:0.2pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>any,<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>likely<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>be lower<span style="letter-spacing:0.05pt;"> </span>than<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>we were to market<span style="letter-spacing:0.1pt;"> </span>and sell<span style="letter-spacing:0.05pt;"> </span>any products<span style="letter-spacing:0.05pt;"> </span>that we<span style="letter-spacing:0.05pt;"> </span>develop<span style="letter-spacing:0.1pt;"> </span>ourselves.<span style="letter-spacing:0.15pt;"> </span>In<span style="letter-spacing:0.05pt;"> </span>addition,<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>not be successful<span style="letter-spacing:0.1pt;"> </span>in entering<span style="letter-spacing:0.1pt;"> </span>into<span style="letter-spacing:0.05pt;"> </span>arrangements<span style="letter-spacing:0.15pt;"> </span>with third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.1pt;"> </span>to market<span style="letter-spacing:0.8pt;"> </span>and<span style="letter-spacing:0.7pt;"> </span>sell<span style="letter-spacing:0.75pt;"> </span>our<span style="letter-spacing:0.7pt;"> </span>product<span style="letter-spacing:0.75pt;"> </span>candidates<span style="letter-spacing:0.8pt;"> </span>or<span style="letter-spacing:0.7pt;"> </span>may<span style="letter-spacing:0.75pt;"> </span>be<span style="letter-spacing:0.7pt;"> </span>unable<span style="letter-spacing:0.75pt;"> </span>to<span style="letter-spacing:0.7pt;"> </span>do<span style="letter-spacing:0.7pt;"> </span>so<span style="letter-spacing:0.7pt;"> </span>on<span style="letter-spacing:0.7pt;"> </span>terms<span style="letter-spacing:0.8pt;"> </span>that<span style="letter-spacing:0.75pt;"> </span>are<span style="letter-spacing:0.75pt;"> </span>acceptable<span style="letter-spacing:0.8pt;"> </span>to<span style="letter-spacing:0.7pt;"> </span>us.<span style="letter-spacing:0.7pt;"> </span>We<span style="letter-spacing:0.7pt;"> </span>likely will<span style="letter-spacing:1.3pt;"> </span>have<span style="letter-spacing:1.25pt;"> </span>little<span style="letter-spacing:1.3pt;"> </span>control<span style="letter-spacing:1.25pt;"> </span>over<span style="letter-spacing:1.25pt;"> </span>such<span style="letter-spacing:1.2pt;"> </span>third<span style="letter-spacing:1.25pt;"> </span>parties,<span style="letter-spacing:1.3pt;"> </span>and<span style="letter-spacing:1.2pt;"> </span>any<span style="letter-spacing:1.2pt;"> </span>of<span style="letter-spacing:1.2pt;"> </span>these<span style="letter-spacing:1.25pt;"> </span>third<span style="letter-spacing:1.25pt;"> </span>parties<span style="letter-spacing:1.3pt;"> </span>may<span style="letter-spacing:1.25pt;"> </span>fail<span style="letter-spacing:1.25pt;"> </span>to<span style="letter-spacing:1.2pt;"> </span>devote<span style="letter-spacing:1.25pt;"> </span>the<span style="letter-spacing:1.25pt;"> </span>necessary resources<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>attention<span style="letter-spacing:0.1pt;"> </span>to sell<span style="letter-spacing:0.05pt;"> </span>and market<span style="letter-spacing:0.1pt;"> </span>our products<span style="letter-spacing:0.05pt;"> </span>effectively.<span style="letter-spacing:0.15pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>we do not establish<span style="letter-spacing:0.1pt;"> </span>sales<span style="letter-spacing:0.05pt;"> </span>and marketing capabilities<span style="letter-spacing:1.3pt;"> </span>successfully,<span style="letter-spacing:1.25pt;"> </span>either<span style="letter-spacing:1.25pt;"> </span>on<span style="letter-spacing:1.15pt;"> </span>our<span style="letter-spacing:1.15pt;"> </span>own<span style="letter-spacing:1.15pt;"> </span>or<span style="letter-spacing:1.15pt;"> </span>in<span style="letter-spacing:1.15pt;"> </span>collaboration<span style="letter-spacing:1.3pt;"> </span>with<span style="letter-spacing:1.15pt;"> </span>third<span style="letter-spacing:1.2pt;"> </span>parties,<span style="letter-spacing:1.25pt;"> </span>we<span style="letter-spacing:1.15pt;"> </span>will<span style="letter-spacing:1.15pt;"> </span>not<span style="letter-spacing:1.1pt;"> </span>be<span style="letter-spacing:1.1pt;"> </span>successful<span style="letter-spacing:1.2pt;"> </span>in commercializing<span style="letter-spacing:0.2pt;"> </span>any of our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>which we receive<span style="letter-spacing:0.1pt;"> </span>marketing<span style="letter-spacing:0.1pt;"> </span>approval.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We face<span style="letter-spacing:0.05pt;"> </span>substantial<span style="letter-spacing:0.1pt;"> </span>competition,<span style="letter-spacing:0.1pt;"> </span>which may<span style="letter-spacing:0.05pt;"> </span>result<span style="letter-spacing:0.05pt;"> </span>in others<span style="letter-spacing:0.05pt;"> </span>discovering,<span style="letter-spacing:0.1pt;"> </span>developing<span style="letter-spacing:0.05pt;"> </span>or commercializing products<span style="letter-spacing:0.05pt;"> </span>before<span style="letter-spacing:0.05pt;"> </span>or more<span style="letter-spacing:0.05pt;"> </span>successfully<span style="letter-spacing:0.1pt;"> </span>than we do.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>and commercialization<span style="letter-spacing:0.2pt;"> </span>of pharmaceutical<span style="letter-spacing:0.15pt;"> </span>products<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>highly<span style="letter-spacing:0.05pt;"> </span>competitive.<span style="letter-spacing:0.15pt;"> </span>We face competition<span style="letter-spacing:0.15pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>respect<span style="letter-spacing:0.15pt;"> </span>to our current<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>and will<span style="letter-spacing:0.05pt;"> </span>face<span style="letter-spacing:0.05pt;"> </span>competition<span style="letter-spacing:0.1pt;"> </span>with respect<span style="letter-spacing:0.1pt;"> </span>to any product candidates<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>seek<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>develop<span style="letter-spacing:0.05pt;"> </span>or commercialize<span style="letter-spacing:0.2pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>future,<span style="letter-spacing:0.05pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>major<span style="letter-spacing:0.05pt;"> </span>pharmaceutical<span style="letter-spacing:0.15pt;"> </span>companies, specialty<span style="letter-spacing:0.1pt;"> </span>pharmaceutical<span style="letter-spacing:0.15pt;"> </span>companies<span style="letter-spacing:0.1pt;"> </span>and existing<span style="letter-spacing:0.1pt;"> </span>or emerging<span style="letter-spacing:0.1pt;"> </span>biotechnology<span style="letter-spacing:0.1pt;"> </span>companies,<span style="letter-spacing:0.1pt;"> </span>academic<span style="letter-spacing:0.05pt;"> </span>research institutions<span style="letter-spacing:2.45pt;"> </span>and<span style="letter-spacing:2.3pt;"> </span>governmental<span style="letter-spacing:2.4pt;"> </span>agencies<span style="letter-spacing:2.35pt;"> </span>and<span style="letter-spacing:2.3pt;"> </span>public<span style="letter-spacing:2.35pt;"> </span>and<span style="letter-spacing:2.3pt;"> </span>private<span style="letter-spacing:2.4pt;"> </span>research<span style="letter-spacing:2.4pt;"> </span>institutions<span style="letter-spacing:2.4pt;"> </span>worldwide.<span style="letter-spacing:2.3pt;"> </span>There<span style="letter-spacing:2.3pt;"> </span>are<span style="letter-spacing:2.3pt;"> </span>a number<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>pharmaceutical<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>biotechnology<span style="letter-spacing:0.15pt;"> </span>companies<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>currently<span style="letter-spacing:0.15pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>pursuing<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>of precision oncology<span style="letter-spacing:0.1pt;"> </span>therapies<span style="letter-spacing:0.1pt;"> </span>optimized<span style="letter-spacing:0.1pt;"> </span>to effectively<span style="letter-spacing:0.15pt;"> </span>target<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>key driver<span style="letter-spacing:0.05pt;"> </span>mechanisms<span style="letter-spacing:0.1pt;"> </span>in cancers<span style="letter-spacing:0.05pt;"> </span>with high unmet<span style="letter-spacing:0.05pt;"> </span>need, including<span style="letter-spacing:0.1pt;"> </span>Black<span style="letter-spacing:0.05pt;"> </span>Diamond<span style="letter-spacing:0.1pt;"> </span>Therapeutics,<span style="letter-spacing:0.1pt;"> </span>Inc.,<span style="letter-spacing:0.05pt;"> </span>Constellation<span style="letter-spacing:0.1pt;"> </span>Pharmaceuticals,<span style="letter-spacing:0.15pt;"> </span>Inc.,<span style="letter-spacing:0.05pt;"> </span>Kronos Bio, Inc.,<span style="letter-spacing:0.05pt;"> </span>Repare Therapeutics<span style="letter-spacing:0.2pt;"> </span>Inc.,<span style="letter-spacing:0.15pt;"> </span>Revolution<span style="letter-spacing:0.15pt;"> </span>Medicines,<span style="letter-spacing:0.2pt;"> </span>Inc.,<span style="letter-spacing:0.15pt;"> </span>Relay<span style="letter-spacing:0.05pt;"> </span>Therapeutics,<span style="letter-spacing:0.15pt;"> </span>Inc.,<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>Zentalis<span style="letter-spacing:0.15pt;"> </span>Pharmaceuticals,<span style="letter-spacing:0.2pt;"> </span>LLC. In addition,<span style="letter-spacing:1.65pt;"> </span>we<span style="letter-spacing:1.6pt;"> </span>may<span style="letter-spacing:1.65pt;"> </span>face<span style="letter-spacing:1.65pt;"> </span>competition<span style="letter-spacing:1.7pt;"> </span>from<span style="letter-spacing:1.65pt;"> </span>companies<span style="letter-spacing:1.7pt;"> </span>pursuing<span style="letter-spacing:1.65pt;"> </span>the<span style="letter-spacing:1.65pt;"> </span>development<span style="letter-spacing:1.7pt;"> </span>of<span style="letter-spacing:1.55pt;"> </span>product<span style="letter-spacing:1.6pt;"> </span>candidates<span style="letter-spacing:1.65pt;"> </span>that<span style="letter-spacing:1.6pt;"> </span>are based<span style="letter-spacing:0.1pt;"> </span>on targeting<span style="letter-spacing:0.1pt;"> </span>pathways<span style="letter-spacing:0.05pt;"> </span>of adaptive<span style="letter-spacing:0.05pt;"> </span>resistance,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>Amgen Inc.,<span style="letter-spacing:0.05pt;"> </span>or Amgen, AbbVie Inc.,<span style="letter-spacing:0.05pt;"> </span>or AbbVie, AstraZeneca<span style="letter-spacing:0.8pt;"> </span>PLC,<span style="letter-spacing:0.7pt;"> </span>or<span style="letter-spacing:0.75pt;"> </span>AstraZeneca,<span style="letter-spacing:0.8pt;"> </span>GlaxoSmithKline<span style="letter-spacing:0.8pt;"> </span>plc,<span style="letter-spacing:0.75pt;"> </span>or<span style="letter-spacing:0.7pt;"> </span>GlaxoSmithKline,<span style="letter-spacing:0.8pt;"> </span>Johnson<span style="letter-spacing:0.7pt;"> </span>&#38;<span style="letter-spacing:0.7pt;"> </span>Johnson,<span style="letter-spacing:0.7pt;"> </span>Pfizer<span style="letter-spacing:0.75pt;"> </span>Inc., or Pfizer,<span style="letter-spacing:0.05pt;"> </span>Vincerx Pharma ,<span style="letter-spacing:-0.05pt;"> </span>or Vincerx, and Novartis<span style="letter-spacing:0.05pt;"> </span>International<span style="letter-spacing:0.15pt;"> </span>AG,<span style="letter-spacing:-0.05pt;"> </span>or Novartis.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Specifically,<span style="letter-spacing:0.2pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>respect<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>lead<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates,<span style="letter-spacing:0.15pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>expect<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>our current<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates PRT543 and<span style="letter-spacing:0.05pt;"> </span>PRT811 will<span style="letter-spacing:0.1pt;"> </span>compete<span style="letter-spacing:0.1pt;"> </span>against<span style="letter-spacing:0.1pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>PRMT5 inhibitors<span style="letter-spacing:0.15pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>currently<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>development, including those of GlaxoSmithKline (GSK3326595), Johnson &#38; Johnson (JNJ-64619178) and Pfizer (PF-06939999).<span style="letter-spacing:0.1pt;"> </span>Development<span style="letter-spacing:0.1pt;"> </span>efforts<span style="letter-spacing:0.15pt;"> </span>and clinical<span style="letter-spacing:0.1pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>of these<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be unsuccessful, which<span style="letter-spacing:2.45pt;"> </span>could result in<span style="letter-spacing:2.45pt;"> </span>a<span style="letter-spacing:2.45pt;"> </span>negative perception of<span style="letter-spacing:2.45pt;"> </span>PRMT5<span style="letter-spacing:2.4pt;"> </span>inhibitors, for instance, and<span style="letter-spacing:2.45pt;"> </span>negatively impact the regulatory<span style="letter-spacing:0.15pt;"> </span>approval<span style="letter-spacing:0.1pt;"> </span>process<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates,<span style="letter-spacing:0.15pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>would<span style="letter-spacing:0.05pt;"> </span>have a material<span style="letter-spacing:0.15pt;"> </span>and adverse<span style="letter-spacing:0.05pt;"> </span>effect<span style="letter-spacing:0.1pt;"> </span>on our business.<span style="letter-spacing:0.15pt;"> </span>For<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.15pt;"> </span>candidate<span style="letter-spacing:0.15pt;"> </span>PRT1419, other<span style="letter-spacing:0.1pt;"> </span>companies<span style="letter-spacing:0.15pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>developing<span style="letter-spacing:0.1pt;"> </span>MCL1<span style="letter-spacing:0.05pt;"> </span>inhibitors<span style="letter-spacing:0.15pt;"> </span>with monotherapy<span style="letter-spacing:0.1pt;"> </span>and/or<span style="letter-spacing:0.05pt;"> </span>combination<span style="letter-spacing:0.1pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>ongoing, including<span style="letter-spacing:0.05pt;"> </span>Amgen (AMG176), AstraZeneca<span style="letter-spacing:0.05pt;"> </span>(AZD5991) and Novartis<span style="letter-spacing:0.1pt;"> </span>(MIK665).<span style="letter-spacing:0.1pt;"> </span>For<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>preclinical<span style="letter-spacing:0.2pt;"> </span>CDK9 program,<span style="letter-spacing:0.1pt;"> </span>AstraZeneca,<span style="letter-spacing:0.1pt;"> </span>Vincerx<span style="letter-spacing:0.05pt;"> </span>and Kronos Bio have CDK9 programs<span style="letter-spacing:0.1pt;"> </span>in Phase 1 clinical<span style="letter-spacing:0.1pt;"> </span>trials.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Many<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>companies<span style="letter-spacing:0.1pt;"> </span>against<span style="letter-spacing:0.05pt;"> </span>which we are<span style="letter-spacing:0.05pt;"> </span>competing<span style="letter-spacing:0.1pt;"> </span>or against<span style="letter-spacing:0.05pt;"> </span>which we may<span style="letter-spacing:0.05pt;"> </span>compete<span style="letter-spacing:0.05pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>future, either<span style="letter-spacing:0.15pt;"> </span>alone<span style="letter-spacing:0.1pt;"> </span>or through<span style="letter-spacing:0.05pt;"> </span>collaborations,<span style="letter-spacing:0.15pt;"> </span>have significantly<span style="letter-spacing:0.15pt;"> </span>greater<span style="letter-spacing:0.1pt;"> </span>financial<span style="letter-spacing:0.1pt;"> </span>resources<span style="letter-spacing:0.1pt;"> </span>and expertise<span style="letter-spacing:0.1pt;"> </span>in research<span style="letter-spacing:0.1pt;"> </span>and development,<span style="letter-spacing:0.1pt;"> </span>manufacturing,<span style="letter-spacing:0.15pt;"> </span>preclinical<span style="letter-spacing:0.1pt;"> </span>testing,<span style="letter-spacing:0.05pt;"> </span>conducting clinical<span style="letter-spacing:0.05pt;"> </span>trials,<span style="letter-spacing:0.05pt;"> </span>obtaining regulatory<span style="letter-spacing:0.05pt;"> </span>approvals and marketing<span style="letter-spacing:0.15pt;"> </span>approved<span style="letter-spacing:0.1pt;"> </span>products<span style="letter-spacing:0.05pt;"> </span>than<span style="letter-spacing:0.05pt;"> </span>we do. Mergers<span style="letter-spacing:0.1pt;"> </span>and acquisitions<span style="letter-spacing:0.1pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>pharmaceutical<span style="letter-spacing:0.15pt;"> </span>and biotechnology industries<span style="letter-spacing:1.3pt;"> </span>may<span style="letter-spacing:1.25pt;"> </span>result<span style="letter-spacing:1.3pt;"> </span>in<span style="letter-spacing:1.2pt;"> </span>even<span style="letter-spacing:1.2pt;"> </span>more<span style="letter-spacing:1.25pt;"> </span>resources<span style="letter-spacing:1.3pt;"> </span>being<span style="letter-spacing:1.25pt;"> </span>concentrated<span style="letter-spacing:1.3pt;"> </span>among<span style="letter-spacing:1.25pt;"> </span>a<span style="letter-spacing:1.2pt;"> </span>smaller<span style="letter-spacing:1.3pt;"> </span>number<span style="letter-spacing:1.25pt;"> </span>of<span style="letter-spacing:1.2pt;"> </span>our<span style="letter-spacing:1.15pt;"> </span>competitors. Smaller<span style="letter-spacing:0.15pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>early-stage<span style="letter-spacing:0.15pt;"> </span>companies<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>also<span style="letter-spacing:0.05pt;"> </span>prove<span style="letter-spacing:0.05pt;"> </span>to be significant<span style="letter-spacing:0.15pt;"> </span>competitors,<span style="letter-spacing:0.15pt;"> </span>particularly<span style="letter-spacing:0.15pt;"> </span>through collaborative arrangements with large and established companies. These third parties compete with us in recruiting<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>retaining<span style="letter-spacing:0.15pt;"> </span>qualified<span style="letter-spacing:0.15pt;"> </span>scientific,<span style="letter-spacing:0.2pt;"> </span>management<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>sales<span style="letter-spacing:0.1pt;"> </span>and marketing<span style="letter-spacing:0.1pt;"> </span>personnel,<span style="letter-spacing:0.05pt;"> </span>establishing<span style="letter-spacing:0.1pt;"> </span>clinical trial<span style="letter-spacing:1.35pt;"> </span>sites<span style="letter-spacing:1.3pt;"> </span>and<span style="letter-spacing:1.25pt;"> </span>patient<span style="letter-spacing:1.35pt;"> </span>registration<span style="letter-spacing:1.35pt;"> </span>for<span style="letter-spacing:1.25pt;"> </span>clinical<span style="letter-spacing:1.3pt;"> </span>trials,<span style="letter-spacing:1.3pt;"> </span>as<span style="letter-spacing:1.2pt;"> </span>well<span style="letter-spacing:1.25pt;"> </span>as<span style="letter-spacing:1.2pt;"> </span>in<span style="letter-spacing:1.2pt;"> </span>acquiring<span style="letter-spacing:1.3pt;"> </span>technologies<span style="letter-spacing:1.3pt;"> </span>complementary<span style="letter-spacing:1.35pt;"> </span>to,<span style="letter-spacing:1.2pt;"> </span>or necessary<span style="letter-spacing:0.1pt;"> </span>for,<span style="letter-spacing:0.05pt;"> </span>our programs.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Furthermore,<span style="letter-spacing:0.1pt;"> </span>we also face competition<span style="letter-spacing:0.05pt;"> </span>more broadly across the oncology market<span style="letter-spacing:0.05pt;"> </span>for cost-effective<span style="letter-spacing:0.15pt;"> </span>and reimbursable<span style="letter-spacing:0.2pt;"> </span>cancer<span style="letter-spacing:0.1pt;"> </span>treatments.<span style="letter-spacing:0.2pt;"> </span>There<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>a variety<span style="letter-spacing:0.1pt;"> </span>of available<span style="letter-spacing:0.1pt;"> </span>drug therapies<span style="letter-spacing:0.1pt;"> </span>marketed<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>cancer.<span style="letter-spacing:0.05pt;"> </span>In many cases,<span style="letter-spacing:0.1pt;"> </span>these<span style="letter-spacing:0.1pt;"> </span>drugs<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>administered<span style="letter-spacing:0.2pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>combination<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>enhance<span style="letter-spacing:0.1pt;"> </span>efficacy.<span style="letter-spacing:0.1pt;"> </span>While<span style="letter-spacing:0.05pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates,<span style="letter-spacing:0.1pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>any are approved,<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>compete<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>these<span style="letter-spacing:0.05pt;"> </span>existing<span style="letter-spacing:0.1pt;"> </span>drugs<span style="letter-spacing:0.05pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>therapies,<span style="letter-spacing:0.1pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>extent<span style="letter-spacing:0.05pt;"> </span>they<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>ultimately<span style="letter-spacing:0.15pt;"> </span>used in combination<span style="letter-spacing:0.15pt;"> </span>with or as an adjunct<span style="letter-spacing:0.05pt;"> </span>to these<span style="letter-spacing:0.05pt;"> </span>therapies,<span style="letter-spacing:0.1pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>not be competitive<span style="letter-spacing:0.15pt;"> </span>with them. Some<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>these<span style="letter-spacing:0.1pt;"> </span>drugs<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>branded<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>subject<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>protection,<span style="letter-spacing:0.1pt;"> </span>and others<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>available<span style="letter-spacing:0.1pt;"> </span>on a generic<span style="letter-spacing:0.05pt;"> </span>basis. Insurers and other third-party payors may also encourage the use of<span style="letter-spacing:2.45pt;"> </span>generic products or<span style="letter-spacing:2.45pt;"> </span>specific branded products.<span style="letter-spacing:0.1pt;"> </span>As a result,<span style="letter-spacing:0.1pt;"> </span>obtaining<span style="letter-spacing:0.05pt;"> </span>market<span style="letter-spacing:0.1pt;"> </span>acceptance<span style="letter-spacing:0.1pt;"> </span>of, and gaining<span style="letter-spacing:0.05pt;"> </span>significant<span style="letter-spacing:0.15pt;"> </span>share<span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>market<span style="letter-spacing:0.1pt;"> </span>for,<span style="letter-spacing:0.05pt;"> </span>any of our product candidates that we successfully introduce to the market may pose challenges. In addition, many companies<span style="letter-spacing:0.15pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>developing<span style="letter-spacing:0.05pt;"> </span>new oncology<span style="letter-spacing:0.05pt;"> </span>therapeutics,<span style="letter-spacing:0.15pt;"> </span>and we cannot<span style="letter-spacing:0.05pt;"> </span>predict<span style="letter-spacing:0.1pt;"> </span>what the<span style="letter-spacing:0.05pt;"> </span>standard<span style="letter-spacing:0.05pt;"> </span>of care<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>be as our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>progress<span style="letter-spacing:0.05pt;"> </span>through<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>development.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">46</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our<span style="letter-spacing:0.05pt;"> </span>commercial<span style="letter-spacing:0.2pt;"> </span>opportunity<span style="letter-spacing:0.15pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>reduced<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>eliminated<span style="letter-spacing:0.2pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>competitors<span style="letter-spacing:0.2pt;"> </span>develop<span style="letter-spacing:0.05pt;"> </span>and commercialize products<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>safer,<span style="letter-spacing:0.05pt;"> </span>more<span style="letter-spacing:0.05pt;"> </span>effective,<span style="letter-spacing:0.1pt;"> </span>have fewer<span style="letter-spacing:0.05pt;"> </span>or less<span style="letter-spacing:0.05pt;"> </span>severe<span style="letter-spacing:0.05pt;"> </span>side<span style="letter-spacing:0.05pt;"> </span>effects,<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>more<span style="letter-spacing:0.05pt;"> </span>convenient<span style="letter-spacing:0.05pt;"> </span>to administer, are less expensive or with a more favorable labeling than our current or future product candidates. Our competitors<span style="letter-spacing:1.45pt;"> </span>also<span style="letter-spacing:1.35pt;"> </span>may<span style="letter-spacing:1.35pt;"> </span>obtain<span style="letter-spacing:1.35pt;"> </span>FDA,<span style="letter-spacing:1.25pt;"> </span>foreign<span style="letter-spacing:1.35pt;"> </span>regulatory<span style="letter-spacing:1.4pt;"> </span>authority,<span style="letter-spacing:1.4pt;"> </span>or<span style="letter-spacing:1.3pt;"> </span>other<span style="letter-spacing:1.35pt;"> </span>marketing<span style="letter-spacing:1.35pt;"> </span>or<span style="letter-spacing:1.25pt;"> </span>regulatory<span style="letter-spacing:1.35pt;"> </span>approval<span style="letter-spacing:1.3pt;"> </span>for their<span style="letter-spacing:0.1pt;"> </span>products<span style="letter-spacing:0.1pt;"> </span>more<span style="letter-spacing:0.1pt;"> </span>rapidly<span style="letter-spacing:0.1pt;"> </span>than<span style="letter-spacing:0.1pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>approval<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>obtain<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>ours,<span style="letter-spacing:0.1pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>result<span style="letter-spacing:0.1pt;"> </span>in our competitors establishing<span style="letter-spacing:2.45pt;"> </span>a<span style="letter-spacing:2.35pt;"> </span>strong<span style="letter-spacing:2.4pt;"> </span>market<span style="letter-spacing:2.45pt;"> </span>position<span style="letter-spacing:2.4pt;"> </span>before<span style="letter-spacing:2.4pt;"> </span>we<span style="letter-spacing:2.35pt;"> </span>are<span style="letter-spacing:2.35pt;"> </span>able<span style="letter-spacing:2.35pt;"> </span>to<span style="letter-spacing:2.3pt;"> </span>enter<span style="letter-spacing:2.35pt;"> </span>the<span style="letter-spacing:2.35pt;"> </span>market.<span style="letter-spacing:2.4pt;"> </span>The<span style="letter-spacing:2.3pt;"> </span>key<span style="letter-spacing:2.3pt;"> </span>competitive<span style="letter-spacing:2.45pt;"> </span>factors affecting<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>success<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>all<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates,<span style="letter-spacing:0.15pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>approved,<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>likely<span style="letter-spacing:0.05pt;"> </span>to be their<span style="letter-spacing:0.05pt;"> </span>efficacy,<span style="letter-spacing:0.1pt;"> </span>safety, convenience,<span style="letter-spacing:0.05pt;"> </span>price,<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>level<span style="letter-spacing:0.05pt;"> </span>of generic<span style="letter-spacing:0.05pt;"> </span>competition<span style="letter-spacing:0.1pt;"> </span>and the<span style="letter-spacing:0.05pt;"> </span>availability<span style="letter-spacing:0.15pt;"> </span>of reimbursement<span style="letter-spacing:0.15pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>government<span style="letter-spacing:0.05pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>third-party<span style="letter-spacing:0.15pt;"> </span>payors.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Even if<span style="letter-spacing:0.05pt;"> </span>we are able<span style="letter-spacing:0.05pt;"> </span>to commercialize<span style="letter-spacing:0.15pt;"> </span>any product<span style="letter-spacing:0.05pt;"> </span>candidates,<span style="letter-spacing:0.05pt;"> </span>the products<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>become<span style="letter-spacing:0.05pt;"> </span>subject<span style="letter-spacing:0.05pt;"> </span>to unfavorable<span style="letter-spacing:0.05pt;"> </span>pricing<span style="letter-spacing:0.05pt;"> </span>regulations,<span style="letter-spacing:0.05pt;"> </span>third-party<span style="letter-spacing:0.1pt;"> </span>reimbursement<span style="letter-spacing:0.1pt;"> </span>practices<span style="letter-spacing:0.1pt;"> </span>or healthcare<span style="letter-spacing:0.05pt;"> </span>reform<span style="letter-spacing:0.05pt;"> </span>initiatives, which would harm our business.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The regulations that govern marketing approvals, pricing, coverage and reimbursement for new drug products<span style="letter-spacing:0.1pt;"> </span>vary<span style="letter-spacing:0.1pt;"> </span>widely<span style="letter-spacing:0.1pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>country<span style="letter-spacing:0.05pt;"> </span>to country.<span style="letter-spacing:0.05pt;"> </span>Current<span style="letter-spacing:0.05pt;"> </span>and future<span style="letter-spacing:0.05pt;"> </span>legislation<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>significantly<span style="letter-spacing:0.15pt;"> </span>change<span style="letter-spacing:0.05pt;"> </span>the approval<span style="letter-spacing:0.1pt;"> </span>requirements<span style="letter-spacing:0.15pt;"> </span>in ways that<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>involve<span style="letter-spacing:0.05pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>costs<span style="letter-spacing:0.05pt;"> </span>and cause<span style="letter-spacing:0.05pt;"> </span>delays<span style="letter-spacing:0.05pt;"> </span>in obtaining<span style="letter-spacing:0.05pt;"> </span>approvals.<span style="letter-spacing:0.05pt;"> </span>Some countries<span style="letter-spacing:0.1pt;"> </span>require<span style="letter-spacing:0.1pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>sale<span style="letter-spacing:0.05pt;"> </span>price<span style="letter-spacing:0.05pt;"> </span>of a drug before<span style="letter-spacing:0.05pt;"> </span>it<span style="letter-spacing:0.05pt;"> </span>can be marketed.<span style="letter-spacing:0.1pt;"> </span>In many<span style="letter-spacing:0.05pt;"> </span>countries,<span style="letter-spacing:0.05pt;"> </span>the pricing review<span style="letter-spacing:2.15pt;"> </span>period<span style="letter-spacing:2.15pt;"> </span>begins<span style="letter-spacing:2.15pt;"> </span>after<span style="letter-spacing:2.15pt;"> </span>marketing<span style="letter-spacing:2.15pt;"> </span>or<span style="letter-spacing:2.05pt;"> </span>product<span style="letter-spacing:2.1pt;"> </span>licensing<span style="letter-spacing:2.15pt;"> </span>approval<span style="letter-spacing:2.1pt;"> </span>is<span style="letter-spacing:2.1pt;"> </span>granted.<span style="letter-spacing:2.1pt;"> </span>To<span style="letter-spacing:2.05pt;"> </span>obtain<span style="letter-spacing:2.1pt;"> </span>reimbursement<span style="letter-spacing:2.2pt;"> </span>or pricing<span style="letter-spacing:0.1pt;"> </span>approval<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>some<span style="letter-spacing:0.1pt;"> </span>countries,<span style="letter-spacing:0.15pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>be required<span style="letter-spacing:0.1pt;"> </span>to conduct<span style="letter-spacing:0.05pt;"> </span>a clinical<span style="letter-spacing:0.1pt;"> </span>trial<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>compares<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>cost- effectiveness<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidate<span style="letter-spacing:0.1pt;"> </span>to other<span style="letter-spacing:0.05pt;"> </span>available<span style="letter-spacing:0.1pt;"> </span>therapies.<span style="letter-spacing:0.1pt;"> </span>In some<span style="letter-spacing:0.05pt;"> </span>foreign<span style="letter-spacing:0.05pt;"> </span>markets,<span style="letter-spacing:0.1pt;"> </span>prescription pharmaceutical<span style="letter-spacing:0.15pt;"> </span>pricing<span style="letter-spacing:0.05pt;"> </span>remains<span style="letter-spacing:0.1pt;"> </span>subject<span style="letter-spacing:0.05pt;"> </span>to continuing<span style="letter-spacing:0.05pt;"> </span>governmental<span style="letter-spacing:0.1pt;"> </span>control<span style="letter-spacing:0.05pt;"> </span>even after<span style="letter-spacing:0.1pt;"> </span>initial<span style="letter-spacing:0.1pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>is granted. As<span style="letter-spacing:1.5pt;"> </span>a<span style="letter-spacing:1.5pt;"> </span>result,<span style="letter-spacing:1.6pt;"> </span>we<span style="letter-spacing:1.5pt;"> </span>might<span style="letter-spacing:1.55pt;"> </span>obtain<span style="letter-spacing:1.55pt;"> </span>marketing<span style="letter-spacing:1.55pt;"> </span>approval<span style="letter-spacing:1.5pt;"> </span>for<span style="letter-spacing:1.5pt;"> </span>a<span style="letter-spacing:1.45pt;"> </span>product<span style="letter-spacing:1.5pt;"> </span>candidate<span style="letter-spacing:1.55pt;"> </span>in<span style="letter-spacing:1.45pt;"> </span>a<span style="letter-spacing:1.45pt;"> </span>particular<span style="letter-spacing:1.6pt;"> </span>country,<span style="letter-spacing:1.5pt;"> </span>but<span style="letter-spacing:1.45pt;"> </span>then<span style="letter-spacing:1.5pt;"> </span>be subject<span style="letter-spacing:0.85pt;"> </span>to<span style="letter-spacing:0.8pt;"> </span>price<span style="letter-spacing:0.85pt;"> </span>regulations<span style="letter-spacing:0.9pt;"> </span>that<span style="letter-spacing:0.85pt;"> </span>delay<span style="letter-spacing:0.85pt;"> </span>our<span style="letter-spacing:0.8pt;"> </span>commercial<span style="letter-spacing:0.9pt;"> </span>launch<span style="letter-spacing:0.8pt;"> </span>of<span style="letter-spacing:0.75pt;"> </span>the<span style="letter-spacing:0.8pt;"> </span>product,<span style="letter-spacing:0.8pt;"> </span>possibly<span style="letter-spacing:0.8pt;"> </span>for<span style="letter-spacing:0.8pt;"> </span>lengthy<span style="letter-spacing:0.8pt;"> </span>time<span style="letter-spacing:0.8pt;"> </span>periods, and<span style="letter-spacing:0.05pt;"> </span>negatively<span style="letter-spacing:0.15pt;"> </span>impact<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>revenues,<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>any, we are<span style="letter-spacing:0.05pt;"> </span>able<span style="letter-spacing:0.05pt;"> </span>to generate<span style="letter-spacing:0.1pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>sale<span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>in that<span style="letter-spacing:0.05pt;"> </span>country. Adverse<span style="letter-spacing:0.1pt;"> </span>pricing<span style="letter-spacing:0.05pt;"> </span>limitations<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>hinder<span style="letter-spacing:0.05pt;"> </span>our ability<span style="letter-spacing:0.1pt;"> </span>to recoup<span style="letter-spacing:0.05pt;"> </span>our investment<span style="letter-spacing:0.1pt;"> </span>in one or more<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates, even if<span style="letter-spacing:0.05pt;"> </span>such product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>obtain<span style="letter-spacing:0.05pt;"> </span>marketing<span style="letter-spacing:0.1pt;"> </span>approval.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our<span style="letter-spacing:0.05pt;"> </span>ability<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>commercialize<span style="letter-spacing:0.25pt;"> </span>any product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>successfully<span style="letter-spacing:0.1pt;"> </span>also<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>depend in part<span style="letter-spacing:0.05pt;"> </span>on the<span style="letter-spacing:0.05pt;"> </span>extent<span style="letter-spacing:0.05pt;"> </span>to which<span style="letter-spacing:0.05pt;"> </span>coverage<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>adequate<span style="letter-spacing:0.1pt;"> </span>reimbursement<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>these<span style="letter-spacing:0.05pt;"> </span>products<span style="letter-spacing:0.05pt;"> </span>and related<span style="letter-spacing:0.1pt;"> </span>treatments<span style="letter-spacing:0.15pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>be available<span style="letter-spacing:0.1pt;"> </span>from third-party<span style="letter-spacing:1.4pt;"> </span>payors,<span style="letter-spacing:1.3pt;"> </span>including<span style="letter-spacing:1.3pt;"> </span>government<span style="letter-spacing:1.35pt;"> </span>healthcare<span style="letter-spacing:1.35pt;"> </span>programs,<span style="letter-spacing:1.35pt;"> </span>private<span style="letter-spacing:1.3pt;"> </span>health<span style="letter-spacing:1.25pt;"> </span>insurers<span style="letter-spacing:1.3pt;"> </span>and<span style="letter-spacing:1.2pt;"> </span>other<span style="letter-spacing:1.25pt;"> </span>organizations. Third-party<span style="letter-spacing:0.15pt;"> </span>payors<span style="letter-spacing:0.1pt;"> </span>decide<span style="letter-spacing:0.1pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>medications<span style="letter-spacing:0.15pt;"> </span>they<span style="letter-spacing:0.1pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>pay for<span style="letter-spacing:0.05pt;"> </span>and establish<span style="letter-spacing:0.1pt;"> </span>reimbursement<span style="letter-spacing:0.15pt;"> </span>levels.<span style="letter-spacing:0.05pt;"> </span>In the<span style="letter-spacing:0.05pt;"> </span>United States,<span style="letter-spacing:1.15pt;"> </span>the<span style="letter-spacing:1.15pt;"> </span>principal<span style="letter-spacing:1.2pt;"> </span>decisions<span style="letter-spacing:1.2pt;"> </span>about<span style="letter-spacing:1.15pt;"> </span>reimbursement<span style="letter-spacing:1.25pt;"> </span>for<span style="letter-spacing:1.15pt;"> </span>new<span style="letter-spacing:1.05pt;"> </span>medicines<span style="letter-spacing:1.15pt;"> </span>are<span style="letter-spacing:1.1pt;"> </span>typically<span style="letter-spacing:1.15pt;"> </span>made<span style="letter-spacing:1.1pt;"> </span>by<span style="letter-spacing:1.05pt;"> </span>the<span style="letter-spacing:1.1pt;"> </span>CMS,<span style="letter-spacing:1.05pt;"> </span>which decides<span style="letter-spacing:0.1pt;"> </span>whether<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>what extent<span style="letter-spacing:0.05pt;"> </span>a new medicine<span style="letter-spacing:0.1pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>be covered<span style="letter-spacing:0.05pt;"> </span>and reimbursed<span style="letter-spacing:0.1pt;"> </span>under<span style="letter-spacing:0.05pt;"> </span>Medicare.<span style="letter-spacing:0.1pt;"> </span>Private payors<span style="letter-spacing:0.05pt;"> </span>often,<span style="letter-spacing:0.05pt;"> </span>but not always,<span style="letter-spacing:0.05pt;"> </span>follow<span style="letter-spacing:0.05pt;"> </span>CMS&#8217;s decisions<span style="letter-spacing:0.1pt;"> </span>regarding<span style="letter-spacing:0.1pt;"> </span>coverage<span style="letter-spacing:0.05pt;"> </span>and reimbursement.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">A<span style="letter-spacing:0.05pt;"> </span>primary<span style="letter-spacing:0.15pt;"> </span>trend<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>U.S. healthcare<span style="letter-spacing:0.15pt;"> </span>industry<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>elsewhere<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>cost<span style="letter-spacing:0.1pt;"> </span>containment.<span style="letter-spacing:0.15pt;"> </span>Third-party<span style="letter-spacing:0.1pt;"> </span>payors<span style="letter-spacing:0.05pt;"> </span>have attempted<span style="letter-spacing:0.1pt;"> </span>to control<span style="letter-spacing:0.05pt;"> </span>costs<span style="letter-spacing:0.05pt;"> </span>by limiting<span style="letter-spacing:0.1pt;"> </span>coverage<span style="letter-spacing:0.05pt;"> </span>and the<span style="letter-spacing:0.05pt;"> </span>amount<span style="letter-spacing:0.05pt;"> </span>of reimbursement<span style="letter-spacing:0.15pt;"> </span>for particular<span style="letter-spacing:0.1pt;"> </span>medications. Increasingly,<span style="letter-spacing:1.35pt;"> </span>third-party<span style="letter-spacing:1.4pt;"> </span>payors<span style="letter-spacing:1.3pt;"> </span>are<span style="letter-spacing:1.3pt;"> </span>requiring<span style="letter-spacing:1.35pt;"> </span>that<span style="letter-spacing:1.3pt;"> </span>drug<span style="letter-spacing:1.25pt;"> </span>companies<span style="letter-spacing:1.35pt;"> </span>provide<span style="letter-spacing:1.3pt;"> </span>them<span style="letter-spacing:1.3pt;"> </span>with<span style="letter-spacing:1.2pt;"> </span>predetermined<span style="letter-spacing:1.35pt;"> </span>discounts from<span style="letter-spacing:0.8pt;"> </span>list<span style="letter-spacing:0.8pt;"> </span>prices<span style="letter-spacing:0.8pt;"> </span>and<span style="letter-spacing:0.75pt;"> </span>are<span style="letter-spacing:0.8pt;"> </span>challenging<span style="letter-spacing:0.8pt;"> </span>the<span style="letter-spacing:0.75pt;"> </span>prices<span style="letter-spacing:0.75pt;"> </span>charged<span style="letter-spacing:0.75pt;"> </span>for<span style="letter-spacing:0.75pt;"> </span>medical<span style="letter-spacing:0.8pt;"> </span>products.<span style="letter-spacing:0.75pt;"> </span>Coverage<span style="letter-spacing:0.75pt;"> </span>and<span style="letter-spacing:0.7pt;"> </span>reimbursement<span style="letter-spacing:0.85pt;"> </span>may not be available for any product that we commercialize and, even if these are available, the level of reimbursement<span style="letter-spacing:0.2pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>satisfactory.<span style="letter-spacing:0.2pt;"> </span>Reimbursement<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>affect<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>demand<span style="letter-spacing:0.1pt;"> </span>for,<span style="letter-spacing:0.1pt;"> </span>or the<span style="letter-spacing:0.05pt;"> </span>price<span style="letter-spacing:0.05pt;"> </span>of, any product candidate<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>obtain<span style="letter-spacing:0.1pt;"> </span>marketing<span style="letter-spacing:0.15pt;"> </span>approval.<span style="letter-spacing:0.1pt;"> </span>Obtaining<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>maintaining<span style="letter-spacing:0.15pt;"> </span>coverage<span style="letter-spacing:0.1pt;"> </span>and adequate reimbursement<span style="letter-spacing:0.2pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our products<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be difficult.<span style="letter-spacing:0.15pt;"> </span>We may<span style="letter-spacing:0.05pt;"> </span>be required<span style="letter-spacing:0.1pt;"> </span>to conduct<span style="letter-spacing:0.05pt;"> </span>expensive<span style="letter-spacing:0.05pt;"> </span>pharmacoeconomic studies<span style="letter-spacing:2.35pt;"> </span>to<span style="letter-spacing:2.3pt;"> </span>justify<span style="letter-spacing:2.4pt;"> </span>coverage<span style="letter-spacing:2.35pt;"> </span>and<span style="letter-spacing:2.25pt;"> </span>reimbursement<span style="letter-spacing:2.4pt;"> </span>or<span style="letter-spacing:2.25pt;"> </span>the<span style="letter-spacing:2.3pt;"> </span>level<span style="letter-spacing:2.3pt;"> </span>of<span style="letter-spacing:2.25pt;"> </span>reimbursement<span style="letter-spacing:2.4pt;"> </span>relative<span style="letter-spacing:2.35pt;"> </span>to<span style="letter-spacing:2.25pt;"> </span>other<span style="letter-spacing:2.3pt;"> </span>therapies.<span style="letter-spacing:2.35pt;"> </span>If coverage<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>adequate<span style="letter-spacing:0.1pt;"> </span>reimbursement<span style="letter-spacing:0.2pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>available<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>reimbursement<span style="letter-spacing:0.15pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>available<span style="letter-spacing:0.1pt;"> </span>only to limited<span style="letter-spacing:0.1pt;"> </span>levels,<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>not be able<span style="letter-spacing:0.05pt;"> </span>to successfully<span style="letter-spacing:0.1pt;"> </span>commercialize<span style="letter-spacing:0.2pt;"> </span>any product<span style="letter-spacing:0.05pt;"> </span>candidate<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>which we obtain<span style="letter-spacing:0.05pt;"> </span>marketing<span style="letter-spacing:0.1pt;"> </span>approval.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Additionally,<span style="letter-spacing:0.15pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>develop,<span style="letter-spacing:0.1pt;"> </span>either<span style="letter-spacing:0.15pt;"> </span>by ourselves<span style="letter-spacing:0.1pt;"> </span>or with collaborators,<span style="letter-spacing:0.15pt;"> </span>companion<span style="letter-spacing:0.05pt;"> </span>diagnostic<span style="letter-spacing:0.1pt;"> </span>tests<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our product<span style="letter-spacing:0.95pt;"> </span>candidates<span style="letter-spacing:1pt;"> </span>for<span style="letter-spacing:0.95pt;"> </span>certain<span style="letter-spacing:1pt;"> </span>indications.<span style="letter-spacing:1pt;"> </span>We,<span style="letter-spacing:0.9pt;"> </span>or<span style="letter-spacing:0.9pt;"> </span>our<span style="letter-spacing:0.9pt;"> </span>collaborators,<span style="letter-spacing:1.05pt;"> </span>if<span style="letter-spacing:0.95pt;"> </span>any,<span style="letter-spacing:0.85pt;"> </span>will<span style="letter-spacing:0.9pt;"> </span>be<span style="letter-spacing:0.85pt;"> </span>required<span style="letter-spacing:0.95pt;"> </span>to<span style="letter-spacing:0.85pt;"> </span>obtain<span style="letter-spacing:0.9pt;"> </span>coverage and<span style="letter-spacing:0.05pt;"> </span>reimbursement<span style="letter-spacing:0.2pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>these<span style="letter-spacing:0.1pt;"> </span>tests<span style="letter-spacing:0.1pt;"> </span>separate<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>apart<span style="letter-spacing:0.1pt;"> </span>from<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>coverage<span style="letter-spacing:0.05pt;"> </span>and reimbursement<span style="letter-spacing:0.15pt;"> </span>we seek<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our product<span style="letter-spacing:0.1pt;"> </span>candidates,<span style="letter-spacing:0.1pt;"> </span>once approved.<span style="letter-spacing:0.05pt;"> </span>While<span style="letter-spacing:0.05pt;"> </span>we have not yet<span style="letter-spacing:0.05pt;"> </span>developed<span style="letter-spacing:0.05pt;"> </span>any companion<span style="letter-spacing:0.05pt;"> </span>diagnostic<span style="letter-spacing:0.1pt;"> </span>test<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our product candidates, if we do, there is significant uncertainty regarding our ability to obtain coverage and adequate<span style="letter-spacing:0.05pt;"> </span>reimbursement<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>same<span style="letter-spacing:0.05pt;"> </span>reasons<span style="letter-spacing:0.05pt;"> </span>applicable<span style="letter-spacing:0.1pt;"> </span>to our product<span style="letter-spacing:0.05pt;"> </span>candidates.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">There<span style="letter-spacing:0.95pt;"> </span>may<span style="letter-spacing:0.95pt;"> </span>also<span style="letter-spacing:0.95pt;"> </span>be<span style="letter-spacing:0.9pt;"> </span>significant<span style="letter-spacing:1.05pt;"> </span>delays<span style="letter-spacing:0.95pt;"> </span>in<span style="letter-spacing:0.9pt;"> </span>obtaining<span style="letter-spacing:0.95pt;"> </span>coverage<span style="letter-spacing:0.9pt;"> </span>and<span style="letter-spacing:0.85pt;"> </span>reimbursement<span style="letter-spacing:1pt;"> </span>for<span style="letter-spacing:0.9pt;"> </span>newly<span style="letter-spacing:0.85pt;"> </span>approved<span style="letter-spacing:0.9pt;"> </span>drugs, and<span style="letter-spacing:0.1pt;"> </span>coverage<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.15pt;"> </span>be<span style="letter-spacing:0.1pt;"> </span>more<span style="letter-spacing:0.15pt;"> </span>limited<span style="letter-spacing:0.2pt;"> </span>than<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>purposes<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>drug<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>approved<span style="letter-spacing:0.1pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA or<span style="letter-spacing:0.05pt;"> </span>similar regulatory<span style="letter-spacing:1.25pt;"> </span>authorities<span style="letter-spacing:1.3pt;"> </span>outside<span style="letter-spacing:1.2pt;"> </span>of<span style="letter-spacing:1.15pt;"> </span>the<span style="letter-spacing:1.2pt;"> </span>United<span style="letter-spacing:1.2pt;"> </span>States.<span style="letter-spacing:1.2pt;"> </span>Moreover,<span style="letter-spacing:1.2pt;"> </span>eligibility<span style="letter-spacing:1.3pt;"> </span>for<span style="letter-spacing:1.2pt;"> </span>coverage<span style="letter-spacing:1.2pt;"> </span>and<span style="letter-spacing:1.1pt;"> </span>reimbursement<span style="letter-spacing:1.25pt;"> </span>does not<span style="letter-spacing:0.05pt;"> </span>imply<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>a drug will<span style="letter-spacing:0.05pt;"> </span>be paid<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>in all<span style="letter-spacing:0.05pt;"> </span>cases<span style="letter-spacing:0.05pt;"> </span>or at<span style="letter-spacing:0.05pt;"> </span>a rate<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>covers<span style="letter-spacing:0.05pt;"> </span>our costs,<span style="letter-spacing:0.05pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>research, development,<span style="letter-spacing:0.1pt;"> </span>intellectual<span style="letter-spacing:0.15pt;"> </span>property,<span style="letter-spacing:0.05pt;"> </span>manufacture,<span style="letter-spacing:0.1pt;"> </span>sale<span style="letter-spacing:0.05pt;"> </span>and distribution<span style="letter-spacing:0.1pt;"> </span>expenses. Interim<span style="letter-spacing:0.05pt;"> </span>reimbursement<span style="letter-spacing:0.1pt;"> </span>levels for new drugs,<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>applicable,<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>also<span style="letter-spacing:0.05pt;"> </span>not be sufficient<span style="letter-spacing:0.15pt;"> </span>to cover<span style="letter-spacing:0.05pt;"> </span>our costs<span style="letter-spacing:0.05pt;"> </span>and may<span style="letter-spacing:0.05pt;"> </span>not be made<span style="letter-spacing:0.05pt;"> </span>permanent. Reimbursement<span style="letter-spacing:0.7pt;"> </span>rates<span style="letter-spacing:0.6pt;"> </span>may<span style="letter-spacing:0.6pt;"> </span>vary<span style="letter-spacing:0.6pt;"> </span>according<span style="letter-spacing:0.6pt;"> </span>to<span style="letter-spacing:0.55pt;"> </span>the<span style="letter-spacing:0.6pt;"> </span>use<span style="letter-spacing:0.55pt;"> </span>of<span style="letter-spacing:0.55pt;"> </span>the<span style="letter-spacing:0.6pt;"> </span>drug<span style="letter-spacing:0.55pt;"> </span>and<span style="letter-spacing:0.55pt;"> </span>the<span style="letter-spacing:0.6pt;"> </span>clinical<span style="letter-spacing:0.65pt;"> </span>setting<span style="letter-spacing:0.65pt;"> </span>in<span style="letter-spacing:0.55pt;"> </span>which<span style="letter-spacing:0.55pt;"> </span>it<span style="letter-spacing:0.6pt;"> </span>is<span style="letter-spacing:0.6pt;"> </span>used,<span style="letter-spacing:0.55pt;"> </span>may be<span style="letter-spacing:2.35pt;"> </span>based<span style="letter-spacing:2.4pt;"> </span>on<span style="letter-spacing:2.35pt;"> </span>reimbursement levels<span style="letter-spacing:2.4pt;"> </span>already<span style="letter-spacing:2.4pt;"> </span>set<span style="letter-spacing:2.4pt;"> </span>for<span style="letter-spacing:2.4pt;"> </span>lower<span style="letter-spacing:2.4pt;"> </span>cost<span style="letter-spacing:2.4pt;"> </span>drugs<span style="letter-spacing:2.4pt;"> </span>and<span style="letter-spacing:2.35pt;"> </span>may<span style="letter-spacing:2.4pt;"> </span>be<span style="letter-spacing:2.35pt;"> </span>incorporated<span style="letter-spacing:2.4pt;"> </span>into<span style="letter-spacing:2.35pt;"> </span>existing payments<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>services.<span style="letter-spacing:0.15pt;"> </span>Net<span style="letter-spacing:0.05pt;"> </span>prices<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>drugs<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>be reduced<span style="letter-spacing:0.05pt;"> </span>by mandatory<span style="letter-spacing:0.1pt;"> </span>discounts<span style="letter-spacing:0.05pt;"> </span>or rebates<span style="letter-spacing:0.1pt;"> </span>required<span style="letter-spacing:0.1pt;"> </span>by government<span style="letter-spacing:0.15pt;"> </span>healthcare<span style="letter-spacing:0.15pt;"> </span>programs<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>private<span style="letter-spacing:0.15pt;"> </span>payors<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>future<span style="letter-spacing:0.1pt;"> </span>relaxation<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>laws that<span style="letter-spacing:0.05pt;"> </span>presently<span style="letter-spacing:0.1pt;"> </span>restrict imports<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>drugs<span style="letter-spacing:0.05pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>countries<span style="letter-spacing:0.1pt;"> </span>where they<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be sold<span style="letter-spacing:0.05pt;"> </span>at<span style="letter-spacing:0.05pt;"> </span>lower<span style="letter-spacing:0.05pt;"> </span>prices<span style="letter-spacing:0.05pt;"> </span>than<span style="letter-spacing:0.05pt;"> </span>in </p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">47</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">United</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">States.</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Third-party payors</span><span style="letter-spacing:1.3pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">often</span><span style="letter-spacing:1.25pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">rely</span><span style="letter-spacing:1.25pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">upon</span><span style="letter-spacing:1.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Medicare</span><span style="letter-spacing:1.3pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">coverage</span><span style="letter-spacing:1.25pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">policy</span><span style="letter-spacing:1.25pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</span><span style="letter-spacing:1.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">payment</span><span style="letter-spacing:1.25pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">limitations</span><span style="letter-spacing:1.35pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in</span><span style="letter-spacing:1.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">setting</span><span style="letter-spacing:1.3pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">their</span><span style="letter-spacing:1.25pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">own</span><span style="letter-spacing:1.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">reimbursement policies,</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">but</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">also</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">have</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">their</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">own</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">methods</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">approval</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">process</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">apart</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">from</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Medicare</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">determinations.</span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our inability</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">promptly</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">obtain</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">coverage</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and adequate</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">reimbursement</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">rates</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">from</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">third-party</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">payors</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">for</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">any approved products</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">that</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">develop</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">have a material</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">adverse</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">effect</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">on our operating</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">results,</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our ability</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to raise</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">capital needed</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to commercialize</span><span style="letter-spacing:0.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">products</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and our overall</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">financial</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">condition.</span></p>
<p style="margin-top:12pt;margin-bottom:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Product liability<span style="letter-spacing:0.15pt;"> </span>lawsuits<span style="letter-spacing:0.05pt;"> </span>against<span style="letter-spacing:0.05pt;"> </span>us could cause us to incur substantial<span style="letter-spacing:0.1pt;"> </span>liabilities<span style="letter-spacing:0.15pt;"> </span>and to limit commercialization<span style="letter-spacing:0.2pt;"> </span>of any products<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>develop.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.05pt;"> </span>face<span style="letter-spacing:0.1pt;"> </span>an<span style="letter-spacing:0.05pt;"> </span>inherent<span style="letter-spacing:0.15pt;"> </span>risk<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>liability<span style="letter-spacing:0.2pt;"> </span>exposure<span style="letter-spacing:0.1pt;"> </span>related<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>testing<span style="letter-spacing:0.1pt;"> </span>of our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>in human<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trials<span style="letter-spacing:0.1pt;"> </span>and will<span style="letter-spacing:0.05pt;"> </span>face<span style="letter-spacing:0.05pt;"> </span>an even greater<span style="letter-spacing:0.1pt;"> </span>risk<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>we commercialize<span style="letter-spacing:0.2pt;"> </span>any products<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>develop.<span style="letter-spacing:0.05pt;"> </span>If we<span style="letter-spacing:0.05pt;"> </span>cannot<span style="letter-spacing:0.1pt;"> </span>successfully<span style="letter-spacing:0.1pt;"> </span>defend<span style="letter-spacing:0.05pt;"> </span>ourselves<span style="letter-spacing:0.1pt;"> </span>against<span style="letter-spacing:0.05pt;"> </span>any claims<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>or products<span style="letter-spacing:0.05pt;"> </span>caused injuries,<span style="letter-spacing:0.15pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>incur<span style="letter-spacing:0.1pt;"> </span>substantial<span style="letter-spacing:0.1pt;"> </span>liabilities.<span style="letter-spacing:0.15pt;"> </span>Regardless<span style="letter-spacing:0.05pt;"> </span>of merit<span style="letter-spacing:0.1pt;"> </span>or eventual<span style="letter-spacing:0.05pt;"> </span>outcome,<span style="letter-spacing:0.05pt;"> </span>liability<span style="letter-spacing:0.15pt;"> </span>claims<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>result in:</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">decreased<span style="letter-spacing:0.1pt;"> </span>demand<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>any product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>or products<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>develop&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">injury<span style="letter-spacing:0.05pt;"> </span>to our reputation<span style="letter-spacing:0.1pt;"> </span>and significant<span style="letter-spacing:0.15pt;"> </span>negative<span style="letter-spacing:0.05pt;"> </span>media<span style="letter-spacing:0.05pt;"> </span>attention&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">initiation<span style="letter-spacing:0.15pt;"> </span>of investigations<span style="letter-spacing:0.15pt;"> </span>by regulators&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">withdrawal<span style="letter-spacing:0.05pt;"> </span>of clinical<span style="letter-spacing:0.1pt;"> </span>trial<span style="letter-spacing:0.1pt;"> </span>participants&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">significant<span style="letter-spacing:0.15pt;"> </span>time<span style="letter-spacing:0.05pt;"> </span>and costs<span style="letter-spacing:0.05pt;"> </span>to defend<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>related<span style="letter-spacing:0.1pt;"> </span>litigation&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">diversion<span style="letter-spacing:0.1pt;"> </span>of management<span style="letter-spacing:0.1pt;"> </span>and scientific<span style="letter-spacing:0.15pt;"> </span>resources<span style="letter-spacing:0.1pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>our business<span style="letter-spacing:0.05pt;"> </span>operations&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">substantial<span style="letter-spacing:0.1pt;"> </span>monetary<span style="letter-spacing:0.1pt;"> </span>awards<span style="letter-spacing:0.05pt;"> </span>to trial<span style="letter-spacing:0.1pt;"> </span>participants<span style="letter-spacing:0.15pt;"> </span>or patients&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">loss<span style="letter-spacing:0.05pt;"> </span>of revenue&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">reduced<span style="letter-spacing:0.05pt;"> </span>resources<span style="letter-spacing:0.1pt;"> </span>of our management<span style="letter-spacing:0.1pt;"> </span>to pursue<span style="letter-spacing:0.05pt;"> </span>our business<span style="letter-spacing:0.05pt;"> </span>strategy&#59;<span style="letter-spacing:0.1pt;"> </span>and</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.05pt;"> </span>inability<span style="letter-spacing:0.1pt;"> </span>to commercialize<span style="letter-spacing:0.2pt;"> </span>any products<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>develop.</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:12pt;margin-bottom:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our<span style="letter-spacing:0.05pt;"> </span>current<span style="letter-spacing:0.15pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>liability<span style="letter-spacing:0.2pt;"> </span>insurance<span style="letter-spacing:0.15pt;"> </span>coverage<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>States<span style="letter-spacing:0.05pt;"> </span>and certain<span style="letter-spacing:0.1pt;"> </span>other<span style="letter-spacing:0.05pt;"> </span>jurisdictions<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>not be<span style="letter-spacing:0.6pt;"> </span>adequate<span style="letter-spacing:0.65pt;"> </span>to<span style="letter-spacing:0.6pt;"> </span>cover<span style="letter-spacing:0.65pt;"> </span>all<span style="letter-spacing:0.65pt;"> </span>liabilities<span style="letter-spacing:0.75pt;"> </span>that<span style="letter-spacing:0.6pt;"> </span>we<span style="letter-spacing:0.55pt;"> </span>may<span style="letter-spacing:0.6pt;"> </span>incur.<span style="letter-spacing:0.6pt;"> </span>We<span style="letter-spacing:0.55pt;"> </span>likely<span style="letter-spacing:0.6pt;"> </span>will<span style="letter-spacing:0.6pt;"> </span>need<span style="letter-spacing:0.55pt;"> </span>to<span style="letter-spacing:0.55pt;"> </span>increase<span style="letter-spacing:0.65pt;"> </span>our<span style="letter-spacing:0.55pt;"> </span>insurance<span style="letter-spacing:0.65pt;"> </span>coverage<span style="letter-spacing:0.6pt;"> </span>as we expand our clinical trials or if we commence commercialization of our product candidates. Insurance coverage<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>increasingly<span style="letter-spacing:0.15pt;"> </span>expensive.<span style="letter-spacing:0.1pt;"> </span>We<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>able<span style="letter-spacing:0.05pt;"> </span>to maintain<span style="letter-spacing:0.1pt;"> </span>insurance<span style="letter-spacing:0.1pt;"> </span>coverage<span style="letter-spacing:0.05pt;"> </span>at<span style="letter-spacing:0.05pt;"> </span>a reasonable<span style="letter-spacing:0.1pt;"> </span>cost<span style="letter-spacing:0.05pt;"> </span>or in an<span style="letter-spacing:0.05pt;"> </span>amount<span style="letter-spacing:0.1pt;"> </span>adequate<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>satisfy<span style="letter-spacing:0.15pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>liability<span style="letter-spacing:0.2pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>arise.<span style="letter-spacing:0.1pt;"> </span>A<span style="letter-spacing:0.05pt;"> </span>successful<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>liability<span style="letter-spacing:0.15pt;"> </span>claim<span style="letter-spacing:0.1pt;"> </span>or series<span style="letter-spacing:0.1pt;"> </span>of claims brought<span style="letter-spacing:0.05pt;"> </span>against<span style="letter-spacing:0.05pt;"> </span>us could<span style="letter-spacing:0.05pt;"> </span>decrease<span style="letter-spacing:0.1pt;"> </span>our cash<span style="letter-spacing:0.05pt;"> </span>and adversely<span style="letter-spacing:0.1pt;"> </span>affect<span style="letter-spacing:0.1pt;"> </span>our business<span style="letter-spacing:0.05pt;"> </span>and financial<span style="letter-spacing:0.1pt;"> </span>condition.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Risks Related<span style="letter-spacing:0.05pt;"> </span>to Employee<span style="letter-spacing:0.05pt;"> </span>Matters<span style="letter-spacing:0.1pt;"> </span>and Our Operations</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Our future<span style="letter-spacing:0.05pt;"> </span>success<span style="letter-spacing:0.05pt;"> </span>depends on our ability<span style="letter-spacing:0.1pt;"> </span>to retain<span style="letter-spacing:0.05pt;"> </span>key employees<span style="letter-spacing:0.1pt;"> </span>and to attract,<span style="letter-spacing:0.1pt;"> </span>retain<span style="letter-spacing:0.05pt;"> </span>and motivate qualified<span style="letter-spacing:0.1pt;"> </span>personnel<span style="letter-spacing:0.05pt;"> </span>and manage our human capital.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our<span style="letter-spacing:0.05pt;"> </span>ability<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>compete<span style="letter-spacing:0.05pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>highly<span style="letter-spacing:0.05pt;"> </span>competitive<span style="letter-spacing:0.15pt;"> </span>biotechnology<span style="letter-spacing:0.1pt;"> </span>and pharmaceutical<span style="letter-spacing:0.15pt;"> </span>industries<span style="letter-spacing:0.1pt;"> </span>depends<span style="letter-spacing:0.05pt;"> </span>upon our<span style="letter-spacing:0.05pt;"> </span>ability<span style="letter-spacing:0.1pt;"> </span>to attract,<span style="letter-spacing:0.1pt;"> </span>motivate<span style="letter-spacing:0.1pt;"> </span>and retain<span style="letter-spacing:0.1pt;"> </span>highly<span style="letter-spacing:0.05pt;"> </span>qualified<span style="letter-spacing:0.1pt;"> </span>managerial,<span style="letter-spacing:0.1pt;"> </span>scientific<span style="letter-spacing:0.15pt;"> </span>and medical<span style="letter-spacing:0.1pt;"> </span>personnel.<span style="letter-spacing:0.05pt;"> </span>We are highly<span style="letter-spacing:1.2pt;"> </span>dependent<span style="letter-spacing:1.2pt;"> </span>on<span style="letter-spacing:1.15pt;"> </span>the<span style="letter-spacing:1.2pt;"> </span>development<span style="letter-spacing:1.25pt;"> </span>and<span style="letter-spacing:1.15pt;"> </span>management<span style="letter-spacing:1.25pt;"> </span>expertise<span style="letter-spacing:1.25pt;"> </span>of<span style="letter-spacing:1.1pt;"> </span>Kris<span style="letter-spacing:1.15pt;"> </span>Vaddi,<span style="letter-spacing:1.1pt;"> </span>Ph.D.,<span style="letter-spacing:1.05pt;"> </span>our<span style="letter-spacing:1.1pt;"> </span>founder<span style="letter-spacing:1.15pt;"> </span>and<span style="letter-spacing:1.1pt;"> </span>Chief Executive<span style="letter-spacing:0.1pt;"> </span>Officer,<span style="letter-spacing:0.15pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>well<span style="letter-spacing:0.1pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>principal<span style="letter-spacing:0.15pt;"> </span>members<span style="letter-spacing:0.1pt;"> </span>of our management,<span style="letter-spacing:0.1pt;"> </span>scientific<span style="letter-spacing:0.15pt;"> </span>and clinical<span style="letter-spacing:0.1pt;"> </span>team.<span style="letter-spacing:0.05pt;"> </span>We currently<span style="letter-spacing:0.1pt;"> </span>do not maintain<span style="letter-spacing:0.1pt;"> </span>key person<span style="letter-spacing:0.05pt;"> </span>insurance<span style="letter-spacing:0.1pt;"> </span>on these<span style="letter-spacing:0.05pt;"> </span>individuals.<span style="letter-spacing:0.1pt;"> </span>Although we have entered into employment agreements<span style="letter-spacing:0.1pt;"> </span>with our executive<span style="letter-spacing:0.1pt;"> </span>officers,<span style="letter-spacing:0.1pt;"> </span>each<span style="letter-spacing:0.05pt;"> </span>of them<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>terminate<span style="letter-spacing:0.15pt;"> </span>their<span style="letter-spacing:0.05pt;"> </span>employment<span style="letter-spacing:0.1pt;"> </span>with us at<span style="letter-spacing:0.05pt;"> </span>any time.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our<span style="letter-spacing:0.05pt;"> </span>industry<span style="letter-spacing:0.1pt;"> </span>has<span style="letter-spacing:0.05pt;"> </span>experienced<span style="letter-spacing:0.15pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>high<span style="letter-spacing:0.05pt;"> </span>rate<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>turnover<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>recent<span style="letter-spacing:0.05pt;"> </span>years.<span style="letter-spacing:0.05pt;"> </span>Our ability<span style="letter-spacing:0.1pt;"> </span>to compete<span style="letter-spacing:0.05pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>highly competitive<span style="letter-spacing:0.2pt;"> </span>pharmaceuticals<span style="letter-spacing:0.2pt;"> </span>industry<span style="letter-spacing:0.1pt;"> </span>depends<span style="letter-spacing:0.05pt;"> </span>upon our ability<span style="letter-spacing:0.1pt;"> </span>to attract,<span style="letter-spacing:0.1pt;"> </span>retain<span style="letter-spacing:0.1pt;"> </span>and motivate<span style="letter-spacing:0.1pt;"> </span>highly<span style="letter-spacing:0.05pt;"> </span>skilled<span style="letter-spacing:0.1pt;"> </span>and experienced<span style="letter-spacing:0.15pt;"> </span>personnel<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>scientific,<span style="letter-spacing:0.2pt;"> </span>clinical,<span style="letter-spacing:0.15pt;"> </span>regulatory,<span style="letter-spacing:0.15pt;"> </span>manufacturing<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>management<span style="letter-spacing:0.15pt;"> </span>skills<span style="letter-spacing:0.1pt;"> </span>and experience. We conduct<span style="letter-spacing:0.05pt;"> </span>our operations<span style="letter-spacing:0.1pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>greater<span style="letter-spacing:0.1pt;"> </span>Delaware<span style="letter-spacing:0.05pt;"> </span>area,<span style="letter-spacing:0.05pt;"> </span>a region<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>home<span style="letter-spacing:0.05pt;"> </span>to other<span style="letter-spacing:0.05pt;"> </span>pharmaceutical<span style="letter-spacing:0.1pt;"> </span>companies as<span style="letter-spacing:0.05pt;"> </span>well<span style="letter-spacing:0.1pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>many<span style="letter-spacing:0.1pt;"> </span>academic<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>research<span style="letter-spacing:0.15pt;"> </span>institutions,<span style="letter-spacing:0.2pt;"> </span>resulting<span style="letter-spacing:0.1pt;"> </span>in fierce<span style="letter-spacing:0.1pt;"> </span>competition<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>qualified<span style="letter-spacing:0.1pt;"> </span>personnel.<span style="letter-spacing:0.05pt;"> </span>We may<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>able<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>attract<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>retain<span style="letter-spacing:0.15pt;"> </span>qualified<span style="letter-spacing:0.15pt;"> </span>personnel<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>future<span style="letter-spacing:0.1pt;"> </span>due<span style="letter-spacing:0.05pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>intense<span style="letter-spacing:0.05pt;"> </span>competition<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>a limited number<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>qualified<span style="letter-spacing:0.15pt;"> </span>personnel<span style="letter-spacing:0.1pt;"> </span>among<span style="letter-spacing:0.1pt;"> </span>pharmaceutical<span style="letter-spacing:0.2pt;"> </span>companies.<span style="letter-spacing:0.15pt;"> </span>Many of the<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.05pt;"> </span>pharmaceutical<span style="letter-spacing:0.15pt;"> </span>companies against<span style="letter-spacing:0.55pt;"> </span>which<span style="letter-spacing:0.5pt;"> </span>we<span style="letter-spacing:0.5pt;"> </span>compete<span style="letter-spacing:0.55pt;"> </span>have<span style="letter-spacing:0.5pt;"> </span>greater<span style="letter-spacing:0.6pt;"> </span>financial<span style="letter-spacing:0.6pt;"> </span>and<span style="letter-spacing:0.5pt;"> </span>other<span style="letter-spacing:0.55pt;"> </span>resources,<span style="letter-spacing:0.6pt;"> </span>different<span style="letter-spacing:0.55pt;"> </span>risk<span style="letter-spacing:0.5pt;"> </span>profiles<span style="letter-spacing:0.55pt;"> </span>and<span style="letter-spacing:0.45pt;"> </span>a<span style="letter-spacing:0.45pt;"> </span>longer<span style="letter-spacing:0.5pt;"> </span>history in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>industry<span style="letter-spacing:0.1pt;"> </span>than<span style="letter-spacing:0.05pt;"> </span>we do. Our competitors<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>provide<span style="letter-spacing:0.05pt;"> </span>higher<span style="letter-spacing:0.05pt;"> </span>compensation,<span style="letter-spacing:0.1pt;"> </span>more<span style="letter-spacing:0.05pt;"> </span>diverse<span style="letter-spacing:0.05pt;"> </span>opportunities<span style="letter-spacing:0.1pt;"> </span>and/or better<span style="letter-spacing:2.1pt;"> </span>opportunities<span style="letter-spacing:2.1pt;"> </span>for<span style="letter-spacing:2.05pt;"> </span>career<span style="letter-spacing:2.1pt;"> </span>advancement.<span style="letter-spacing:2.1pt;"> </span>Any<span style="letter-spacing:2pt;"> </span>or<span style="letter-spacing:1.95pt;"> </span>all<span style="letter-spacing:2pt;"> </span>of<span style="letter-spacing:1.95pt;"> </span>these<span style="letter-spacing:2pt;"> </span>competing<span style="letter-spacing:2.05pt;"> </span>factors<span style="letter-spacing:2.05pt;"> </span>may<span style="letter-spacing:2pt;"> </span>limit<span style="letter-spacing:2.05pt;"> </span>our<span style="letter-spacing:1.95pt;"> </span>ability<span style="letter-spacing:2.05pt;"> </span>to continue<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>attract<span style="letter-spacing:0.1pt;"> </span>and retain<span style="letter-spacing:0.1pt;"> </span>high quality<span style="letter-spacing:0.05pt;"> </span>personnel,<span style="letter-spacing:0.05pt;"> </span>which could<span style="letter-spacing:0.05pt;"> </span>negatively<span style="letter-spacing:0.1pt;"> </span>affect<span style="letter-spacing:0.1pt;"> </span>our ability<span style="letter-spacing:0.1pt;"> </span>to successfully develop<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>commercialize<span style="letter-spacing:0.25pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>and to grow our business<span style="letter-spacing:0.05pt;"> </span>and operations<span style="letter-spacing:0.1pt;"> </span>as currently contemplated.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">48</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We expect<span style="letter-spacing:0.05pt;"> </span>to expand our development<span style="letter-spacing:0.1pt;"> </span>and regulatory<span style="letter-spacing:0.05pt;"> </span>capabilities<span style="letter-spacing:0.15pt;"> </span>and potentially<span style="letter-spacing:0.1pt;"> </span>implement<span style="letter-spacing:0.1pt;"> </span>sales, marketing<span style="letter-spacing:0.05pt;"> </span>and distribution<span style="letter-spacing:0.1pt;"> </span>capabilities,<span style="letter-spacing:0.15pt;"> </span>and as a result,<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>encounter<span style="letter-spacing:0.05pt;"> </span>difficulties<span style="letter-spacing:0.15pt;"> </span>in managing our growth, which could disrupt<span style="letter-spacing:0.05pt;"> </span>our operations.</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">As<span style="letter-spacing:0.7pt;"> </span>of<span style="letter-spacing:0.7pt;"> </span>June 30,<span style="letter-spacing:0.7pt;"> </span>2021,<span style="letter-spacing:0.7pt;"> </span>we<span style="letter-spacing:0.7pt;"> </span>had<span style="letter-spacing:0.7pt;"> </span>100 full-time<span style="letter-spacing:0.85pt;"> </span>employees.<span style="letter-spacing:0.8pt;"> </span>We<span style="letter-spacing:0.65pt;"> </span>expect<span style="letter-spacing:0.7pt;"> </span>significant<span style="letter-spacing:0.8pt;"> </span>growth<span style="letter-spacing:0.65pt;"> </span>in<span style="letter-spacing:0.65pt;"> </span>the<span style="letter-spacing:0.7pt;"> </span>number<span style="letter-spacing:0.7pt;"> </span>of our employees<span style="letter-spacing:0.1pt;"> </span>and the<span style="letter-spacing:0.05pt;"> </span>scope<span style="letter-spacing:0.05pt;"> </span>of our operations,<span style="letter-spacing:0.1pt;"> </span>particularly<span style="letter-spacing:0.15pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>areas<span style="letter-spacing:0.05pt;"> </span>of clinical<span style="letter-spacing:0.1pt;"> </span>development,<span style="letter-spacing:0.1pt;"> </span>clinical operations,<span style="letter-spacing:0.1pt;"> </span>manufacturing,<span style="letter-spacing:0.15pt;"> </span>regulatory<span style="letter-spacing:0.1pt;"> </span>affairs<span style="letter-spacing:0.1pt;"> </span>and, if<span style="letter-spacing:0.05pt;"> </span>any of our product candidates<span style="letter-spacing:0.05pt;"> </span>receives<span style="letter-spacing:0.05pt;"> </span>marketing<span style="letter-spacing:0.05pt;"> </span>approval, sales,<span style="letter-spacing:0.05pt;"> </span>marketing<span style="letter-spacing:0.1pt;"> </span>and distribution.<span style="letter-spacing:0.15pt;"> </span>To manage<span style="letter-spacing:0.05pt;"> </span>our anticipated<span style="letter-spacing:0.1pt;"> </span>future<span style="letter-spacing:0.05pt;"> </span>growth, we must<span style="letter-spacing:0.05pt;"> </span>continue<span style="letter-spacing:0.05pt;"> </span>to implement<span style="letter-spacing:0.05pt;"> </span>and improve<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>managerial,<span style="letter-spacing:0.15pt;"> </span>operational<span style="letter-spacing:0.1pt;"> </span>and financial<span style="letter-spacing:0.1pt;"> </span>systems,<span style="letter-spacing:0.1pt;"> </span>expand our facilities<span style="letter-spacing:0.15pt;"> </span>and continue<span style="letter-spacing:0.05pt;"> </span>to recruit<span style="letter-spacing:0.1pt;"> </span>and train additional<span style="letter-spacing:0.15pt;"> </span>qualified<span style="letter-spacing:0.15pt;"> </span>personnel.<span style="letter-spacing:0.1pt;"> </span>Due<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>our limited<span style="letter-spacing:0.1pt;"> </span>financial<span style="letter-spacing:0.1pt;"> </span>resources<span style="letter-spacing:0.1pt;"> </span>and the<span style="letter-spacing:0.05pt;"> </span>limited<span style="letter-spacing:0.1pt;"> </span>experience<span style="letter-spacing:0.1pt;"> </span>of our management<span style="letter-spacing:1.1pt;"> </span>team<span style="letter-spacing:1.05pt;"> </span>in<span style="letter-spacing:1pt;"> </span>managing<span style="letter-spacing:1.05pt;"> </span>a<span style="letter-spacing:1pt;"> </span>company<span style="letter-spacing:1.05pt;"> </span>with<span style="letter-spacing:1pt;"> </span>such<span style="letter-spacing:1pt;"> </span>anticipated<span style="letter-spacing:1.1pt;"> </span>growth<span style="letter-spacing:1pt;"> </span>and<span style="letter-spacing:1pt;"> </span>with<span style="letter-spacing:1pt;"> </span>developing<span style="letter-spacing:1.05pt;"> </span>sales,<span style="letter-spacing:1pt;"> </span>marketing and<span style="letter-spacing:1.55pt;"> </span>distribution<span style="letter-spacing:1.7pt;"> </span>infrastructure,<span style="letter-spacing:1.75pt;"> </span>we<span style="letter-spacing:1.55pt;"> </span>may<span style="letter-spacing:1.6pt;"> </span>not<span style="letter-spacing:1.55pt;"> </span>be<span style="letter-spacing:1.55pt;"> </span>able<span style="letter-spacing:1.6pt;"> </span>to<span style="letter-spacing:1.5pt;"> </span>effectively<span style="letter-spacing:1.65pt;"> </span>manage<span style="letter-spacing:1.55pt;"> </span>the<span style="letter-spacing:1.55pt;"> </span>expansion<span style="letter-spacing:1.55pt;"> </span>of<span style="letter-spacing:1.5pt;"> </span>our<span style="letter-spacing:1.5pt;"> </span>operations<span style="letter-spacing:1.6pt;"> </span>or recruit<span style="letter-spacing:0.1pt;"> </span>and train<span style="letter-spacing:0.05pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>qualified<span style="letter-spacing:0.1pt;"> </span>personnel.<span style="letter-spacing:0.05pt;"> </span>The expansion<span style="letter-spacing:0.05pt;"> </span>of our operations<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>lead<span style="letter-spacing:0.05pt;"> </span>to significant<span style="letter-spacing:0.15pt;"> </span>costs and may<span style="letter-spacing:0.05pt;"> </span>divert<span style="letter-spacing:0.05pt;"> </span>our management<span style="letter-spacing:0.1pt;"> </span>and business<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>resources.</p>
<p style="margin-top:0pt;line-height:10pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Further,<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>currently<span style="letter-spacing:0.15pt;"> </span>rely,<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>foreseeable<span style="letter-spacing:0.1pt;"> </span>future<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>continue<span style="letter-spacing:0.05pt;"> </span>to rely,<span style="letter-spacing:0.05pt;"> </span>in substantial<span style="letter-spacing:0.1pt;"> </span>part<span style="letter-spacing:0.05pt;"> </span>on certain third-party<span style="letter-spacing:0.2pt;"> </span>contract<span style="letter-spacing:0.15pt;"> </span>organizations,<span style="letter-spacing:0.15pt;"> </span>advisors<span style="letter-spacing:0.05pt;"> </span>and consultants<span style="letter-spacing:0.1pt;"> </span>to provide<span style="letter-spacing:0.05pt;"> </span>certain<span style="letter-spacing:0.1pt;"> </span>services,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>assuming substantial<span style="letter-spacing:1.4pt;"> </span>responsibilities<span style="letter-spacing:1.5pt;"> </span>for<span style="letter-spacing:1.35pt;"> </span>the<span style="letter-spacing:1.35pt;"> </span>conduct<span style="letter-spacing:1.35pt;"> </span>of<span style="letter-spacing:1.3pt;"> </span>our<span style="letter-spacing:1.3pt;"> </span>clinical<span style="letter-spacing:1.4pt;"> </span>trials<span style="letter-spacing:1.35pt;"> </span>and<span style="letter-spacing:1.25pt;"> </span>the<span style="letter-spacing:1.3pt;"> </span>manufacture<span style="letter-spacing:1.35pt;"> </span>of<span style="letter-spacing:1.25pt;"> </span>PRT543,<span style="letter-spacing:1.2pt;"> </span>PRT811<span style="letter-spacing:1.2pt;"> </span>and PRT1419, or<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>future<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates.<span style="letter-spacing:0.15pt;"> </span>We<span style="letter-spacing:0.05pt;"> </span>cannot<span style="letter-spacing:0.1pt;"> </span>assure<span style="letter-spacing:0.1pt;"> </span>you<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>services<span style="letter-spacing:0.1pt;"> </span>of such third-party<span style="letter-spacing:0.15pt;"> </span>contract organizations,<span style="letter-spacing:0.15pt;"> </span>advisors<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>consultants<span style="letter-spacing:0.15pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>continue<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>available<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>us<span style="letter-spacing:0.05pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>timely<span style="letter-spacing:0.15pt;"> </span>basis<span style="letter-spacing:0.1pt;"> </span>when needed,<span style="letter-spacing:0.05pt;"> </span>or that we<span style="letter-spacing:0.5pt;"> </span>can<span style="letter-spacing:0.5pt;"> </span>find<span style="letter-spacing:0.55pt;"> </span>qualified<span style="letter-spacing:0.6pt;"> </span>replacements.<span style="letter-spacing:0.6pt;"> </span>In<span style="letter-spacing:0.45pt;"> </span>addition,<span style="letter-spacing:0.5pt;"> </span>if<span style="letter-spacing:0.5pt;"> </span>we<span style="letter-spacing:0.45pt;"> </span>are<span style="letter-spacing:0.5pt;"> </span>unable<span style="letter-spacing:0.5pt;"> </span>to<span style="letter-spacing:0.45pt;"> </span>effectively<span style="letter-spacing:0.6pt;"> </span>manage<span style="letter-spacing:0.5pt;"> </span>our<span style="letter-spacing:0.45pt;"> </span>outsourced<span style="letter-spacing:0.5pt;"> </span>activities or<span style="letter-spacing:1.6pt;"> </span>if<span style="letter-spacing:1.65pt;"> </span>the<span style="letter-spacing:1.65pt;"> </span>quality<span style="letter-spacing:1.6pt;"> </span>or<span style="letter-spacing:1.55pt;"> </span>accuracy<span style="letter-spacing:1.6pt;"> </span>of<span style="letter-spacing:1.55pt;"> </span>the<span style="letter-spacing:1.6pt;"> </span>services<span style="letter-spacing:1.65pt;"> </span>provided<span style="letter-spacing:1.6pt;"> </span>by<span style="letter-spacing:1.55pt;"> </span>our<span style="letter-spacing:1.55pt;"> </span>vendors<span style="letter-spacing:1.6pt;"> </span>or<span style="letter-spacing:1.55pt;"> </span>consultants<span style="letter-spacing:1.65pt;"> </span>is<span style="letter-spacing:1.6pt;"> </span>compromised<span style="letter-spacing:1.65pt;"> </span>for<span style="letter-spacing:1.6pt;"> </span>any reason,<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trials<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>extended,<span style="letter-spacing:0.1pt;"> </span>delayed<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>terminated,<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>be able<span style="letter-spacing:0.05pt;"> </span>to obtain<span style="letter-spacing:0.05pt;"> </span>marketing approval<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>PRT543, PRT811, PRT1419 or any future<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>or otherwise<span style="letter-spacing:0.05pt;"> </span>advance<span style="letter-spacing:0.05pt;"> </span>our business.<span style="letter-spacing:0.05pt;"> </span>We cannot<span style="letter-spacing:0.1pt;"> </span>assure<span style="letter-spacing:0.1pt;"> </span>you<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>able<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>properly<span style="letter-spacing:0.1pt;"> </span>manage<span style="letter-spacing:0.1pt;"> </span>our existing<span style="letter-spacing:0.1pt;"> </span>vendors<span style="letter-spacing:0.05pt;"> </span>or consultants<span style="letter-spacing:0.1pt;"> </span>or find<span style="letter-spacing:0.05pt;"> </span>other competent<span style="letter-spacing:0.1pt;"> </span>outside<span style="letter-spacing:0.05pt;"> </span>vendors<span style="letter-spacing:0.05pt;"> </span>and consultants<span style="letter-spacing:0.1pt;"> </span>on economically<span style="letter-spacing:0.1pt;"> </span>reasonable<span style="letter-spacing:0.1pt;"> </span>terms,<span style="letter-spacing:0.1pt;"> </span>or at<span style="letter-spacing:0.05pt;"> </span>all.</p>
<p style="margin-top:0pt;line-height:10pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>able<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>effectively<span style="letter-spacing:0.2pt;"> </span>manage<span style="letter-spacing:0.1pt;"> </span>growth<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>expand<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>organization,<span style="letter-spacing:0.15pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>not be able<span style="letter-spacing:0.05pt;"> </span>to successfully<span style="letter-spacing:0.2pt;"> </span>implement<span style="letter-spacing:0.2pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>tasks<span style="letter-spacing:0.15pt;"> </span>necessary<span style="letter-spacing:0.2pt;"> </span>to<span style="letter-spacing:0.1pt;"> </span>further<span style="letter-spacing:0.2pt;"> </span>develop<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.1pt;"> </span>commercialize<span style="letter-spacing:0.3pt;"> </span>PRT543, PRT811 or<span style="letter-spacing:0.05pt;"> </span>PRT1419, our<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>pipeline<span style="letter-spacing:0.15pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>or any future<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>and, accordingly,<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>not achieve<span style="letter-spacing:0.05pt;"> </span>our research,<span style="letter-spacing:0.1pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>and commercialization<span style="letter-spacing:0.2pt;"> </span>goals.</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Our employees,<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trial<span style="letter-spacing:0.05pt;"> </span>investigators,<span style="letter-spacing:0.1pt;"> </span>CROs,<span style="letter-spacing:-0.05pt;"> </span>CMOs, consultants,<span style="letter-spacing:0.05pt;"> </span>vendors<span style="letter-spacing:0.05pt;"> </span>and any potential commercial<span style="letter-spacing:0.1pt;"> </span>partners<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>engage in misconduct<span style="letter-spacing:0.05pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>improper<span style="letter-spacing:0.05pt;"> </span>activities,<span style="letter-spacing:0.15pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>non-compliance with regulatory<span style="letter-spacing:0.05pt;"> </span>standards<span style="letter-spacing:0.05pt;"> </span>and requirements<span style="letter-spacing:0.1pt;"> </span>and insider<span style="letter-spacing:0.05pt;"> </span>trading.</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:1.85pt;"> </span>are<span style="letter-spacing:1.9pt;"> </span>exposed<span style="letter-spacing:1.9pt;"> </span>to<span style="letter-spacing:1.85pt;"> </span>the<span style="letter-spacing:1.9pt;"> </span>risk<span style="letter-spacing:1.9pt;"> </span>of<span style="letter-spacing:1.8pt;"> </span>fraud<span style="letter-spacing:1.85pt;"> </span>or<span style="letter-spacing:1.8pt;"> </span>other<span style="letter-spacing:1.85pt;"> </span>misconduct<span style="letter-spacing:1.9pt;"> </span>by<span style="letter-spacing:1.8pt;"> </span>our<span style="letter-spacing:1.8pt;"> </span>employees,<span style="letter-spacing:1.9pt;"> </span>clinical<span style="letter-spacing:1.9pt;"> </span>trial<span style="letter-spacing:1.9pt;"> </span>investigators, CROs,<span style="letter-spacing:1.15pt;"> </span>CMOs,<span style="letter-spacing:1.2pt;"> </span>consultants,<span style="letter-spacing:1.3pt;"> </span>vendors<span style="letter-spacing:1.2pt;"> </span>and<span style="letter-spacing:1.15pt;"> </span>any<span style="letter-spacing:1.15pt;"> </span>potential<span style="letter-spacing:1.25pt;"> </span>commercial<span style="letter-spacing:1.3pt;"> </span>partners.<span style="letter-spacing:1.25pt;"> </span>Misconduct<span style="letter-spacing:1.25pt;"> </span>by<span style="letter-spacing:1.15pt;"> </span>these<span style="letter-spacing:1.2pt;"> </span>parties<span style="letter-spacing:1.25pt;"> </span>could include<span style="letter-spacing:0.6pt;"> </span>intentional,<span style="letter-spacing:0.65pt;"> </span>reckless<span style="letter-spacing:0.65pt;"> </span>and/or<span style="letter-spacing:0.6pt;"> </span>negligent<span style="letter-spacing:0.65pt;"> </span>conduct<span style="letter-spacing:0.6pt;"> </span>or<span style="letter-spacing:0.55pt;"> </span>disclosure<span style="letter-spacing:0.65pt;"> </span>of<span style="letter-spacing:0.55pt;"> </span>unauthorized<span style="letter-spacing:0.65pt;"> </span>activities<span style="letter-spacing:0.7pt;"> </span>to<span style="letter-spacing:0.5pt;"> </span>us<span style="letter-spacing:0.5pt;"> </span>that<span style="letter-spacing:0.55pt;"> </span>violates: (i)<span style="letter-spacing:0.1pt;"> </span>FDA regulations<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>those<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>comparable<span style="letter-spacing:0.15pt;"> </span>foreign<span style="letter-spacing:0.1pt;"> </span>regulatory<span style="letter-spacing:0.15pt;"> </span>authorities,<span style="letter-spacing:0.2pt;"> </span>including<span style="letter-spacing:0.1pt;"> </span>those<span style="letter-spacing:0.1pt;"> </span>laws that<span style="letter-spacing:0.05pt;"> </span>require<span style="letter-spacing:0.1pt;"> </span>the reporting<span style="letter-spacing:1pt;"> </span>of<span style="letter-spacing:0.85pt;"> </span>true,<span style="letter-spacing:0.9pt;"> </span>complete<span style="letter-spacing:0.95pt;"> </span>and<span style="letter-spacing:0.85pt;"> </span>accurate<span style="letter-spacing:0.95pt;"> </span>information,<span style="letter-spacing:1pt;"> </span>(ii)<span style="letter-spacing:0.95pt;"> </span>manufacturing<span style="letter-spacing:1pt;"> </span>standards,<span style="letter-spacing:0.95pt;"> </span>(iii)<span style="letter-spacing:0.95pt;"> </span>federal<span style="letter-spacing:0.95pt;"> </span>and<span style="letter-spacing:0.85pt;"> </span>state<span style="letter-spacing:0.9pt;"> </span>health and<span style="letter-spacing:0.05pt;"> </span>data<span style="letter-spacing:0.1pt;"> </span>privacy,<span style="letter-spacing:0.1pt;"> </span>security,<span style="letter-spacing:0.15pt;"> </span>fraud<span style="letter-spacing:0.1pt;"> </span>and abuse,<span style="letter-spacing:0.05pt;"> </span>government<span style="letter-spacing:0.1pt;"> </span>price<span style="letter-spacing:0.05pt;"> </span>reporting,<span style="letter-spacing:0.1pt;"> </span>transparency<span style="letter-spacing:0.1pt;"> </span>reporting<span style="letter-spacing:0.1pt;"> </span>requirements,<span style="letter-spacing:0.15pt;"> </span>and other healthcare laws and regulations in the United States and abroad, (iv) sexual harassment and other workplace<span style="letter-spacing:0.05pt;"> </span>misconduct,<span style="letter-spacing:0.1pt;"> </span>or (v)<span style="letter-spacing:0.05pt;"> </span>laws that<span style="letter-spacing:0.05pt;"> </span>require<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>true,<span style="letter-spacing:0.05pt;"> </span>complete<span style="letter-spacing:0.1pt;"> </span>and accurate<span style="letter-spacing:0.1pt;"> </span>reporting<span style="letter-spacing:0.1pt;"> </span>of financial<span style="letter-spacing:0.1pt;"> </span>information or<span style="letter-spacing:0.05pt;"> </span>data.<span style="letter-spacing:0.1pt;"> </span>Such<span style="letter-spacing:0.05pt;"> </span>misconduct<span style="letter-spacing:0.15pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>also<span style="letter-spacing:0.05pt;"> </span>involve<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>improper<span style="letter-spacing:0.1pt;"> </span>use of information<span style="letter-spacing:0.15pt;"> </span>obtained<span style="letter-spacing:0.05pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>course<span style="letter-spacing:0.05pt;"> </span>of clinical trials,<span style="letter-spacing:0.1pt;"> </span>which could<span style="letter-spacing:0.05pt;"> </span>result<span style="letter-spacing:0.1pt;"> </span>in regulatory<span style="letter-spacing:0.1pt;"> </span>sanctions<span style="letter-spacing:0.1pt;"> </span>and cause<span style="letter-spacing:0.05pt;"> </span>serious<span style="letter-spacing:0.05pt;"> </span>harm<span style="letter-spacing:0.05pt;"> </span>to our reputation.</p>
<p style="margin-top:0pt;line-height:10pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.05pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>adopted<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>code<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>conduct<span style="letter-spacing:0.1pt;"> </span>applicable<span style="letter-spacing:0.15pt;"> </span>to all<span style="letter-spacing:0.05pt;"> </span>of our employees,<span style="letter-spacing:0.1pt;"> </span>as well<span style="letter-spacing:0.05pt;"> </span>as a disclosure<span style="letter-spacing:0.1pt;"> </span>program<span style="letter-spacing:0.05pt;"> </span>and other<span style="letter-spacing:0.2pt;"> </span>applicable<span style="letter-spacing:0.25pt;"> </span>policies<span style="letter-spacing:0.25pt;"> </span>and<span style="letter-spacing:0.15pt;"> </span>procedures,<span style="letter-spacing:0.25pt;"> </span>but<span style="letter-spacing:0.15pt;"> </span>it<span style="letter-spacing:0.2pt;"> </span>is<span style="letter-spacing:0.2pt;"> </span>not<span style="letter-spacing:0.15pt;"> </span>always<span style="letter-spacing:0.2pt;"> </span>possible<span style="letter-spacing:0.2pt;"> </span>to<span style="letter-spacing:0.15pt;"> </span>identify<span style="letter-spacing:0.25pt;"> </span>and<span style="letter-spacing:0.15pt;"> </span>deter<span style="letter-spacing:0.2pt;"> </span>employee<span style="letter-spacing:0.2pt;"> </span>misconduct, and<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>precautions<span style="letter-spacing:0.15pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>take<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>detect<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>prevent<span style="letter-spacing:0.1pt;"> </span>this<span style="letter-spacing:0.1pt;"> </span>activity<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>effective<span style="letter-spacing:0.15pt;"> </span>in controlling<span style="letter-spacing:0.1pt;"> </span>unknown or unmanaged<span style="letter-spacing:0.1pt;"> </span>risks<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>losses<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>protecting<span style="letter-spacing:0.1pt;"> </span>us from<span style="letter-spacing:0.05pt;"> </span>governmental<span style="letter-spacing:0.1pt;"> </span>investigations<span style="letter-spacing:0.15pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>actions<span style="letter-spacing:0.05pt;"> </span>or lawsuits stemming<span style="letter-spacing:0.9pt;"> </span>from<span style="letter-spacing:0.85pt;"> </span>a<span style="letter-spacing:0.8pt;"> </span>failure<span style="letter-spacing:0.9pt;"> </span>to<span style="letter-spacing:0.8pt;"> </span>comply<span style="letter-spacing:0.85pt;"> </span>with<span style="letter-spacing:0.8pt;"> </span>these<span style="letter-spacing:0.85pt;"> </span>laws<span style="letter-spacing:0.8pt;"> </span>or<span style="letter-spacing:0.8pt;"> </span>regulations.<span style="letter-spacing:0.85pt;"> </span>If<span style="letter-spacing:0.8pt;"> </span>any<span style="letter-spacing:0.75pt;"> </span>such<span style="letter-spacing:0.75pt;"> </span>actions<span style="letter-spacing:0.8pt;"> </span>are<span style="letter-spacing:0.8pt;"> </span>instituted<span style="letter-spacing:0.85pt;"> </span>against<span style="letter-spacing:0.8pt;"> </span>us, and<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>successful<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>defending<span style="letter-spacing:0.1pt;"> </span>ourselves<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>asserting<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>rights,<span style="letter-spacing:0.1pt;"> </span>those<span style="letter-spacing:0.1pt;"> </span>actions<span style="letter-spacing:0.1pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>a significant impact<span style="letter-spacing:0.15pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>business,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>imposition<span style="letter-spacing:0.1pt;"> </span>of significant<span style="letter-spacing:0.15pt;"> </span>civil,<span style="letter-spacing:0.05pt;"> </span>criminal<span style="letter-spacing:0.1pt;"> </span>and administrative<span style="letter-spacing:0.2pt;"> </span>penalties, damages,<span style="letter-spacing:1.15pt;"> </span>fines,<span style="letter-spacing:1.15pt;"> </span>disgorgement,<span style="letter-spacing:1.2pt;"> </span>imprisonment,<span style="letter-spacing:1.25pt;"> </span>exclusion<span style="letter-spacing:1.15pt;"> </span>from<span style="letter-spacing:1.15pt;"> </span>government<span style="letter-spacing:1.2pt;"> </span>funded<span style="letter-spacing:1.1pt;"> </span>healthcare<span style="letter-spacing:1.15pt;"> </span>programs,<span style="letter-spacing:1.15pt;"> </span>such<span style="letter-spacing:1.05pt;"> </span>as Medicare,<span style="letter-spacing:0.1pt;"> </span>Medicaid<span style="letter-spacing:0.1pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>federal<span style="letter-spacing:0.1pt;"> </span>healthcare<span style="letter-spacing:0.1pt;"> </span>programs,<span style="letter-spacing:0.1pt;"> </span>contractual<span style="letter-spacing:0.1pt;"> </span>damages,<span style="letter-spacing:0.05pt;"> </span>reputational<span style="letter-spacing:0.15pt;"> </span>harm, diminished profits<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>future<span style="letter-spacing:0.1pt;"> </span>earnings,<span style="letter-spacing:0.1pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>integrity<span style="letter-spacing:0.1pt;"> </span>reporting<span style="letter-spacing:0.1pt;"> </span>and oversight<span style="letter-spacing:0.1pt;"> </span>obligations,<span style="letter-spacing:0.1pt;"> </span>and the<span style="letter-spacing:0.05pt;"> </span>curtailment<span style="letter-spacing:0.15pt;"> </span>or restructuring<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>operations,<span style="letter-spacing:0.15pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>adversely<span style="letter-spacing:0.15pt;"> </span>affect<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>ability<span style="letter-spacing:0.1pt;"> </span>to operate<span style="letter-spacing:0.05pt;"> </span>our business<span style="letter-spacing:0.05pt;"> </span>and our results<span style="letter-spacing:0.1pt;"> </span>of operations.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">49</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Our internal<span style="letter-spacing:0.05pt;"> </span>information<span style="letter-spacing:0.1pt;"> </span>technology<span style="letter-spacing:0.05pt;"> </span>systems,<span style="letter-spacing:0.1pt;"> </span>or those<span style="letter-spacing:0.05pt;"> </span>of our third-party<span style="letter-spacing:0.1pt;"> </span>CROs,<span style="letter-spacing:-0.05pt;"> </span>CMOs, or other<span style="letter-spacing:0.05pt;"> </span>vendors, contractors<span style="letter-spacing:0.1pt;"> </span>or consultants,<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>fail<span style="letter-spacing:0.05pt;"> </span>or suffer<span style="letter-spacing:0.05pt;"> </span>security<span style="letter-spacing:0.1pt;"> </span>breaches,<span style="letter-spacing:0.05pt;"> </span>cyber-attacks,<span style="letter-spacing:0.1pt;"> </span>loss<span style="letter-spacing:0.05pt;"> </span>or leakage<span style="letter-spacing:0.05pt;"> </span>of data and other<span style="letter-spacing:0.05pt;"> </span>disruptions,<span style="letter-spacing:0.05pt;"> </span>which could result<span style="letter-spacing:0.05pt;"> </span>in a material<span style="letter-spacing:0.1pt;"> </span>disruption<span style="letter-spacing:0.05pt;"> </span>of our development<span style="letter-spacing:0.1pt;"> </span>programs,<span style="letter-spacing:0.05pt;"> </span>compromise sensitive<span style="letter-spacing:0.1pt;"> </span>information<span style="letter-spacing:0.1pt;"> </span>related<span style="letter-spacing:0.05pt;"> </span>to our business<span style="letter-spacing:0.05pt;"> </span>or prevent<span style="letter-spacing:0.05pt;"> </span>us from<span style="letter-spacing:0.05pt;"> </span>accessing<span style="letter-spacing:0.05pt;"> </span>critical<span style="letter-spacing:0.1pt;"> </span>information,<span style="letter-spacing:0.1pt;"> </span>potentially exposing<span style="letter-spacing:0.05pt;"> </span>us to liability<span style="letter-spacing:0.15pt;"> </span>or otherwise<span style="letter-spacing:0.05pt;"> </span>adversely<span style="letter-spacing:0.1pt;"> </span>affecting<span style="letter-spacing:0.1pt;"> </span>our business.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>increasingly<span style="letter-spacing:0.1pt;"> </span>dependent<span style="letter-spacing:0.05pt;"> </span>upon information<span style="letter-spacing:0.15pt;"> </span>technology<span style="letter-spacing:0.05pt;"> </span>systems,<span style="letter-spacing:0.1pt;"> </span>infrastructure<span style="letter-spacing:0.2pt;"> </span>and data<span style="letter-spacing:0.05pt;"> </span>to operate<span style="letter-spacing:0.05pt;"> </span>our business.<span style="letter-spacing:1.15pt;"> </span>In<span style="letter-spacing:1.1pt;"> </span>the<span style="letter-spacing:1.15pt;"> </span>ordinary<span style="letter-spacing:1.1pt;"> </span>course<span style="letter-spacing:1.1pt;"> </span>of<span style="letter-spacing:1.05pt;"> </span>business,<span style="letter-spacing:1.1pt;"> </span>we<span style="letter-spacing:1.05pt;"> </span>collect,<span style="letter-spacing:1.15pt;"> </span>store<span style="letter-spacing:1.1pt;"> </span>and<span style="letter-spacing:1.05pt;"> </span>transmit<span style="letter-spacing:1.15pt;"> </span>confidential<span style="letter-spacing:1.2pt;"> </span>information<span style="letter-spacing:1.2pt;"> </span>(including but<span style="letter-spacing:0.05pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>limited<span style="letter-spacing:0.1pt;"> </span>to intellectual<span style="letter-spacing:0.15pt;"> </span>property,<span style="letter-spacing:0.05pt;"> </span>proprietary<span style="letter-spacing:0.1pt;"> </span>business<span style="letter-spacing:0.05pt;"> </span>information<span style="letter-spacing:0.15pt;"> </span>and personal<span style="letter-spacing:0.05pt;"> </span>information).<span style="letter-spacing:0.15pt;"> </span>It<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>critical that<span style="letter-spacing:0.85pt;"> </span>we<span style="letter-spacing:0.8pt;"> </span>do<span style="letter-spacing:0.8pt;"> </span>so<span style="letter-spacing:0.8pt;"> </span>in<span style="letter-spacing:0.8pt;"> </span>a<span style="letter-spacing:0.8pt;"> </span>secure<span style="letter-spacing:0.85pt;"> </span>manner<span style="letter-spacing:0.85pt;"> </span>to<span style="letter-spacing:0.8pt;"> </span>maintain<span style="letter-spacing:0.9pt;"> </span>the<span style="letter-spacing:0.85pt;"> </span>confidentiality<span style="letter-spacing:0.95pt;"> </span>and<span style="letter-spacing:0.8pt;"> </span>integrity<span style="letter-spacing:0.9pt;"> </span>of<span style="letter-spacing:0.75pt;"> </span>such<span style="letter-spacing:0.75pt;"> </span>confidential<span style="letter-spacing:0.9pt;"> </span>information. We<span style="letter-spacing:1.35pt;"> </span>also<span style="letter-spacing:1.35pt;"> </span>have<span style="letter-spacing:1.3pt;"> </span>outsourced<span style="letter-spacing:1.35pt;"> </span>elements<span style="letter-spacing:1.4pt;"> </span>of<span style="letter-spacing:1.3pt;"> </span>our<span style="letter-spacing:1.3pt;"> </span>operations<span style="letter-spacing:1.4pt;"> </span>to<span style="letter-spacing:1.3pt;"> </span>third<span style="letter-spacing:1.35pt;"> </span>parties,<span style="letter-spacing:1.4pt;"> </span>and<span style="letter-spacing:1.3pt;"> </span>as<span style="letter-spacing:1.3pt;"> </span>a<span style="letter-spacing:1.3pt;"> </span>result<span style="letter-spacing:1.4pt;"> </span>we<span style="letter-spacing:1.3pt;"> </span>manage<span style="letter-spacing:1.35pt;"> </span>a<span style="letter-spacing:1.3pt;"> </span>number<span style="letter-spacing:1.35pt;"> </span>of third-party<span style="letter-spacing:0.2pt;"> </span>CROs, CMOs,<span style="letter-spacing:0.05pt;"> </span>vendors,<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>contractors<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>consultants<span style="letter-spacing:0.15pt;"> </span>who have access<span style="letter-spacing:0.05pt;"> </span>to our confidential information.<span style="letter-spacing:0.2pt;"> </span>Our<span style="letter-spacing:0.05pt;"> </span>internal<span style="letter-spacing:0.15pt;"> </span>information<span style="letter-spacing:0.2pt;"> </span>technology<span style="letter-spacing:0.1pt;"> </span>systems<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>infrastructure<span style="letter-spacing:0.2pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>also<span style="letter-spacing:0.05pt;"> </span>vulnerable<span style="letter-spacing:0.1pt;"> </span>to damage<span style="letter-spacing:0.05pt;"> </span>from natural<span style="letter-spacing:0.15pt;"> </span>disasters,<span style="letter-spacing:0.15pt;"> </span>terrorism,<span style="letter-spacing:0.2pt;"> </span>war,<span style="letter-spacing:0.05pt;"> </span>telecommunication<span style="letter-spacing:0.25pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>electrical<span style="letter-spacing:0.2pt;"> </span>failures.<span style="letter-spacing:0.15pt;"> </span>System<span style="letter-spacing:0.1pt;"> </span>failures<span style="letter-spacing:0.15pt;"> </span>or outages,<span style="letter-spacing:0.05pt;"> </span>including any potential<span style="letter-spacing:0.1pt;"> </span>disruptions<span style="letter-spacing:0.1pt;"> </span>due to significantly<span style="letter-spacing:0.15pt;"> </span>increased<span style="letter-spacing:0.1pt;"> </span>global<span style="letter-spacing:0.05pt;"> </span>demand<span style="letter-spacing:0.05pt;"> </span>on certain<span style="letter-spacing:0.1pt;"> </span>cloud-based<span style="letter-spacing:0.05pt;"> </span>systems<span style="letter-spacing:0.05pt;"> </span>during the COVID-19 pandemic,<span style="letter-spacing:0.1pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>compromise<span style="letter-spacing:0.1pt;"> </span>our ability<span style="letter-spacing:0.1pt;"> </span>to perform<span style="letter-spacing:0.1pt;"> </span>these<span style="letter-spacing:0.05pt;"> </span>functions<span style="letter-spacing:0.1pt;"> </span>in a timely<span style="letter-spacing:0.1pt;"> </span>manner,<span style="letter-spacing:0.05pt;"> </span>which could harm<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>ability<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>conduct<span style="letter-spacing:0.1pt;"> </span>business<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>delay<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>financial<span style="letter-spacing:0.15pt;"> </span>reporting.<span style="letter-spacing:0.1pt;"> </span>Such failures<span style="letter-spacing:0.1pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>materially<span style="letter-spacing:0.15pt;"> </span>adversely affect<span style="letter-spacing:0.1pt;"> </span>our operating<span style="letter-spacing:0.1pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>and financial<span style="letter-spacing:0.1pt;"> </span>condition.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Despite the implementation of security measures, given their size and complexity and the increasing amounts<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>confidential<span style="letter-spacing:0.2pt;"> </span>information<span style="letter-spacing:0.2pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>they<span style="letter-spacing:0.1pt;"> </span>maintain,<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>internal<span style="letter-spacing:0.15pt;"> </span>information<span style="letter-spacing:0.2pt;"> </span>technology<span style="letter-spacing:0.1pt;"> </span>systems<span style="letter-spacing:0.15pt;"> </span>and those<span style="letter-spacing:0.05pt;"> </span>of our<span style="letter-spacing:0.05pt;"> </span>third-party<span style="letter-spacing:0.2pt;"> </span>CROs, CMOs,<span style="letter-spacing:0.05pt;"> </span>vendors<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>contractors<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>consultants<span style="letter-spacing:0.15pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>potentially<span style="letter-spacing:0.15pt;"> </span>vulnerable<span style="letter-spacing:0.15pt;"> </span>to breakdown<span style="letter-spacing:0.05pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>damage<span style="letter-spacing:0.05pt;"> </span>or interruption<span style="letter-spacing:0.15pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>service<span style="letter-spacing:0.1pt;"> </span>interruptions,<span style="letter-spacing:0.15pt;"> </span>system<span style="letter-spacing:0.05pt;"> </span>malfunction,<span style="letter-spacing:0.1pt;"> </span>accidents<span style="letter-spacing:0.1pt;"> </span>by our employees<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.1pt;"> </span>party<span style="letter-spacing:0.1pt;"> </span>service<span style="letter-spacing:0.15pt;"> </span>providers,<span style="letter-spacing:0.15pt;"> </span>natural<span style="letter-spacing:0.1pt;"> </span>disasters,<span style="letter-spacing:0.1pt;"> </span>terrorism,<span style="letter-spacing:0.15pt;"> </span>war and telecommunication<span style="letter-spacing:0.2pt;"> </span>and electrical failures,<span style="letter-spacing:0.15pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>well<span style="letter-spacing:0.1pt;"> </span>as security<span style="letter-spacing:0.1pt;"> </span>breaches<span style="letter-spacing:0.05pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>inadvertent<span style="letter-spacing:0.1pt;"> </span>or intentional<span style="letter-spacing:0.1pt;"> </span>actions<span style="letter-spacing:0.05pt;"> </span>by our employees,<span style="letter-spacing:0.1pt;"> </span>third-party<span style="letter-spacing:0.15pt;"> </span>CROs, CMOs, vendors,<span style="letter-spacing:0.05pt;"> </span>contractors,<span style="letter-spacing:0.1pt;"> </span>consultants,<span style="letter-spacing:0.1pt;"> </span>business<span style="letter-spacing:0.05pt;"> </span>partners<span style="letter-spacing:0.1pt;"> </span>and/or<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.05pt;"> </span>parties,<span style="letter-spacing:0.1pt;"> </span>or from cyber-attacks<span style="letter-spacing:0.1pt;"> </span>by malicious<span style="letter-spacing:0.15pt;"> </span>third<span style="letter-spacing:0.1pt;"> </span>parties<span style="letter-spacing:0.15pt;"> </span>(including<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>deployment<span style="letter-spacing:0.1pt;"> </span>of harmful<span style="letter-spacing:0.1pt;"> </span>malware,<span style="letter-spacing:0.05pt;"> </span>ransomware,<span style="letter-spacing:0.1pt;"> </span>denial-of-service<span style="letter-spacing:0.2pt;"> </span>attacks, social<span style="letter-spacing:0.05pt;"> </span>engineering<span style="letter-spacing:0.1pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>means<span style="letter-spacing:0.05pt;"> </span>to affect<span style="letter-spacing:0.1pt;"> </span>service<span style="letter-spacing:0.1pt;"> </span>reliability<span style="letter-spacing:0.15pt;"> </span>and threaten<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>confidentiality,<span style="letter-spacing:0.15pt;"> </span>integrity<span style="letter-spacing:0.1pt;"> </span>and availability<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>information),<span style="letter-spacing:0.2pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>compromise<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>system<span style="letter-spacing:0.1pt;"> </span>infrastructure,<span style="letter-spacing:0.25pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our third-party<span style="letter-spacing:0.15pt;"> </span>CROs, CMOs,<span style="letter-spacing:0.05pt;"> </span>vendors<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>contractors<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>consultants,<span style="letter-spacing:0.15pt;"> </span>or lead<span style="letter-spacing:0.05pt;"> </span>to data<span style="letter-spacing:0.05pt;"> </span>leakage.<span style="letter-spacing:0.05pt;"> </span>The risk<span style="letter-spacing:0.05pt;"> </span>of a security<span style="letter-spacing:0.1pt;"> </span>breach<span style="letter-spacing:0.05pt;"> </span>or disruption,<span style="letter-spacing:0.15pt;"> </span>particularly<span style="letter-spacing:0.15pt;"> </span>through<span style="letter-spacing:0.05pt;"> </span>cyber-attacks<span style="letter-spacing:0.15pt;"> </span>or cyber<span style="letter-spacing:0.05pt;"> </span>intrusion,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>by computer<span style="letter-spacing:0.1pt;"> </span>hackers,<span style="letter-spacing:0.05pt;"> </span>foreign governments, and cyber terrorists, has generally increased as the number, intensity and sophistication of attempted<span style="letter-spacing:0.15pt;"> </span>attacks<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>intrusions<span style="letter-spacing:0.15pt;"> </span>from<span style="letter-spacing:0.1pt;"> </span>around<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>world<span style="letter-spacing:0.05pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>increased.<span style="letter-spacing:0.15pt;"> </span>The<span style="letter-spacing:0.05pt;"> </span>COVID-19 pandemic<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>generally increasing<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>attack<span style="letter-spacing:0.1pt;"> </span>surface<span style="letter-spacing:0.15pt;"> </span>available<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>exploitation,<span style="letter-spacing:0.1pt;"> </span>as more<span style="letter-spacing:0.05pt;"> </span>companies<span style="letter-spacing:0.1pt;"> </span>and individuals<span style="letter-spacing:0.1pt;"> </span>work online<span style="letter-spacing:0.05pt;"> </span>and work remotely,<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>such,<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>risk<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>cybersecurity<span style="letter-spacing:0.2pt;"> </span>incident<span style="letter-spacing:0.15pt;"> </span>potentially<span style="letter-spacing:0.15pt;"> </span>occurring,<span style="letter-spacing:0.1pt;"> </span>and our investment<span style="letter-spacing:0.1pt;"> </span>in risk mitigations<span style="letter-spacing:0.2pt;"> </span>against<span style="letter-spacing:0.1pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>an<span style="letter-spacing:0.05pt;"> </span>incident,<span style="letter-spacing:0.15pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>increasing.<span style="letter-spacing:0.15pt;"> </span>For<span style="letter-spacing:0.05pt;"> </span>example,<span style="letter-spacing:0.1pt;"> </span>there<span style="letter-spacing:0.1pt;"> </span>has<span style="letter-spacing:0.05pt;"> </span>been<span style="letter-spacing:0.05pt;"> </span>an<span style="letter-spacing:0.05pt;"> </span>increase<span style="letter-spacing:0.15pt;"> </span>in phishing<span style="letter-spacing:0.05pt;"> </span>and spam emails<span style="letter-spacing:0.2pt;"> </span>as<span style="letter-spacing:0.1pt;"> </span>well<span style="letter-spacing:0.15pt;"> </span>as<span style="letter-spacing:0.1pt;"> </span>social<span style="letter-spacing:0.15pt;"> </span>engineering<span style="letter-spacing:0.2pt;"> </span>attempts<span style="letter-spacing:0.2pt;"> </span>from<span style="letter-spacing:0.1pt;"> </span>&#8220;hackers&#8221;<span style="letter-spacing:0.15pt;"> </span>hoping<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>use<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>recent<span style="letter-spacing:0.1pt;"> </span>COVID-19 pandemic<span style="letter-spacing:0.1pt;"> </span>to their<span style="letter-spacing:0.1pt;"> </span>advantage.<span style="letter-spacing:0.1pt;"> </span>We<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>able<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>anticipate<span style="letter-spacing:0.15pt;"> </span>all<span style="letter-spacing:0.1pt;"> </span>types<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>security<span style="letter-spacing:0.15pt;"> </span>threats,<span style="letter-spacing:0.15pt;"> </span>nor<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>able<span style="letter-spacing:0.1pt;"> </span>to implement preventive<span style="letter-spacing:0.15pt;"> </span>measures<span style="letter-spacing:0.15pt;"> </span>effective<span style="letter-spacing:0.15pt;"> </span>against<span style="letter-spacing:0.1pt;"> </span>all<span style="letter-spacing:0.1pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>security<span style="letter-spacing:0.15pt;"> </span>threats.<span style="letter-spacing:0.15pt;"> </span>The<span style="letter-spacing:0.05pt;"> </span>techniques<span style="letter-spacing:0.15pt;"> </span>used by cyber<span style="letter-spacing:0.05pt;"> </span>criminals<span style="letter-spacing:0.15pt;"> </span>change frequently,<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>recognized<span style="letter-spacing:0.15pt;"> </span>until<span style="letter-spacing:0.1pt;"> </span>launched<span style="letter-spacing:0.05pt;"> </span>and can originate<span style="letter-spacing:0.1pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>a wide variety<span style="letter-spacing:0.1pt;"> </span>of sources,<span style="letter-spacing:0.05pt;"> </span>including outside<span style="letter-spacing:1.5pt;"> </span>groups<span style="letter-spacing:1.5pt;"> </span>such<span style="letter-spacing:1.45pt;"> </span>as<span style="letter-spacing:1.45pt;"> </span>external<span style="letter-spacing:1.55pt;"> </span>service<span style="letter-spacing:1.55pt;"> </span>providers,<span style="letter-spacing:1.55pt;"> </span>organized<span style="letter-spacing:1.5pt;"> </span>crime<span style="letter-spacing:1.55pt;"> </span>affiliates,<span style="letter-spacing:1.55pt;"> </span>terrorist<span style="letter-spacing:1.55pt;"> </span>organizations<span style="letter-spacing:1.5pt;"> </span>or<span style="letter-spacing:1.4pt;"> </span>hostile foreign<span style="letter-spacing:0.55pt;"> </span>governments<span style="letter-spacing:0.6pt;"> </span>or<span style="letter-spacing:0.5pt;"> </span>agencies.<span style="letter-spacing:0.55pt;"> </span>To<span style="letter-spacing:0.5pt;"> </span>the<span style="letter-spacing:0.55pt;"> </span>extent<span style="letter-spacing:0.55pt;"> </span>that<span style="letter-spacing:0.55pt;"> </span>any<span style="letter-spacing:0.5pt;"> </span>disruption<span style="letter-spacing:0.6pt;"> </span>or<span style="letter-spacing:0.5pt;"> </span>security<span style="letter-spacing:0.6pt;"> </span>breach<span style="letter-spacing:0.55pt;"> </span>were<span style="letter-spacing:0.5pt;"> </span>to<span style="letter-spacing:0.5pt;"> </span>result<span style="letter-spacing:0.6pt;"> </span>in<span style="letter-spacing:0.5pt;"> </span>a<span style="letter-spacing:0.45pt;"> </span>loss<span style="letter-spacing:0.5pt;"> </span>of, or<span style="letter-spacing:0.8pt;"> </span>damage<span style="letter-spacing:0.85pt;"> </span>to,<span style="letter-spacing:0.8pt;"> </span>our<span style="letter-spacing:0.75pt;"> </span>data<span style="letter-spacing:0.8pt;"> </span>or<span style="letter-spacing:0.75pt;"> </span>applications,<span style="letter-spacing:0.85pt;"> </span>or<span style="letter-spacing:0.75pt;"> </span>those<span style="letter-spacing:0.8pt;"> </span>of<span style="letter-spacing:0.75pt;"> </span>our<span style="letter-spacing:0.75pt;"> </span>third-party<span style="letter-spacing:0.9pt;"> </span>CROs,<span style="letter-spacing:0.7pt;"> </span>CMOs,<span style="letter-spacing:0.75pt;"> </span>vendors<span style="letter-spacing:0.8pt;"> </span>and<span style="letter-spacing:0.75pt;"> </span>other<span style="letter-spacing:0.8pt;"> </span>contractors and<span style="letter-spacing:1.1pt;"> </span>consultants,<span style="letter-spacing:1.2pt;"> </span>or<span style="letter-spacing:1.1pt;"> </span>inappropriate<span style="letter-spacing:1.25pt;"> </span>disclosure<span style="letter-spacing:1.2pt;"> </span>of<span style="letter-spacing:1.1pt;"> </span>confidential<span style="letter-spacing:1.25pt;"> </span>or<span style="letter-spacing:1.1pt;"> </span>proprietary<span style="letter-spacing:1.2pt;"> </span>information,<span style="letter-spacing:1.25pt;"> </span>we<span style="letter-spacing:1.1pt;"> </span>could<span style="letter-spacing:1.15pt;"> </span>incur<span style="letter-spacing:1.1pt;"> </span>liability and<span style="letter-spacing:0.1pt;"> </span>reputational<span style="letter-spacing:0.25pt;"> </span>damage<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>further<span style="letter-spacing:0.15pt;"> </span>development<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>commercialization<span style="letter-spacing:0.25pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>PRT543, PRT811, PRT1419 or any<span style="letter-spacing:0.05pt;"> </span>future<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.15pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>be delayed.<span style="letter-spacing:0.05pt;"> </span>Any breach,<span style="letter-spacing:0.05pt;"> </span>loss<span style="letter-spacing:0.05pt;"> </span>or compromise<span style="letter-spacing:0.1pt;"> </span>of clinical<span style="letter-spacing:0.1pt;"> </span>trial<span style="letter-spacing:0.1pt;"> </span>participant personal<span style="letter-spacing:0.95pt;"> </span>data<span style="letter-spacing:0.95pt;"> </span>may<span style="letter-spacing:0.95pt;"> </span>also<span style="letter-spacing:0.95pt;"> </span>subject<span style="letter-spacing:0.95pt;"> </span>us<span style="letter-spacing:0.9pt;"> </span>to<span style="letter-spacing:0.9pt;"> </span>civil<span style="letter-spacing:0.95pt;"> </span>fines<span style="letter-spacing:0.95pt;"> </span>and<span style="letter-spacing:0.9pt;"> </span>penalties,<span style="letter-spacing:1pt;"> </span>including<span style="letter-spacing:0.9pt;"> </span>under<span style="letter-spacing:0.9pt;"> </span>HIPAA,<span style="letter-spacing:0.8pt;"> </span>and<span style="letter-spacing:0.85pt;"> </span>other<span style="letter-spacing:0.9pt;"> </span>relevant<span style="letter-spacing:0.95pt;"> </span>state and<span style="letter-spacing:1.2pt;"> </span>federal<span style="letter-spacing:1.3pt;"> </span>privacy<span style="letter-spacing:1.25pt;"> </span>laws<span style="letter-spacing:1.2pt;"> </span>in<span style="letter-spacing:1.2pt;"> </span>the<span style="letter-spacing:1.25pt;"> </span>United<span style="letter-spacing:1.25pt;"> </span>States.<span style="letter-spacing:1.25pt;"> </span>The<span style="letter-spacing:1.15pt;"> </span>costs<span style="letter-spacing:1.2pt;"> </span>related<span style="letter-spacing:1.25pt;"> </span>to<span style="letter-spacing:1.15pt;"> </span>significant<span style="letter-spacing:1.3pt;"> </span>security<span style="letter-spacing:1.25pt;"> </span>breaches<span style="letter-spacing:1.2pt;"> </span>or<span style="letter-spacing:1.15pt;"> </span>disruptions could<span style="letter-spacing:0.05pt;"> </span>be material<span style="letter-spacing:0.15pt;"> </span>and exceed<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>limits<span style="letter-spacing:0.1pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>cybersecurity<span style="letter-spacing:0.15pt;"> </span>insurance<span style="letter-spacing:0.1pt;"> </span>we maintain<span style="letter-spacing:0.1pt;"> </span>against<span style="letter-spacing:0.05pt;"> </span>such risks.<span style="letter-spacing:0.05pt;"> </span>If the information<span style="letter-spacing:0.2pt;"> </span>technology<span style="letter-spacing:0.1pt;"> </span>systems<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>third-party<span style="letter-spacing:0.2pt;"> </span>CROs, CMOs,<span style="letter-spacing:0.05pt;"> </span>vendors<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>contractors<span style="letter-spacing:0.15pt;"> </span>and consultants become<span style="letter-spacing:0.1pt;"> </span>subject<span style="letter-spacing:0.05pt;"> </span>to disruptions<span style="letter-spacing:0.1pt;"> </span>or security<span style="letter-spacing:0.1pt;"> </span>breaches,<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>have insufficient<span style="letter-spacing:0.15pt;"> </span>recourse<span style="letter-spacing:0.1pt;"> </span>against<span style="letter-spacing:0.05pt;"> </span>such third<span style="letter-spacing:0.05pt;"> </span>parties and<span style="letter-spacing:1.1pt;"> </span>we<span style="letter-spacing:1.1pt;"> </span>may<span style="letter-spacing:1.15pt;"> </span>have<span style="letter-spacing:1.1pt;"> </span>to<span style="letter-spacing:1.1pt;"> </span>expend<span style="letter-spacing:1.1pt;"> </span>significant<span style="letter-spacing:1.25pt;"> </span>resources<span style="letter-spacing:1.2pt;"> </span>to<span style="letter-spacing:1.05pt;"> </span>mitigate<span style="letter-spacing:1.15pt;"> </span>the<span style="letter-spacing:1.1pt;"> </span>impact<span style="letter-spacing:1.15pt;"> </span>of<span style="letter-spacing:1.05pt;"> </span>such<span style="letter-spacing:1.05pt;"> </span>an<span style="letter-spacing:1.05pt;"> </span>event,<span style="letter-spacing:1.1pt;"> </span>and<span style="letter-spacing:1.05pt;"> </span>to<span style="letter-spacing:1.05pt;"> </span>develop<span style="letter-spacing:1.1pt;"> </span>and implement<span style="letter-spacing:0.1pt;"> </span>protections<span style="letter-spacing:0.1pt;"> </span>to prevent<span style="letter-spacing:0.05pt;"> </span>future<span style="letter-spacing:0.05pt;"> </span>events<span style="letter-spacing:0.05pt;"> </span>of this<span style="letter-spacing:0.05pt;"> </span>nature<span style="letter-spacing:0.05pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>occurring.</p>
<p style="line-height:9pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:9pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">While<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>experienced<span style="letter-spacing:0.15pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>system<span style="letter-spacing:0.1pt;"> </span>failure,<span style="letter-spacing:0.15pt;"> </span>accident<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>security<span style="letter-spacing:0.1pt;"> </span>breach<span style="letter-spacing:0.05pt;"> </span>to date,<span style="letter-spacing:0.05pt;"> </span>and believe<span style="letter-spacing:0.05pt;"> </span>that our<span style="letter-spacing:0.55pt;"> </span>data<span style="letter-spacing:0.6pt;"> </span>protection<span style="letter-spacing:0.65pt;"> </span>efforts<span style="letter-spacing:0.6pt;"> </span>and<span style="letter-spacing:0.5pt;"> </span>our<span style="letter-spacing:0.5pt;"> </span>investment<span style="letter-spacing:0.6pt;"> </span>in<span style="letter-spacing:0.5pt;"> </span>information<span style="letter-spacing:0.65pt;"> </span>technology<span style="letter-spacing:0.55pt;"> </span>reduce<span style="letter-spacing:0.55pt;"> </span>the<span style="letter-spacing:0.55pt;"> </span>likelihood<span style="letter-spacing:0.6pt;"> </span>of<span style="letter-spacing:0.5pt;"> </span>such<span style="letter-spacing:0.5pt;"> </span>incidents in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>future,<span style="letter-spacing:0.05pt;"> </span>we cannot<span style="letter-spacing:0.05pt;"> </span>assure<span style="letter-spacing:0.05pt;"> </span>you that<span style="letter-spacing:0.05pt;"> </span>our data<span style="letter-spacing:0.05pt;"> </span>protection<span style="letter-spacing:0.1pt;"> </span>efforts<span style="letter-spacing:0.1pt;"> </span>and our investment<span style="letter-spacing:0.1pt;"> </span>in information<span style="letter-spacing:0.15pt;"> </span>technology will<span style="letter-spacing:0.1pt;"> </span>prevent<span style="letter-spacing:0.1pt;"> </span>significant<span style="letter-spacing:0.2pt;"> </span>breakdowns,<span style="letter-spacing:0.1pt;"> </span>data<span style="letter-spacing:0.1pt;"> </span>leakages,<span style="letter-spacing:0.05pt;"> </span>breaches<span style="letter-spacing:0.05pt;"> </span>in our systems,<span style="letter-spacing:0.1pt;"> </span>or those<span style="letter-spacing:0.05pt;"> </span>of our third-party<span style="letter-spacing:0.15pt;"> </span>CROs, CMOs,<span style="letter-spacing:0.05pt;"> </span>vendors<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>contractors<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>consultants,<span style="letter-spacing:0.15pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>cyber<span style="letter-spacing:0.05pt;"> </span>incidents<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>have a material<span style="letter-spacing:0.15pt;"> </span>adverse effect<span style="letter-spacing:1.45pt;"> </span>upon<span style="letter-spacing:1.35pt;"> </span>our<span style="letter-spacing:1.35pt;"> </span>reputation,<span style="letter-spacing:1.45pt;"> </span>business,<span style="letter-spacing:1.4pt;"> </span>operations<span style="letter-spacing:1.45pt;"> </span>or<span style="letter-spacing:1.35pt;"> </span>financial<span style="letter-spacing:1.45pt;"> </span>condition.<span style="letter-spacing:1.4pt;"> </span>For<span style="letter-spacing:1.35pt;"> </span>example,<span style="letter-spacing:1.4pt;"> </span>if<span style="letter-spacing:1.4pt;"> </span>such<span style="letter-spacing:1.3pt;"> </span>an<span style="letter-spacing:1.3pt;"> </span>event<span style="letter-spacing:1.35pt;"> </span>were<span style="letter-spacing:1.3pt;"> </span>to occur<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.1pt;"> </span>cause<span style="letter-spacing:0.15pt;"> </span>interruptions<span style="letter-spacing:0.25pt;"> </span>in<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.1pt;"> </span>operations,<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>those<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>third-party<span style="letter-spacing:0.2pt;"> </span>CROs, CMOs,<span style="letter-spacing:0.05pt;"> </span>vendors<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>other contractors<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>consultants,<span style="letter-spacing:0.15pt;"> </span>it<span style="letter-spacing:0.1pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>result<span style="letter-spacing:0.1pt;"> </span>in a material<span style="letter-spacing:0.15pt;"> </span>disruption<span style="letter-spacing:0.1pt;"> </span>of our programs<span style="letter-spacing:0.1pt;"> </span>and the<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>of our product<span style="letter-spacing:0.15pt;"> </span>candidates<span style="letter-spacing:0.2pt;"> </span>could<span style="letter-spacing:0.15pt;"> </span>be<span style="letter-spacing:0.1pt;"> </span>delayed.<span style="letter-spacing:0.15pt;"> </span>In<span style="letter-spacing:0.1pt;"> </span>addition,<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>loss<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trial<span style="letter-spacing:0.15pt;"> </span>data<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>PRT543, PRT811, PRT1419 or any<span style="letter-spacing:0.85pt;"> </span>other<span style="letter-spacing:0.9pt;"> </span>product<span style="letter-spacing:0.85pt;"> </span>candidates<span style="letter-spacing:0.9pt;"> </span>could<span style="letter-spacing:0.85pt;"> </span>result<span style="letter-spacing:0.9pt;"> </span>in<span style="letter-spacing:0.8pt;"> </span>delays<span style="letter-spacing:0.85pt;"> </span>in<span style="letter-spacing:0.8pt;"> </span>our<span style="letter-spacing:0.8pt;"> </span>marketing<span style="letter-spacing:0.9pt;"> </span>approval<span style="letter-spacing:0.85pt;"> </span>efforts<span style="letter-spacing:0.9pt;"> </span>and<span style="letter-spacing:0.8pt;"> </span>significantly<span style="letter-spacing:0.95pt;"> </span>increase our<span style="letter-spacing:0.05pt;"> </span>costs<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>recover<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>reproduce<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>data.<span style="letter-spacing:0.1pt;"> </span>Furthermore,<span style="letter-spacing:0.15pt;"> </span>significant<span style="letter-spacing:0.2pt;"> </span>disruptions<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our internal<span style="letter-spacing:0.1pt;"> </span>information technology<span style="letter-spacing:0.1pt;"> </span>systems<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>those<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>third-party<span style="letter-spacing:0.2pt;"> </span>CROs, CMOs,<span style="letter-spacing:0.05pt;"> </span>vendors<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span></p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">50</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">contractors</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and consultants,</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or security</span><span style="letter-spacing:0.8pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">breaches</span><span style="letter-spacing:0.75pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</span><span style="letter-spacing:0.75pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">result</span><span style="letter-spacing:0.8pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in</span><span style="letter-spacing:0.7pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="letter-spacing:0.75pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">loss,</span><span style="letter-spacing:0.75pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">misappropriation</span><span style="letter-spacing:0.85pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and/or</span><span style="letter-spacing:0.75pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">unauthorized</span><span style="letter-spacing:0.8pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">access,</span><span style="letter-spacing:0.75pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">use,</span><span style="letter-spacing:0.7pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or</span><span style="letter-spacing:0.7pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">disclosure</span><span style="letter-spacing:0.8pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of,</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or the</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">prevention</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">access</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to,</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">confidential</span><span style="letter-spacing:0.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">information</span><span style="letter-spacing:0.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(including</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">trade</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">secrets</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or other</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">intellectual</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">property, proprietary</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">business</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">information</span><span style="letter-spacing:0.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">personal</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">information),</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">which could</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">result</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in financial,</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">legal,</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">business</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and reputational</span><span style="letter-spacing:0.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">harm</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to us. For example,</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">any such event</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">that</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">leads</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to unauthorized</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">access,</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">use, or disclosure</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of personal</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">information,</span><span style="letter-spacing:0.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">including</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">personal</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">information</span><span style="letter-spacing:0.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">regarding</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">clinical</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">trial</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">subjects</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or employees,</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could harm</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">reputation</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">directly,</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">compel</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">us</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">comply</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">with</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">federal</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and/or</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">state</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">breach</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">notification</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">laws and foreign law</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">equivalents,</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">subject</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">us</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to mandatory</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">corrective</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">action,</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and otherwise</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">subject</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">us to liability</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">under</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">laws and regulations</span><span style="letter-spacing:0.9pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">that</span><span style="letter-spacing:0.85pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">protect</span><span style="letter-spacing:0.9pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="letter-spacing:0.85pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">privacy</span><span style="letter-spacing:0.85pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</span><span style="letter-spacing:0.8pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">security</span><span style="letter-spacing:0.9pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="letter-spacing:0.8pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">personal</span><span style="letter-spacing:0.85pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">information,</span><span style="letter-spacing:0.95pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">which</span><span style="letter-spacing:0.75pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</span><span style="letter-spacing:0.8pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">result</span><span style="letter-spacing:0.85pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in</span><span style="letter-spacing:0.75pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">significant</span><span style="letter-spacing:0.9pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">legal and financial</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">exposure</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and reputational</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">damages</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">that</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">potentially</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">have an adverse</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">effect</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">on our business.</span></p>
<p style="margin-top:0pt;line-height:13pt;margin-bottom:0pt;text-indent:0%;font-size:13pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Failure<span style="letter-spacing:0.05pt;"> </span>to comply<span style="letter-spacing:0.05pt;"> </span>with health<span style="letter-spacing:0.05pt;"> </span>and data protection<span style="letter-spacing:0.1pt;"> </span>laws and regulations<span style="letter-spacing:0.05pt;"> </span>could lead<span style="letter-spacing:0.05pt;"> </span>to government enforcement<span style="letter-spacing:0.1pt;"> </span>actions<span style="letter-spacing:0.05pt;"> </span>(which could include<span style="letter-spacing:0.05pt;"> </span>civil<span style="letter-spacing:0.1pt;"> </span>or criminal<span style="letter-spacing:0.1pt;"> </span>penalties),<span style="letter-spacing:0.1pt;"> </span>private<span style="letter-spacing:0.05pt;"> </span>litigation<span style="letter-spacing:0.1pt;"> </span>and/or adverse publicity<span style="letter-spacing:0.1pt;"> </span>and could negatively<span style="letter-spacing:0.1pt;"> </span>affect<span style="letter-spacing:0.1pt;"> </span>our operating<span style="letter-spacing:0.05pt;"> </span>results<span style="letter-spacing:0.05pt;"> </span>and business.</p>
<p style="margin-top:4pt;margin-bottom:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>potential<span style="letter-spacing:0.15pt;"> </span>collaborators<span style="letter-spacing:0.2pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>subject<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>federal,<span style="letter-spacing:0.15pt;"> </span>state<span style="letter-spacing:0.1pt;"> </span>and foreign<span style="letter-spacing:0.05pt;"> </span>data<span style="letter-spacing:0.05pt;"> </span>protection<span style="letter-spacing:0.1pt;"> </span>laws and regulations<span style="letter-spacing:0.15pt;"> </span>(i.e.,<span style="letter-spacing:0.1pt;"> </span>laws<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>regulations<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>address<span style="letter-spacing:0.1pt;"> </span>privacy<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>data<span style="letter-spacing:0.1pt;"> </span>security).<span style="letter-spacing:0.15pt;"> </span>In the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>States,<span style="letter-spacing:0.05pt;"> </span>numerous federal<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>state<span style="letter-spacing:0.05pt;"> </span>laws and regulations,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>federal<span style="letter-spacing:0.1pt;"> </span>health<span style="letter-spacing:0.05pt;"> </span>information<span style="letter-spacing:0.15pt;"> </span>privacy<span style="letter-spacing:0.05pt;"> </span>laws, state<span style="letter-spacing:0.05pt;"> </span>data<span style="letter-spacing:0.05pt;"> </span>breach notification<span style="letter-spacing:0.2pt;"> </span>laws,<span style="letter-spacing:0.05pt;"> </span>state<span style="letter-spacing:0.1pt;"> </span>health<span style="letter-spacing:0.05pt;"> </span>information<span style="letter-spacing:0.15pt;"> </span>privacy<span style="letter-spacing:0.05pt;"> </span>laws and federal<span style="letter-spacing:0.1pt;"> </span>and state<span style="letter-spacing:0.05pt;"> </span>consumer<span style="letter-spacing:0.05pt;"> </span>protection<span style="letter-spacing:0.1pt;"> </span>laws (e.g., Section<span style="letter-spacing:1.25pt;"> </span>5<span style="letter-spacing:1.2pt;"> </span>of<span style="letter-spacing:1.2pt;"> </span>the<span style="letter-spacing:1.25pt;"> </span>Federal<span style="letter-spacing:1.25pt;"> </span>Trade<span style="letter-spacing:1.25pt;"> </span>Commission<span style="letter-spacing:1.3pt;"> </span>Act),<span style="letter-spacing:1.25pt;"> </span>that<span style="letter-spacing:1.25pt;"> </span>govern<span style="letter-spacing:1.25pt;"> </span>the<span style="letter-spacing:1.2pt;"> </span>collection,<span style="letter-spacing:1.25pt;"> </span>use,<span style="letter-spacing:1.15pt;"> </span>disclosure<span style="letter-spacing:1.25pt;"> </span>and<span style="letter-spacing:1.15pt;"> </span>protection<span style="letter-spacing:1.25pt;"> </span>of health-related<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>personal<span style="letter-spacing:0.1pt;"> </span>information<span style="letter-spacing:0.2pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>apply<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>operations<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>operations<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our collaborators. In addition,<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>obtain<span style="letter-spacing:0.05pt;"> </span>health<span style="letter-spacing:0.05pt;"> </span>information<span style="letter-spacing:0.15pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.1pt;"> </span>(including<span style="letter-spacing:0.1pt;"> </span>research<span style="letter-spacing:0.1pt;"> </span>institutions<span style="letter-spacing:0.15pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>which we obtain<span style="letter-spacing:0.15pt;"> </span>clinical<span style="letter-spacing:0.2pt;"> </span>trial<span style="letter-spacing:0.2pt;"> </span>data)<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.15pt;"> </span>are<span style="letter-spacing:0.15pt;"> </span>subject<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>privacy<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>security<span style="letter-spacing:0.15pt;"> </span>requirements<span style="letter-spacing:0.2pt;"> </span>under<span style="letter-spacing:0.1pt;"> </span>HIPAA, as<span style="letter-spacing:0.05pt;"> </span>amended<span style="letter-spacing:0.1pt;"> </span>by HITECH. Depending<span style="letter-spacing:0.05pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>facts<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>circumstances,<span style="letter-spacing:0.2pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>subject<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>criminal<span style="letter-spacing:0.15pt;"> </span>penalties<span style="letter-spacing:0.15pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>knowingly obtain,<span style="letter-spacing:0.1pt;"> </span>use,<span style="letter-spacing:0.05pt;"> </span>or disclose<span style="letter-spacing:0.1pt;"> </span>individually<span style="letter-spacing:0.1pt;"> </span>identifiable<span style="letter-spacing:0.15pt;"> </span>health<span style="letter-spacing:0.05pt;"> </span>information<span style="letter-spacing:0.15pt;"> </span>maintained<span style="letter-spacing:0.1pt;"> </span>by a HIPAA-covered entity<span style="letter-spacing:0.05pt;"> </span>in a manner<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>not authorized<span style="letter-spacing:0.1pt;"> </span>or permitted<span style="letter-spacing:0.1pt;"> </span>by HIPAA.</p>
<p style="line-height:9pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:9pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">International<span style="letter-spacing:1.4pt;"> </span>data<span style="letter-spacing:1.3pt;"> </span>protection<span style="letter-spacing:1.35pt;"> </span>laws,<span style="letter-spacing:1.25pt;"> </span>including<span style="letter-spacing:1.3pt;"> </span>Regulation<span style="letter-spacing:1.3pt;"> </span>2016/679,<span style="letter-spacing:1.25pt;"> </span>known<span style="letter-spacing:1.25pt;"> </span>as<span style="letter-spacing:1.25pt;"> </span>the<span style="letter-spacing:1.25pt;"> </span>General<span style="letter-spacing:1.25pt;"> </span>Data<span style="letter-spacing:1.2pt;"> </span>Protection Regulation,<span style="letter-spacing:1.1pt;"> </span>or<span style="letter-spacing:1.05pt;"> </span>GDPR,<span style="letter-spacing:1pt;"> </span>may<span style="letter-spacing:1.1pt;"> </span>also<span style="letter-spacing:1.1pt;"> </span>apply<span style="letter-spacing:1.1pt;"> </span>to<span style="letter-spacing:1.05pt;"> </span>health-related<span style="letter-spacing:1.2pt;"> </span>and<span style="letter-spacing:1.05pt;"> </span>other<span style="letter-spacing:1.1pt;"> </span>personal<span style="letter-spacing:1.1pt;"> </span>information<span style="letter-spacing:1.2pt;"> </span>obtained<span style="letter-spacing:1.05pt;"> </span>outside<span style="letter-spacing:1.05pt;"> </span>of<span style="letter-spacing:1pt;"> </span>the United<span style="letter-spacing:0.1pt;"> </span>States.<span style="letter-spacing:0.1pt;"> </span>The<span style="letter-spacing:0.05pt;"> </span>GDPR went<span style="letter-spacing:0.05pt;"> </span>into<span style="letter-spacing:0.1pt;"> </span>effect<span style="letter-spacing:0.15pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>May<span style="letter-spacing:0.05pt;"> </span>25,<span style="letter-spacing:0.05pt;"> </span>2018.<span style="letter-spacing:0.05pt;"> </span>The<span style="letter-spacing:0.05pt;"> </span>GDPR introduced<span style="letter-spacing:0.15pt;"> </span>new data<span style="letter-spacing:0.05pt;"> </span>protection requirements<span style="letter-spacing:0.2pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>EU, as<span style="letter-spacing:0.05pt;"> </span>well<span style="letter-spacing:0.1pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>potential<span style="letter-spacing:0.15pt;"> </span>fines<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>noncompliant<span style="letter-spacing:0.15pt;"> </span>companies<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>up to the<span style="letter-spacing:0.05pt;"> </span>greater<span style="letter-spacing:0.1pt;"> </span>of &#8364;20 million or<span style="letter-spacing:0.05pt;"> </span>4%<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>annual<span style="letter-spacing:0.1pt;"> </span>global<span style="letter-spacing:0.1pt;"> </span>revenue.<span style="letter-spacing:0.1pt;"> </span>The<span style="letter-spacing:0.05pt;"> </span>regulation<span style="letter-spacing:0.15pt;"> </span>imposes<span style="letter-spacing:0.1pt;"> </span>numerous<span style="letter-spacing:0.1pt;"> </span>new<span style="letter-spacing:0.05pt;"> </span>requirements<span style="letter-spacing:0.2pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>collection,<span style="letter-spacing:0.1pt;"> </span>use and disclosure<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>personal<span style="letter-spacing:0.1pt;"> </span>information,<span style="letter-spacing:0.2pt;"> </span>including<span style="letter-spacing:0.1pt;"> </span>more<span style="letter-spacing:0.1pt;"> </span>stringent<span style="letter-spacing:0.15pt;"> </span>requirements<span style="letter-spacing:0.2pt;"> </span>relating<span style="letter-spacing:0.1pt;"> </span>to consent<span style="letter-spacing:0.05pt;"> </span>and the<span style="letter-spacing:0.05pt;"> </span>information that<span style="letter-spacing:0.1pt;"> </span>must<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>shared<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>data<span style="letter-spacing:0.1pt;"> </span>subjects<span style="letter-spacing:0.15pt;"> </span>about<span style="letter-spacing:0.1pt;"> </span>how<span style="letter-spacing:0.05pt;"> </span>their<span style="letter-spacing:0.1pt;"> </span>personal<span style="letter-spacing:0.1pt;"> </span>information<span style="letter-spacing:0.15pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>used, the<span style="letter-spacing:0.05pt;"> </span>obligation<span style="letter-spacing:0.1pt;"> </span>to notify regulators<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>affected<span style="letter-spacing:0.1pt;"> </span>individuals<span style="letter-spacing:0.1pt;"> </span>of personal<span style="letter-spacing:0.05pt;"> </span>data<span style="letter-spacing:0.05pt;"> </span>breaches,<span style="letter-spacing:0.05pt;"> </span>extensive<span style="letter-spacing:0.1pt;"> </span>new internal<span style="letter-spacing:0.1pt;"> </span>privacy<span style="letter-spacing:0.05pt;"> </span>governance obligations<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>obligations<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>honor<span style="letter-spacing:0.05pt;"> </span>expanded<span style="letter-spacing:0.1pt;"> </span>rights<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>individuals<span style="letter-spacing:0.15pt;"> </span>in relation<span style="letter-spacing:0.1pt;"> </span>to their<span style="letter-spacing:0.05pt;"> </span>personal<span style="letter-spacing:0.05pt;"> </span>information<span style="letter-spacing:0.15pt;"> </span>(e.g., the<span style="letter-spacing:0.15pt;"> </span>right<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.1pt;"> </span>access,<span style="letter-spacing:0.1pt;"> </span>correct<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>delete<span style="letter-spacing:0.1pt;"> </span>their<span style="letter-spacing:0.1pt;"> </span>data).<span style="letter-spacing:0.1pt;"> </span>In<span style="letter-spacing:0.05pt;"> </span>addition,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>GDPR includes<span style="letter-spacing:0.1pt;"> </span>restrictions<span style="letter-spacing:0.2pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>cross-border<span style="letter-spacing:0.15pt;"> </span>data transfer.<span style="letter-spacing:0.15pt;"> </span>The<span style="letter-spacing:0.05pt;"> </span>GDPR will<span style="letter-spacing:0.1pt;"> </span>increase<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>responsibility<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>liability<span style="letter-spacing:0.15pt;"> </span>in relation<span style="letter-spacing:0.1pt;"> </span>to personal<span style="letter-spacing:0.05pt;"> </span>data<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we process,<span style="letter-spacing:0.05pt;"> </span>and we<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.15pt;"> </span>be<span style="letter-spacing:0.1pt;"> </span>required<span style="letter-spacing:0.2pt;"> </span>to<span style="letter-spacing:0.1pt;"> </span>put<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.1pt;"> </span>place<span style="letter-spacing:0.15pt;"> </span>additional<span style="letter-spacing:0.2pt;"> </span>mechanisms<span style="letter-spacing:0.2pt;"> </span>to<span style="letter-spacing:0.1pt;"> </span>ensure<span style="letter-spacing:0.15pt;"> </span>compliance<span style="letter-spacing:0.2pt;"> </span>with<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>new<span style="letter-spacing:0.05pt;"> </span>EU data<span style="letter-spacing:0.1pt;"> </span>protection rules. In addition, the GDPR prohibits the transfer of personal data to countries outside of the European Economic<span style="letter-spacing:0.1pt;"> </span>Area,<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>EEA, such<span style="letter-spacing:0.05pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>United<span style="letter-spacing:0.1pt;"> </span>States,<span style="letter-spacing:0.1pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>considered<span style="letter-spacing:0.15pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>European<span style="letter-spacing:0.1pt;"> </span>Commission<span style="letter-spacing:0.1pt;"> </span>to provide<span style="letter-spacing:1.5pt;"> </span>an<span style="letter-spacing:1.4pt;"> </span>adequate<span style="letter-spacing:1.45pt;"> </span>level<span style="letter-spacing:1.45pt;"> </span>of<span style="letter-spacing:1.4pt;"> </span>data<span style="letter-spacing:1.45pt;"> </span>protection.<span style="letter-spacing:1.5pt;"> </span>Switzerland<span style="letter-spacing:1.5pt;"> </span>has<span style="letter-spacing:1.4pt;"> </span>adopted<span style="letter-spacing:1.45pt;"> </span>similar<span style="letter-spacing:1.5pt;"> </span>restrictions.<span style="letter-spacing:1.55pt;"> </span>Although<span style="letter-spacing:1.4pt;"> </span>there<span style="letter-spacing:1.45pt;"> </span>are legal<span style="letter-spacing:0.15pt;"> </span>mechanisms<span style="letter-spacing:0.2pt;"> </span>to<span style="letter-spacing:0.1pt;"> </span>allow<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>transfer<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>personal<span style="letter-spacing:0.1pt;"> </span>data<span style="letter-spacing:0.1pt;"> </span>from<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>EEA and<span style="letter-spacing:0.05pt;"> </span>Switzerland<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>United<span style="letter-spacing:0.1pt;"> </span>States, they<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>subject<span style="letter-spacing:0.05pt;"> </span>to pending<span style="letter-spacing:0.05pt;"> </span>legal<span style="letter-spacing:0.05pt;"> </span>challenges<span style="letter-spacing:0.1pt;"> </span>that,<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>successful,<span style="letter-spacing:0.1pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>invalidate<span style="letter-spacing:0.1pt;"> </span>these<span style="letter-spacing:0.05pt;"> </span>mechanisms,<span style="letter-spacing:0.05pt;"> </span>restrict<span style="letter-spacing:0.1pt;"> </span>our ability<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>process<span style="letter-spacing:0.1pt;"> </span>personal<span style="letter-spacing:0.1pt;"> </span>data<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>Europeans<span style="letter-spacing:0.1pt;"> </span>outside<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>Europe<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>adversely<span style="letter-spacing:0.15pt;"> </span>impact<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>business.<span style="letter-spacing:0.1pt;"> </span>For example, in<span style="letter-spacing:0.5pt;"> </span>July<span style="letter-spacing:0.55pt;"> </span>2020,<span style="letter-spacing:0.5pt;"> </span>the<span style="letter-spacing:0.55pt;"> </span>European<span style="letter-spacing:0.55pt;"> </span>Courts<span style="letter-spacing:0.55pt;"> </span>of<span style="letter-spacing:0.5pt;"> </span>Justice<span style="letter-spacing:0.6pt;"> </span>invalidated<span style="letter-spacing:0.6pt;"> </span>the<span style="letter-spacing:0.5pt;"> </span>EU-U.S.<span style="letter-spacing:0.4pt;"> </span>Privacy<span style="letter-spacing:0.5pt;"> </span>Shield,<span style="letter-spacing:0.5pt;"> </span>which<span style="letter-spacing:0.45pt;"> </span>enabled<span style="letter-spacing:0.5pt;"> </span>the<span style="letter-spacing:0.5pt;"> </span>transfer of<span style="letter-spacing:0.6pt;"> </span>personal<span style="letter-spacing:0.65pt;"> </span>data<span style="letter-spacing:0.65pt;"> </span>from<span style="letter-spacing:0.65pt;"> </span>EU<span style="letter-spacing:0.55pt;"> </span>to<span style="letter-spacing:0.6pt;"> </span>the<span style="letter-spacing:0.65pt;"> </span>U.S.<span style="letter-spacing:0.55pt;"> </span>for<span style="letter-spacing:0.65pt;"> </span>companies<span style="letter-spacing:0.7pt;"> </span>that<span style="letter-spacing:0.65pt;"> </span>had<span style="letter-spacing:0.6pt;"> </span>self-certified<span style="letter-spacing:0.8pt;"> </span>to<span style="letter-spacing:0.6pt;"> </span>the<span style="letter-spacing:0.65pt;"> </span>Privacy<span style="letter-spacing:0.6pt;"> </span>Shield.<span style="letter-spacing:0.6pt;"> </span>On<span style="letter-spacing:0.55pt;"> </span>August<span style="letter-spacing:0.55pt;"> </span>10, 2020,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>U.S. Department<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>Commerce<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>European<span style="letter-spacing:0.1pt;"> </span>Commission<span style="letter-spacing:0.15pt;"> </span>announced<span style="letter-spacing:0.1pt;"> </span>new<span style="letter-spacing:0.05pt;"> </span>discussions<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>evaluate the<span style="letter-spacing:1.25pt;"> </span>potential<span style="letter-spacing:1.25pt;"> </span>for<span style="letter-spacing:1.2pt;"> </span>an<span style="letter-spacing:1.15pt;"> </span>enhanced<span style="letter-spacing:1.2pt;"> </span>EU-U.S.<span style="letter-spacing:1.1pt;"> </span>Privacy<span style="letter-spacing:1.2pt;"> </span>Shield<span style="letter-spacing:1.2pt;"> </span>framework<span style="letter-spacing:1.25pt;"> </span>to<span style="letter-spacing:1.15pt;"> </span>comply<span style="letter-spacing:1.2pt;"> </span>with<span style="letter-spacing:1.15pt;"> </span>the<span style="letter-spacing:1.2pt;"> </span>July<span style="letter-spacing:1.2pt;"> </span>16<span style="letter-spacing:1.15pt;"> </span>judgment<span style="letter-spacing:1.2pt;"> </span>of<span style="letter-spacing:1.15pt;"> </span>the Court<span style="letter-spacing:1.95pt;"> </span>of<span style="letter-spacing:1.95pt;"> </span>Justice.<span style="letter-spacing:2.05pt;"> </span>While<span style="letter-spacing:2pt;"> </span>the<span style="letter-spacing:2pt;"> </span>Court<span style="letter-spacing:1.95pt;"> </span>of<span style="letter-spacing:1.95pt;"> </span>Justice<span style="letter-spacing:2.05pt;"> </span>upheld<span style="letter-spacing:2pt;"> </span>the<span style="letter-spacing:2pt;"> </span>use<span style="letter-spacing:1.9pt;"> </span>of<span style="letter-spacing:1.9pt;"> </span>other<span style="letter-spacing:1.95pt;"> </span>data<span style="letter-spacing:1.95pt;"> </span>transfer<span style="letter-spacing:2pt;"> </span>mechanisms,<span style="letter-spacing:2pt;"> </span>such<span style="letter-spacing:1.9pt;"> </span>as<span style="letter-spacing:1.9pt;"> </span>the Binding<span style="letter-spacing:0.05pt;"> </span>Corporate<span style="letter-spacing:0.1pt;"> </span>Rules,<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>decision<span style="letter-spacing:0.1pt;"> </span>has led<span style="letter-spacing:0.05pt;"> </span>to some<span style="letter-spacing:0.05pt;"> </span>uncertainty<span style="letter-spacing:0.1pt;"> </span>regarding<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>use of such mechanisms<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>data transfers<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>United<span style="letter-spacing:0.1pt;"> </span>States,<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>court<span style="letter-spacing:0.1pt;"> </span>made<span style="letter-spacing:0.1pt;"> </span>clear<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>reliance<span style="letter-spacing:0.15pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>Binding Corporate<span style="letter-spacing:0.05pt;"> </span>Rules alone<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>not necessarily<span style="letter-spacing:0.15pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>sufficient<span style="letter-spacing:0.2pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>all<span style="letter-spacing:0.1pt;"> </span>circumstances.<span style="letter-spacing:0.2pt;"> </span>Use<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>data<span style="letter-spacing:0.1pt;"> </span>transfer<span style="letter-spacing:0.15pt;"> </span>mechanisms<span style="letter-spacing:0.15pt;"> </span>must<span style="letter-spacing:0.1pt;"> </span>now<span style="letter-spacing:0.05pt;"> </span>be assessed<span style="letter-spacing:0.05pt;"> </span>on a case-by-case<span style="letter-spacing:0.15pt;"> </span>basis<span style="letter-spacing:0.1pt;"> </span>taking<span style="letter-spacing:0.1pt;"> </span>into<span style="letter-spacing:0.05pt;"> </span>account<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>legal<span style="letter-spacing:0.05pt;"> </span>regime<span style="letter-spacing:0.1pt;"> </span>applicable<span style="letter-spacing:0.1pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>destination<span style="letter-spacing:0.1pt;"> </span>country,<span style="letter-spacing:0.05pt;"> </span>in particular applicable<span style="letter-spacing:0.15pt;"> </span>surveillance<span style="letter-spacing:0.2pt;"> </span>laws<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>rights<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>individuals.<span style="letter-spacing:0.15pt;"> </span>The European<span style="letter-spacing:0.05pt;"> </span>Data Protection<span style="letter-spacing:0.1pt;"> </span>Board issued<span style="letter-spacing:0.05pt;"> </span>additional guidance<span style="letter-spacing:0.1pt;"> </span>regarding<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>Court<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>Justice&#8217;s<span style="letter-spacing:0.15pt;"> </span>decision<span style="letter-spacing:0.1pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>November<span style="letter-spacing:0.1pt;"> </span>11,<span style="letter-spacing:0.05pt;"> </span>2020 which imposes<span style="letter-spacing:0.05pt;"> </span>higher<span style="letter-spacing:0.05pt;"> </span>burdens<span style="letter-spacing:0.05pt;"> </span>on the use<span style="letter-spacing:0.05pt;"> </span>of data<span style="letter-spacing:0.05pt;"> </span>transfer<span style="letter-spacing:0.1pt;"> </span>mechanisms,<span style="letter-spacing:0.1pt;"> </span>such as the<span style="letter-spacing:0.05pt;"> </span>Binding Corporate<span style="letter-spacing:0.05pt;"> </span>Rules, for<span style="letter-spacing:0.05pt;"> </span>cross-border<span style="letter-spacing:0.1pt;"> </span>data<span style="letter-spacing:0.05pt;"> </span>transfers.<span style="letter-spacing:0.1pt;"> </span>To comply with<span style="letter-spacing:0.05pt;"> </span>this<span style="letter-spacing:0.1pt;"> </span>guidance,<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>need to implement<span style="letter-spacing:0.1pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>safeguards<span style="letter-spacing:0.1pt;"> </span>to further<span style="letter-spacing:0.1pt;"> </span>enhance<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>security<span style="letter-spacing:0.1pt;"> </span>of data transferred<span style="letter-spacing:0.15pt;"> </span>out of the<span style="letter-spacing:0.05pt;"> </span>European<span style="letter-spacing:0.05pt;"> </span>Economic<span style="letter-spacing:0.05pt;"> </span>Area, which could<span style="letter-spacing:0.05pt;"> </span>increase<span style="letter-spacing:0.1pt;"> </span>our compliance<span style="letter-spacing:0.1pt;"> </span>costs,<span style="letter-spacing:0.05pt;"> </span>expose<span style="letter-spacing:0.05pt;"> </span>us to further regulatory<span style="letter-spacing:0.15pt;"> </span>scrutiny<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>liability,<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>adversely<span style="letter-spacing:0.15pt;"> </span>affect<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>business.<span style="letter-spacing:0.05pt;"> </span>To the<span style="letter-spacing:0.05pt;"> </span>extent<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we were to rely<span style="letter-spacing:0.05pt;"> </span>on Privacy Shield,<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>able<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>do<span style="letter-spacing:0.05pt;"> </span>so<span style="letter-spacing:0.05pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>future,<span style="letter-spacing:0.1pt;"> </span>which could<span style="letter-spacing:0.05pt;"> </span>increase<span style="letter-spacing:0.1pt;"> </span>our costs<span style="letter-spacing:0.05pt;"> </span>and our ability<span style="letter-spacing:0.1pt;"> </span>to efficiently process<span style="letter-spacing:0.05pt;"> </span>personal<span style="letter-spacing:0.05pt;"> </span>data<span style="letter-spacing:0.05pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>EU.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Further,<span style="letter-spacing:0.1pt;"> </span>Brexit<span style="letter-spacing:0.1pt;"> </span>has<span style="letter-spacing:0.05pt;"> </span>created<span style="letter-spacing:0.15pt;"> </span>uncertainty<span style="letter-spacing:0.15pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>regard<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>data<span style="letter-spacing:0.1pt;"> </span>protection<span style="letter-spacing:0.15pt;"> </span>regulation<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>Kingdom. In particular,<span style="letter-spacing:0.2pt;"> </span>while<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>Data<span style="letter-spacing:0.05pt;"> </span>Protection<span style="letter-spacing:0.15pt;"> </span>Act<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>2018,<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>&#8220;implements&#8221;<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>complements<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>GDPR<span style="letter-spacing:-0.05pt;"> </span>achieved<span style="letter-spacing:0.05pt;"> </span>Royal Assent<span style="letter-spacing:0.05pt;"> </span>on May 23, 2018 and is<span style="letter-spacing:0.05pt;"> </span>now effective<span style="letter-spacing:0.1pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>Kingdom, it<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>still<span style="letter-spacing:0.1pt;"> </span>unclear<span style="letter-spacing:0.05pt;"> </span>whether<span style="letter-spacing:0.05pt;"> </span>transfer<span style="letter-spacing:0.1pt;"> </span>of data from<span style="letter-spacing:1.05pt;"> </span>the<span style="letter-spacing:1.05pt;"> </span>EEA<span style="letter-spacing:0.95pt;"> </span>to<span style="letter-spacing:1pt;"> </span>the<span style="letter-spacing:1.05pt;"> </span>United<span style="letter-spacing:1.05pt;"> </span>Kingdom<span style="letter-spacing:1pt;"> </span>will<span style="letter-spacing:1.05pt;"> </span>remain<span style="letter-spacing:1.1pt;"> </span>lawful<span style="letter-spacing:1.05pt;"> </span>under<span style="letter-spacing:1.05pt;"> </span>GDPR.<span style="letter-spacing:0.95pt;"> </span>During<span style="letter-spacing:1pt;"> </span>the<span style="letter-spacing:1.05pt;"> </span>period<span style="letter-spacing:1pt;"> </span>of<span style="letter-spacing:0.95pt;"> </span>&#8220;transition&#8221;<span style="letter-spacing:1.1pt;"> </span>(i.e., until<span style="letter-spacing:1.4pt;"> </span>December<span style="letter-spacing:1.4pt;"> </span>31,<span style="letter-spacing:1.35pt;"> </span>2020),<span style="letter-spacing:1.35pt;"> </span>EU<span style="letter-spacing:1.3pt;"> </span>law<span style="letter-spacing:1.35pt;"> </span>will<span style="letter-spacing:1.4pt;"> </span>continue<span style="letter-spacing:1.4pt;"> </span>to<span style="letter-spacing:1.3pt;"> </span>apply<span style="letter-spacing:1.35pt;"> </span>in<span style="letter-spacing:1.3pt;"> </span>the<span style="letter-spacing:1.35pt;"> </span>United<span style="letter-spacing:1.35pt;"> </span>Kingdom,<span style="letter-spacing:1.3pt;"> </span>including<span style="letter-spacing:1.35pt;"> </span>the<span style="letter-spacing:1.35pt;"> </span>GDPR,<span style="letter-spacing:1.25pt;"> </span>after which<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>GDPR will<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>converted<span style="letter-spacing:0.1pt;"> </span>into<span style="letter-spacing:0.1pt;"> </span>United<span style="letter-spacing:0.1pt;"> </span>Kingdom<span style="letter-spacing:0.05pt;"> </span>law. Beginning<span style="letter-spacing:0.05pt;"> </span>in 2021, the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>Kingdom became a &#8220;third<span style="letter-spacing:1.95pt;"> </span>country&#8221;<span style="letter-spacing:1.9pt;"> </span>under<span style="letter-spacing:1.9pt;"> </span>the<span style="letter-spacing:1.9pt;"> </span>GDPR.<span style="letter-spacing:1.8pt;"> </span>We<span style="letter-spacing:1.85pt;"> </span>may,<span style="letter-spacing:1.9pt;"> </span>however,<span style="letter-spacing:1.85pt;"> </span>incur<span style="letter-spacing:1.9pt;"> </span>liabilities,<span style="letter-spacing:2pt;"> </span>expenses,<span style="letter-spacing:1.9pt;"> </span>costs,<span style="letter-spacing:1.9pt;"> </span>and<span style="letter-spacing:1.85pt;"> </span>other<span style="letter-spacing:1.9pt;"> </span>operational losses<span style="letter-spacing:0.1pt;"> </span>under<span style="letter-spacing:0.1pt;"> </span>GDPR and<span style="letter-spacing:0.05pt;"> </span>applicable<span style="letter-spacing:0.15pt;"> </span>EU Member<span style="letter-spacing:0.1pt;"> </span>States<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>Kingdom privacy<span style="letter-spacing:0.05pt;"> </span>laws in connection<span style="letter-spacing:0.05pt;"> </span>with any measures<span style="letter-spacing:0.1pt;"> </span>we take<span style="letter-spacing:0.05pt;"> </span>to comply<span style="letter-spacing:0.05pt;"> </span>with them.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">51</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In<span style="letter-spacing:0.1pt;"> </span>addition,<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>state<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.1pt;"> </span>California<span style="letter-spacing:0.2pt;"> </span>recently<span style="letter-spacing:0.15pt;"> </span>enacted<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>California<span style="letter-spacing:0.15pt;"> </span>Consumer<span style="letter-spacing:0.1pt;"> </span>Privacy<span style="letter-spacing:0.1pt;"> </span>Act,<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>CCPA, which creates<span style="letter-spacing:1.25pt;"> </span>new<span style="letter-spacing:1.15pt;"> </span>individual<span style="letter-spacing:1.25pt;"> </span>privacy<span style="letter-spacing:1.2pt;"> </span>rights<span style="letter-spacing:1.15pt;"> </span>for<span style="letter-spacing:1.15pt;"> </span>California<span style="letter-spacing:1.2pt;"> </span>consumers<span style="letter-spacing:1.2pt;"> </span>(as<span style="letter-spacing:1.15pt;"> </span>defined<span style="letter-spacing:1.15pt;"> </span>in<span style="letter-spacing:1.1pt;"> </span>the<span style="letter-spacing:1.15pt;"> </span>CCPA)<span style="letter-spacing:1.05pt;"> </span>and<span style="letter-spacing:1.1pt;"> </span>places<span style="letter-spacing:1.15pt;"> </span>increased privacy<span style="letter-spacing:1.9pt;"> </span>and<span style="letter-spacing:1.85pt;"> </span>security<span style="letter-spacing:1.95pt;"> </span>obligations<span style="letter-spacing:1.95pt;"> </span>on<span style="letter-spacing:1.85pt;"> </span>entities<span style="letter-spacing:1.95pt;"> </span>handling<span style="letter-spacing:1.9pt;"> </span>certain<span style="letter-spacing:1.9pt;"> </span>personal<span style="letter-spacing:1.85pt;"> </span>data<span style="letter-spacing:1.85pt;"> </span>of<span style="letter-spacing:1.8pt;"> </span>consumers<span style="letter-spacing:1.9pt;"> </span>or<span style="letter-spacing:1.8pt;"> </span>households.<span style="letter-spacing:1.85pt;"> </span>The CCPA requires covered companies to provide new disclosure to consumers about such companies&#8217; data collection,<span style="letter-spacing:0.15pt;"> </span>use<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>sharing<span style="letter-spacing:0.1pt;"> </span>practices,<span style="letter-spacing:0.15pt;"> </span>provide<span style="letter-spacing:0.1pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>consumers<span style="letter-spacing:0.15pt;"> </span>new<span style="letter-spacing:0.05pt;"> </span>ways to opt-out<span style="letter-spacing:0.05pt;"> </span>of certain<span style="letter-spacing:0.1pt;"> </span>sales<span style="letter-spacing:0.05pt;"> </span>or transfers<span style="letter-spacing:0.1pt;"> </span>of personal<span style="letter-spacing:1.25pt;"> </span>information,<span style="letter-spacing:1.35pt;"> </span>and<span style="letter-spacing:1.2pt;"> </span>provide<span style="letter-spacing:1.25pt;"> </span>consumers<span style="letter-spacing:1.3pt;"> </span>with<span style="letter-spacing:1.2pt;"> </span>additional<span style="letter-spacing:1.3pt;"> </span>causes<span style="letter-spacing:1.25pt;"> </span>of<span style="letter-spacing:1.2pt;"> </span>action.<span style="letter-spacing:1.25pt;"> </span>The<span style="letter-spacing:1.2pt;"> </span>CCPA<span style="letter-spacing:1.15pt;"> </span>went<span style="letter-spacing:1.2pt;"> </span>into<span style="letter-spacing:1.2pt;"> </span>effect<span style="letter-spacing:1.25pt;"> </span>on January<span style="letter-spacing:0.1pt;"> </span>1,<span style="letter-spacing:0.05pt;"> </span>2020<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>became<span style="letter-spacing:0.1pt;"> </span>enforceable<span style="letter-spacing:0.15pt;"> </span>by the<span style="letter-spacing:0.05pt;"> </span>California<span style="letter-spacing:0.1pt;"> </span>Attorney<span style="letter-spacing:0.05pt;"> </span>General<span style="letter-spacing:0.05pt;"> </span>on July<span style="letter-spacing:0.05pt;"> </span>1, 2020, along<span style="letter-spacing:0.05pt;"> </span>with related regulations<span style="letter-spacing:1.05pt;"> </span>which<span style="letter-spacing:0.9pt;"> </span>came<span style="letter-spacing:0.95pt;"> </span>into<span style="letter-spacing:0.95pt;"> </span>force<span style="letter-spacing:0.95pt;"> </span>on<span style="letter-spacing:0.9pt;"> </span>August<span style="letter-spacing:0.9pt;"> </span>14,<span style="letter-spacing:0.9pt;"> </span>2020<span style="letter-spacing:0.9pt;"> </span>and<span style="letter-spacing:0.9pt;"> </span>may<span style="letter-spacing:0.95pt;"> </span>impact<span style="letter-spacing:1pt;"> </span>our<span style="letter-spacing:0.9pt;"> </span>business<span style="letter-spacing:0.95pt;"> </span>activities<span style="letter-spacing:1.05pt;"> </span>and<span style="letter-spacing:0.9pt;"> </span>exemplifies the<span style="letter-spacing:0.1pt;"> </span>vulnerability<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>business<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>evolving<span style="letter-spacing:0.1pt;"> </span>regulatory<span style="letter-spacing:0.15pt;"> </span>environment<span style="letter-spacing:0.15pt;"> </span>related<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>personal<span style="letter-spacing:0.1pt;"> </span>data<span style="letter-spacing:0.05pt;"> </span>and protected health<span style="letter-spacing:0.05pt;"> </span>information.<span style="letter-spacing:0.15pt;"> </span>Additionally,<span style="letter-spacing:0.1pt;"> </span>although<span style="letter-spacing:0.05pt;"> </span>not effective<span style="letter-spacing:0.1pt;"> </span>until<span style="letter-spacing:0.05pt;"> </span>January<span style="letter-spacing:0.05pt;"> </span>1, 2023, the<span style="letter-spacing:0.05pt;"> </span>California<span style="letter-spacing:0.1pt;"> </span>Privacy Rights Act (the<span style="letter-spacing:0.1pt;"> </span>&#8220;CPRA&#8221;), which<span style="letter-spacing:0.05pt;"> </span>expands<span style="letter-spacing:0.1pt;"> </span>upon<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>CCPA, was<span style="letter-spacing:0.05pt;"> </span>passed<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>recent<span style="letter-spacing:0.1pt;"> </span>election<span style="letter-spacing:0.1pt;"> </span>on November<span style="letter-spacing:0.05pt;"> </span>3, 2020. The CCPA gives<span style="letter-spacing:0.1pt;"> </span>(and<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>CPRA will<span style="letter-spacing:0.1pt;"> </span>give)<span style="letter-spacing:0.1pt;"> </span>California<span style="letter-spacing:0.15pt;"> </span>residents<span style="letter-spacing:0.15pt;"> </span>expanded<span style="letter-spacing:0.1pt;"> </span>privacy<span style="letter-spacing:0.1pt;"> </span>rights,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>right<span style="letter-spacing:0.05pt;"> </span>to request correction,<span style="letter-spacing:0.15pt;"> </span>access,<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>deletion<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>their<span style="letter-spacing:0.1pt;"> </span>personal<span style="letter-spacing:0.05pt;"> </span>information,<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>right<span style="letter-spacing:0.05pt;"> </span>to opt out of certain<span style="letter-spacing:0.1pt;"> </span>personal<span style="letter-spacing:0.05pt;"> </span>information sharing,<span style="letter-spacing:0.05pt;"> </span>and the<span style="letter-spacing:0.05pt;"> </span>right<span style="letter-spacing:0.05pt;"> </span>to receive<span style="letter-spacing:0.1pt;"> </span>detailed<span style="letter-spacing:0.1pt;"> </span>information<span style="letter-spacing:0.15pt;"> </span>about<span style="letter-spacing:0.05pt;"> </span>how their<span style="letter-spacing:0.05pt;"> </span>personal<span style="letter-spacing:0.05pt;"> </span>information<span style="letter-spacing:0.1pt;"> </span>is processed. The CCPA and<span style="letter-spacing:0.05pt;"> </span>CPRA provide<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>unlimited<span style="letter-spacing:0.15pt;"> </span>civil<span style="letter-spacing:0.1pt;"> </span>penalties<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>violations,<span style="letter-spacing:0.15pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>well<span style="letter-spacing:0.1pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>private<span style="letter-spacing:0.15pt;"> </span>right<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>action<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>data breaches<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.15pt;"> </span>is<span style="letter-spacing:0.15pt;"> </span>expected<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.1pt;"> </span>increase<span style="letter-spacing:0.15pt;"> </span>data<span style="letter-spacing:0.1pt;"> </span>breach<span style="letter-spacing:0.1pt;"> </span>litigation.<span style="letter-spacing:0.2pt;"> </span>The<span style="letter-spacing:0.05pt;"> </span>CCPA and<span style="letter-spacing:0.05pt;"> </span>CPRA may<span style="letter-spacing:0.1pt;"> </span>increase<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>compliance costs<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.1pt;"> </span>potential<span style="letter-spacing:0.2pt;"> </span>liability,<span style="letter-spacing:0.25pt;"> </span>particularly<span style="letter-spacing:0.25pt;"> </span>in<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>event<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.1pt;"> </span>data<span style="letter-spacing:0.1pt;"> </span>breach.<span style="letter-spacing:0.1pt;"> </span>Additionally,<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>CCPA has<span style="letter-spacing:0.05pt;"> </span>prompted<span style="letter-spacing:0.1pt;"> </span>a number<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>proposals<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>U.S. for<span style="letter-spacing:0.1pt;"> </span>new<span style="letter-spacing:0.05pt;"> </span>federal<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>state-level<span style="letter-spacing:0.2pt;"> </span>privacy<span style="letter-spacing:0.1pt;"> </span>legislation<span style="letter-spacing:0.2pt;"> </span>that,<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>passed,<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>increase our potential<span style="letter-spacing:0.1pt;"> </span>liability,<span style="letter-spacing:0.15pt;"> </span>increase<span style="letter-spacing:0.1pt;"> </span>our compliance<span style="letter-spacing:0.1pt;"> </span>costs,<span style="letter-spacing:0.05pt;"> </span>and adversely<span style="letter-spacing:0.1pt;"> </span>affect<span style="letter-spacing:0.1pt;"> </span>our business.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Compliance<span style="letter-spacing:1.45pt;"> </span>with<span style="letter-spacing:1.4pt;"> </span>U.S.<span style="letter-spacing:1.35pt;"> </span>and<span style="letter-spacing:1.4pt;"> </span>international<span style="letter-spacing:1.55pt;"> </span>data<span style="letter-spacing:1.45pt;"> </span>protection<span style="letter-spacing:1.5pt;"> </span>laws<span style="letter-spacing:1.4pt;"> </span>and<span style="letter-spacing:1.35pt;"> </span>regulations<span style="letter-spacing:1.45pt;"> </span>could<span style="letter-spacing:1.4pt;"> </span>require<span style="letter-spacing:1.45pt;"> </span>us<span style="letter-spacing:1.35pt;"> </span>to<span style="letter-spacing:1.35pt;"> </span>take<span style="letter-spacing:1.4pt;"> </span>on more<span style="letter-spacing:0.1pt;"> </span>onerous<span style="letter-spacing:0.1pt;"> </span>obligations<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>our contracts,<span style="letter-spacing:0.1pt;"> </span>restrict<span style="letter-spacing:0.15pt;"> </span>our ability<span style="letter-spacing:0.1pt;"> </span>to collect,<span style="letter-spacing:0.1pt;"> </span>use and disclose<span style="letter-spacing:0.1pt;"> </span>data,<span style="letter-spacing:0.05pt;"> </span>or in some<span style="letter-spacing:0.05pt;"> </span>cases, impact<span style="letter-spacing:0.2pt;"> </span>our<span style="letter-spacing:0.1pt;"> </span>ability<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>operate<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>certain<span style="letter-spacing:0.15pt;"> </span>jurisdictions.<span style="letter-spacing:0.2pt;"> </span>Failure<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>comply<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>U.S. and<span style="letter-spacing:0.05pt;"> </span>international<span style="letter-spacing:0.2pt;"> </span>data<span style="letter-spacing:0.1pt;"> </span>protection laws and regulations<span style="letter-spacing:0.1pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>result<span style="letter-spacing:0.1pt;"> </span>in government<span style="letter-spacing:0.1pt;"> </span>enforcement<span style="letter-spacing:0.1pt;"> </span>actions<span style="letter-spacing:0.05pt;"> </span>(which<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>include<span style="letter-spacing:0.05pt;"> </span>civil,<span style="letter-spacing:0.05pt;"> </span>criminal,<span style="letter-spacing:0.05pt;"> </span>and administrative<span style="letter-spacing:0.25pt;"> </span>penalties),<span style="letter-spacing:0.1pt;"> </span>private<span style="letter-spacing:0.1pt;"> </span>litigation<span style="letter-spacing:0.15pt;"> </span>and/or<span style="letter-spacing:0.05pt;"> </span>adverse<span style="letter-spacing:0.05pt;"> </span>publicity<span style="letter-spacing:0.1pt;"> </span>and could<span style="letter-spacing:0.05pt;"> </span>negatively<span style="letter-spacing:0.1pt;"> </span>affect<span style="letter-spacing:0.1pt;"> </span>our operating results<span style="letter-spacing:0.1pt;"> </span>and business.<span style="letter-spacing:0.05pt;"> </span>Moreover,<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.1pt;"> </span>trial<span style="letter-spacing:0.1pt;"> </span>subjects<span style="letter-spacing:0.1pt;"> </span>about<span style="letter-spacing:0.05pt;"> </span>whom we or our potential<span style="letter-spacing:0.1pt;"> </span>collaborators<span style="letter-spacing:0.1pt;"> </span>obtain information,<span style="letter-spacing:1.05pt;"> </span>as<span style="letter-spacing:0.9pt;"> </span>well<span style="letter-spacing:0.95pt;"> </span>as<span style="letter-spacing:0.9pt;"> </span>the<span style="letter-spacing:0.95pt;"> </span>providers<span style="letter-spacing:1pt;"> </span>who<span style="letter-spacing:0.9pt;"> </span>share<span style="letter-spacing:0.9pt;"> </span>this<span style="letter-spacing:0.9pt;"> </span>information<span style="letter-spacing:1pt;"> </span>with<span style="letter-spacing:0.85pt;"> </span>us,<span style="letter-spacing:0.85pt;"> </span>may<span style="letter-spacing:0.9pt;"> </span>contractually<span style="letter-spacing:1pt;"> </span>limit<span style="letter-spacing:0.95pt;"> </span>our<span style="letter-spacing:0.85pt;"> </span>ability<span style="letter-spacing:0.95pt;"> </span>to use<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>disclose<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>information.<span style="letter-spacing:0.15pt;"> </span>Claims<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we have violated<span style="letter-spacing:0.1pt;"> </span>individuals&#8217;<span style="letter-spacing:0.1pt;"> </span>privacy<span style="letter-spacing:0.05pt;"> </span>rights,<span style="letter-spacing:0.05pt;"> </span>failed<span style="letter-spacing:0.1pt;"> </span>to comply<span style="letter-spacing:0.05pt;"> </span>with data<span style="letter-spacing:0.1pt;"> </span>protection<span style="letter-spacing:0.15pt;"> </span>laws,<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>breached<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>contractual<span style="letter-spacing:0.15pt;"> </span>obligations,<span style="letter-spacing:0.15pt;"> </span>even<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>found<span style="letter-spacing:0.05pt;"> </span>liable,<span style="letter-spacing:0.15pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>be expensive and time<span style="letter-spacing:0.05pt;"> </span>consuming<span style="letter-spacing:0.05pt;"> </span>to defend<span style="letter-spacing:0.05pt;"> </span>and could<span style="letter-spacing:0.05pt;"> </span>result<span style="letter-spacing:0.1pt;"> </span>in adverse<span style="letter-spacing:0.05pt;"> </span>publicity<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>harm<span style="letter-spacing:0.05pt;"> </span>our business.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We or the third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.05pt;"> </span>upon whom we depend may<span style="letter-spacing:0.05pt;"> </span>be adversely<span style="letter-spacing:0.1pt;"> </span>affected<span style="letter-spacing:0.1pt;"> </span>by natural<span style="letter-spacing:0.05pt;"> </span>disasters<span style="letter-spacing:0.1pt;"> </span>and our business<span style="letter-spacing:0.05pt;"> </span>continuity<span style="letter-spacing:0.05pt;"> </span>and disaster<span style="letter-spacing:0.1pt;"> </span>recovery<span style="letter-spacing:0.05pt;"> </span>plans may<span style="letter-spacing:0.05pt;"> </span>not adequately<span style="letter-spacing:0.05pt;"> </span>protect<span style="letter-spacing:0.05pt;"> </span>us from<span style="letter-spacing:0.05pt;"> </span>a serious<span style="letter-spacing:0.05pt;"> </span>disaster.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our<span style="letter-spacing:0.05pt;"> </span>company<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>located<span style="letter-spacing:0.05pt;"> </span>in Delaware.<span style="letter-spacing:0.05pt;"> </span>Any unplanned<span style="letter-spacing:0.05pt;"> </span>event,<span style="letter-spacing:0.05pt;"> </span>such as flood,<span style="letter-spacing:0.05pt;"> </span>fire,<span style="letter-spacing:0.05pt;"> </span>explosion,<span style="letter-spacing:0.05pt;"> </span>earthquake, extreme<span style="letter-spacing:0.2pt;"> </span>weather<span style="letter-spacing:0.15pt;"> </span>condition,<span style="letter-spacing:0.15pt;"> </span>medical<span style="letter-spacing:0.2pt;"> </span>epidemic,<span style="letter-spacing:0.15pt;"> </span>including<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>COVID-19 pandemic,<span style="letter-spacing:0.1pt;"> </span>power<span style="letter-spacing:0.05pt;"> </span>shortage, telecommunication<span style="letter-spacing:1.25pt;"> </span>failure<span style="letter-spacing:1.15pt;"> </span>or<span style="letter-spacing:1.05pt;"> </span>other<span style="letter-spacing:1.1pt;"> </span>natural<span style="letter-spacing:1.1pt;"> </span>or<span style="letter-spacing:1pt;"> </span>manmade<span style="letter-spacing:1.05pt;"> </span>accidents<span style="letter-spacing:1.1pt;"> </span>or<span style="letter-spacing:1pt;"> </span>incidents<span style="letter-spacing:1.1pt;"> </span>that<span style="letter-spacing:1.05pt;"> </span>result<span style="letter-spacing:1.1pt;"> </span>in<span style="letter-spacing:1pt;"> </span>us<span style="letter-spacing:1pt;"> </span>being<span style="letter-spacing:1.05pt;"> </span>unable<span style="letter-spacing:1.05pt;"> </span>to fully<span style="letter-spacing:0.1pt;"> </span>utilize<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>facilities,<span style="letter-spacing:0.2pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>manufacturing<span style="letter-spacing:0.2pt;"> </span>facilities<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>third-party<span style="letter-spacing:0.2pt;"> </span>CMOs, may<span style="letter-spacing:0.05pt;"> </span>have a material<span style="letter-spacing:0.15pt;"> </span>and adverse<span style="letter-spacing:0.05pt;"> </span>effect<span style="letter-spacing:0.1pt;"> </span>on our ability<span style="letter-spacing:0.1pt;"> </span>to operate<span style="letter-spacing:0.05pt;"> </span>our business,<span style="letter-spacing:0.05pt;"> </span>particularly<span style="letter-spacing:0.15pt;"> </span>on a daily<span style="letter-spacing:0.05pt;"> </span>basis,<span style="letter-spacing:0.05pt;"> </span>and have significant<span style="letter-spacing:0.1pt;"> </span>negative consequences<span style="letter-spacing:0.1pt;"> </span>on our financial<span style="letter-spacing:0.1pt;"> </span>and operating<span style="letter-spacing:0.1pt;"> </span>conditions.<span style="letter-spacing:0.1pt;"> </span>For example,<span style="letter-spacing:0.05pt;"> </span>our operations<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>concentrated<span style="letter-spacing:0.1pt;"> </span>primarily on<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>east<span style="letter-spacing:0.1pt;"> </span>coast<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>United<span style="letter-spacing:0.1pt;"> </span>States,<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>adverse<span style="letter-spacing:0.1pt;"> </span>weather<span style="letter-spacing:0.1pt;"> </span>event<span style="letter-spacing:0.1pt;"> </span>or natural<span style="letter-spacing:0.1pt;"> </span>disaster,<span style="letter-spacing:0.1pt;"> </span>such as a hurricane<span style="letter-spacing:0.1pt;"> </span>or heavy<span style="letter-spacing:2pt;"> </span>snowstorm,<span style="letter-spacing:2.05pt;"> </span>could<span style="letter-spacing:2.05pt;"> </span>have<span style="letter-spacing:2pt;"> </span>a<span style="letter-spacing:2pt;"> </span>material<span style="letter-spacing:2.15pt;"> </span>adverse<span style="letter-spacing:2.05pt;"> </span>effect<span style="letter-spacing:2.1pt;"> </span>on<span style="letter-spacing:2pt;"> </span>a<span style="letter-spacing:2pt;"> </span>substantial<span style="letter-spacing:2.1pt;"> </span>portion<span style="letter-spacing:2.05pt;"> </span>of<span style="letter-spacing:2pt;"> </span>our<span style="letter-spacing:2pt;"> </span>operations.<span style="letter-spacing:2.1pt;"> </span>Extreme weather<span style="letter-spacing:0.1pt;"> </span>conditions<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>natural<span style="letter-spacing:0.15pt;"> </span>disasters<span style="letter-spacing:0.15pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>further<span style="letter-spacing:0.15pt;"> </span>disrupt<span style="letter-spacing:0.1pt;"> </span>our operations,<span style="letter-spacing:0.1pt;"> </span>and have a material<span style="letter-spacing:0.15pt;"> </span>and adverse effect<span style="letter-spacing:0.15pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>business,<span style="letter-spacing:0.1pt;"> </span>financial<span style="letter-spacing:0.15pt;"> </span>condition,<span style="letter-spacing:0.1pt;"> </span>results<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>operations<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>prospects.<span style="letter-spacing:0.15pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>a natural<span style="letter-spacing:0.1pt;"> </span>disaster,<span style="letter-spacing:0.1pt;"> </span>power outage or<span style="letter-spacing:2.3pt;"> </span>other<span style="letter-spacing:2.35pt;"> </span>event<span style="letter-spacing:2.35pt;"> </span>occurred<span style="letter-spacing:2.35pt;"> </span>that<span style="letter-spacing:2.35pt;"> </span>prevented<span style="letter-spacing:2.35pt;"> </span>us<span style="letter-spacing:2.25pt;"> </span>from<span style="letter-spacing:2.3pt;"> </span>using<span style="letter-spacing:2.3pt;"> </span>all<span style="letter-spacing:2.3pt;"> </span>or<span style="letter-spacing:2.25pt;"> </span>a<span style="letter-spacing:2.25pt;"> </span>significant<span style="letter-spacing:2.4pt;"> </span>portion<span style="letter-spacing:2.3pt;"> </span>of<span style="letter-spacing:2.25pt;"> </span>our<span style="letter-spacing:2.25pt;"> </span>headquarters,<span style="letter-spacing:2.35pt;"> </span>that damaged<span style="letter-spacing:0.1pt;"> </span>critical<span style="letter-spacing:0.2pt;"> </span>infrastructure,<span style="letter-spacing:0.2pt;"> </span>such as our research<span style="letter-spacing:0.1pt;"> </span>facilities<span style="letter-spacing:0.15pt;"> </span>or the<span style="letter-spacing:0.05pt;"> </span>manufacturing<span style="letter-spacing:0.15pt;"> </span>facilities<span style="letter-spacing:0.15pt;"> </span>of our third-party CMOs,<span style="letter-spacing:1.9pt;"> </span>or<span style="letter-spacing:1.9pt;"> </span>that<span style="letter-spacing:1.95pt;"> </span>otherwise<span style="letter-spacing:1.95pt;"> </span>disrupted<span style="letter-spacing:2pt;"> </span>operations,<span style="letter-spacing:2pt;"> </span>it<span style="letter-spacing:1.95pt;"> </span>may<span style="letter-spacing:1.95pt;"> </span>be<span style="letter-spacing:1.85pt;"> </span>difficult<span style="letter-spacing:2pt;"> </span>or,<span style="letter-spacing:1.85pt;"> </span>in<span style="letter-spacing:1.85pt;"> </span>certain<span style="letter-spacing:1.95pt;"> </span>cases,<span style="letter-spacing:1.9pt;"> </span>impossible,<span style="letter-spacing:1.95pt;"> </span>for<span style="letter-spacing:1.9pt;"> </span>us<span style="letter-spacing:1.85pt;"> </span>to continue<span style="letter-spacing:1.2pt;"> </span>our<span style="letter-spacing:1.15pt;"> </span>business<span style="letter-spacing:1.2pt;"> </span>for<span style="letter-spacing:1.15pt;"> </span>a<span style="letter-spacing:1.1pt;"> </span>substantial<span style="letter-spacing:1.2pt;"> </span>period<span style="letter-spacing:1.15pt;"> </span>of<span style="letter-spacing:1.1pt;"> </span>time.<span style="letter-spacing:1.15pt;"> </span>The<span style="letter-spacing:1.1pt;"> </span>disaster<span style="letter-spacing:1.2pt;"> </span>recovery<span style="letter-spacing:1.15pt;"> </span>and<span style="letter-spacing:1.1pt;"> </span>business<span style="letter-spacing:1.15pt;"> </span>continuity<span style="letter-spacing:1.2pt;"> </span>plans<span style="letter-spacing:1.15pt;"> </span>we have in place<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>prove<span style="letter-spacing:0.05pt;"> </span>inadequate<span style="letter-spacing:0.1pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>event<span style="letter-spacing:0.05pt;"> </span>of a serious<span style="letter-spacing:0.05pt;"> </span>disaster<span style="letter-spacing:0.1pt;"> </span>or similar<span style="letter-spacing:0.1pt;"> </span>event.<span style="letter-spacing:0.05pt;"> </span>We may<span style="letter-spacing:0.05pt;"> </span>incur substantial expenses<span style="letter-spacing:1.35pt;"> </span>as<span style="letter-spacing:1.3pt;"> </span>a<span style="letter-spacing:1.25pt;"> </span>result<span style="letter-spacing:1.35pt;"> </span>of<span style="letter-spacing:1.25pt;"> </span>the<span style="letter-spacing:1.3pt;"> </span>limited<span style="letter-spacing:1.35pt;"> </span>nature<span style="letter-spacing:1.3pt;"> </span>of<span style="letter-spacing:1.25pt;"> </span>our<span style="letter-spacing:1.25pt;"> </span>disaster<span style="letter-spacing:1.35pt;"> </span>recovery<span style="letter-spacing:1.3pt;"> </span>and<span style="letter-spacing:1.25pt;"> </span>business<span style="letter-spacing:1.3pt;"> </span>continuity<span style="letter-spacing:1.35pt;"> </span>plans,<span style="letter-spacing:1.3pt;"> </span>which<span style="letter-spacing:1.25pt;"> </span>could have<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>material<span style="letter-spacing:0.2pt;"> </span>adverse<span style="letter-spacing:0.1pt;"> </span>effect<span style="letter-spacing:0.15pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>business.<span style="letter-spacing:0.1pt;"> </span>As<span style="letter-spacing:0.05pt;"> </span>part<span style="letter-spacing:0.1pt;"> </span>of our risk<span style="letter-spacing:0.05pt;"> </span>management<span style="letter-spacing:0.1pt;"> </span>policy,<span style="letter-spacing:0.05pt;"> </span>we maintain<span style="letter-spacing:0.1pt;"> </span>insurance coverage<span style="letter-spacing:0.1pt;"> </span>at<span style="letter-spacing:0.1pt;"> </span>levels<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>believe<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>appropriate<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>business.<span style="letter-spacing:0.1pt;"> </span>However,<span style="letter-spacing:0.05pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>event<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>an accident<span style="letter-spacing:0.1pt;"> </span>or incident<span style="letter-spacing:0.15pt;"> </span>at<span style="letter-spacing:0.1pt;"> </span>these<span style="letter-spacing:0.1pt;"> </span>facilities,<span style="letter-spacing:0.2pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>cannot<span style="letter-spacing:0.1pt;"> </span>assure<span style="letter-spacing:0.1pt;"> </span>you<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>amounts<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>insurance<span style="letter-spacing:0.15pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>be sufficient<span style="letter-spacing:0.15pt;"> </span>to satisfy<span style="letter-spacing:0.1pt;"> </span>any damages<span style="letter-spacing:1.85pt;"> </span>and<span style="letter-spacing:1.8pt;"> </span>losses.<span style="letter-spacing:1.85pt;"> </span>If<span style="letter-spacing:1.85pt;"> </span>our<span style="letter-spacing:1.8pt;"> </span>facilities,<span style="letter-spacing:1.95pt;"> </span>or<span style="letter-spacing:1.8pt;"> </span>the<span style="letter-spacing:1.85pt;"> </span>manufacturing<span style="letter-spacing:1.95pt;"> </span>facilities<span style="letter-spacing:1.95pt;"> </span>of<span style="letter-spacing:1.8pt;"> </span>our<span style="letter-spacing:1.8pt;"> </span>third-party<span style="letter-spacing:1.95pt;"> </span>CMOs,<span style="letter-spacing:1.8pt;"> </span>are<span style="letter-spacing:1.85pt;"> </span>unable<span style="letter-spacing:1.8pt;"> </span>to operate<span style="letter-spacing:0.7pt;"> </span>because<span style="letter-spacing:0.7pt;"> </span>of<span style="letter-spacing:0.65pt;"> </span>an<span style="letter-spacing:0.65pt;"> </span>accident<span style="letter-spacing:0.75pt;"> </span>or<span style="letter-spacing:0.65pt;"> </span>incident<span style="letter-spacing:0.75pt;"> </span>or<span style="letter-spacing:0.65pt;"> </span>for<span style="letter-spacing:0.65pt;"> </span>any<span style="letter-spacing:0.6pt;"> </span>other<span style="letter-spacing:0.65pt;"> </span>reason,<span style="letter-spacing:0.65pt;"> </span>even<span style="letter-spacing:0.6pt;"> </span>for<span style="letter-spacing:0.65pt;"> </span>a<span style="letter-spacing:0.6pt;"> </span>short<span style="letter-spacing:0.65pt;"> </span>period<span style="letter-spacing:0.65pt;"> </span>of<span style="letter-spacing:0.6pt;"> </span>time,<span style="letter-spacing:0.65pt;"> </span>any<span style="letter-spacing:0.6pt;"> </span>or<span style="letter-spacing:0.6pt;"> </span>all<span style="letter-spacing:0.65pt;"> </span>of our<span style="letter-spacing:1.15pt;"> </span>research<span style="letter-spacing:1.25pt;"> </span>and<span style="letter-spacing:1.15pt;"> </span>development<span style="letter-spacing:1.25pt;"> </span>programs<span style="letter-spacing:1.25pt;"> </span>may<span style="letter-spacing:1.2pt;"> </span>be<span style="letter-spacing:1.15pt;"> </span>harmed.<span style="letter-spacing:1.2pt;"> </span>Any<span style="letter-spacing:1.15pt;"> </span>business<span style="letter-spacing:1.2pt;"> </span>interruption<span style="letter-spacing:1.25pt;"> </span>could<span style="letter-spacing:1.15pt;"> </span>have<span style="letter-spacing:1.1pt;"> </span>a<span style="letter-spacing:1.1pt;"> </span>material<span style="letter-spacing:1.25pt;"> </span>and adverse<span style="letter-spacing:0.05pt;"> </span>effect<span style="letter-spacing:0.1pt;"> </span>on our business,<span style="letter-spacing:0.05pt;"> </span>financial<span style="letter-spacing:0.1pt;"> </span>condition,<span style="letter-spacing:0.05pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>of operations<span style="letter-spacing:0.1pt;"> </span>and prospects.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">52</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-top:15pt;margin-bottom:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;"><span style="font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Changes in tax laws or regulations</span><span style="letter-spacing:0.05pt;"> </span><span style="font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">that</span><span style="letter-spacing:0.05pt;"> </span><span style="font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">are applied</span><span style="letter-spacing:0.05pt;"> </span><span style="font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">adversely</span><span style="letter-spacing:0.1pt;"> </span><span style="font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">to us may</span><span style="letter-spacing:0.05pt;"> </span><span style="font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">have a material</span><span style="letter-spacing:0.1pt;"> </span><span style="font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">adverse</span><span style="letter-spacing:0.05pt;"> </span><span style="font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">effect</span><span style="letter-spacing:0.1pt;"> </span><span style="font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">on our business,</span><span style="letter-spacing:0.05pt;"> </span><span style="font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">cash flow, financial</span><span style="letter-spacing:0.05pt;"> </span><span style="font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">condition</span><span style="letter-spacing:0.05pt;"> </span><span style="font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">or results</span><span style="letter-spacing:0.05pt;"> </span><span style="font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">of operations.</span></p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">New income,<span style="letter-spacing:0.1pt;"> </span>sales,<span style="letter-spacing:0.1pt;"> </span>use or other<span style="letter-spacing:0.05pt;"> </span>tax<span style="letter-spacing:0.05pt;"> </span>laws, statutes,<span style="letter-spacing:0.1pt;"> </span>rules,<span style="letter-spacing:0.05pt;"> </span>regulations<span style="letter-spacing:0.1pt;"> </span>or ordinances<span style="letter-spacing:0.1pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>be enacted<span style="letter-spacing:0.05pt;"> </span>at<span style="letter-spacing:0.05pt;"> </span>any time,<span style="letter-spacing:0.05pt;"> </span>which could<span style="letter-spacing:0.05pt;"> </span>adversely<span style="letter-spacing:0.1pt;"> </span>affect<span style="letter-spacing:0.1pt;"> </span>our business<span style="letter-spacing:0.05pt;"> </span>operations<span style="letter-spacing:0.1pt;"> </span>and financial<span style="letter-spacing:0.1pt;"> </span>performance.<span style="letter-spacing:0.1pt;"> </span>Further,<span style="letter-spacing:0.05pt;"> </span>existing<span style="letter-spacing:0.05pt;"> </span>tax laws, statutes,<span style="letter-spacing:0.15pt;"> </span>rules,<span style="letter-spacing:0.1pt;"> </span>regulations<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>ordinances<span style="letter-spacing:0.15pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>be interpreted,<span style="letter-spacing:0.15pt;"> </span>changed,<span style="letter-spacing:0.05pt;"> </span>modified<span style="letter-spacing:0.1pt;"> </span>or applied<span style="letter-spacing:0.05pt;"> </span>adversely<span style="letter-spacing:0.1pt;"> </span>to us. For example,<span style="letter-spacing:1.3pt;"> </span>the<span style="letter-spacing:1.3pt;"> </span>Tax<span style="letter-spacing:1.25pt;"> </span>Cuts<span style="letter-spacing:1.25pt;"> </span>and<span style="letter-spacing:1.25pt;"> </span>Jobs<span style="letter-spacing:1.25pt;"> </span>Act,<span style="letter-spacing:1.25pt;"> </span>enacted<span style="letter-spacing:1.3pt;"> </span>many<span style="letter-spacing:1.3pt;"> </span>significant<span style="letter-spacing:1.4pt;"> </span>changes<span style="letter-spacing:1.3pt;"> </span>to<span style="letter-spacing:1.25pt;"> </span>the<span style="letter-spacing:1.3pt;"> </span>U.S.<span style="letter-spacing:1.15pt;"> </span>tax<span style="letter-spacing:1.25pt;"> </span>laws.<span style="letter-spacing:1.2pt;"> </span>Future<span style="letter-spacing:1.25pt;"> </span>guidance from<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>Internal<span style="letter-spacing:0.1pt;"> </span>Revenue Service<span style="letter-spacing:0.05pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>tax<span style="letter-spacing:0.05pt;"> </span>authorities<span style="letter-spacing:0.15pt;"> </span>with respect<span style="letter-spacing:0.1pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>Tax Cuts and Jobs Act may<span style="letter-spacing:0.05pt;"> </span>affect us,<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>certain<span style="letter-spacing:0.15pt;"> </span>aspects<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>Tax<span style="letter-spacing:0.05pt;"> </span>Cuts and Jobs Act could<span style="letter-spacing:0.05pt;"> </span>be repealed<span style="letter-spacing:0.1pt;"> </span>or modified<span style="letter-spacing:0.1pt;"> </span>in future<span style="letter-spacing:0.05pt;"> </span>legislation.<span style="letter-spacing:0.15pt;"> </span>For example,<span style="letter-spacing:0.2pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>CARES Act<span style="letter-spacing:0.1pt;"> </span>modified<span style="letter-spacing:0.2pt;"> </span>certain<span style="letter-spacing:0.2pt;"> </span>provisions<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>Tax<span style="letter-spacing:0.1pt;"> </span>Cuts<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.1pt;"> </span>Jobs<span style="letter-spacing:0.1pt;"> </span>Act.<span style="letter-spacing:0.1pt;"> </span>In<span style="letter-spacing:0.1pt;"> </span>addition,<span style="letter-spacing:0.15pt;"> </span>it<span style="letter-spacing:0.15pt;"> </span>is<span style="letter-spacing:0.15pt;"> </span>uncertain<span style="letter-spacing:0.2pt;"> </span>if and<span style="letter-spacing:1.35pt;"> </span>to<span style="letter-spacing:1.35pt;"> </span>what<span style="letter-spacing:1.35pt;"> </span>extent<span style="letter-spacing:1.4pt;"> </span>various<span style="letter-spacing:1.4pt;"> </span>states<span style="letter-spacing:1.45pt;"> </span>will<span style="letter-spacing:1.4pt;"> </span>conform<span style="letter-spacing:1.4pt;"> </span>to<span style="letter-spacing:1.35pt;"> </span>the<span style="letter-spacing:1.4pt;"> </span>Tax<span style="letter-spacing:1.35pt;"> </span>Cuts<span style="letter-spacing:1.35pt;"> </span>and<span style="letter-spacing:1.35pt;"> </span>Jobs<span style="letter-spacing:1.35pt;"> </span>Act,<span style="letter-spacing:1.3pt;"> </span>the<span style="letter-spacing:1.35pt;"> </span>CARES<span style="letter-spacing:1.2pt;"> </span>Act,<span style="letter-spacing:1.3pt;"> </span>or<span style="letter-spacing:1.3pt;"> </span>any<span style="letter-spacing:1.3pt;"> </span>newly enacted<span style="letter-spacing:0.1pt;"> </span>federal<span style="letter-spacing:0.15pt;"> </span>tax<span style="letter-spacing:0.1pt;"> </span>legislation.<span style="letter-spacing:0.2pt;"> </span>Changes<span style="letter-spacing:0.05pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>corporate<span style="letter-spacing:0.1pt;"> </span>tax<span style="letter-spacing:0.05pt;"> </span>rates,<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>realization<span style="letter-spacing:0.15pt;"> </span>of net<span style="letter-spacing:0.05pt;"> </span>deferred<span style="letter-spacing:0.1pt;"> </span>tax<span style="letter-spacing:0.05pt;"> </span>assets<span style="letter-spacing:0.05pt;"> </span>relating<span style="letter-spacing:0.1pt;"> </span>to our<span style="letter-spacing:0.9pt;"> </span>operations,<span style="letter-spacing:0.95pt;"> </span>the<span style="letter-spacing:0.9pt;"> </span>taxation<span style="letter-spacing:0.95pt;"> </span>of<span style="letter-spacing:0.85pt;"> </span>foreign<span style="letter-spacing:0.9pt;"> </span>earnings,<span style="letter-spacing:0.9pt;"> </span>and<span style="letter-spacing:0.85pt;"> </span>the<span style="letter-spacing:0.9pt;"> </span>deductibility<span style="letter-spacing:1pt;"> </span>of<span style="letter-spacing:0.85pt;"> </span>expenses<span style="letter-spacing:0.9pt;"> </span>under<span style="letter-spacing:0.9pt;"> </span>the<span style="letter-spacing:0.9pt;"> </span>Tax<span style="letter-spacing:0.85pt;"> </span>Cuts<span style="letter-spacing:0.85pt;"> </span>and<span style="letter-spacing:0.85pt;"> </span>Jobs Act,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>CARES Act<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.1pt;"> </span>future<span style="letter-spacing:0.15pt;"> </span>reform<span style="letter-spacing:0.2pt;"> </span>legislation<span style="letter-spacing:0.25pt;"> </span>could<span style="letter-spacing:0.15pt;"> </span>have<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.1pt;"> </span>material<span style="letter-spacing:0.25pt;"> </span>impact<span style="letter-spacing:0.2pt;"> </span>on<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>value<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.1pt;"> </span>deferred<span style="letter-spacing:0.15pt;"> </span>tax assets,<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>result<span style="letter-spacing:0.1pt;"> </span>in significant<span style="letter-spacing:0.15pt;"> </span>one-time<span style="letter-spacing:0.1pt;"> </span>charges,<span style="letter-spacing:0.05pt;"> </span>and could<span style="letter-spacing:0.05pt;"> </span>increase<span style="letter-spacing:0.1pt;"> </span>our future<span style="letter-spacing:0.05pt;"> </span>U.S.<span style="letter-spacing:-0.05pt;"> </span>tax<span style="letter-spacing:0.05pt;"> </span>expense.</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Our ability<span style="letter-spacing:0.1pt;"> </span>to use our net operating<span style="letter-spacing:0.05pt;"> </span>loss<span style="letter-spacing:0.05pt;"> </span>carryforwards<span style="letter-spacing:0.05pt;"> </span>and certain<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.05pt;"> </span>tax attributes<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be limited.</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We have incurred substantial losses during our history and do not expect to become profitable in the near future, and we may never achieve profitability. Unused losses incurred in taxable years beginning on or prior to December 31, 2017, will carry forward to offset future taxable income, if any, until such unused losses expire. Under the Tax Cuts and Jobs Act, as modified by the CARES Act, unused U.S. federal net operating losses generated in tax years beginning after December 31, 2017, will not expire and may be carried forward indefinitely but the deductibility of such federal net operating losses (particularly those generated in taxable years beginning after December 31, 2020) in taxable years beginning after December 31, 2020, is limited to 80% of current year taxable income. It is uncertain if and to what extent various states will conform to the Tax Cuts and Jobs Act or the CARES Act. In addition, both our current and our future unused losses and other tax attributes may be subject to limitation under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended (the Code) if we undergo, or have undergone, an &#8220;ownership change,&#8221; generally defined as a greater than 50 percentage point change (by value) in our equity ownership by certain stockholders over a three-year period. We have not completed a Section 382 study to assess whether an ownership change has occurred or whether there have been multiple ownership changes since our formation due to the complexity and cost associated with such a study and the fact that there may be additional ownership changes in the future. As a result, our net operating loss carryforwards generated in taxable years beginning on or before December 31, 2017, may expire prior to being used, and the deductibility of our net operating loss carryforwards generated in taxable years beginning after December 31, 2017 in taxable years beginning after December 31, 2020, may be limited, and, if we undergo an ownership change (or if we previously underwent such an ownership change), our ability to use all of our pre-change net operating loss carryforwards and other pre-change tax attributes (such as research tax credits) to offset our post-change income or taxes may be limited. Similar provisions of state tax law may also apply to limit our use of accumulated state tax attributes. In addition, at the state level, there may be periods during which the use of net operating losses is suspended or otherwise limited, which could accelerate or permanently increase state taxes owed. As a result, even if we attain profitability, we may be unable to use all or a material portion of our net operating losses and other tax attributes, which could adversely affect our future cash flows.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:18pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We may<span style="letter-spacing:0.05pt;"> </span>engage in strategic<span style="letter-spacing:0.1pt;"> </span>transactions<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>could impact<span style="letter-spacing:0.05pt;"> </span>our liquidity,<span style="letter-spacing:0.1pt;"> </span>increase<span style="letter-spacing:0.05pt;"> </span>our expenses<span style="letter-spacing:0.05pt;"> </span>and present<span style="letter-spacing:0.05pt;"> </span>significant<span style="letter-spacing:0.1pt;"> </span>distractions<span style="letter-spacing:0.1pt;"> </span>to our management.</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">From<span style="letter-spacing:0.1pt;"> </span>time<span style="letter-spacing:0.1pt;"> </span>to time,<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>consider<span style="letter-spacing:0.05pt;"> </span>strategic<span style="letter-spacing:0.1pt;"> </span>transactions,<span style="letter-spacing:0.15pt;"> </span>such as acquisitions<span style="letter-spacing:0.1pt;"> </span>of companies,<span style="letter-spacing:0.1pt;"> </span>businesses<span style="letter-spacing:0.1pt;"> </span>or assets<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>out-licensing<span style="letter-spacing:0.2pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>in-licensing<span style="letter-spacing:0.15pt;"> </span>of products,<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>or technologies.<span style="letter-spacing:0.1pt;"> </span>Additional<span style="letter-spacing:0.05pt;"> </span>potential transactions<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>consider<span style="letter-spacing:0.05pt;"> </span>include<span style="letter-spacing:0.05pt;"> </span>a variety<span style="letter-spacing:0.1pt;"> </span>of different<span style="letter-spacing:0.1pt;"> </span>business<span style="letter-spacing:0.05pt;"> </span>arrangements,<span style="letter-spacing:0.1pt;"> </span>including spin-offs, strategic<span style="letter-spacing:0.15pt;"> </span>partnerships,<span style="letter-spacing:0.15pt;"> </span>joint<span style="letter-spacing:0.1pt;"> </span>ventures,<span style="letter-spacing:0.1pt;"> </span>restructurings,<span style="letter-spacing:0.2pt;"> </span>divestitures,<span style="letter-spacing:0.15pt;"> </span>business<span style="letter-spacing:0.05pt;"> </span>combinations<span style="letter-spacing:0.1pt;"> </span>and investments.<span style="letter-spacing:0.1pt;"> </span>Any such<span style="letter-spacing:0.25pt;"> </span>transaction<span style="letter-spacing:0.35pt;"> </span>may<span style="letter-spacing:0.3pt;"> </span>require<span style="letter-spacing:0.35pt;"> </span>us<span style="letter-spacing:0.25pt;"> </span>to<span style="letter-spacing:0.25pt;"> </span>incur<span style="letter-spacing:0.3pt;"> </span>non-recurring<span style="letter-spacing:0.35pt;"> </span>or<span style="letter-spacing:0.25pt;"> </span>other<span style="letter-spacing:0.3pt;"> </span>charges,<span style="letter-spacing:0.3pt;"> </span>may<span style="letter-spacing:0.3pt;"> </span>increase<span style="letter-spacing:0.35pt;"> </span>our<span style="letter-spacing:0.2pt;"> </span>near<span style="letter-spacing:0.25pt;"> </span>term<span style="letter-spacing:0.25pt;"> </span>or<span style="letter-spacing:0.2pt;"> </span>long-term expenditures<span style="letter-spacing:2pt;"> </span>and<span style="letter-spacing:1.9pt;"> </span>may<span style="letter-spacing:1.9pt;"> </span>pose<span style="letter-spacing:1.85pt;"> </span>significant<span style="letter-spacing:2pt;"> </span>integration<span style="letter-spacing:1.95pt;"> </span>challenges<span style="letter-spacing:1.95pt;"> </span>or<span style="letter-spacing:1.85pt;"> </span>disrupt<span style="letter-spacing:1.9pt;"> </span>our<span style="letter-spacing:1.85pt;"> </span>management<span style="letter-spacing:1.95pt;"> </span>or<span style="letter-spacing:1.85pt;"> </span>business,<span style="letter-spacing:1.9pt;"> </span>which could<span style="letter-spacing:0.05pt;"> </span>adversely<span style="letter-spacing:0.1pt;"> </span>affect<span style="letter-spacing:0.1pt;"> </span>our operations<span style="letter-spacing:0.1pt;"> </span>and financial<span style="letter-spacing:0.1pt;"> </span>results.<span style="letter-spacing:0.1pt;"> </span>For example,<span style="letter-spacing:0.05pt;"> </span>these<span style="letter-spacing:0.05pt;"> </span>transactions<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>entail<span style="letter-spacing:0.05pt;"> </span>numerous operational<span style="letter-spacing:0.1pt;"> </span>and financial<span style="letter-spacing:0.1pt;"> </span>risks,<span style="letter-spacing:0.05pt;"> </span>including:</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">exposure<span style="letter-spacing:0.05pt;"> </span>to unknown liabilities&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">disruption<span style="letter-spacing:1.1pt;"> </span>of<span style="letter-spacing:1pt;"> </span>our<span style="letter-spacing:1pt;"> </span>business<span style="letter-spacing:1.05pt;"> </span>and<span style="letter-spacing:0.95pt;"> </span>diversion<span style="letter-spacing:1.05pt;"> </span>of<span style="letter-spacing:0.95pt;"> </span>our<span style="letter-spacing:0.95pt;"> </span>management&#8217;s<span style="letter-spacing:1.1pt;"> </span>time<span style="letter-spacing:1pt;"> </span>and<span style="letter-spacing:0.95pt;"> </span>attention<span style="letter-spacing:1.05pt;"> </span>in<span style="letter-spacing:0.95pt;"> </span>order<span style="letter-spacing:1pt;"> </span>to<span style="letter-spacing:0.95pt;"> </span>develop acquired<span style="letter-spacing:0.05pt;"> </span>products,<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>or technologies&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">incurrence<span style="letter-spacing:0.1pt;"> </span>of substantial<span style="letter-spacing:0.1pt;"> </span>debt<span style="letter-spacing:0.05pt;"> </span>or dilutive<span style="letter-spacing:0.1pt;"> </span>issuances<span style="letter-spacing:0.1pt;"> </span>of equity<span style="letter-spacing:0.05pt;"> </span>securities<span style="letter-spacing:0.15pt;"> </span>to pay for<span style="letter-spacing:0.05pt;"> </span>acquisitions&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">higher<span style="letter-spacing:0.05pt;"> </span>than<span style="letter-spacing:0.05pt;"> </span>expected<span style="letter-spacing:0.05pt;"> </span>acquisition<span style="letter-spacing:0.1pt;"> </span>and integration<span style="letter-spacing:0.1pt;"> </span>costs&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">write-downs<span style="letter-spacing:0.05pt;"> </span>of assets<span style="letter-spacing:0.05pt;"> </span>or goodwill<span style="letter-spacing:0.05pt;"> </span>or impairment<span style="letter-spacing:0.15pt;"> </span>charges&#59;</p></td></tr></table></div>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">53</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">increased<span style="letter-spacing:0.1pt;"> </span>amortization<span style="letter-spacing:0.15pt;"> </span>expenses&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">difficulty<span style="letter-spacing:0.4pt;"> </span>and<span style="letter-spacing:0.25pt;"> </span>cost<span style="letter-spacing:0.3pt;"> </span>in<span style="letter-spacing:0.25pt;"> </span>combining<span style="letter-spacing:0.3pt;"> </span>the<span style="letter-spacing:0.3pt;"> </span>operations,<span style="letter-spacing:0.35pt;"> </span>systems<span style="letter-spacing:0.35pt;"> </span>and<span style="letter-spacing:0.25pt;"> </span>personnel<span style="letter-spacing:0.3pt;"> </span>of<span style="letter-spacing:0.25pt;"> </span>any<span style="letter-spacing:0.2pt;"> </span>acquired<span style="letter-spacing:0.25pt;"> </span>businesses<span style="letter-spacing:0.3pt;"> </span>with our operations,<span style="letter-spacing:0.1pt;"> </span>systems<span style="letter-spacing:0.1pt;"> </span>and personnel&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">impairment<span style="letter-spacing:0.45pt;"> </span>of<span style="letter-spacing:0.3pt;"> </span>relationships<span style="letter-spacing:0.4pt;"> </span>with<span style="letter-spacing:0.25pt;"> </span>key<span style="letter-spacing:0.25pt;"> </span>suppliers<span style="letter-spacing:0.35pt;"> </span>or<span style="letter-spacing:0.25pt;"> </span>customers<span style="letter-spacing:0.35pt;"> </span>of<span style="letter-spacing:0.25pt;"> </span>any<span style="letter-spacing:0.25pt;"> </span>acquired<span style="letter-spacing:0.3pt;"> </span>businesses<span style="letter-spacing:0.35pt;"> </span>due<span style="letter-spacing:0.25pt;"> </span>to<span style="letter-spacing:0.25pt;"> </span>changes in management<span style="letter-spacing:0.1pt;"> </span>and ownership&#59;<span style="letter-spacing:0.05pt;"> </span>and</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.5%;text-indent:-3.8%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.8%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">inability<span style="letter-spacing:0.1pt;"> </span>to retain<span style="letter-spacing:0.1pt;"> </span>key employees<span style="letter-spacing:0.1pt;"> </span>of any acquired<span style="letter-spacing:0.05pt;"> </span>businesses.</p></td></tr></table></div>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8.5pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Our portfolio<span style="letter-spacing:0.1pt;"> </span>of investments<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be subject<span style="letter-spacing:0.05pt;"> </span>to market,<span style="letter-spacing:0.05pt;"> </span>interest<span style="letter-spacing:0.1pt;"> </span>and credit<span style="letter-spacing:0.05pt;"> </span>risk<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>reduce<span style="letter-spacing:0.05pt;"> </span>its<span style="letter-spacing:0.05pt;"> </span>value.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The<span style="letter-spacing:0.05pt;"> </span>value<span style="letter-spacing:0.05pt;"> </span>of our investments<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>decline<span style="letter-spacing:0.05pt;"> </span>due to increases<span style="letter-spacing:0.1pt;"> </span>in interest<span style="letter-spacing:0.1pt;"> </span>rates,<span style="letter-spacing:0.05pt;"> </span>downgrades<span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>bonds and other<span style="letter-spacing:0.1pt;"> </span>securities<span style="letter-spacing:0.2pt;"> </span>included<span style="letter-spacing:0.05pt;"> </span>in our commercial<span style="letter-spacing:0.15pt;"> </span>money<span style="letter-spacing:0.05pt;"> </span>market<span style="letter-spacing:0.1pt;"> </span>account<span style="letter-spacing:0.05pt;"> </span>portfolio<span style="letter-spacing:0.1pt;"> </span>and instability<span style="letter-spacing:0.15pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>global<span style="letter-spacing:0.05pt;"> </span>financial markets<span style="letter-spacing:1.15pt;"> </span>that<span style="letter-spacing:1.1pt;"> </span>reduces<span style="letter-spacing:1.1pt;"> </span>the<span style="letter-spacing:1.1pt;"> </span>liquidity<span style="letter-spacing:1.15pt;"> </span>of<span style="letter-spacing:1.05pt;"> </span>securities<span style="letter-spacing:1.2pt;"> </span>included<span style="letter-spacing:1.1pt;"> </span>in<span style="letter-spacing:1.05pt;"> </span>our<span style="letter-spacing:1.05pt;"> </span>portfolio.<span style="letter-spacing:1.1pt;"> </span>In<span style="letter-spacing:1pt;"> </span>addition,<span style="letter-spacing:1.05pt;"> </span>the<span style="letter-spacing:1.05pt;"> </span>COVID-19<span style="letter-spacing:0.95pt;"> </span>pandemic has<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>continue<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>adversely<span style="letter-spacing:0.15pt;"> </span>affect<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>financial<span style="letter-spacing:0.15pt;"> </span>markets<span style="letter-spacing:0.1pt;"> </span>in some<span style="letter-spacing:0.05pt;"> </span>or all<span style="letter-spacing:0.05pt;"> </span>countries<span style="letter-spacing:0.1pt;"> </span>worldwide.<span style="letter-spacing:0.05pt;"> </span>Each of these events<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>cause<span style="letter-spacing:0.1pt;"> </span>us to record<span style="letter-spacing:0.05pt;"> </span>charges<span style="letter-spacing:0.05pt;"> </span>to reduce<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>carrying<span style="letter-spacing:0.1pt;"> </span>value<span style="letter-spacing:0.05pt;"> </span>of our investment<span style="letter-spacing:0.1pt;"> </span>portfolio<span style="letter-spacing:0.1pt;"> </span>or sell<span style="letter-spacing:0.05pt;"> </span>investments for<span style="letter-spacing:0.1pt;"> </span>less<span style="letter-spacing:0.1pt;"> </span>than<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>acquisition<span style="letter-spacing:0.15pt;"> </span>cost.<span style="letter-spacing:0.1pt;"> </span>Although<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>attempt<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>mitigate<span style="letter-spacing:0.15pt;"> </span>these<span style="letter-spacing:0.1pt;"> </span>risks<span style="letter-spacing:0.05pt;"> </span>through<span style="letter-spacing:0.05pt;"> </span>diversification<span style="letter-spacing:0.2pt;"> </span>of our investments<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>continuous<span style="letter-spacing:0.1pt;"> </span>monitoring<span style="letter-spacing:0.1pt;"> </span>of our portfolio&#8217;s<span style="letter-spacing:0.15pt;"> </span>overall<span style="letter-spacing:0.1pt;"> </span>risk<span style="letter-spacing:0.05pt;"> </span>profile,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>value<span style="letter-spacing:0.05pt;"> </span>of our investments<span style="letter-spacing:0.1pt;"> </span>may nevertheless<span style="letter-spacing:0.1pt;"> </span>decline.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Risks Related<span style="letter-spacing:0.05pt;"> </span>to Intellectual<span style="letter-spacing:0.1pt;"> </span>Property</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">If<span style="letter-spacing:0.05pt;"> </span>we are unable to obtain<span style="letter-spacing:0.05pt;"> </span>and maintain<span style="letter-spacing:0.05pt;"> </span>sufficient<span style="letter-spacing:0.1pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>protection<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates,<span style="letter-spacing:0.05pt;"> </span>or if<span style="letter-spacing:0.05pt;"> </span>the scope<span style="letter-spacing:0.05pt;"> </span>of the patent<span style="letter-spacing:0.05pt;"> </span>protection<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>not sufficiently<span style="letter-spacing:0.15pt;"> </span>broad, third<span style="letter-spacing:0.05pt;"> </span>parties,<span style="letter-spacing:0.05pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>our competitors,<span style="letter-spacing:0.1pt;"> </span>could develop<span style="letter-spacing:0.05pt;"> </span>and commercialize<span style="letter-spacing:0.15pt;"> </span>products<span style="letter-spacing:0.05pt;"> </span>similar<span style="letter-spacing:0.1pt;"> </span>or identical<span style="letter-spacing:0.1pt;"> </span>to ours, and our ability<span style="letter-spacing:0.1pt;"> </span>to commercialize<span style="letter-spacing:0.15pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.05pt;"> </span>successfully<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be adversely<span style="letter-spacing:0.1pt;"> </span>affected.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our<span style="letter-spacing:0.05pt;"> </span>success<span style="letter-spacing:0.1pt;"> </span>depends<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>large<span style="letter-spacing:0.1pt;"> </span>part<span style="letter-spacing:0.1pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>our ability<span style="letter-spacing:0.1pt;"> </span>to protect<span style="letter-spacing:0.1pt;"> </span>our proprietary<span style="letter-spacing:0.1pt;"> </span>technologies<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we believe<span style="letter-spacing:0.05pt;"> </span>are important<span style="letter-spacing:1pt;"> </span>to<span style="letter-spacing:0.9pt;"> </span>our<span style="letter-spacing:0.9pt;"> </span>business,<span style="letter-spacing:0.95pt;"> </span>including<span style="letter-spacing:0.95pt;"> </span>pursuing,<span style="letter-spacing:0.95pt;"> </span>obtaining<span style="letter-spacing:0.95pt;"> </span>and<span style="letter-spacing:0.9pt;"> </span>maintaining<span style="letter-spacing:1pt;"> </span>patent<span style="letter-spacing:0.95pt;"> </span>protection<span style="letter-spacing:0.95pt;"> </span>in<span style="letter-spacing:0.85pt;"> </span>the<span style="letter-spacing:0.9pt;"> </span>United<span style="letter-spacing:0.9pt;"> </span>States and other countries intended to cover the compositions of matter of<span style="letter-spacing:2.45pt;"> </span>our<span style="letter-spacing:2.45pt;"> </span>product candidates, for example, PRT543, PRT811 and PRT1419, their methods of use, related technologies and other inventions that are important<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>business.<span style="letter-spacing:0.1pt;"> </span>In<span style="letter-spacing:0.05pt;"> </span>addition<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>protection,<span style="letter-spacing:0.15pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>also<span style="letter-spacing:0.1pt;"> </span>rely<span style="letter-spacing:0.1pt;"> </span>on trade<span style="letter-spacing:0.05pt;"> </span>secrets<span style="letter-spacing:0.1pt;"> </span>to protect<span style="letter-spacing:0.1pt;"> </span>aspects<span style="letter-spacing:0.05pt;"> </span>of our business<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>amenable<span style="letter-spacing:0.15pt;"> </span>to,<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>do<span style="letter-spacing:0.05pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>consider<span style="letter-spacing:0.1pt;"> </span>appropriate<span style="letter-spacing:0.1pt;"> </span>for,<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>protection.<span style="letter-spacing:0.1pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>we do not adequately<span style="letter-spacing:0.15pt;"> </span>pursue,<span style="letter-spacing:0.1pt;"> </span>obtain,<span style="letter-spacing:0.1pt;"> </span>maintain,<span style="letter-spacing:0.15pt;"> </span>protect<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>enforce<span style="letter-spacing:0.1pt;"> </span>our intellectual<span style="letter-spacing:0.15pt;"> </span>property,<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.05pt;"> </span>parties,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>our competitors,<span style="letter-spacing:0.2pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>able<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>erode<span style="letter-spacing:0.05pt;"> </span>or negate<span style="letter-spacing:0.05pt;"> </span>any competitive<span style="letter-spacing:0.15pt;"> </span>advantage<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>have, which could<span style="letter-spacing:0.05pt;"> </span>harm<span style="letter-spacing:0.05pt;"> </span>our business<span style="letter-spacing:0.05pt;"> </span>and ability<span style="letter-spacing:0.1pt;"> </span>to achieve<span style="letter-spacing:0.05pt;"> </span>profitability.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">To<span style="letter-spacing:0.7pt;"> </span>protect<span style="letter-spacing:0.8pt;"> </span>our<span style="letter-spacing:0.7pt;"> </span>proprietary<span style="letter-spacing:0.8pt;"> </span>position,<span style="letter-spacing:0.75pt;"> </span>we<span style="letter-spacing:0.7pt;"> </span>have<span style="letter-spacing:0.7pt;"> </span>currently<span style="letter-spacing:0.8pt;"> </span>filed<span style="letter-spacing:0.75pt;"> </span>patent<span style="letter-spacing:0.7pt;"> </span>applications<span style="letter-spacing:0.75pt;"> </span>in<span style="letter-spacing:0.65pt;"> </span>the<span style="letter-spacing:0.7pt;"> </span>United<span style="letter-spacing:0.7pt;"> </span>States<span style="letter-spacing:0.7pt;"> </span>related to<span style="letter-spacing:1.2pt;"> </span>our<span style="letter-spacing:1.2pt;"> </span>product<span style="letter-spacing:1.25pt;"> </span>candidates<span style="letter-spacing:1.3pt;"> </span>that<span style="letter-spacing:1.25pt;"> </span>we<span style="letter-spacing:1.2pt;"> </span>consider<span style="letter-spacing:1.25pt;"> </span>important<span style="letter-spacing:1.3pt;"> </span>to<span style="letter-spacing:1.2pt;"> </span>our<span style="letter-spacing:1.2pt;"> </span>business,<span style="letter-spacing:1.25pt;"> </span>including<span style="letter-spacing:1.25pt;"> </span>patent<span style="letter-spacing:1.25pt;"> </span>applications<span style="letter-spacing:1.3pt;"> </span>relating<span style="letter-spacing:1.25pt;"> </span>to compositions<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>matter<span style="letter-spacing:0.15pt;"> </span>covering<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>compounds,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>processes<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>manufacturing<span style="letter-spacing:0.15pt;"> </span>such compounds<span style="letter-spacing:0.05pt;"> </span>and use of such<span style="letter-spacing:1.2pt;"> </span>compounds<span style="letter-spacing:1.25pt;"> </span>in<span style="letter-spacing:1.2pt;"> </span>therapies.<span style="letter-spacing:1.3pt;"> </span>We<span style="letter-spacing:1.2pt;"> </span>have<span style="letter-spacing:1.2pt;"> </span>also<span style="letter-spacing:1.25pt;"> </span>filed<span style="letter-spacing:1.25pt;"> </span>patent<span style="letter-spacing:1.25pt;"> </span>applications<span style="letter-spacing:1.3pt;"> </span>abroad<span style="letter-spacing:1.25pt;"> </span>relating<span style="letter-spacing:1.3pt;"> </span>to<span style="letter-spacing:1.2pt;"> </span>PRT543<span style="letter-spacing:1.15pt;"> </span>and<span style="letter-spacing:1.15pt;"> </span>PRT811.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>application<span style="letter-spacing:0.1pt;"> </span>and approval<span style="letter-spacing:0.05pt;"> </span>process<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>expensive,<span style="letter-spacing:0.05pt;"> </span>time-consuming<span style="letter-spacing:0.15pt;"> </span>and complex.<span style="letter-spacing:0.05pt;"> </span>We may<span style="letter-spacing:0.05pt;"> </span>not be able<span style="letter-spacing:0.05pt;"> </span>to file,<span style="letter-spacing:0.1pt;"> </span>prosecute<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>maintain<span style="letter-spacing:0.15pt;"> </span>all<span style="letter-spacing:0.1pt;"> </span>necessary<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>desirable<span style="letter-spacing:0.15pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>applications<span style="letter-spacing:0.15pt;"> </span>at<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>reasonable<span style="letter-spacing:0.15pt;"> </span>cost<span style="letter-spacing:0.1pt;"> </span>or in a timely manner<span style="letter-spacing:0.1pt;"> </span>or in all<span style="letter-spacing:0.05pt;"> </span>jurisdictions.<span style="letter-spacing:0.15pt;"> </span>We also<span style="letter-spacing:0.05pt;"> </span>cannot<span style="letter-spacing:0.05pt;"> </span>predict<span style="letter-spacing:0.1pt;"> </span>whether<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>applications<span style="letter-spacing:0.1pt;"> </span>we are<span style="letter-spacing:0.05pt;"> </span>currently<span style="letter-spacing:0.1pt;"> </span>pursuing will<span style="letter-spacing:1.65pt;"> </span>issue<span style="letter-spacing:1.65pt;"> </span>as<span style="letter-spacing:1.6pt;"> </span>patents<span style="letter-spacing:1.6pt;"> </span>in<span style="letter-spacing:1.55pt;"> </span>any<span style="letter-spacing:1.55pt;"> </span>particular<span style="letter-spacing:1.7pt;"> </span>jurisdictions.<span style="letter-spacing:1.7pt;"> </span>It<span style="letter-spacing:1.6pt;"> </span>is<span style="letter-spacing:1.6pt;"> </span>also<span style="letter-spacing:1.6pt;"> </span>possible<span style="letter-spacing:1.6pt;"> </span>that<span style="letter-spacing:1.6pt;"> </span>we<span style="letter-spacing:1.55pt;"> </span>will<span style="letter-spacing:1.6pt;"> </span>fail<span style="letter-spacing:1.6pt;"> </span>to<span style="letter-spacing:1.55pt;"> </span>identify<span style="letter-spacing:1.65pt;"> </span>patentable aspects<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>research<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.15pt;"> </span>output<span style="letter-spacing:0.1pt;"> </span>before<span style="letter-spacing:0.1pt;"> </span>it<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>too late<span style="letter-spacing:0.05pt;"> </span>to obtain<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>protection.<span style="letter-spacing:0.1pt;"> </span>Moreover, depending<span style="letter-spacing:0.1pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>terms<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>future<span style="letter-spacing:0.1pt;"> </span>license<span style="letter-spacing:0.15pt;"> </span>agreements<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>become<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>party,<span style="letter-spacing:0.1pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>not have the right<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>control<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>preparation,<span style="letter-spacing:0.1pt;"> </span>filing,<span style="letter-spacing:0.1pt;"> </span>and prosecution<span style="letter-spacing:0.1pt;"> </span>of patent<span style="letter-spacing:0.05pt;"> </span>applications,<span style="letter-spacing:0.1pt;"> </span>or to maintain<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>patents,<span style="letter-spacing:0.05pt;"> </span>covering technology<span style="letter-spacing:1.1pt;"> </span>licensed<span style="letter-spacing:1.15pt;"> </span>from<span style="letter-spacing:1.1pt;"> </span>third<span style="letter-spacing:1.1pt;"> </span>parties.<span style="letter-spacing:1.15pt;"> </span>Therefore,<span style="letter-spacing:1.15pt;"> </span>these<span style="letter-spacing:1.1pt;"> </span>patents<span style="letter-spacing:1.1pt;"> </span>and<span style="letter-spacing:1.05pt;"> </span>patent<span style="letter-spacing:1.1pt;"> </span>applications<span style="letter-spacing:1.15pt;"> </span>may<span style="letter-spacing:1.1pt;"> </span>not<span style="letter-spacing:1.05pt;"> </span>be<span style="letter-spacing:1pt;"> </span>prosecuted and enforced<span style="letter-spacing:0.05pt;"> </span>in a manner<span style="letter-spacing:0.05pt;"> </span>consistent<span style="letter-spacing:0.1pt;"> </span>with the<span style="letter-spacing:0.05pt;"> </span>best<span style="letter-spacing:0.05pt;"> </span>interests<span style="letter-spacing:0.1pt;"> </span>of our business.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Furthermore,<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>position<span style="letter-spacing:0.05pt;"> </span>of biotechnology<span style="letter-spacing:0.1pt;"> </span>and pharmaceutical<span style="letter-spacing:0.15pt;"> </span>companies<span style="letter-spacing:0.1pt;"> </span>generally<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>highly uncertain.<span style="letter-spacing:0.15pt;"> </span>No<span style="letter-spacing:0.05pt;"> </span>consistent<span style="letter-spacing:0.15pt;"> </span>policy<span style="letter-spacing:0.1pt;"> </span>regarding<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>breadth<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>claims<span style="letter-spacing:0.1pt;"> </span>allowed<span style="letter-spacing:0.05pt;"> </span>in biotechnology<span style="letter-spacing:0.1pt;"> </span>and pharmaceutical patents<span style="letter-spacing:0.05pt;"> </span>has emerged<span style="letter-spacing:0.05pt;"> </span>to date<span style="letter-spacing:0.05pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>States<span style="letter-spacing:0.05pt;"> </span>or in many<span style="letter-spacing:0.05pt;"> </span>foreign<span style="letter-spacing:0.05pt;"> </span>jurisdictions.<span style="letter-spacing:0.15pt;"> </span>The standards<span style="letter-spacing:0.1pt;"> </span>applied<span style="letter-spacing:0.05pt;"> </span>by the United<span style="letter-spacing:0.15pt;"> </span>States<span style="letter-spacing:0.15pt;"> </span>Patent<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.1pt;"> </span>Trademark<span style="letter-spacing:0.2pt;"> </span>Office,<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>USPTO, and<span style="letter-spacing:0.05pt;"> </span>foreign<span style="letter-spacing:0.1pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>offices<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>granting<span style="letter-spacing:0.1pt;"> </span>patents<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>not always<span style="letter-spacing:0.1pt;"> </span>applied<span style="letter-spacing:0.1pt;"> </span>uniformly<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>predictably.<span style="letter-spacing:0.15pt;"> </span>In<span style="letter-spacing:0.05pt;"> </span>addition,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>determination<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>rights<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>respect<span style="letter-spacing:0.15pt;"> </span>to biological and<span style="letter-spacing:0.05pt;"> </span>pharmaceutical<span style="letter-spacing:0.2pt;"> </span>products<span style="letter-spacing:0.1pt;"> </span>commonly<span style="letter-spacing:0.1pt;"> </span>involves<span style="letter-spacing:0.1pt;"> </span>complex<span style="letter-spacing:0.1pt;"> </span>legal<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>factual<span style="letter-spacing:0.1pt;"> </span>questions,<span style="letter-spacing:0.05pt;"> </span>which have in recent<span style="letter-spacing:0.05pt;"> </span>years been<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>subject<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>much<span style="letter-spacing:0.1pt;"> </span>litigation.<span style="letter-spacing:0.2pt;"> </span>As<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>result,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>issuance,<span style="letter-spacing:0.05pt;"> </span>scope,<span style="letter-spacing:0.05pt;"> </span>validity,<span style="letter-spacing:0.1pt;"> </span>enforceability<span style="letter-spacing:0.15pt;"> </span>and commercial<span style="letter-spacing:0.15pt;"> </span>value of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>rights<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>highly<span style="letter-spacing:0.1pt;"> </span>uncertain.<span style="letter-spacing:0.15pt;"> </span>Thus,<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>cannot<span style="letter-spacing:0.05pt;"> </span>offer<span style="letter-spacing:0.05pt;"> </span>any assurances<span style="letter-spacing:0.1pt;"> </span>about<span style="letter-spacing:0.05pt;"> </span>which, if<span style="letter-spacing:0.05pt;"> </span>any, patents<span style="letter-spacing:0.05pt;"> </span>will issue,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>breadth<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>patents,<span style="letter-spacing:0.1pt;"> </span>whether<span style="letter-spacing:0.1pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>issued<span style="letter-spacing:0.1pt;"> </span>patents<span style="letter-spacing:0.1pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>found<span style="letter-spacing:0.05pt;"> </span>invalid<span style="letter-spacing:0.1pt;"> </span>and unenforceable<span style="letter-spacing:0.1pt;"> </span>or will be<span style="letter-spacing:0.05pt;"> </span>threatened<span style="letter-spacing:0.15pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.1pt;"> </span>or whether<span style="letter-spacing:0.05pt;"> </span>any issued<span style="letter-spacing:0.05pt;"> </span>patents<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>effectively<span style="letter-spacing:0.15pt;"> </span>prevent<span style="letter-spacing:0.05pt;"> </span>others<span style="letter-spacing:0.05pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>commercializing competing<span style="letter-spacing:0.15pt;"> </span>technologies<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates.<span style="letter-spacing:0.15pt;"> </span>While<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>filed<span style="letter-spacing:0.1pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>applications<span style="letter-spacing:0.1pt;"> </span>covering<span style="letter-spacing:0.05pt;"> </span>aspects<span style="letter-spacing:0.05pt;"> </span>of our current<span style="letter-spacing:0.2pt;"> </span>product<span style="letter-spacing:0.15pt;"> </span>candidates,<span style="letter-spacing:0.2pt;"> </span>we<span style="letter-spacing:0.1pt;"> </span>currently<span style="letter-spacing:0.2pt;"> </span>have<span style="letter-spacing:0.1pt;"> </span>only<span style="letter-spacing:0.1pt;"> </span>one<span style="letter-spacing:0.1pt;"> </span>issued<span style="letter-spacing:0.1pt;"> </span>U.S. patent<span style="letter-spacing:0.1pt;"> </span>covering<span style="letter-spacing:0.1pt;"> </span>PRT543 that<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>expected<span style="letter-spacing:0.1pt;"> </span>to expire<span style="letter-spacing:0.15pt;"> </span>no<span style="letter-spacing:0.1pt;"> </span>earlier<span style="letter-spacing:0.2pt;"> </span>than<span style="letter-spacing:0.15pt;"> </span>August<span style="letter-spacing:0.1pt;"> </span>9,<span style="letter-spacing:0.05pt;"> </span>2038,<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>one<span style="letter-spacing:0.05pt;"> </span>issued<span style="letter-spacing:0.1pt;"> </span>U.S. patent<span style="letter-spacing:0.1pt;"> </span>covering<span style="letter-spacing:0.1pt;"> </span>PRT811 that<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>expected<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>expire<span style="letter-spacing:0.1pt;"> </span>no earlier<span style="letter-spacing:0.1pt;"> </span>than<span style="letter-spacing:0.05pt;"> </span>March<span style="letter-spacing:0.05pt;"> </span>14, 2039. We do not yet<span style="letter-spacing:0.05pt;"> </span>have issued<span style="letter-spacing:0.05pt;"> </span>patents<span style="letter-spacing:0.05pt;"> </span>on all<span style="letter-spacing:0.05pt;"> </span>of our product<span style="letter-spacing:0.05pt;"> </span>candidates.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">54</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our<span style="letter-spacing:0.7pt;"> </span>pending<span style="letter-spacing:0.75pt;"> </span>patent<span style="letter-spacing:0.75pt;"> </span>applications<span style="letter-spacing:0.8pt;"> </span>cannot<span style="letter-spacing:0.75pt;"> </span>be<span style="letter-spacing:0.7pt;"> </span>enforced<span style="letter-spacing:0.75pt;"> </span>against<span style="letter-spacing:0.75pt;"> </span>third<span style="letter-spacing:0.7pt;"> </span>parties<span style="letter-spacing:0.75pt;"> </span>practicing<span style="letter-spacing:0.75pt;"> </span>the<span style="letter-spacing:0.7pt;"> </span>technology<span style="letter-spacing:0.7pt;"> </span>claimed in such applications<span style="letter-spacing:0.1pt;"> </span>unless<span style="letter-spacing:0.05pt;"> </span>and until<span style="letter-spacing:0.05pt;"> </span>at<span style="letter-spacing:0.05pt;"> </span>least<span style="letter-spacing:0.05pt;"> </span>one patent<span style="letter-spacing:0.05pt;"> </span>issues<span style="letter-spacing:0.05pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>such applications.<span style="letter-spacing:0.1pt;"> </span>Assuming the other requirements<span style="letter-spacing:0.2pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>patentability<span style="letter-spacing:0.2pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>met,<span style="letter-spacing:0.1pt;"> </span>currently,<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>first<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>file<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>application<span style="letter-spacing:0.15pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>generally<span style="letter-spacing:0.15pt;"> </span>entitled<span style="letter-spacing:0.1pt;"> </span>to the patent.<span style="letter-spacing:0.1pt;"> </span>However,<span style="letter-spacing:0.05pt;"> </span>prior<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>March<span style="letter-spacing:0.1pt;"> </span>16,<span style="letter-spacing:0.05pt;"> </span>2013,<span style="letter-spacing:0.05pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>United<span style="letter-spacing:0.1pt;"> </span>States,<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>first<span style="letter-spacing:0.1pt;"> </span>to invent<span style="letter-spacing:0.05pt;"> </span>was entitled<span style="letter-spacing:0.1pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>patent. Publications<span style="letter-spacing:0.15pt;"> </span>of discoveries<span style="letter-spacing:0.1pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>scientific<span style="letter-spacing:0.15pt;"> </span>literature<span style="letter-spacing:0.15pt;"> </span>often<span style="letter-spacing:0.05pt;"> </span>lag<span style="letter-spacing:0.05pt;"> </span>behind<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>actual<span style="letter-spacing:0.05pt;"> </span>discoveries,<span style="letter-spacing:0.1pt;"> </span>and patent applications<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>United<span style="letter-spacing:0.1pt;"> </span>States<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.05pt;"> </span>jurisdictions<span style="letter-spacing:0.15pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>typically<span style="letter-spacing:0.1pt;"> </span>not published<span style="letter-spacing:0.05pt;"> </span>until<span style="letter-spacing:0.05pt;"> </span>18 months<span style="letter-spacing:0.05pt;"> </span>after<span style="letter-spacing:0.1pt;"> </span>filing,<span style="letter-spacing:0.1pt;"> </span>or in<span style="letter-spacing:0.6pt;"> </span>some<span style="letter-spacing:0.65pt;"> </span>cases<span style="letter-spacing:0.65pt;"> </span>not<span style="letter-spacing:0.6pt;"> </span>at<span style="letter-spacing:0.65pt;"> </span>all.<span style="letter-spacing:0.65pt;"> </span>Since<span style="letter-spacing:0.65pt;"> </span>patent<span style="letter-spacing:0.65pt;"> </span>applications<span style="letter-spacing:0.7pt;"> </span>in<span style="letter-spacing:0.6pt;"> </span>the<span style="letter-spacing:0.6pt;"> </span>United<span style="letter-spacing:0.6pt;"> </span>States<span style="letter-spacing:0.6pt;"> </span>and<span style="letter-spacing:0.55pt;"> </span>most<span style="letter-spacing:0.6pt;"> </span>other<span style="letter-spacing:0.6pt;"> </span>countries<span style="letter-spacing:0.65pt;"> </span>are<span style="letter-spacing:0.6pt;"> </span>confidential for<span style="letter-spacing:0.75pt;"> </span>a<span style="letter-spacing:0.7pt;"> </span>period<span style="letter-spacing:0.75pt;"> </span>of<span style="letter-spacing:0.7pt;"> </span>time<span style="letter-spacing:0.75pt;"> </span>after<span style="letter-spacing:0.8pt;"> </span>filing,<span style="letter-spacing:0.75pt;"> </span>and<span style="letter-spacing:0.65pt;"> </span>some<span style="letter-spacing:0.7pt;"> </span>remain<span style="letter-spacing:0.75pt;"> </span>so<span style="letter-spacing:0.65pt;"> </span>until<span style="letter-spacing:0.7pt;"> </span>issued,<span style="letter-spacing:0.7pt;"> </span>we<span style="letter-spacing:0.65pt;"> </span>cannot<span style="letter-spacing:0.7pt;"> </span>be<span style="letter-spacing:0.65pt;"> </span>certain<span style="letter-spacing:0.75pt;"> </span>that<span style="letter-spacing:0.7pt;"> </span>we<span style="letter-spacing:0.65pt;"> </span>were<span style="letter-spacing:0.65pt;"> </span>the<span style="letter-spacing:0.7pt;"> </span>first<span style="letter-spacing:0.75pt;"> </span>to file<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>invent<span style="letter-spacing:0.1pt;"> </span>(prior<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>March<span style="letter-spacing:0.1pt;"> </span>16,<span style="letter-spacing:0.05pt;"> </span>2013)<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>application<span style="letter-spacing:0.15pt;"> </span>related<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates.<span style="letter-spacing:0.1pt;"> </span>In addition,<span style="letter-spacing:0.05pt;"> </span>we enter into non-disclosure and confidentiality agreements with parties who have access to confidential or patentable<span style="letter-spacing:0.2pt;"> </span>aspects<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.1pt;"> </span>research<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.15pt;"> </span>output,<span style="letter-spacing:0.1pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>employees,<span style="letter-spacing:0.15pt;"> </span>collaborators,<span style="letter-spacing:0.2pt;"> </span>CROs, CMOs, hospitals,<span style="letter-spacing:0.15pt;"> </span>independent<span style="letter-spacing:0.1pt;"> </span>treatment<span style="letter-spacing:0.2pt;"> </span>centers,<span style="letter-spacing:0.1pt;"> </span>consultants,<span style="letter-spacing:0.1pt;"> </span>independent<span style="letter-spacing:0.05pt;"> </span>contractors,<span style="letter-spacing:0.1pt;"> </span>suppliers,<span style="letter-spacing:0.1pt;"> </span>advisors<span style="letter-spacing:0.05pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>third parties&#59;<span style="letter-spacing:0.15pt;"> </span>however,<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>these<span style="letter-spacing:0.1pt;"> </span>parties<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>breach<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>agreements<span style="letter-spacing:0.1pt;"> </span>and disclose<span style="letter-spacing:0.1pt;"> </span>such output<span style="letter-spacing:0.05pt;"> </span>before<span style="letter-spacing:0.05pt;"> </span>a patent application<span style="letter-spacing:0.15pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>filed,<span style="letter-spacing:0.05pt;"> </span>thereby<span style="letter-spacing:0.05pt;"> </span>jeopardizing<span style="letter-spacing:0.1pt;"> </span>our ability<span style="letter-spacing:0.1pt;"> </span>to seek<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>protection.<span style="letter-spacing:0.1pt;"> </span>Furthermore,<span style="letter-spacing:0.1pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.1pt;"> </span>have filed<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>applications<span style="letter-spacing:0.1pt;"> </span>related<span style="letter-spacing:0.1pt;"> </span>to our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>or technology,<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>not be able<span style="letter-spacing:0.05pt;"> </span>to obtain<span style="letter-spacing:0.05pt;"> </span>our own patent<span style="letter-spacing:0.05pt;"> </span>rights<span style="letter-spacing:0.05pt;"> </span>to those<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>or technology.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Moreover,<span style="letter-spacing:0.1pt;"> </span>because<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>issuance<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>not conclusive<span style="letter-spacing:0.1pt;"> </span>as to its<span style="letter-spacing:0.05pt;"> </span>inventorship,<span style="letter-spacing:0.1pt;"> </span>scope,<span style="letter-spacing:0.05pt;"> </span>validity<span style="letter-spacing:0.1pt;"> </span>or enforceability,<span style="letter-spacing:0.2pt;"> </span>our patents<span style="letter-spacing:0.05pt;"> </span>or pending<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>applications<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be challenged<span style="letter-spacing:0.1pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>courts<span style="letter-spacing:0.05pt;"> </span>or patent<span style="letter-spacing:0.05pt;"> </span>offices<span style="letter-spacing:0.1pt;"> </span>in the United<span style="letter-spacing:0.1pt;"> </span>States<span style="letter-spacing:0.1pt;"> </span>and abroad.<span style="letter-spacing:0.05pt;"> </span>For example,<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>be subject<span style="letter-spacing:0.05pt;"> </span>to a third-party<span style="letter-spacing:0.15pt;"> </span>pre-issuance<span style="letter-spacing:0.1pt;"> </span>submission<span style="letter-spacing:0.1pt;"> </span>of prior<span style="letter-spacing:0.05pt;"> </span>art<span style="letter-spacing:0.05pt;"> </span>to the<span style="letter-spacing:0.1pt;"> </span>USPTO or become<span style="letter-spacing:0.05pt;"> </span>involved<span style="letter-spacing:0.05pt;"> </span>in post-grant<span style="letter-spacing:0.1pt;"> </span>review<span style="letter-spacing:0.05pt;"> </span>procedures,<span style="letter-spacing:0.1pt;"> </span>oppositions,<span style="letter-spacing:0.1pt;"> </span>derivations,<span style="letter-spacing:0.1pt;"> </span>revocation, reexaminations,<span style="letter-spacing:1.25pt;"> </span>inter<span style="letter-spacing:1.15pt;"> </span>partes<span style="letter-spacing:1.15pt;"> </span>review<span style="letter-spacing:1.15pt;"> </span>or<span style="letter-spacing:1.1pt;"> </span>interference<span style="letter-spacing:1.25pt;"> </span>proceedings,<span style="letter-spacing:1.2pt;"> </span>in<span style="letter-spacing:1.1pt;"> </span>the<span style="letter-spacing:1.15pt;"> </span>United<span style="letter-spacing:1.1pt;"> </span>States<span style="letter-spacing:1.1pt;"> </span>or<span style="letter-spacing:1.05pt;"> </span>elsewhere,<span style="letter-spacing:1.1pt;"> </span>challenging our<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>rights<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>rights<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>others.<span style="letter-spacing:0.1pt;"> </span>An<span style="letter-spacing:0.05pt;"> </span>adverse<span style="letter-spacing:0.1pt;"> </span>determination<span style="letter-spacing:0.2pt;"> </span>in any such submission,<span style="letter-spacing:0.1pt;"> </span>proceeding<span style="letter-spacing:0.05pt;"> </span>or litigation<span style="letter-spacing:0.15pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>reduce<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>scope<span style="letter-spacing:0.05pt;"> </span>of, or invalidate,<span style="letter-spacing:0.1pt;"> </span>our patent<span style="letter-spacing:0.05pt;"> </span>rights,<span style="letter-spacing:0.05pt;"> </span>allow<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.1pt;"> </span>to commercialize<span style="letter-spacing:0.15pt;"> </span>our technology<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>products<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>compete<span style="letter-spacing:0.1pt;"> </span>directly<span style="letter-spacing:0.15pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>us,<span style="letter-spacing:0.05pt;"> </span>without<span style="letter-spacing:0.1pt;"> </span>payment<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>us,<span style="letter-spacing:0.05pt;"> </span>or result<span style="letter-spacing:0.1pt;"> </span>in our inability<span style="letter-spacing:0.1pt;"> </span>to manufacture<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>commercialize<span style="letter-spacing:0.25pt;"> </span>products<span style="letter-spacing:0.1pt;"> </span>without<span style="letter-spacing:0.1pt;"> </span>infringing<span style="letter-spacing:0.1pt;"> </span>third-party<span style="letter-spacing:0.15pt;"> </span>rights.<span style="letter-spacing:0.05pt;"> </span>Moreover,<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>have to participate<span style="letter-spacing:0.4pt;"> </span>in<span style="letter-spacing:0.25pt;"> </span>interference<span style="letter-spacing:0.4pt;"> </span>proceedings<span style="letter-spacing:0.35pt;"> </span>declared<span style="letter-spacing:0.35pt;"> </span>by<span style="letter-spacing:0.2pt;"> </span>the<span style="letter-spacing:0.25pt;"> </span>USPTO<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.2pt;"> </span>determine<span style="letter-spacing:0.3pt;"> </span>priority<span style="letter-spacing:0.3pt;"> </span>of<span style="letter-spacing:0.2pt;"> </span>invention<span style="letter-spacing:0.25pt;"> </span>or<span style="letter-spacing:0.2pt;"> </span>in<span style="letter-spacing:0.2pt;"> </span>post-grant challenge<span style="letter-spacing:0.15pt;"> </span>proceedings,<span style="letter-spacing:0.15pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>oppositions<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>a foreign<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>office,<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>challenge<span style="letter-spacing:0.1pt;"> </span>priority<span style="letter-spacing:0.1pt;"> </span>of invention<span style="letter-spacing:0.05pt;"> </span>or other features<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>patentability.<span style="letter-spacing:0.2pt;"> </span>Such<span style="letter-spacing:0.05pt;"> </span>challenges<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>result<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>loss<span style="letter-spacing:0.05pt;"> </span>of exclusivity<span style="letter-spacing:0.1pt;"> </span>or in our patent<span style="letter-spacing:0.05pt;"> </span>claims<span style="letter-spacing:0.1pt;"> </span>being<span style="letter-spacing:0.05pt;"> </span>narrowed, invalidated<span style="letter-spacing:0.1pt;"> </span>or held<span style="letter-spacing:0.05pt;"> </span>unenforceable,<span style="letter-spacing:0.1pt;"> </span>in whole or in part,<span style="letter-spacing:0.05pt;"> </span>which could<span style="letter-spacing:0.05pt;"> </span>limit<span style="letter-spacing:0.1pt;"> </span>our ability<span style="letter-spacing:0.1pt;"> </span>to stop<span style="letter-spacing:0.05pt;"> </span>others from using or commercializing<span style="letter-spacing:0.25pt;"> </span>similar<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>identical<span style="letter-spacing:0.15pt;"> </span>technology<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>products<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>limit<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>duration<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>protection<span style="letter-spacing:0.1pt;"> </span>of our technology<span style="letter-spacing:1.1pt;"> </span>and<span style="letter-spacing:1.05pt;"> </span>products.<span style="letter-spacing:1.1pt;"> </span>Such<span style="letter-spacing:1pt;"> </span>challenges<span style="letter-spacing:1.1pt;"> </span>also<span style="letter-spacing:1.05pt;"> </span>may<span style="letter-spacing:1.05pt;"> </span>result<span style="letter-spacing:1.1pt;"> </span>in<span style="letter-spacing:1pt;"> </span>substantial<span style="letter-spacing:1.1pt;"> </span>cost<span style="letter-spacing:1.05pt;"> </span>and<span style="letter-spacing:1pt;"> </span>require<span style="letter-spacing:1.1pt;"> </span>significant<span style="letter-spacing:1.15pt;"> </span>time<span style="letter-spacing:1.05pt;"> </span>from our<span style="letter-spacing:0.3pt;"> </span>scientists<span style="letter-spacing:0.45pt;"> </span>and<span style="letter-spacing:0.3pt;"> </span>management,<span style="letter-spacing:0.4pt;"> </span>even<span style="letter-spacing:0.3pt;"> </span>if<span style="letter-spacing:0.35pt;"> </span>the<span style="letter-spacing:0.35pt;"> </span>eventual<span style="letter-spacing:0.35pt;"> </span>outcome<span style="letter-spacing:0.35pt;"> </span>is<span style="letter-spacing:0.35pt;"> </span>favorable<span style="letter-spacing:0.4pt;"> </span>to<span style="letter-spacing:0.3pt;"> </span>us.<span style="letter-spacing:0.3pt;"> </span>Any<span style="letter-spacing:0.3pt;"> </span>of<span style="letter-spacing:0.3pt;"> </span>the<span style="letter-spacing:0.35pt;"> </span>foregoing<span style="letter-spacing:0.3pt;"> </span>could<span style="letter-spacing:0.3pt;"> </span>have a material<span style="letter-spacing:0.15pt;"> </span>adverse<span style="letter-spacing:0.05pt;"> </span>effect<span style="letter-spacing:0.1pt;"> </span>on our business,<span style="letter-spacing:0.05pt;"> </span>financial<span style="letter-spacing:0.1pt;"> </span>condition,<span style="letter-spacing:0.05pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>of operations,<span style="letter-spacing:0.1pt;"> </span>and prospects.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In<span style="letter-spacing:0.05pt;"> </span>addition,<span style="letter-spacing:0.1pt;"> </span>given<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>amount<span style="letter-spacing:0.05pt;"> </span>of time<span style="letter-spacing:0.05pt;"> </span>required<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>development,<span style="letter-spacing:0.1pt;"> </span>testing<span style="letter-spacing:0.1pt;"> </span>and regulatory<span style="letter-spacing:0.1pt;"> </span>review<span style="letter-spacing:0.05pt;"> </span>of new product<span style="letter-spacing:0.1pt;"> </span>candidates,<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>patents<span style="letter-spacing:0.1pt;"> </span>protecting<span style="letter-spacing:0.15pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.15pt;"> </span>might<span style="letter-spacing:0.1pt;"> </span>expire<span style="letter-spacing:0.05pt;"> </span>before<span style="letter-spacing:0.05pt;"> </span>or shortly<span style="letter-spacing:0.05pt;"> </span>after<span style="letter-spacing:0.1pt;"> </span>such product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.15pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>commercialized.<span style="letter-spacing:0.25pt;"> </span>As<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>result,<span style="letter-spacing:0.1pt;"> </span>our intellectual<span style="letter-spacing:0.15pt;"> </span>property<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>not provide<span style="letter-spacing:0.05pt;"> </span>us with sufficient rights<span style="letter-spacing:1.9pt;"> </span>to<span style="letter-spacing:1.85pt;"> </span>exclude<span style="letter-spacing:1.9pt;"> </span>others<span style="letter-spacing:1.9pt;"> </span>from<span style="letter-spacing:1.9pt;"> </span>commercializing<span style="letter-spacing:2.05pt;"> </span>products<span style="letter-spacing:1.9pt;"> </span>similar<span style="letter-spacing:1.95pt;"> </span>or<span style="letter-spacing:1.85pt;"> </span>identical<span style="letter-spacing:1.95pt;"> </span>to<span style="letter-spacing:1.85pt;"> </span>ours.<span style="letter-spacing:1.9pt;"> </span>Moreover,<span style="letter-spacing:1.85pt;"> </span>some<span style="letter-spacing:1.85pt;"> </span>of<span style="letter-spacing:1.8pt;"> </span>our patents<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>applications<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>future<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>co-owned<span style="letter-spacing:0.05pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.1pt;"> </span>parties.<span style="letter-spacing:0.15pt;"> </span>If<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>unable<span style="letter-spacing:0.05pt;"> </span>to obtain<span style="letter-spacing:0.05pt;"> </span>an exclusive license to any such third-party co-owners&#8217; interest in such patents or patent applications, such co-owners may be able to license their rights to other third parties, including our competitors, and our competitors<span style="letter-spacing:0.2pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>market<span style="letter-spacing:0.15pt;"> </span>competing<span style="letter-spacing:0.15pt;"> </span>products<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>technology.<span style="letter-spacing:0.1pt;"> </span>In<span style="letter-spacing:0.05pt;"> </span>addition,<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>need<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>cooperation<span style="letter-spacing:0.15pt;"> </span>of any such<span style="letter-spacing:0.05pt;"> </span>co-owners<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>patents<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>order<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>enforce<span style="letter-spacing:0.1pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>patents<span style="letter-spacing:0.1pt;"> </span>against<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.05pt;"> </span>parties,<span style="letter-spacing:0.1pt;"> </span>and such cooperation<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>not be<span style="letter-spacing:2.1pt;"> </span>provided<span style="letter-spacing:2.15pt;"> </span>to<span style="letter-spacing:2.1pt;"> </span>us.<span style="letter-spacing:2.1pt;"> </span>Any<span style="letter-spacing:2.05pt;"> </span>of<span style="letter-spacing:2.05pt;"> </span>the<span style="letter-spacing:2.1pt;"> </span>foregoing<span style="letter-spacing:2.1pt;"> </span>could<span style="letter-spacing:2.1pt;"> </span>have<span style="letter-spacing:2.05pt;"> </span>a<span style="letter-spacing:2.05pt;"> </span>material<span style="letter-spacing:2.2pt;"> </span>adverse<span style="letter-spacing:2.1pt;"> </span>effect<span style="letter-spacing:2.15pt;"> </span>on<span style="letter-spacing:2.05pt;"> </span>our<span style="letter-spacing:2.05pt;"> </span>competitive<span style="letter-spacing:2.2pt;"> </span>position, business,<span style="letter-spacing:0.05pt;"> </span>financial<span style="letter-spacing:0.1pt;"> </span>conditions,<span style="letter-spacing:0.1pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>of operations,<span style="letter-spacing:0.1pt;"> </span>and prospects.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our<span style="letter-spacing:0.05pt;"> </span>pending<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>future<span style="letter-spacing:0.1pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>applications<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>result<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>patents<span style="letter-spacing:0.1pt;"> </span>being<span style="letter-spacing:0.05pt;"> </span>issued<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>protect<span style="letter-spacing:0.1pt;"> </span>our product candidates,<span style="letter-spacing:0.1pt;"> </span>in whole or in part,<span style="letter-spacing:0.05pt;"> </span>or which effectively<span style="letter-spacing:0.15pt;"> </span>prevent<span style="letter-spacing:0.05pt;"> </span>others from commercializing<span style="letter-spacing:0.15pt;"> </span>competitive<span style="letter-spacing:0.1pt;"> </span>products. Changes<span style="letter-spacing:0.05pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>either<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>laws or interpretation<span style="letter-spacing:0.15pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>laws in the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>States<span style="letter-spacing:0.05pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>countries<span style="letter-spacing:0.1pt;"> </span>may diminish<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>value<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>patents<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>narrow<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>scope<span style="letter-spacing:0.1pt;"> </span>of our patent<span style="letter-spacing:0.05pt;"> </span>protection.<span style="letter-spacing:0.1pt;"> </span>In addition,<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>laws of foreign countries<span style="letter-spacing:0.85pt;"> </span>may<span style="letter-spacing:0.8pt;"> </span>not<span style="letter-spacing:0.75pt;"> </span>protect<span style="letter-spacing:0.85pt;"> </span>our<span style="letter-spacing:0.75pt;"> </span>rights<span style="letter-spacing:0.8pt;"> </span>to<span style="letter-spacing:0.75pt;"> </span>the<span style="letter-spacing:0.8pt;"> </span>same<span style="letter-spacing:0.8pt;"> </span>extent<span style="letter-spacing:0.8pt;"> </span>or<span style="letter-spacing:0.7pt;"> </span>in<span style="letter-spacing:0.7pt;"> </span>the<span style="letter-spacing:0.75pt;"> </span>same<span style="letter-spacing:0.75pt;"> </span>manner<span style="letter-spacing:0.75pt;"> </span>as<span style="letter-spacing:0.7pt;"> </span>the<span style="letter-spacing:0.75pt;"> </span>laws<span style="letter-spacing:0.7pt;"> </span>of<span style="letter-spacing:0.7pt;"> </span>the<span style="letter-spacing:0.75pt;"> </span>United<span style="letter-spacing:0.75pt;"> </span>States. For<span style="letter-spacing:1.1pt;"> </span>example,<span style="letter-spacing:1.15pt;"> </span>European<span style="letter-spacing:1.15pt;"> </span>patent<span style="letter-spacing:1.15pt;"> </span>law<span style="letter-spacing:1.1pt;"> </span>restricts<span style="letter-spacing:1.25pt;"> </span>the<span style="letter-spacing:1.15pt;"> </span>patentability<span style="letter-spacing:1.2pt;"> </span>of<span style="letter-spacing:1.05pt;"> </span>methods<span style="letter-spacing:1.1pt;"> </span>of<span style="letter-spacing:1.05pt;"> </span>treatment<span style="letter-spacing:1.2pt;"> </span>of<span style="letter-spacing:1.05pt;"> </span>the<span style="letter-spacing:1.1pt;"> </span>human<span style="letter-spacing:1.1pt;"> </span>body<span style="letter-spacing:1.05pt;"> </span>more than<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>States<span style="letter-spacing:0.05pt;"> </span>law does.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Even<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>applications<span style="letter-spacing:0.1pt;"> </span>issue<span style="letter-spacing:0.05pt;"> </span>as patents,<span style="letter-spacing:0.05pt;"> </span>they<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>not issue<span style="letter-spacing:0.05pt;"> </span>in a form<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>provide<span style="letter-spacing:0.05pt;"> </span>us with any meaningful<span style="letter-spacing:0.15pt;"> </span>protection,<span style="letter-spacing:0.15pt;"> </span>prevent<span style="letter-spacing:0.05pt;"> </span>competitors<span style="letter-spacing:0.15pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.1pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>competing<span style="letter-spacing:0.1pt;"> </span>with us or otherwise<span style="letter-spacing:0.05pt;"> </span>provide<span style="letter-spacing:0.05pt;"> </span>us with<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>competitive<span style="letter-spacing:0.2pt;"> </span>advantage.<span style="letter-spacing:0.1pt;"> </span>Moreover,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>coverage<span style="letter-spacing:0.1pt;"> </span>claimed<span style="letter-spacing:0.1pt;"> </span>in a patent<span style="letter-spacing:0.05pt;"> </span>application<span style="letter-spacing:0.1pt;"> </span>can be significantly reduced<span style="letter-spacing:1.2pt;"> </span>before<span style="letter-spacing:1.2pt;"> </span>the<span style="letter-spacing:1.2pt;"> </span>patent<span style="letter-spacing:1.2pt;"> </span>is<span style="letter-spacing:1.2pt;"> </span>issued<span style="letter-spacing:1.2pt;"> </span>and<span style="letter-spacing:1.15pt;"> </span>its<span style="letter-spacing:1.2pt;"> </span>scope<span style="letter-spacing:1.2pt;"> </span>can<span style="letter-spacing:1.15pt;"> </span>be<span style="letter-spacing:1.15pt;"> </span>reinterpreted<span style="letter-spacing:1.3pt;"> </span>after<span style="letter-spacing:1.25pt;"> </span>issuance.<span style="letter-spacing:1.2pt;"> </span>Consequently,<span style="letter-spacing:1.2pt;"> </span>we<span style="letter-spacing:1.15pt;"> </span>do<span style="letter-spacing:1.1pt;"> </span>not know<span style="letter-spacing:1.15pt;"> </span>whether<span style="letter-spacing:1.2pt;"> </span>any<span style="letter-spacing:1.15pt;"> </span>of<span style="letter-spacing:1.15pt;"> </span>our<span style="letter-spacing:1.15pt;"> </span>product<span style="letter-spacing:1.2pt;"> </span>candidates<span style="letter-spacing:1.25pt;"> </span>will<span style="letter-spacing:1.2pt;"> </span>be<span style="letter-spacing:1.15pt;"> </span>protectable<span style="letter-spacing:1.25pt;"> </span>or<span style="letter-spacing:1.15pt;"> </span>remain<span style="letter-spacing:1.2pt;"> </span>protected<span style="letter-spacing:1.2pt;"> </span>by<span style="letter-spacing:1.1pt;"> </span>valid<span style="letter-spacing:1.15pt;"> </span>and<span style="letter-spacing:1.1pt;"> </span>enforceable patents.<span style="letter-spacing:0.05pt;"> </span>Our competitors<span style="letter-spacing:0.15pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be able<span style="letter-spacing:0.05pt;"> </span>to circumvent<span style="letter-spacing:0.1pt;"> </span>our patents<span style="letter-spacing:0.05pt;"> </span>by developing<span style="letter-spacing:0.05pt;"> </span>similar<span style="letter-spacing:0.05pt;"> </span>or alternative<span style="letter-spacing:0.2pt;"> </span>technologies<span style="letter-spacing:0.15pt;"> </span>or products<span style="letter-spacing:0.05pt;"> </span>in a non-infringing<span style="letter-spacing:0.1pt;"> </span>manner.<span style="letter-spacing:0.05pt;"> </span>Our competitors<span style="letter-spacing:0.15pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>also seek<span style="letter-spacing:0.05pt;"> </span>approval<span style="letter-spacing:0.05pt;"> </span>to market<span style="letter-spacing:0.1pt;"> </span>their<span style="letter-spacing:0.05pt;"> </span>own products<span style="letter-spacing:0.05pt;"> </span>similar<span style="letter-spacing:0.1pt;"> </span>to or otherwise<span style="letter-spacing:0.05pt;"> </span>competitive<span style="letter-spacing:0.15pt;"> </span>with our products.<span style="letter-spacing:0.05pt;"> </span>Alternatively, our<span style="letter-spacing:0.05pt;"> </span>competitors<span style="letter-spacing:0.2pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>third<span style="letter-spacing:0.1pt;"> </span>parties<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>seek<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>market<span style="letter-spacing:0.15pt;"> </span>generic<span style="letter-spacing:0.05pt;"> </span>versions<span style="letter-spacing:0.05pt;"> </span>or &#8220;follow-on&#8221;<span style="letter-spacing:0.1pt;"> </span>versions<span style="letter-spacing:0.05pt;"> </span>of any approved<span style="letter-spacing:0.1pt;"> </span>products<span style="letter-spacing:0.1pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>submitting<span style="letter-spacing:0.15pt;"> </span>abbreviated<span style="letter-spacing:0.15pt;"> </span>new<span style="letter-spacing:0.05pt;"> </span>drug<span style="letter-spacing:0.05pt;"> </span>applications,<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>ANDAs, or<span style="letter-spacing:0.05pt;"> </span>new<span style="letter-spacing:0.05pt;"> </span>drug applications<span style="letter-spacing:0.1pt;"> </span>under Section<span style="letter-spacing:0.15pt;"> </span>505(b)(2)<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDCA, respectively,<span style="letter-spacing:0.2pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA during<span style="letter-spacing:0.1pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>they<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>claim<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>patents<span style="letter-spacing:0.1pt;"> </span>owned<span style="letter-spacing:0.05pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>us are<span style="letter-spacing:0.5pt;"> </span>invalid,<span style="letter-spacing:0.5pt;"> </span>unenforceable<span style="letter-spacing:0.55pt;"> </span>or<span style="letter-spacing:0.45pt;"> </span>not<span style="letter-spacing:0.45pt;"> </span>infringed.<span style="letter-spacing:0.55pt;"> </span>In<span style="letter-spacing:0.45pt;"> </span>these<span style="letter-spacing:0.5pt;"> </span>circumstances,<span style="letter-spacing:0.55pt;"> </span>we<span style="letter-spacing:0.4pt;"> </span></p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">55</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">may</span><span style="letter-spacing:0.45pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">need</span><span style="letter-spacing:0.4pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:0.4pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">defend</span><span style="letter-spacing:0.45pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or</span><span style="letter-spacing:0.4pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">assert</span><span style="letter-spacing:0.5pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our</span><span style="letter-spacing:0.4pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">patents, or</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">both,</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">including</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">by</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">filing</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">lawsuits</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">alleging</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">patent</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">infringement.</span><span style="letter-spacing:0.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">any</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of these</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">types</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of proceedings,</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">a court</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or other</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">agency</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">with jurisdiction</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">may</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">find</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our patents</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">invalid</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or unenforceable,</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or that</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our competitors</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">are competing</span><span style="letter-spacing:1.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in</span><span style="letter-spacing:1.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">a</span><span style="letter-spacing:1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">non-infringing</span><span style="letter-spacing:1.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">manner.</span><span style="letter-spacing:1.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Thus,</span><span style="letter-spacing:1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">even</span><span style="letter-spacing:1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">if</span><span style="letter-spacing:1.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we</span><span style="letter-spacing:1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">have</span><span style="letter-spacing:1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">valid</span><span style="letter-spacing:1.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</span><span style="letter-spacing:1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">enforceable</span><span style="letter-spacing:1.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">patents,</span><span style="letter-spacing:1.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">these</span><span style="letter-spacing:1.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">patents</span><span style="letter-spacing:1.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">still may</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">not</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">provide</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">protection</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">against</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">competing</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">products</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or processes</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">sufficient</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to achieve</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our business</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">objectives. Any</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">foregoing</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">have</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">a</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">material</span><span style="letter-spacing:0.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">adverse</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">effect</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">on our competitive</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">position,</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">business,</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">financial conditions,</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">results</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of operations,</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and prospects.</span></p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Furthermore,<span style="letter-spacing:0.15pt;"> </span>future<span style="letter-spacing:0.1pt;"> </span>patents<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>be subject<span style="letter-spacing:0.05pt;"> </span>to a reservation<span style="letter-spacing:0.1pt;"> </span>of rights<span style="letter-spacing:0.05pt;"> </span>by one or more<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.05pt;"> </span>parties.<span style="letter-spacing:0.1pt;"> </span>For example,<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>extent<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>research<span style="letter-spacing:0.1pt;"> </span>resulting<span style="letter-spacing:0.1pt;"> </span>in future<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>rights<span style="letter-spacing:0.05pt;"> </span>or technologies<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>funded<span style="letter-spacing:0.05pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>future<span style="letter-spacing:0.05pt;"> </span>in part by<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>U.S. government,<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>government<span style="letter-spacing:0.15pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>have certain<span style="letter-spacing:0.1pt;"> </span>rights<span style="letter-spacing:0.05pt;"> </span>in any resulting<span style="letter-spacing:0.1pt;"> </span>patents<span style="letter-spacing:0.05pt;"> </span>and technology, including<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>non-exclusive<span style="letter-spacing:0.15pt;"> </span>license<span style="letter-spacing:0.15pt;"> </span>authorizing<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>government<span style="letter-spacing:0.1pt;"> </span>to use the<span style="letter-spacing:0.05pt;"> </span>invention<span style="letter-spacing:0.05pt;"> </span>or to have others<span style="letter-spacing:0.05pt;"> </span>use the invention<span style="letter-spacing:1.9pt;"> </span>on<span style="letter-spacing:1.85pt;"> </span>its<span style="letter-spacing:1.9pt;"> </span>behalf<span style="letter-spacing:1.9pt;"> </span>for<span style="letter-spacing:1.9pt;"> </span>non-commercial<span style="letter-spacing:2pt;"> </span>purposes.<span style="letter-spacing:1.9pt;"> </span>If<span style="letter-spacing:1.9pt;"> </span>the<span style="letter-spacing:1.9pt;"> </span>U.S.<span style="letter-spacing:1.8pt;"> </span>government<span style="letter-spacing:1.9pt;"> </span>then<span style="letter-spacing:1.85pt;"> </span>decides<span style="letter-spacing:1.85pt;"> </span>to<span style="letter-spacing:1.8pt;"> </span>exercise<span style="letter-spacing:1.9pt;"> </span>these rights,<span style="letter-spacing:0.1pt;"> </span>it<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>required<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>engage<span style="letter-spacing:0.1pt;"> </span>us<span style="letter-spacing:0.05pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>its<span style="letter-spacing:0.1pt;"> </span>contractor<span style="letter-spacing:0.1pt;"> </span>in connection<span style="letter-spacing:0.05pt;"> </span>with doing so. These rights<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>also<span style="letter-spacing:0.05pt;"> </span>permit the<span style="letter-spacing:0.1pt;"> </span>government<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>disclose<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>confidential<span style="letter-spacing:0.2pt;"> </span>information<span style="letter-spacing:0.2pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.1pt;"> </span>parties<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>exercise<span style="letter-spacing:0.15pt;"> </span>march-in<span style="letter-spacing:0.15pt;"> </span>rights<span style="letter-spacing:0.1pt;"> </span>to use or allow<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.1pt;"> </span>to use our licensed<span style="letter-spacing:0.1pt;"> </span>technology.<span style="letter-spacing:0.05pt;"> </span>The government<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>also<span style="letter-spacing:0.05pt;"> </span>exercise<span style="letter-spacing:0.1pt;"> </span>its<span style="letter-spacing:0.05pt;"> </span>march-in<span style="letter-spacing:0.1pt;"> </span>rights<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>it determines<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>action<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>necessary<span style="letter-spacing:0.1pt;"> </span>because<span style="letter-spacing:0.05pt;"> </span>we failed<span style="letter-spacing:0.1pt;"> </span>to achieve<span style="letter-spacing:0.05pt;"> </span>practical<span style="letter-spacing:0.1pt;"> </span>application<span style="letter-spacing:0.1pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>government-funded technology,<span style="letter-spacing:0.1pt;"> </span>because<span style="letter-spacing:0.1pt;"> </span>action<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>necessary<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>alleviate<span style="letter-spacing:0.15pt;"> </span>health<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>safety<span style="letter-spacing:0.1pt;"> </span>needs,<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>meet<span style="letter-spacing:0.1pt;"> </span>requirements<span style="letter-spacing:0.15pt;"> </span>of federal regulations,<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>give<span style="letter-spacing:0.1pt;"> </span>preference<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>U.S. industry.<span style="letter-spacing:0.1pt;"> </span>In<span style="letter-spacing:0.05pt;"> </span>addition,<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>rights<span style="letter-spacing:0.05pt;"> </span>in such government-funded<span style="letter-spacing:0.15pt;"> </span>inventions may<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>subject<span style="letter-spacing:0.1pt;"> </span>to certain<span style="letter-spacing:0.1pt;"> </span>requirements<span style="letter-spacing:0.15pt;"> </span>to manufacture<span style="letter-spacing:0.1pt;"> </span>products<span style="letter-spacing:0.05pt;"> </span>embodying<span style="letter-spacing:0.05pt;"> </span>such inventions<span style="letter-spacing:0.1pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>States. Any<span style="letter-spacing:0.05pt;"> </span>exercise<span style="letter-spacing:0.15pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>government<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>aforementioned<span style="letter-spacing:0.2pt;"> </span>proprietary<span style="letter-spacing:0.1pt;"> </span>rights<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>harm<span style="letter-spacing:0.05pt;"> </span>our competitive<span style="letter-spacing:0.15pt;"> </span>position, business,<span style="letter-spacing:0.05pt;"> </span>financial<span style="letter-spacing:0.1pt;"> </span>condition,<span style="letter-spacing:0.05pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>of operations,<span style="letter-spacing:0.1pt;"> </span>and prospects.</p>
<p style="margin-top:0pt;line-height:14pt;margin-bottom:0pt;text-indent:0%;font-size:14pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Changes to the patent<span style="letter-spacing:0.05pt;"> </span>law in the United States<span style="letter-spacing:0.05pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>jurisdictions<span style="letter-spacing:0.1pt;"> </span>could diminish<span style="letter-spacing:0.05pt;"> </span>the value<span style="letter-spacing:0.05pt;"> </span>of patents in general,<span style="letter-spacing:0.05pt;"> </span>thereby<span style="letter-spacing:0.05pt;"> </span>impairing<span style="letter-spacing:0.1pt;"> </span>our ability<span style="letter-spacing:0.1pt;"> </span>to protect<span style="letter-spacing:0.05pt;"> </span>our products.</p>
<p style="margin-top:4pt;margin-bottom:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">As<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>case<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>pharmaceutical<span style="letter-spacing:0.2pt;"> </span>companies,<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>success<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>heavily<span style="letter-spacing:0.05pt;"> </span>dependent<span style="letter-spacing:0.05pt;"> </span>on intellectual property,<span style="letter-spacing:0.05pt;"> </span>particularly<span style="letter-spacing:0.15pt;"> </span>patents.<span style="letter-spacing:0.05pt;"> </span>Obtaining<span style="letter-spacing:0.05pt;"> </span>and enforcing<span style="letter-spacing:0.1pt;"> </span>patents<span style="letter-spacing:0.05pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>pharmaceutical<span style="letter-spacing:0.15pt;"> </span>industry<span style="letter-spacing:0.05pt;"> </span>involves<span style="letter-spacing:0.05pt;"> </span>both technological<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>legal<span style="letter-spacing:0.1pt;"> </span>complexity<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>therefore<span style="letter-spacing:0.1pt;"> </span>costly,<span style="letter-spacing:0.05pt;"> </span>time<span style="letter-spacing:0.05pt;"> </span>consuming<span style="letter-spacing:0.05pt;"> </span>and inherently<span style="letter-spacing:0.1pt;"> </span>uncertain.<span style="letter-spacing:0.1pt;"> </span>Changes in either<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>laws<span style="letter-spacing:0.05pt;"> </span>or interpretation<span style="letter-spacing:0.15pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>laws in the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>States<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>increase<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>uncertainties<span style="letter-spacing:0.15pt;"> </span>and costs<span style="letter-spacing:0.1pt;"> </span>surrounding<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>prosecution<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>applications<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>enforcement<span style="letter-spacing:0.1pt;"> </span>or defense<span style="letter-spacing:0.05pt;"> </span>of issued<span style="letter-spacing:0.05pt;"> </span>patents.<span style="letter-spacing:0.05pt;"> </span>Recent patent<span style="letter-spacing:1.2pt;"> </span>reform<span style="letter-spacing:1.2pt;"> </span>legislation<span style="letter-spacing:1.25pt;"> </span>in<span style="letter-spacing:1.1pt;"> </span>the<span style="letter-spacing:1.15pt;"> </span>United<span style="letter-spacing:1.15pt;"> </span>States<span style="letter-spacing:1.15pt;"> </span>and<span style="letter-spacing:1.1pt;"> </span>other<span style="letter-spacing:1.15pt;"> </span>countries,<span style="letter-spacing:1.2pt;"> </span>including<span style="letter-spacing:1.15pt;"> </span>the<span style="letter-spacing:1.15pt;"> </span>Leahy-Smith<span style="letter-spacing:1.2pt;"> </span>America<span style="letter-spacing:1.15pt;"> </span>Invents Act,<span style="letter-spacing:1pt;"> </span>or<span style="letter-spacing:1pt;"> </span>the<span style="letter-spacing:1.05pt;"> </span>Leahy-Smith<span style="letter-spacing:1.05pt;"> </span>Act,<span style="letter-spacing:0.95pt;"> </span>signed<span style="letter-spacing:1pt;"> </span>into<span style="letter-spacing:1pt;"> </span>law<span style="letter-spacing:0.95pt;"> </span>in<span style="letter-spacing:0.95pt;"> </span>September<span style="letter-spacing:1.05pt;"> </span>2011,<span style="letter-spacing:0.95pt;"> </span>could<span style="letter-spacing:1pt;"> </span>increase<span style="letter-spacing:1.05pt;"> </span>those<span style="letter-spacing:1pt;"> </span>uncertainties<span style="letter-spacing:1.1pt;"> </span>and<span style="letter-spacing:0.95pt;"> </span>costs. The<span style="letter-spacing:0.1pt;"> </span>Leahy-Smith<span style="letter-spacing:0.2pt;"> </span>Act<span style="letter-spacing:0.1pt;"> </span>includes<span style="letter-spacing:0.15pt;"> </span>a<span style="letter-spacing:0.1pt;"> </span>number<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>significant<span style="letter-spacing:0.2pt;"> </span>changes<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>U.S. patent<span style="letter-spacing:0.1pt;"> </span>law.<span style="letter-spacing:0.05pt;"> </span>These<span style="letter-spacing:0.05pt;"> </span>include<span style="letter-spacing:0.1pt;"> </span>provisions<span style="letter-spacing:0.15pt;"> </span>that affect<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>way patent<span style="letter-spacing:0.05pt;"> </span>applications<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>prosecuted,<span style="letter-spacing:0.1pt;"> </span>redefine<span style="letter-spacing:0.1pt;"> </span>prior<span style="letter-spacing:0.05pt;"> </span>art<span style="letter-spacing:0.05pt;"> </span>and provide<span style="letter-spacing:0.05pt;"> </span>more<span style="letter-spacing:0.05pt;"> </span>efficient<span style="letter-spacing:0.15pt;"> </span>and cost-effective avenues<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>competitors<span style="letter-spacing:0.2pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>challenge<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>validity<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>patents.<span style="letter-spacing:0.1pt;"> </span>For example,<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>Leahy-Smith<span style="letter-spacing:0.1pt;"> </span>Act allows<span style="letter-spacing:0.05pt;"> </span>third-party submission<span style="letter-spacing:0.75pt;"> </span>of<span style="letter-spacing:0.65pt;"> </span>prior<span style="letter-spacing:0.7pt;"> </span>art<span style="letter-spacing:0.7pt;"> </span>to<span style="letter-spacing:0.65pt;"> </span>the<span style="letter-spacing:0.7pt;"> </span>USPTO<span style="letter-spacing:0.6pt;"> </span>during<span style="letter-spacing:0.7pt;"> </span>patent<span style="letter-spacing:0.7pt;"> </span>prosecution<span style="letter-spacing:0.75pt;"> </span>and<span style="letter-spacing:0.65pt;"> </span>additional<span style="letter-spacing:0.75pt;"> </span>procedures<span style="letter-spacing:0.75pt;"> </span>to<span style="letter-spacing:0.6pt;"> </span>attack<span style="letter-spacing:0.65pt;"> </span>the<span style="letter-spacing:0.65pt;"> </span>validity of<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>USPTO administered<span style="letter-spacing:0.2pt;"> </span>post-grant<span style="letter-spacing:0.15pt;"> </span>proceedings,<span style="letter-spacing:0.15pt;"> </span>including<span style="letter-spacing:0.1pt;"> </span>post-grant<span style="letter-spacing:0.1pt;"> </span>review,<span style="letter-spacing:0.05pt;"> </span>inter<span style="letter-spacing:0.05pt;"> </span>partes<span style="letter-spacing:0.05pt;"> </span>review,<span style="letter-spacing:0.05pt;"> </span>and derivation proceedings. In addition, the Leahy-Smith Act has transformed the U.S. patent system from a &#8220;first-to-invent&#8221;<span style="letter-spacing:0.2pt;"> </span>system<span style="letter-spacing:0.05pt;"> </span>to a &#8220;first-to-file&#8221;<span style="letter-spacing:0.25pt;"> </span>system<span style="letter-spacing:0.05pt;"> </span>in which, assuming<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.05pt;"> </span>requirements<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>patentability<span style="letter-spacing:0.15pt;"> </span>are met,<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>first<span style="letter-spacing:0.1pt;"> </span>inventor<span style="letter-spacing:0.05pt;"> </span>to file<span style="letter-spacing:0.05pt;"> </span>a patent<span style="letter-spacing:0.05pt;"> </span>application<span style="letter-spacing:0.1pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>be entitled<span style="letter-spacing:0.1pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>on an invention regardless<span style="letter-spacing:0.05pt;"> </span>of whether<span style="letter-spacing:1.3pt;"> </span>a<span style="letter-spacing:1.25pt;"> </span>third<span style="letter-spacing:1.3pt;"> </span>party<span style="letter-spacing:1.3pt;"> </span>was<span style="letter-spacing:1.25pt;"> </span>the<span style="letter-spacing:1.3pt;"> </span>first<span style="letter-spacing:1.35pt;"> </span>to<span style="letter-spacing:1.25pt;"> </span>invent<span style="letter-spacing:1.3pt;"> </span>the<span style="letter-spacing:1.3pt;"> </span>claimed<span style="letter-spacing:1.35pt;"> </span>invention.<span style="letter-spacing:1.3pt;"> </span>The<span style="letter-spacing:1.25pt;"> </span>first-to-file<span style="letter-spacing:1.45pt;"> </span>provisions,<span style="letter-spacing:1.3pt;"> </span>however,<span style="letter-spacing:1.2pt;"> </span>only became<span style="letter-spacing:0.1pt;"> </span>effective<span style="letter-spacing:0.15pt;"> </span>on March<span style="letter-spacing:0.05pt;"> </span>16, 2013. It<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>not yet<span style="letter-spacing:0.05pt;"> </span>clear<span style="letter-spacing:0.05pt;"> </span>what, if<span style="letter-spacing:0.05pt;"> </span>any, impact<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>Leahy-Smith<span style="letter-spacing:0.1pt;"> </span>Act will<span style="letter-spacing:0.05pt;"> </span>have on the operation<span style="letter-spacing:0.1pt;"> </span>of our business.<span style="letter-spacing:0.05pt;"> </span>However, the<span style="letter-spacing:0.05pt;"> </span>Leahy-Smith<span style="letter-spacing:0.1pt;"> </span>Act and its<span style="letter-spacing:0.05pt;"> </span>implementation<span style="letter-spacing:0.15pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>make<span style="letter-spacing:0.05pt;"> </span>it more difficult<span style="letter-spacing:0.1pt;"> </span>to obtain<span style="letter-spacing:0.1pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>protection<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>inventions<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>increase<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>uncertainties<span style="letter-spacing:0.15pt;"> </span>and costs<span style="letter-spacing:0.05pt;"> </span>surrounding<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>prosecution<span style="letter-spacing:0.1pt;"> </span>of our<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>future<span style="letter-spacing:0.1pt;"> </span>collaboration<span style="letter-spacing:0.2pt;"> </span>partners&#8217;<span style="letter-spacing:0.15pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>applications<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>enforcement<span style="letter-spacing:0.15pt;"> </span>or defense<span style="letter-spacing:0.05pt;"> </span>of our or our future collaboration<span style="letter-spacing:0.2pt;"> </span>partners&#8217;<span style="letter-spacing:0.15pt;"> </span>issued<span style="letter-spacing:0.1pt;"> </span>patents,<span style="letter-spacing:0.1pt;"> </span>all<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>harm<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>business,<span style="letter-spacing:0.05pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>of operations,<span style="letter-spacing:0.1pt;"> </span>financial condition<span style="letter-spacing:0.05pt;"> </span>and prospects.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In<span style="letter-spacing:0.05pt;"> </span>addition,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>positions<span style="letter-spacing:0.1pt;"> </span>of companies<span style="letter-spacing:0.1pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>and commercialization<span style="letter-spacing:0.2pt;"> </span>of biologics<span style="letter-spacing:0.1pt;"> </span>and pharmaceuticals<span style="letter-spacing:0.2pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>particularly<span style="letter-spacing:0.2pt;"> </span>uncertain.<span style="letter-spacing:0.15pt;"> </span>The<span style="letter-spacing:0.05pt;"> </span>U.S. Supreme<span style="letter-spacing:0.05pt;"> </span>Court has ruled<span style="letter-spacing:0.05pt;"> </span>on several<span style="letter-spacing:0.1pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>cases<span style="letter-spacing:0.05pt;"> </span>in recent years,<span style="letter-spacing:0.55pt;"> </span>either<span style="letter-spacing:0.6pt;"> </span>narrowing<span style="letter-spacing:0.55pt;"> </span>the<span style="letter-spacing:0.55pt;"> </span>scope<span style="letter-spacing:0.55pt;"> </span>of<span style="letter-spacing:0.5pt;"> </span>patent<span style="letter-spacing:0.55pt;"> </span>protection<span style="letter-spacing:0.6pt;"> </span>available<span style="letter-spacing:0.6pt;"> </span>in<span style="letter-spacing:0.5pt;"> </span>certain<span style="letter-spacing:0.6pt;"> </span>circumstances<span style="letter-spacing:0.65pt;"> </span>or<span style="letter-spacing:0.5pt;"> </span>weakening<span style="letter-spacing:0.5pt;"> </span>the<span style="letter-spacing:0.5pt;"> </span>rights of<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>owners<span style="letter-spacing:0.05pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>certain<span style="letter-spacing:0.15pt;"> </span>situations.<span style="letter-spacing:0.15pt;"> </span>This combination<span style="letter-spacing:0.1pt;"> </span>of events<span style="letter-spacing:0.05pt;"> </span>has created<span style="letter-spacing:0.1pt;"> </span>uncertainty<span style="letter-spacing:0.1pt;"> </span>with respect<span style="letter-spacing:0.1pt;"> </span>to the validity and enforceability of patents, once obtained. Additionally, there have been recent proposals for additional<span style="letter-spacing:0.1pt;"> </span>changes<span style="letter-spacing:0.05pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>laws of the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>States<span style="letter-spacing:0.05pt;"> </span>and other countries<span style="letter-spacing:0.05pt;"> </span>that, if adopted, could impact<span style="letter-spacing:0.05pt;"> </span>our ability<span style="letter-spacing:0.2pt;"> </span>to<span style="letter-spacing:0.1pt;"> </span>enforce<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.1pt;"> </span>proprietary<span style="letter-spacing:0.2pt;"> </span>technology.<span style="letter-spacing:0.15pt;"> </span>Depending<span style="letter-spacing:0.1pt;"> </span>on<span style="letter-spacing:0.1pt;"> </span>future<span style="letter-spacing:0.15pt;"> </span>actions<span style="letter-spacing:0.15pt;"> </span>by<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>U.S. Congress,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>U.S. courts, the<span style="letter-spacing:0.1pt;"> </span>USPTO and<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>relevant<span style="letter-spacing:0.15pt;"> </span>law-making<span style="letter-spacing:0.15pt;"> </span>bodies<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.05pt;"> </span>countries,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>laws and regulations<span style="letter-spacing:0.1pt;"> </span>governing<span style="letter-spacing:0.05pt;"> </span>patents could<span style="letter-spacing:0.1pt;"> </span>change<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>unpredictable<span style="letter-spacing:0.15pt;"> </span>ways<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>material<span style="letter-spacing:0.15pt;"> </span>adverse<span style="letter-spacing:0.05pt;"> </span>effect<span style="letter-spacing:0.1pt;"> </span>on our existing<span style="letter-spacing:0.1pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>portfolio<span style="letter-spacing:0.1pt;"> </span>and weaken<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>ability<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>obtain<span style="letter-spacing:0.1pt;"> </span>new<span style="letter-spacing:0.05pt;"> </span>patents<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>enforce<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>existing<span style="letter-spacing:0.15pt;"> </span>patents<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>patents<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>we might<span style="letter-spacing:0.05pt;"> </span>obtain<span style="letter-spacing:0.05pt;"> </span>in the future.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:14pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We may<span style="letter-spacing:0.05pt;"> </span>become<span style="letter-spacing:0.05pt;"> </span>involved<span style="letter-spacing:0.05pt;"> </span>in lawsuits<span style="letter-spacing:0.05pt;"> </span>or administrative<span style="letter-spacing:0.15pt;"> </span>disputes<span style="letter-spacing:0.05pt;"> </span>to protect<span style="letter-spacing:0.05pt;"> </span>or enforce<span style="letter-spacing:0.05pt;"> </span>our patents<span style="letter-spacing:0.05pt;"> </span>or other intellectual<span style="letter-spacing:0.15pt;"> </span>property,<span style="letter-spacing:0.05pt;"> </span>which could be expensive,<span style="letter-spacing:0.05pt;"> </span>time<span style="letter-spacing:0.05pt;"> </span>consuming<span style="letter-spacing:0.05pt;"> </span>and unsuccessful.</p>
<p style="margin-top:4pt;margin-bottom:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Competitors and other third parties may infringe, misappropriate or otherwise violate our patents, trademarks,<span style="letter-spacing:0.5pt;"> </span>copyrights,<span style="letter-spacing:0.5pt;"> </span>trade<span style="letter-spacing:0.45pt;"> </span>secrets<span style="letter-spacing:0.5pt;"> </span>or<span style="letter-spacing:0.4pt;"> </span>other<span style="letter-spacing:0.45pt;"> </span>intellectual<span style="letter-spacing:0.5pt;"> </span>property.<span style="letter-spacing:0.4pt;"> </span>To<span style="letter-spacing:0.35pt;"> </span>counter<span style="letter-spacing:0.4pt;"> </span>infringement,<span style="letter-spacing:0.5pt;"> </span>misappropriation<span style="letter-spacing:0.5pt;"> </span>or other<span style="letter-spacing:0.65pt;"> </span>violations,<span style="letter-spacing:0.7pt;"> </span>we<span style="letter-spacing:0.6pt;"> </span>may<span style="letter-spacing:0.65pt;"> </span>be<span style="letter-spacing:0.55pt;"> </span>required<span style="letter-spacing:0.65pt;"> </span>to<span style="letter-spacing:0.55pt;"> </span>file<span style="letter-spacing:0.6pt;"> </span>infringement,<span style="letter-spacing:0.7pt;"> </span>misappropriation<span style="letter-spacing:0.7pt;"> </span>or<span style="letter-spacing:0.55pt;"> </span>other<span style="letter-spacing:0.6pt;"> </span>violation<span style="letter-spacing:0.65pt;"> </span>claims,<span style="letter-spacing:0.65pt;"> </span>which<span style="letter-spacing:0.55pt;"> </span>can be<span style="letter-spacing:2.35pt;"> </span>expensive<span style="letter-spacing:2.4pt;"> </span>and<span style="letter-spacing:2.35pt;"> </span>time<span style="letter-spacing:2.4pt;"> </span>consuming<span style="letter-spacing:2.35pt;"> </span>and<span style="letter-spacing:2.3pt;"> </span>divert<span style="letter-spacing:2.35pt;"> </span>the<span style="letter-spacing:2.35pt;"> </span>time<span style="letter-spacing:2.35pt;"> </span>and<span style="letter-spacing:2.3pt;"> </span>attention<span style="letter-spacing:2.4pt;"> </span>of<span style="letter-spacing:2.3pt;"> </span>our<span style="letter-spacing:2.3pt;"> </span>management<span style="letter-spacing:2.4pt;"> </span>and<span style="letter-spacing:2.3pt;"> </span>business<span style="letter-spacing:2.35pt;"> </span>and scientific<span style="letter-spacing:0.2pt;"> </span>personnel.<span style="letter-spacing:0.1pt;"> </span>In<span style="letter-spacing:0.05pt;"> </span>addition,<span style="letter-spacing:0.05pt;"> </span>many<span style="letter-spacing:0.05pt;"> </span>of our adversaries<span style="letter-spacing:0.1pt;"> </span>in these<span style="letter-spacing:0.05pt;"> </span>proceedings<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>have the<span style="letter-spacing:0.05pt;"> </span>ability<span style="letter-spacing:0.1pt;"> </span>to dedicate substantially<span style="letter-spacing:0.15pt;"> </span>greater<span style="letter-spacing:0.1pt;"> </span>resources<span style="letter-spacing:0.1pt;"> </span>to prosecuting<span style="letter-spacing:0.1pt;"> </span>these<span style="letter-spacing:0.05pt;"> </span>legal<span style="letter-spacing:0.05pt;"> </span>actions<span style="letter-spacing:0.05pt;"> </span>than<span style="letter-spacing:0.05pt;"> </span>we can.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">56</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Any<span style="letter-spacing:2.35pt;"> </span>claims<span style="letter-spacing:2.4pt;"> </span>we<span style="letter-spacing:2.3pt;"> </span>assert<span style="letter-spacing:2.4pt;"> </span>against<span style="letter-spacing:2.35pt;"> </span>perceived<span style="letter-spacing:2.4pt;"> </span>infringers<span style="letter-spacing:2.4pt;"> </span>could<span style="letter-spacing:2.35pt;"> </span>provoke<span style="letter-spacing:2.35pt;"> </span>these<span style="letter-spacing:2.35pt;"> </span>parties<span style="letter-spacing:2.4pt;"> </span>to<span style="letter-spacing:2.3pt;"> </span>assert<span style="letter-spacing:2.4pt;"> </span>counterclaims against<span style="letter-spacing:0.1pt;"> </span>us<span style="letter-spacing:0.05pt;"> </span>alleging<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>we infringe,<span style="letter-spacing:0.1pt;"> </span>misappropriate<span style="letter-spacing:0.15pt;"> </span>or otherwise<span style="letter-spacing:0.05pt;"> </span>violate<span style="letter-spacing:0.1pt;"> </span>their<span style="letter-spacing:0.05pt;"> </span>patents<span style="letter-spacing:0.05pt;"> </span>or their<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.05pt;"> </span>intellectual property,<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>addition<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>counterclaims<span style="letter-spacing:0.2pt;"> </span>asserting<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>patents<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>invalid<span style="letter-spacing:0.05pt;"> </span>or unenforceable,<span style="letter-spacing:0.1pt;"> </span>or both. In patent litigation<span style="letter-spacing:0.2pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>United<span style="letter-spacing:0.1pt;"> </span>States,<span style="letter-spacing:0.1pt;"> </span>counterclaims<span style="letter-spacing:0.2pt;"> </span>challenging<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>validity,<span style="letter-spacing:0.1pt;"> </span>enforceability<span style="letter-spacing:0.15pt;"> </span>or scope<span style="letter-spacing:0.05pt;"> </span>of asserted<span style="letter-spacing:0.1pt;"> </span>patents are<span style="letter-spacing:0.1pt;"> </span>commonplace.<span style="letter-spacing:0.15pt;"> </span>Similarly,<span style="letter-spacing:0.15pt;"> </span>third<span style="letter-spacing:0.1pt;"> </span>parties<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>initiate<span style="letter-spacing:0.15pt;"> </span>legal<span style="letter-spacing:0.1pt;"> </span>proceedings<span style="letter-spacing:0.15pt;"> </span>against<span style="letter-spacing:0.1pt;"> </span>us<span style="letter-spacing:0.05pt;"> </span>seeking<span style="letter-spacing:0.1pt;"> </span>a declaration<span style="letter-spacing:0.1pt;"> </span>that certain of our intellectual property is non-infringed, invalid or unenforceable. The outcome of any such proceeding<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>generally<span style="letter-spacing:0.1pt;"> </span>unpredictable.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In<span style="letter-spacing:0.4pt;"> </span>any<span style="letter-spacing:0.4pt;"> </span>patent<span style="letter-spacing:0.45pt;"> </span>infringement<span style="letter-spacing:0.55pt;"> </span>proceeding,<span style="letter-spacing:0.45pt;"> </span>there<span style="letter-spacing:0.45pt;"> </span>is<span style="letter-spacing:0.45pt;"> </span>a<span style="letter-spacing:0.4pt;"> </span>risk<span style="letter-spacing:0.45pt;"> </span>that<span style="letter-spacing:0.45pt;"> </span>a<span style="letter-spacing:0.4pt;"> </span>court<span style="letter-spacing:0.45pt;"> </span>will<span style="letter-spacing:0.45pt;"> </span>decide<span style="letter-spacing:0.4pt;"> </span>that<span style="letter-spacing:0.4pt;"> </span>a<span style="letter-spacing:0.35pt;"> </span>patent<span style="letter-spacing:0.4pt;"> </span>of<span style="letter-spacing:0.35pt;"> </span>ours<span style="letter-spacing:0.4pt;"> </span>is<span style="letter-spacing:0.4pt;"> </span>invalid or<span style="letter-spacing:0.05pt;"> </span>unenforceable,<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>whole<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>part,<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>do<span style="letter-spacing:0.05pt;"> </span>not have the<span style="letter-spacing:0.05pt;"> </span>right<span style="letter-spacing:0.05pt;"> </span>to stop<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.05pt;"> </span>party<span style="letter-spacing:0.05pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>using<span style="letter-spacing:0.05pt;"> </span>the invention<span style="letter-spacing:0.6pt;"> </span>at<span style="letter-spacing:0.6pt;"> </span>issue.<span style="letter-spacing:0.6pt;"> </span>There<span style="letter-spacing:0.6pt;"> </span>is<span style="letter-spacing:0.55pt;"> </span>also<span style="letter-spacing:0.55pt;"> </span>a<span style="letter-spacing:0.5pt;"> </span>risk<span style="letter-spacing:0.55pt;"> </span>that,<span style="letter-spacing:0.55pt;"> </span>even<span style="letter-spacing:0.5pt;"> </span>if<span style="letter-spacing:0.55pt;"> </span>the<span style="letter-spacing:0.55pt;"> </span>validity<span style="letter-spacing:0.6pt;"> </span>of<span style="letter-spacing:0.5pt;"> </span>such<span style="letter-spacing:0.5pt;"> </span>patents<span style="letter-spacing:0.55pt;"> </span>is<span style="letter-spacing:0.55pt;"> </span>upheld,<span style="letter-spacing:0.55pt;"> </span>the<span style="letter-spacing:0.55pt;"> </span>court<span style="letter-spacing:0.55pt;"> </span>will<span style="letter-spacing:0.55pt;"> </span>construe the<span style="letter-spacing:0.1pt;"> </span>patent&#8217;s<span style="letter-spacing:0.15pt;"> </span>claims<span style="letter-spacing:0.15pt;"> </span>narrowly<span style="letter-spacing:0.05pt;"> </span>or decide<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we do not have the<span style="letter-spacing:0.05pt;"> </span>right<span style="letter-spacing:0.05pt;"> </span>to stop<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.05pt;"> </span>party<span style="letter-spacing:0.05pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>using<span style="letter-spacing:0.05pt;"> </span>the invention<span style="letter-spacing:1.25pt;"> </span>at<span style="letter-spacing:1.25pt;"> </span>issue<span style="letter-spacing:1.25pt;"> </span>on<span style="letter-spacing:1.2pt;"> </span>the<span style="letter-spacing:1.25pt;"> </span>grounds<span style="letter-spacing:1.25pt;"> </span>that<span style="letter-spacing:1.25pt;"> </span>our<span style="letter-spacing:1.2pt;"> </span>patent<span style="letter-spacing:1.25pt;"> </span>claims<span style="letter-spacing:1.3pt;"> </span>do<span style="letter-spacing:1.2pt;"> </span>not<span style="letter-spacing:1.2pt;"> </span>cover<span style="letter-spacing:1.25pt;"> </span>the<span style="letter-spacing:1.25pt;"> </span>invention.<span style="letter-spacing:1.2pt;"> </span>An<span style="letter-spacing:1.15pt;"> </span>adverse<span style="letter-spacing:1.2pt;"> </span>outcome<span style="letter-spacing:1.2pt;"> </span>in<span style="letter-spacing:1.15pt;"> </span>a litigation<span style="letter-spacing:0.2pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>proceeding<span style="letter-spacing:0.1pt;"> </span>involving<span style="letter-spacing:0.05pt;"> </span>our patents<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>limit<span style="letter-spacing:0.1pt;"> </span>our ability<span style="letter-spacing:0.1pt;"> </span>to assert<span style="letter-spacing:0.1pt;"> </span>our patents<span style="letter-spacing:0.05pt;"> </span>against<span style="letter-spacing:0.05pt;"> </span>those<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.1pt;"> </span>or other<span style="letter-spacing:0.1pt;"> </span>competitors,<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>curtail<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>preclude<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>ability<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>exclude<span style="letter-spacing:0.1pt;"> </span>third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.1pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>making<span style="letter-spacing:0.05pt;"> </span>and selling<span style="letter-spacing:0.1pt;"> </span>similar or<span style="letter-spacing:0.05pt;"> </span>competitive<span style="letter-spacing:0.2pt;"> </span>products.<span style="letter-spacing:0.1pt;"> </span>If<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>defendant<span style="letter-spacing:0.1pt;"> </span>were<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>prevail<span style="letter-spacing:0.1pt;"> </span>on a legal<span style="letter-spacing:0.05pt;"> </span>assertion<span style="letter-spacing:0.1pt;"> </span>of invalidity<span style="letter-spacing:0.1pt;"> </span>or unenforceability<span style="letter-spacing:0.15pt;"> </span>of our patents<span style="letter-spacing:0.1pt;"> </span>covering<span style="letter-spacing:0.1pt;"> </span>one<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates,<span style="letter-spacing:0.15pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>lose<span style="letter-spacing:0.1pt;"> </span>at<span style="letter-spacing:0.1pt;"> </span>least<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>part,<span style="letter-spacing:0.05pt;"> </span>and perhaps<span style="letter-spacing:0.05pt;"> </span>all,<span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>patent protection<span style="letter-spacing:0.15pt;"> </span>covering<span style="letter-spacing:0.1pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidate.<span style="letter-spacing:0.15pt;"> </span>Competing<span style="letter-spacing:0.1pt;"> </span>drugs<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>also<span style="letter-spacing:0.1pt;"> </span>be sold<span style="letter-spacing:0.05pt;"> </span>in other<span style="letter-spacing:0.05pt;"> </span>countries<span style="letter-spacing:0.1pt;"> </span>in which our patent<span style="letter-spacing:0.1pt;"> </span>coverage<span style="letter-spacing:0.1pt;"> </span>might<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>exist<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>strong.<span style="letter-spacing:0.05pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>we lose<span style="letter-spacing:0.05pt;"> </span>a foreign<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>lawsuit,<span style="letter-spacing:0.05pt;"> </span>alleging<span style="letter-spacing:0.1pt;"> </span>our infringement<span style="letter-spacing:0.15pt;"> </span>of a competitor&#8217;s<span style="letter-spacing:0.2pt;"> </span>patents,<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>prevented<span style="letter-spacing:0.1pt;"> </span>from<span style="letter-spacing:0.1pt;"> </span>marketing<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>drugs<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>one<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>more<span style="letter-spacing:0.1pt;"> </span>foreign<span style="letter-spacing:0.05pt;"> </span>countries.<span style="letter-spacing:0.1pt;"> </span>Any of these<span style="letter-spacing:0.1pt;"> </span>occurrences<span style="letter-spacing:0.15pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>adversely<span style="letter-spacing:0.15pt;"> </span>affect<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>competitive<span style="letter-spacing:0.2pt;"> </span>business<span style="letter-spacing:0.1pt;"> </span>position,<span style="letter-spacing:0.1pt;"> </span>business<span style="letter-spacing:0.05pt;"> </span>prospects<span style="letter-spacing:0.1pt;"> </span>and financial condition.<span style="letter-spacing:0.1pt;"> </span>Similarly,<span style="letter-spacing:0.15pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>assert<span style="letter-spacing:0.15pt;"> </span>trademark<span style="letter-spacing:0.15pt;"> </span>infringement<span style="letter-spacing:0.2pt;"> </span>claims,<span style="letter-spacing:0.15pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>court<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>determine<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>marks<span style="letter-spacing:0.05pt;"> </span>we have asserted<span style="letter-spacing:1.05pt;"> </span>are<span style="letter-spacing:0.95pt;"> </span>invalid<span style="letter-spacing:0.95pt;"> </span>or<span style="letter-spacing:0.9pt;"> </span>unenforceable,<span style="letter-spacing:1pt;"> </span>or<span style="letter-spacing:0.9pt;"> </span>that<span style="letter-spacing:0.95pt;"> </span>the<span style="letter-spacing:0.95pt;"> </span>party<span style="letter-spacing:0.95pt;"> </span>against<span style="letter-spacing:0.95pt;"> </span>whom<span style="letter-spacing:0.9pt;"> </span>we<span style="letter-spacing:0.9pt;"> </span>have<span style="letter-spacing:0.9pt;"> </span>asserted<span style="letter-spacing:1pt;"> </span>trademark<span style="letter-spacing:1pt;"> </span>infringement has<span style="letter-spacing:0.05pt;"> </span>superior<span style="letter-spacing:0.15pt;"> </span>rights<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>marks<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>question.<span style="letter-spacing:0.05pt;"> </span>In this<span style="letter-spacing:0.05pt;"> </span>case,<span style="letter-spacing:0.05pt;"> </span>we could<span style="letter-spacing:0.05pt;"> </span>ultimately<span style="letter-spacing:0.15pt;"> </span>be forced<span style="letter-spacing:0.05pt;"> </span>to cease<span style="letter-spacing:0.05pt;"> </span>use of such trademarks.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Even<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>we establish<span style="letter-spacing:0.1pt;"> </span>infringement,<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>court<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>decide<span style="letter-spacing:0.05pt;"> </span>not to grant<span style="letter-spacing:0.05pt;"> </span>an injunction<span style="letter-spacing:0.1pt;"> </span>against<span style="letter-spacing:0.05pt;"> </span>further<span style="letter-spacing:0.1pt;"> </span>infringing activity<span style="letter-spacing:0.15pt;"> </span>and instead<span style="letter-spacing:0.05pt;"> </span>award only monetary<span style="letter-spacing:0.1pt;"> </span>damages,<span style="letter-spacing:0.05pt;"> </span>which may<span style="letter-spacing:0.05pt;"> </span>or may<span style="letter-spacing:0.05pt;"> </span>not be an adequate<span style="letter-spacing:0.05pt;"> </span>remedy.<span style="letter-spacing:0.05pt;"> </span>Furthermore, because<span style="letter-spacing:0.65pt;"> </span>of<span style="letter-spacing:0.6pt;"> </span>the<span style="letter-spacing:0.65pt;"> </span>substantial<span style="letter-spacing:0.7pt;"> </span>amount<span style="letter-spacing:0.65pt;"> </span>of<span style="letter-spacing:0.6pt;"> </span>discovery<span style="letter-spacing:0.65pt;"> </span>required<span style="letter-spacing:0.7pt;"> </span>in<span style="letter-spacing:0.6pt;"> </span>connection<span style="letter-spacing:0.6pt;"> </span>with<span style="letter-spacing:0.55pt;"> </span>intellectual<span style="letter-spacing:0.7pt;"> </span>property<span style="letter-spacing:0.6pt;"> </span>litigation,<span style="letter-spacing:0.7pt;"> </span>there is<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>risk<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>some<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our confidential<span style="letter-spacing:0.15pt;"> </span>information<span style="letter-spacing:0.15pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>be compromised<span style="letter-spacing:0.1pt;"> </span>by disclosure<span style="letter-spacing:0.1pt;"> </span>during<span style="letter-spacing:0.05pt;"> </span>litigation.<span style="letter-spacing:0.15pt;"> </span>There could<span style="letter-spacing:0.1pt;"> </span>also<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>public<span style="letter-spacing:0.1pt;"> </span>announcements<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>results<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>hearings,<span style="letter-spacing:0.05pt;"> </span>motions<span style="letter-spacing:0.05pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>interim<span style="letter-spacing:0.1pt;"> </span>proceedings<span style="letter-spacing:0.1pt;"> </span>or developments.<span style="letter-spacing:1.25pt;"> </span>If<span style="letter-spacing:1.2pt;"> </span>securities<span style="letter-spacing:1.3pt;"> </span>analysts<span style="letter-spacing:1.25pt;"> </span>or<span style="letter-spacing:1.15pt;"> </span>investors<span style="letter-spacing:1.2pt;"> </span>perceive<span style="letter-spacing:1.2pt;"> </span>these<span style="letter-spacing:1.15pt;"> </span>results<span style="letter-spacing:1.2pt;"> </span>to<span style="letter-spacing:1.1pt;"> </span>be<span style="letter-spacing:1.1pt;"> </span>negative,<span style="letter-spacing:1.15pt;"> </span>it<span style="letter-spacing:1.15pt;"> </span>could<span style="letter-spacing:1.15pt;"> </span>have<span style="letter-spacing:1.1pt;"> </span>a<span style="letter-spacing:1.1pt;"> </span>material adverse<span style="letter-spacing:0.1pt;"> </span>effect<span style="letter-spacing:0.15pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>price<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>shares<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>common<span style="letter-spacing:0.1pt;"> </span>stock.<span style="letter-spacing:0.1pt;"> </span>Moreover,<span style="letter-spacing:0.1pt;"> </span>there<span style="letter-spacing:0.1pt;"> </span>can<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>no<span style="letter-spacing:0.05pt;"> </span>assurance<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>we will<span style="letter-spacing:0.05pt;"> </span>have sufficient<span style="letter-spacing:0.15pt;"> </span>financial<span style="letter-spacing:0.1pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>resources<span style="letter-spacing:0.1pt;"> </span>to file<span style="letter-spacing:0.05pt;"> </span>and pursue<span style="letter-spacing:0.05pt;"> </span>such infringement<span style="letter-spacing:0.15pt;"> </span>claims,<span style="letter-spacing:0.1pt;"> </span>which typically<span style="letter-spacing:0.05pt;"> </span>last for years before<span style="letter-spacing:0.1pt;"> </span>they<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>concluded.<span style="letter-spacing:0.1pt;"> </span>Even<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>ultimately<span style="letter-spacing:0.2pt;"> </span>prevail<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>claims,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>monetary<span style="letter-spacing:0.1pt;"> </span>cost<span style="letter-spacing:0.05pt;"> </span>of such litigation<span style="letter-spacing:0.15pt;"> </span>and the<span style="letter-spacing:0.1pt;"> </span>diversion<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>attention<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>management<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>scientific<span style="letter-spacing:0.15pt;"> </span>personnel<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>outweigh<span style="letter-spacing:0.05pt;"> </span>any benefit<span style="letter-spacing:0.1pt;"> </span>we receive as a result<span style="letter-spacing:0.1pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>proceedings.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Furthermore,<span style="letter-spacing:0.75pt;"> </span>third<span style="letter-spacing:0.7pt;"> </span>parties<span style="letter-spacing:0.75pt;"> </span>may<span style="letter-spacing:0.7pt;"> </span>also<span style="letter-spacing:0.7pt;"> </span>raise<span style="letter-spacing:0.7pt;"> </span>invalidity<span style="letter-spacing:0.7pt;"> </span>or<span style="letter-spacing:0.6pt;"> </span>unenforceability<span style="letter-spacing:0.75pt;"> </span>claims<span style="letter-spacing:0.7pt;"> </span>before<span style="letter-spacing:0.65pt;"> </span>administrative<span style="letter-spacing:0.8pt;"> </span>bodies in<span style="letter-spacing:2pt;"> </span>the<span style="letter-spacing:2.05pt;"> </span>United<span style="letter-spacing:2pt;"> </span>States<span style="letter-spacing:2pt;"> </span>or<span style="letter-spacing:1.95pt;"> </span>foreign<span style="letter-spacing:2pt;"> </span>authorities,<span style="letter-spacing:2.1pt;"> </span>even<span style="letter-spacing:1.95pt;"> </span>outside<span style="letter-spacing:2pt;"> </span>the<span style="letter-spacing:2pt;"> </span>context<span style="letter-spacing:2pt;"> </span>of<span style="letter-spacing:1.95pt;"> </span>litigation.<span style="letter-spacing:2.1pt;"> </span>Such<span style="letter-spacing:1.95pt;"> </span>mechanisms<span style="letter-spacing:2.05pt;"> </span>include re-examination,<span style="letter-spacing:0.1pt;"> </span>inter partes review, post-grant<span style="letter-spacing:0.05pt;"> </span>review, interference<span style="letter-spacing:0.1pt;"> </span>proceedings,<span style="letter-spacing:0.05pt;"> </span>derivation<span style="letter-spacing:0.05pt;"> </span>proceedings<span style="letter-spacing:0.05pt;"> </span>and equivalent<span style="letter-spacing:0.1pt;"> </span>proceedings<span style="letter-spacing:0.1pt;"> </span>in foreign<span style="letter-spacing:0.05pt;"> </span>jurisdictions<span style="letter-spacing:0.15pt;"> </span>(e.g.,<span style="letter-spacing:0.05pt;"> </span>opposition<span style="letter-spacing:0.05pt;"> </span>proceedings).<span style="letter-spacing:0.1pt;"> </span>Such proceedings<span style="letter-spacing:0.1pt;"> </span>could result<span style="letter-spacing:0.05pt;"> </span>in revocation,<span style="letter-spacing:1.25pt;"> </span>cancellation<span style="letter-spacing:1.3pt;"> </span>or<span style="letter-spacing:1.15pt;"> </span>amendment<span style="letter-spacing:1.25pt;"> </span>to<span style="letter-spacing:1.15pt;"> </span>our<span style="letter-spacing:1.1pt;"> </span>patents<span style="letter-spacing:1.15pt;"> </span>in<span style="letter-spacing:1.1pt;"> </span>such<span style="letter-spacing:1.1pt;"> </span>a<span style="letter-spacing:1.1pt;"> </span>way<span style="letter-spacing:1.1pt;"> </span>that<span style="letter-spacing:1.15pt;"> </span>they<span style="letter-spacing:1.15pt;"> </span>no<span style="letter-spacing:1.1pt;"> </span>longer<span style="letter-spacing:1.15pt;"> </span>cover<span style="letter-spacing:1.15pt;"> </span>and<span style="letter-spacing:1.1pt;"> </span>protect<span style="letter-spacing:1.2pt;"> </span>our product<span style="letter-spacing:0.1pt;"> </span>candidates.<span style="letter-spacing:0.15pt;"> </span>The<span style="letter-spacing:0.05pt;"> </span>outcome<span style="letter-spacing:0.1pt;"> </span>following<span style="letter-spacing:0.1pt;"> </span>legal<span style="letter-spacing:0.1pt;"> </span>assertions<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>invalidity<span style="letter-spacing:0.15pt;"> </span>and unenforceability<span style="letter-spacing:0.15pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>unpredictable. Grounds<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>validity<span style="letter-spacing:0.15pt;"> </span>challenge<span style="letter-spacing:0.15pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>an<span style="letter-spacing:0.05pt;"> </span>alleged<span style="letter-spacing:0.05pt;"> </span>failure<span style="letter-spacing:0.1pt;"> </span>to meet<span style="letter-spacing:0.05pt;"> </span>any of several<span style="letter-spacing:0.1pt;"> </span>statutory<span style="letter-spacing:0.1pt;"> </span>requirements, including<span style="letter-spacing:0.1pt;"> </span>lack<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>novelty,<span style="letter-spacing:0.1pt;"> </span>obviousness,<span style="letter-spacing:0.1pt;"> </span>non-enablement<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>written<span style="letter-spacing:0.1pt;"> </span>description.<span style="letter-spacing:0.15pt;"> </span>Grounds for<span style="letter-spacing:0.05pt;"> </span>an unenforceability assertion<span style="letter-spacing:1.55pt;"> </span>could<span style="letter-spacing:1.5pt;"> </span>be<span style="letter-spacing:1.45pt;"> </span>an<span style="letter-spacing:1.45pt;"> </span>allegation<span style="letter-spacing:1.55pt;"> </span>that<span style="letter-spacing:1.5pt;"> </span>someone<span style="letter-spacing:1.5pt;"> </span>connected<span style="letter-spacing:1.5pt;"> </span>with<span style="letter-spacing:1.45pt;"> </span>the<span style="letter-spacing:1.5pt;"> </span>prosecution<span style="letter-spacing:1.55pt;"> </span>of<span style="letter-spacing:1.45pt;"> </span>the<span style="letter-spacing:1.5pt;"> </span>patent<span style="letter-spacing:1.45pt;"> </span>withheld<span style="letter-spacing:1.45pt;"> </span>relevant information<span style="letter-spacing:0.2pt;"> </span>from<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>USPTO, or made<span style="letter-spacing:0.05pt;"> </span>a misleading<span style="letter-spacing:0.1pt;"> </span>statement,<span style="letter-spacing:0.1pt;"> </span>during<span style="letter-spacing:0.05pt;"> </span>prosecution<span style="letter-spacing:0.1pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>patent.<span style="letter-spacing:0.05pt;"> </span>With<span style="letter-spacing:0.05pt;"> </span>respect<span style="letter-spacing:0.1pt;"> </span>to the<span style="letter-spacing:0.1pt;"> </span>validity<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>patents,<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>example,<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>cannot<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>certain<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>there<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>no invalidating<span style="letter-spacing:0.1pt;"> </span>prior<span style="letter-spacing:0.05pt;"> </span>art<span style="letter-spacing:0.05pt;"> </span>of which we, our licensors,<span style="letter-spacing:0.1pt;"> </span>our patent<span style="letter-spacing:0.05pt;"> </span>counsel<span style="letter-spacing:0.05pt;"> </span>and the<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>examiner<span style="letter-spacing:0.1pt;"> </span>were unaware<span style="letter-spacing:0.05pt;"> </span>during<span style="letter-spacing:0.05pt;"> </span>prosecution.<span style="letter-spacing:0.1pt;"> </span>Moreover,<span style="letter-spacing:0.05pt;"> </span>it<span style="letter-spacing:0.05pt;"> </span>is possible<span style="letter-spacing:1.65pt;"> </span>that<span style="letter-spacing:1.65pt;"> </span>prior<span style="letter-spacing:1.65pt;"> </span>art<span style="letter-spacing:1.6pt;"> </span>may<span style="letter-spacing:1.6pt;"> </span>exist<span style="letter-spacing:1.6pt;"> </span>that<span style="letter-spacing:1.6pt;"> </span>we<span style="letter-spacing:1.55pt;"> </span>are<span style="letter-spacing:1.6pt;"> </span>aware<span style="letter-spacing:1.6pt;"> </span>of<span style="letter-spacing:1.55pt;"> </span>but<span style="letter-spacing:1.55pt;"> </span>do<span style="letter-spacing:1.55pt;"> </span>not<span style="letter-spacing:1.55pt;"> </span>believe<span style="letter-spacing:1.6pt;"> </span>is<span style="letter-spacing:1.6pt;"> </span>relevant<span style="letter-spacing:1.65pt;"> </span>to<span style="letter-spacing:1.55pt;"> </span>our<span style="letter-spacing:1.55pt;"> </span>current<span style="letter-spacing:1.65pt;"> </span>or<span style="letter-spacing:1.55pt;"> </span>future patents,<span style="letter-spacing:0.2pt;"> </span>but<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.2pt;"> </span>could<span style="letter-spacing:0.2pt;"> </span>nevertheless<span style="letter-spacing:0.2pt;"> </span>be<span style="letter-spacing:0.1pt;"> </span>determined<span style="letter-spacing:0.2pt;"> </span>to<span style="letter-spacing:0.1pt;"> </span>render<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.1pt;"> </span>patents<span style="letter-spacing:0.15pt;"> </span>invalid.<span style="letter-spacing:0.15pt;"> </span>If<span style="letter-spacing:0.15pt;"> </span>a<span style="letter-spacing:0.1pt;"> </span>third<span style="letter-spacing:0.15pt;"> </span>party<span style="letter-spacing:0.15pt;"> </span>were<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.1pt;"> </span>prevail<span style="letter-spacing:0.2pt;"> </span>on a<span style="letter-spacing:0.05pt;"> </span>legal<span style="letter-spacing:0.1pt;"> </span>assertion<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>invalidity<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>unenforceability,<span style="letter-spacing:0.2pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>lose<span style="letter-spacing:0.05pt;"> </span>at<span style="letter-spacing:0.05pt;"> </span>least<span style="letter-spacing:0.05pt;"> </span>part,<span style="letter-spacing:0.05pt;"> </span>and perhaps<span style="letter-spacing:0.05pt;"> </span>all,<span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>patent protection<span style="letter-spacing:0.15pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>one<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>more<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates.<span style="letter-spacing:0.15pt;"> </span>Any<span style="letter-spacing:0.05pt;"> </span>such loss<span style="letter-spacing:0.05pt;"> </span>of patent<span style="letter-spacing:0.05pt;"> </span>protection<span style="letter-spacing:0.1pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>have a material adverse<span style="letter-spacing:0.05pt;"> </span>impact<span style="letter-spacing:0.1pt;"> </span>on our business,<span style="letter-spacing:0.05pt;"> </span>financial<span style="letter-spacing:0.1pt;"> </span>condition,<span style="letter-spacing:0.05pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>of operations<span style="letter-spacing:0.1pt;"> </span>and prospects.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We may<span style="letter-spacing:0.05pt;"> </span>not be able<span style="letter-spacing:0.05pt;"> </span>to effectively<span style="letter-spacing:0.15pt;"> </span>protect<span style="letter-spacing:0.05pt;"> </span>or enforce<span style="letter-spacing:0.05pt;"> </span>our intellectual<span style="letter-spacing:0.15pt;"> </span>property<span style="letter-spacing:0.05pt;"> </span>and proprietary<span style="letter-spacing:0.1pt;"> </span>rights throughout the world.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Filing,<span style="letter-spacing:0.1pt;"> </span>prosecuting<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>defending<span style="letter-spacing:0.1pt;"> </span>patents<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>respect<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>in all<span style="letter-spacing:0.05pt;"> </span>countries<span style="letter-spacing:0.1pt;"> </span>throughout the<span style="letter-spacing:0.1pt;"> </span>world<span style="letter-spacing:0.05pt;"> </span>would<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>prohibitively<span style="letter-spacing:0.2pt;"> </span>expensive,<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>laws<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>foreign<span style="letter-spacing:0.1pt;"> </span>countries<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>protect<span style="letter-spacing:0.15pt;"> </span>our rights<span style="letter-spacing:0.05pt;"> </span>to the same<span style="letter-spacing:0.1pt;"> </span>extent<span style="letter-spacing:0.1pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>laws<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>United<span style="letter-spacing:0.1pt;"> </span>States.<span style="letter-spacing:0.1pt;"> </span>The requirements<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>patentability<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>differ<span style="letter-spacing:0.1pt;"> </span>in certain<span style="letter-spacing:0.1pt;"> </span>countries, particularly<span style="letter-spacing:0.2pt;"> </span>in developing<span style="letter-spacing:0.05pt;"> </span>countries.<span style="letter-spacing:0.1pt;"> </span>In addition,<span style="letter-spacing:0.05pt;"> </span>any future<span style="letter-spacing:0.05pt;"> </span>intellectual<span style="letter-spacing:0.15pt;"> </span>property<span style="letter-spacing:0.05pt;"> </span>license<span style="letter-spacing:0.1pt;"> </span>agreements<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>not always<span style="letter-spacing:0.1pt;"> </span>include<span style="letter-spacing:0.1pt;"> </span>worldwide<span style="letter-spacing:0.1pt;"> </span>rights.<span style="letter-spacing:0.1pt;"> </span>Consequently,<span style="letter-spacing:0.1pt;"> </span>competitors<span style="letter-spacing:0.2pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>third<span style="letter-spacing:0.1pt;"> </span>parties<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>use our technologies<span style="letter-spacing:0.1pt;"> </span>in jurisdictions<span style="letter-spacing:2.05pt;"> </span>where<span style="letter-spacing:1.9pt;"> </span>we<span style="letter-spacing:1.85pt;"> </span>have<span style="letter-spacing:1.85pt;"> </span>not<span style="letter-spacing:1.85pt;"> </span>obtained<span style="letter-spacing:1.9pt;"> </span>patent<span style="letter-spacing:1.9pt;"> </span>protection<span style="letter-spacing:1.95pt;"> </span>to<span style="letter-spacing:1.85pt;"> </span>develop<span style="letter-spacing:1.9pt;"> </span>their<span style="letter-spacing:1.9pt;"> </span>own<span style="letter-spacing:1.85pt;"> </span>products<span style="letter-spacing:1.9pt;"> </span>and,<span style="letter-spacing:1.85pt;"> </span>further,<span style="letter-spacing:1.95pt;"> </span>may export<span style="letter-spacing:0.1pt;"> </span>otherwise<span style="letter-spacing:0.1pt;"> </span>infringing<span style="letter-spacing:0.15pt;"> </span>products<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>territories<span style="letter-spacing:0.2pt;"> </span>where<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>obtain<span style="letter-spacing:0.1pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>protection,<span style="letter-spacing:0.15pt;"> </span>but where patent enforcement<span style="letter-spacing:0.15pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>strong<span style="letter-spacing:0.1pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>States<span style="letter-spacing:0.05pt;"> </span>and where our ability<span style="letter-spacing:0.1pt;"> </span>to enforce<span style="letter-spacing:0.05pt;"> </span>our patents<span style="letter-spacing:0.05pt;"> </span>to stop infringing<span style="letter-spacing:0.15pt;"> </span>activities<span style="letter-spacing:0.2pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>inadequate.<span style="letter-spacing:0.15pt;"> </span>These<span style="letter-spacing:0.05pt;"> </span>products<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>compete<span style="letter-spacing:0.05pt;"> </span>with our products<span style="letter-spacing:0.05pt;"> </span>in such territories<span style="letter-spacing:0.15pt;"> </span>and in jurisdictions<span style="letter-spacing:0.15pt;"> </span>where we do not have any patent<span style="letter-spacing:0.05pt;"> </span>rights<span style="letter-spacing:0.05pt;"> </span>or where any future<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>claims<span style="letter-spacing:0.1pt;"> </span>or other intellectual property<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>proprietary<span style="letter-spacing:0.15pt;"> </span>rights<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>not be effective<span style="letter-spacing:0.1pt;"> </span>or sufficient<span style="letter-spacing:0.15pt;"> </span>to prevent<span style="letter-spacing:0.05pt;"> </span>them<span style="letter-spacing:0.05pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>competing<span style="letter-spacing:0.1pt;"> </span>with us, which could<span style="letter-spacing:0.05pt;"> </span>have a material<span style="letter-spacing:0.15pt;"> </span>adverse<span style="letter-spacing:0.05pt;"> </span>effect<span style="letter-spacing:0.1pt;"> </span>on our business,<span style="letter-spacing:0.05pt;"> </span>financial<span style="letter-spacing:0.1pt;"> </span>condition,<span style="letter-spacing:0.05pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>of operations<span style="letter-spacing:0.1pt;"> </span>and prospects.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">57</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Moreover, our ability to protect and enforce our intellectual property and proprietary rights may be adversely<span style="letter-spacing:0.1pt;"> </span>affected<span style="letter-spacing:0.1pt;"> </span>by unforeseen<span style="letter-spacing:0.1pt;"> </span>changes<span style="letter-spacing:0.05pt;"> </span>in foreign<span style="letter-spacing:0.05pt;"> </span>intellectual<span style="letter-spacing:0.15pt;"> </span>property<span style="letter-spacing:0.05pt;"> </span>laws. Additionally,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>laws of some countries<span style="letter-spacing:0.15pt;"> </span>outside<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>States<span style="letter-spacing:0.05pt;"> </span>and Europe do not afford<span style="letter-spacing:0.05pt;"> </span>intellectual<span style="letter-spacing:0.15pt;"> </span>property<span style="letter-spacing:0.05pt;"> </span>protection<span style="letter-spacing:0.1pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>same<span style="letter-spacing:0.05pt;"> </span>extent as the laws of the United States and Europe. Many companies have encountered significant problems in protecting<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>defending<span style="letter-spacing:0.1pt;"> </span>intellectual<span style="letter-spacing:0.2pt;"> </span>property<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>proprietary<span style="letter-spacing:0.15pt;"> </span>rights<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>certain<span style="letter-spacing:0.15pt;"> </span>foreign<span style="letter-spacing:0.05pt;"> </span>jurisdictions.<span style="letter-spacing:0.15pt;"> </span>The legal systems<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>some<span style="letter-spacing:0.1pt;"> </span>countries,<span style="letter-spacing:0.15pt;"> </span>including,<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>example,<span style="letter-spacing:0.1pt;"> </span>India,<span style="letter-spacing:0.1pt;"> </span>China<span style="letter-spacing:0.05pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>developing<span style="letter-spacing:0.05pt;"> </span>countries,<span style="letter-spacing:0.1pt;"> </span>do not view favorably<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>enforcement<span style="letter-spacing:0.1pt;"> </span>of patents<span style="letter-spacing:0.05pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>intellectual<span style="letter-spacing:0.15pt;"> </span>property<span style="letter-spacing:0.05pt;"> </span>or proprietary<span style="letter-spacing:0.1pt;"> </span>rights,<span style="letter-spacing:0.05pt;"> </span>particularly<span style="letter-spacing:0.15pt;"> </span>those relating to biotechnology products, which could make it difficult for us to stop the infringement, misappropriation or other violation of our patents or other intellectual property or proprietary rights. For example,<span style="letter-spacing:0.1pt;"> </span>many<span style="letter-spacing:0.1pt;"> </span>foreign<span style="letter-spacing:0.1pt;"> </span>countries<span style="letter-spacing:0.15pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>compulsory<span style="letter-spacing:0.15pt;"> </span>licensing<span style="letter-spacing:0.1pt;"> </span>laws under<span style="letter-spacing:0.05pt;"> </span>which a patent<span style="letter-spacing:0.05pt;"> </span>owner must<span style="letter-spacing:0.05pt;"> </span>grant<span style="letter-spacing:0.05pt;"> </span>licenses to<span style="letter-spacing:1.55pt;"> </span>third<span style="letter-spacing:1.6pt;"> </span>parties.<span style="letter-spacing:1.65pt;"> </span>Consequently,<span style="letter-spacing:1.6pt;"> </span>we<span style="letter-spacing:1.55pt;"> </span>may<span style="letter-spacing:1.6pt;"> </span>not<span style="letter-spacing:1.55pt;"> </span>be<span style="letter-spacing:1.55pt;"> </span>able<span style="letter-spacing:1.6pt;"> </span>to<span style="letter-spacing:1.55pt;"> </span>prevent<span style="letter-spacing:1.6pt;"> </span>third<span style="letter-spacing:1.55pt;"> </span>parties<span style="letter-spacing:1.6pt;"> </span>from<span style="letter-spacing:1.55pt;"> </span>practicing<span style="letter-spacing:1.6pt;"> </span>our<span style="letter-spacing:1.5pt;"> </span>inventions<span style="letter-spacing:1.6pt;"> </span>in certain<span style="letter-spacing:1.35pt;"> </span>countries<span style="letter-spacing:1.35pt;"> </span>outside<span style="letter-spacing:1.3pt;"> </span>the<span style="letter-spacing:1.3pt;"> </span>United<span style="letter-spacing:1.25pt;"> </span>States<span style="letter-spacing:1.25pt;"> </span>and<span style="letter-spacing:1.2pt;"> </span>Europe.<span style="letter-spacing:1.2pt;"> </span>In<span style="letter-spacing:1.2pt;"> </span>addition,<span style="letter-spacing:1.25pt;"> </span>many<span style="letter-spacing:1.25pt;"> </span>countries<span style="letter-spacing:1.3pt;"> </span>limit<span style="letter-spacing:1.3pt;"> </span>the<span style="letter-spacing:1.25pt;"> </span>enforceability<span style="letter-spacing:1.35pt;"> </span>of patents<span style="letter-spacing:0.1pt;"> </span>against<span style="letter-spacing:0.1pt;"> </span>government<span style="letter-spacing:0.15pt;"> </span>agencies<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>government<span style="letter-spacing:0.15pt;"> </span>contractors.<span style="letter-spacing:0.15pt;"> </span>In<span style="letter-spacing:0.05pt;"> </span>these<span style="letter-spacing:0.1pt;"> </span>countries,<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>owner may<span style="letter-spacing:0.05pt;"> </span>have limited<span style="letter-spacing:0.15pt;"> </span>remedies,<span style="letter-spacing:0.15pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>materially<span style="letter-spacing:0.2pt;"> </span>diminish<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>value<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>patent.<span style="letter-spacing:0.1pt;"> </span>If<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>forced<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>grant<span style="letter-spacing:0.05pt;"> </span>a license<span style="letter-spacing:0.1pt;"> </span>to third<span style="letter-spacing:0.1pt;"> </span>parties<span style="letter-spacing:0.15pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>respect<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>any patents<span style="letter-spacing:0.05pt;"> </span>relevant<span style="letter-spacing:0.1pt;"> </span>to our business,<span style="letter-spacing:0.05pt;"> </span>our competitive<span style="letter-spacing:0.15pt;"> </span>position<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be impaired,<span style="letter-spacing:0.1pt;"> </span>and our<span style="letter-spacing:0.05pt;"> </span>business,<span style="letter-spacing:0.1pt;"> </span>financial<span style="letter-spacing:0.15pt;"> </span>condition,<span style="letter-spacing:0.1pt;"> </span>results<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>operations,<span style="letter-spacing:0.1pt;"> </span>and prospects<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be adversely<span style="letter-spacing:0.1pt;"> </span>affected.<span style="letter-spacing:0.1pt;"> </span>Proceedings<span style="letter-spacing:0.05pt;"> </span>to enforce<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>intellectual<span style="letter-spacing:0.2pt;"> </span>property<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>proprietary<span style="letter-spacing:0.15pt;"> </span>rights<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>foreign<span style="letter-spacing:0.1pt;"> </span>jurisdictions,<span style="letter-spacing:0.2pt;"> </span>whether<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>not successful,<span style="letter-spacing:0.1pt;"> </span>could result<span style="letter-spacing:0.15pt;"> </span>in substantial<span style="letter-spacing:0.1pt;"> </span>costs<span style="letter-spacing:0.05pt;"> </span>and divert<span style="letter-spacing:0.05pt;"> </span>our efforts<span style="letter-spacing:0.1pt;"> </span>and resources<span style="letter-spacing:0.1pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.05pt;"> </span>aspects<span style="letter-spacing:0.05pt;"> </span>of our business,<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>put our patents,<span style="letter-spacing:0.1pt;"> </span>trademarks<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>intellectual<span style="letter-spacing:0.2pt;"> </span>property<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>proprietary<span style="letter-spacing:0.15pt;"> </span>rights<span style="letter-spacing:0.1pt;"> </span>at<span style="letter-spacing:0.1pt;"> </span>risk<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>being<span style="letter-spacing:0.1pt;"> </span>invalidated<span style="letter-spacing:0.15pt;"> </span>or interpreted narrowly,<span style="letter-spacing:0.1pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>put our patent<span style="letter-spacing:0.05pt;"> </span>applications<span style="letter-spacing:0.1pt;"> </span>at<span style="letter-spacing:0.05pt;"> </span>risk<span style="letter-spacing:0.05pt;"> </span>of not issuing,<span style="letter-spacing:0.05pt;"> </span>and could<span style="letter-spacing:0.05pt;"> </span>provoke<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.1pt;"> </span>to assert<span style="letter-spacing:0.1pt;"> </span>claims against<span style="letter-spacing:0.9pt;"> </span>us.<span style="letter-spacing:0.8pt;"> </span>We<span style="letter-spacing:0.8pt;"> </span>may<span style="letter-spacing:0.85pt;"> </span>not<span style="letter-spacing:0.8pt;"> </span>prevail<span style="letter-spacing:0.9pt;"> </span>in<span style="letter-spacing:0.8pt;"> </span>any<span style="letter-spacing:0.8pt;"> </span>lawsuits<span style="letter-spacing:0.85pt;"> </span>that<span style="letter-spacing:0.85pt;"> </span>we<span style="letter-spacing:0.8pt;"> </span>initiate,<span style="letter-spacing:0.9pt;"> </span>and<span style="letter-spacing:0.8pt;"> </span>the<span style="letter-spacing:0.85pt;"> </span>damages<span style="letter-spacing:0.85pt;"> </span>or<span style="letter-spacing:0.8pt;"> </span>other<span style="letter-spacing:0.85pt;"> </span>remedies<span style="letter-spacing:0.9pt;"> </span>awarded,<span style="letter-spacing:0.85pt;"> </span>if any, may<span style="letter-spacing:0.05pt;"> </span>not be commercially<span style="letter-spacing:0.15pt;"> </span>meaningful.<span style="letter-spacing:0.1pt;"> </span>Furthermore,<span style="letter-spacing:0.1pt;"> </span>while<span style="letter-spacing:0.05pt;"> </span>we intend<span style="letter-spacing:0.05pt;"> </span>to protect<span style="letter-spacing:0.1pt;"> </span>our intellectual<span style="letter-spacing:0.15pt;"> </span>property and proprietary<span style="letter-spacing:0.15pt;"> </span>rights<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>major<span style="letter-spacing:0.1pt;"> </span>markets<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our products,<span style="letter-spacing:0.05pt;"> </span>we cannot<span style="letter-spacing:0.05pt;"> </span>ensure<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we will<span style="letter-spacing:0.05pt;"> </span>be able<span style="letter-spacing:0.05pt;"> </span>to initiate<span style="letter-spacing:0.1pt;"> </span>or maintain similar<span style="letter-spacing:1.65pt;"> </span>efforts<span style="letter-spacing:1.65pt;"> </span>in<span style="letter-spacing:1.55pt;"> </span>all<span style="letter-spacing:1.6pt;"> </span>jurisdictions<span style="letter-spacing:1.7pt;"> </span>in<span style="letter-spacing:1.55pt;"> </span>which<span style="letter-spacing:1.55pt;"> </span>we<span style="letter-spacing:1.55pt;"> </span>may<span style="letter-spacing:1.6pt;"> </span>wish<span style="letter-spacing:1.55pt;"> </span>to<span style="letter-spacing:1.5pt;"> </span>market<span style="letter-spacing:1.6pt;"> </span>our<span style="letter-spacing:1.5pt;"> </span>products.<span style="letter-spacing:1.55pt;"> </span>Accordingly,<span style="letter-spacing:1.55pt;"> </span>our<span style="letter-spacing:1.5pt;"> </span>efforts<span style="letter-spacing:1.6pt;"> </span>to protect<span style="letter-spacing:0.1pt;"> </span>our intellectual<span style="letter-spacing:0.15pt;"> </span>property<span style="letter-spacing:0.05pt;"> </span>and proprietary<span style="letter-spacing:0.1pt;"> </span>rights<span style="letter-spacing:0.05pt;"> </span>in such countries<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be inadequate.</p>
<p style="margin-top:15pt;margin-bottom:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">If<span style="letter-spacing:0.05pt;"> </span>we are sued for<span style="letter-spacing:0.05pt;"> </span>infringing,<span style="letter-spacing:0.05pt;"> </span>misappropriating<span style="letter-spacing:0.1pt;"> </span>or otherwise<span style="letter-spacing:0.05pt;"> </span>violating<span style="letter-spacing:0.1pt;"> </span>intellectual<span style="letter-spacing:0.15pt;"> </span>property<span style="letter-spacing:0.05pt;"> </span>or proprietary rights<span style="letter-spacing:0.05pt;"> </span>of third<span style="letter-spacing:0.05pt;"> </span>parties,<span style="letter-spacing:0.05pt;"> </span>such litigation<span style="letter-spacing:0.1pt;"> </span>or disputes<span style="letter-spacing:0.05pt;"> </span>could be costly<span style="letter-spacing:0.05pt;"> </span>and time<span style="letter-spacing:0.05pt;"> </span>consuming<span style="letter-spacing:0.05pt;"> </span>and could prevent or delay<span style="letter-spacing:0.05pt;"> </span>us from<span style="letter-spacing:0.05pt;"> </span>developing<span style="letter-spacing:0.05pt;"> </span>or commercializing<span style="letter-spacing:0.15pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our<span style="letter-spacing:2.1pt;"> </span>commercial<span style="letter-spacing:2.25pt;"> </span>success<span style="letter-spacing:2.15pt;"> </span>depends,<span style="letter-spacing:2.15pt;"> </span>in<span style="letter-spacing:2.1pt;"> </span>part,<span style="letter-spacing:2.15pt;"> </span>on<span style="letter-spacing:2.1pt;"> </span>our<span style="letter-spacing:2.1pt;"> </span>ability<span style="letter-spacing:2.15pt;"> </span>to<span style="letter-spacing:2.05pt;"> </span>develop,<span style="letter-spacing:2.1pt;"> </span>manufacture,<span style="letter-spacing:2.15pt;"> </span>market<span style="letter-spacing:2.15pt;"> </span>and<span style="letter-spacing:2.05pt;"> </span>sell<span style="letter-spacing:2.1pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>and use our proprietary<span style="letter-spacing:0.1pt;"> </span>technologies<span style="letter-spacing:0.1pt;"> </span>without<span style="letter-spacing:0.05pt;"> </span>infringing,<span style="letter-spacing:0.1pt;"> </span>misappropriating<span style="letter-spacing:0.15pt;"> </span>or otherwise violating<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>intellectual<span style="letter-spacing:0.15pt;"> </span>property<span style="letter-spacing:0.05pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>proprietary<span style="letter-spacing:0.1pt;"> </span>rights<span style="letter-spacing:0.05pt;"> </span>of third<span style="letter-spacing:0.05pt;"> </span>parties.<span style="letter-spacing:0.1pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>any third-party<span style="letter-spacing:0.15pt;"> </span>patents,<span style="letter-spacing:0.05pt;"> </span>patent applications<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>proprietary<span style="letter-spacing:0.15pt;"> </span>rights<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>found to cover<span style="letter-spacing:0.05pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>or any related<span style="letter-spacing:0.1pt;"> </span>companion diagnostics<span style="letter-spacing:0.15pt;"> </span>or their<span style="letter-spacing:0.05pt;"> </span>compositions,<span style="letter-spacing:0.1pt;"> </span>methods<span style="letter-spacing:0.05pt;"> </span>of use or manufacturing,<span style="letter-spacing:0.15pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>be required<span style="letter-spacing:0.1pt;"> </span>to pay damages,<span style="letter-spacing:0.05pt;"> </span>which could<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>substantial,<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>would<span style="letter-spacing:0.05pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>free<span style="letter-spacing:0.1pt;"> </span>to manufacture<span style="letter-spacing:0.1pt;"> </span>or market<span style="letter-spacing:0.1pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>or to do so without<span style="letter-spacing:0.05pt;"> </span>obtaining<span style="letter-spacing:0.05pt;"> </span>a license,<span style="letter-spacing:0.1pt;"> </span>which may<span style="letter-spacing:0.05pt;"> </span>not be available<span style="letter-spacing:0.1pt;"> </span>on commercially<span style="letter-spacing:0.15pt;"> </span>reasonable<span style="letter-spacing:0.1pt;"> </span>terms,<span style="letter-spacing:0.1pt;"> </span>or at<span style="letter-spacing:0.05pt;"> </span>all.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>future<span style="letter-spacing:0.1pt;"> </span>become<span style="letter-spacing:0.1pt;"> </span>party<span style="letter-spacing:0.1pt;"> </span>to,<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>threatened<span style="letter-spacing:0.15pt;"> </span>with, adversarial<span style="letter-spacing:0.15pt;"> </span>proceedings<span style="letter-spacing:0.1pt;"> </span>or litigation<span style="letter-spacing:0.15pt;"> </span>regarding intellectual<span style="letter-spacing:0.2pt;"> </span>property<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>proprietary<span style="letter-spacing:0.15pt;"> </span>rights<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>respect<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>technologies<span style="letter-spacing:0.1pt;"> </span>we use in our business.<span style="letter-spacing:0.1pt;"> </span>Our<span style="letter-spacing:0.05pt;"> </span>competitors<span style="letter-spacing:0.2pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>third<span style="letter-spacing:0.1pt;"> </span>parties<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>assert<span style="letter-spacing:0.1pt;"> </span>infringement<span style="letter-spacing:0.15pt;"> </span>claims<span style="letter-spacing:0.1pt;"> </span>against<span style="letter-spacing:0.05pt;"> </span>us, alleging<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>our product<span style="letter-spacing:0.1pt;"> </span>candidates<span style="letter-spacing:0.15pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>covered<span style="letter-spacing:0.1pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>their<span style="letter-spacing:0.1pt;"> </span>patents.<span style="letter-spacing:0.1pt;"> </span>We<span style="letter-spacing:0.05pt;"> </span>cannot<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>certain<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we do not infringe<span style="letter-spacing:0.1pt;"> </span>existing<span style="letter-spacing:0.1pt;"> </span>patents<span style="letter-spacing:0.05pt;"> </span>or that<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>infringe<span style="letter-spacing:0.15pt;"> </span>patents<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be granted<span style="letter-spacing:0.05pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>future.<span style="letter-spacing:0.05pt;"> </span>Furthermore,<span style="letter-spacing:0.1pt;"> </span>because<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>applications<span style="letter-spacing:0.1pt;"> </span>can take<span style="letter-spacing:0.7pt;"> </span>many<span style="letter-spacing:0.7pt;"> </span>years<span style="letter-spacing:0.7pt;"> </span>to<span style="letter-spacing:0.65pt;"> </span>issue<span style="letter-spacing:0.7pt;"> </span>and<span style="letter-spacing:0.65pt;"> </span>may<span style="letter-spacing:0.7pt;"> </span>be<span style="letter-spacing:0.65pt;"> </span>confidential<span style="letter-spacing:0.8pt;"> </span>for<span style="letter-spacing:0.65pt;"> </span>18<span style="letter-spacing:0.6pt;"> </span>months<span style="letter-spacing:0.65pt;"> </span>or<span style="letter-spacing:0.6pt;"> </span>more<span style="letter-spacing:0.65pt;"> </span>after<span style="letter-spacing:0.7pt;"> </span>filing,<span style="letter-spacing:0.7pt;"> </span>and<span style="letter-spacing:0.6pt;"> </span>because<span style="letter-spacing:0.65pt;"> </span>patent<span style="letter-spacing:0.65pt;"> </span>claims can<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>revised<span style="letter-spacing:0.1pt;"> </span>before<span style="letter-spacing:0.1pt;"> </span>issuance,<span style="letter-spacing:0.1pt;"> </span>there<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>be applications<span style="letter-spacing:0.1pt;"> </span>now pending<span style="letter-spacing:0.05pt;"> </span>which may<span style="letter-spacing:0.05pt;"> </span>later<span style="letter-spacing:0.1pt;"> </span>result<span style="letter-spacing:0.1pt;"> </span>in issued<span style="letter-spacing:0.05pt;"> </span>patents that<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be infringed<span style="letter-spacing:0.1pt;"> </span>by the<span style="letter-spacing:0.05pt;"> </span>manufacture,<span style="letter-spacing:0.1pt;"> </span>use or sale<span style="letter-spacing:0.05pt;"> </span>of our product<span style="letter-spacing:0.05pt;"> </span>candidates.<span style="letter-spacing:0.1pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>a patent<span style="letter-spacing:0.05pt;"> </span>holder<span style="letter-spacing:0.05pt;"> </span>believes<span style="letter-spacing:0.1pt;"> </span>our product<span style="letter-spacing:0.1pt;"> </span>candidate<span style="letter-spacing:0.15pt;"> </span>infringes<span style="letter-spacing:0.15pt;"> </span>its<span style="letter-spacing:0.1pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>rights,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>holder<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>sue us even if<span style="letter-spacing:0.05pt;"> </span>we have received<span style="letter-spacing:0.1pt;"> </span>patent protection<span style="letter-spacing:1.2pt;"> </span>for<span style="letter-spacing:1.15pt;"> </span>our<span style="letter-spacing:1.05pt;"> </span>technology.<span style="letter-spacing:1.1pt;"> </span>Moreover,<span style="letter-spacing:1.1pt;"> </span>we<span style="letter-spacing:1.05pt;"> </span>may<span style="letter-spacing:1.1pt;"> </span>face<span style="letter-spacing:1.1pt;"> </span>patent<span style="letter-spacing:1.1pt;"> </span>infringement<span style="letter-spacing:1.2pt;"> </span>claims<span style="letter-spacing:1.15pt;"> </span>from<span style="letter-spacing:1.1pt;"> </span>non-practicing<span style="letter-spacing:1.2pt;"> </span>entities that<span style="letter-spacing:0.05pt;"> </span>have no relevant<span style="letter-spacing:0.1pt;"> </span>drug revenue<span style="letter-spacing:0.05pt;"> </span>and against<span style="letter-spacing:0.05pt;"> </span>whom our own patent<span style="letter-spacing:0.05pt;"> </span>portfolio<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>thus<span style="letter-spacing:0.05pt;"> </span>have no deterrent<span style="letter-spacing:0.1pt;"> </span>effect.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">There<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>substantial<span style="letter-spacing:0.15pt;"> </span>amount<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>intellectual<span style="letter-spacing:0.2pt;"> </span>property<span style="letter-spacing:0.05pt;"> </span>litigation<span style="letter-spacing:0.15pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>biotechnology<span style="letter-spacing:0.1pt;"> </span>and pharmaceutical industries,<span style="letter-spacing:0.1pt;"> </span>and we may<span style="letter-spacing:0.05pt;"> </span>become<span style="letter-spacing:0.05pt;"> </span>party<span style="letter-spacing:0.05pt;"> </span>to, or threatened<span style="letter-spacing:0.1pt;"> </span>with, litigation<span style="letter-spacing:0.15pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>adversarial<span style="letter-spacing:0.15pt;"> </span>proceedings<span style="letter-spacing:0.05pt;"> </span>regarding intellectual<span style="letter-spacing:0.15pt;"> </span>property<span style="letter-spacing:0.05pt;"> </span>or proprietary<span style="letter-spacing:0.1pt;"> </span>rights<span style="letter-spacing:0.05pt;"> </span>with respect<span style="letter-spacing:0.1pt;"> </span>to our product<span style="letter-spacing:0.05pt;"> </span>candidates,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>interference proceedings<span style="letter-spacing:0.7pt;"> </span>before<span style="letter-spacing:0.65pt;"> </span>the<span style="letter-spacing:0.65pt;"> </span>USPTO.<span style="letter-spacing:0.55pt;"> </span>Third<span style="letter-spacing:0.65pt;"> </span>parties<span style="letter-spacing:0.7pt;"> </span>may<span style="letter-spacing:0.65pt;"> </span>assert<span style="letter-spacing:0.7pt;"> </span>infringement,<span style="letter-spacing:0.75pt;"> </span>misappropriation<span style="letter-spacing:0.75pt;"> </span>or<span style="letter-spacing:0.6pt;"> </span>other<span style="letter-spacing:0.6pt;"> </span>claims<span style="letter-spacing:0.65pt;"> </span>against us<span style="letter-spacing:0.05pt;"> </span>based<span style="letter-spacing:0.1pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>existing<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>future<span style="letter-spacing:0.05pt;"> </span>intellectual<span style="letter-spacing:0.15pt;"> </span>property<span style="letter-spacing:0.05pt;"> </span>or proprietary<span style="letter-spacing:0.1pt;"> </span>rights.<span style="letter-spacing:0.05pt;"> </span>The outcome<span style="letter-spacing:0.05pt;"> </span>of intellectual<span style="letter-spacing:0.15pt;"> </span>property litigation<span style="letter-spacing:0.2pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>disputes<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>subject<span style="letter-spacing:0.05pt;"> </span>to uncertainties<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>cannot<span style="letter-spacing:0.05pt;"> </span>be adequately<span style="letter-spacing:0.1pt;"> </span>quantified<span style="letter-spacing:0.1pt;"> </span>in advance.<span style="letter-spacing:0.05pt;"> </span>The pharmaceutical<span style="letter-spacing:2.05pt;"> </span>and<span style="letter-spacing:1.9pt;"> </span>biotechnology<span style="letter-spacing:2pt;"> </span>industries<span style="letter-spacing:2pt;"> </span>have<span style="letter-spacing:1.85pt;"> </span>produced<span style="letter-spacing:1.9pt;"> </span>a<span style="letter-spacing:1.85pt;"> </span>significant<span style="letter-spacing:2pt;"> </span>number<span style="letter-spacing:1.9pt;"> </span>of<span style="letter-spacing:1.85pt;"> </span>patents,<span style="letter-spacing:1.9pt;"> </span>and<span style="letter-spacing:1.85pt;"> </span>it<span style="letter-spacing:1.9pt;"> </span>may<span style="letter-spacing:1.9pt;"> </span>not always<span style="letter-spacing:0.65pt;"> </span>be<span style="letter-spacing:0.6pt;"> </span>clear<span style="letter-spacing:0.65pt;"> </span>to<span style="letter-spacing:0.6pt;"> </span>industry<span style="letter-spacing:0.65pt;"> </span>participants,<span style="letter-spacing:0.75pt;"> </span>including<span style="letter-spacing:0.65pt;"> </span>us,<span style="letter-spacing:0.55pt;"> </span>which<span style="letter-spacing:0.55pt;"> </span>patents<span style="letter-spacing:0.6pt;"> </span>cover<span style="letter-spacing:0.6pt;"> </span>various<span style="letter-spacing:0.6pt;"> </span>types<span style="letter-spacing:0.6pt;"> </span>of<span style="letter-spacing:0.55pt;"> </span>products<span style="letter-spacing:0.6pt;"> </span>or<span style="letter-spacing:0.55pt;"> </span>methods of<span style="letter-spacing:1.1pt;"> </span>using<span style="letter-spacing:1.15pt;"> </span>or<span style="letter-spacing:1.1pt;"> </span>manufacturing<span style="letter-spacing:1.25pt;"> </span>products.<span style="letter-spacing:1.15pt;"> </span>The<span style="letter-spacing:1.1pt;"> </span>coverage<span style="letter-spacing:1.15pt;"> </span>of<span style="letter-spacing:1.1pt;"> </span>patents<span style="letter-spacing:1.15pt;"> </span>is<span style="letter-spacing:1.1pt;"> </span>subject<span style="letter-spacing:1.1pt;"> </span>to<span style="letter-spacing:1.05pt;"> </span>interpretation<span style="letter-spacing:1.2pt;"> </span>by<span style="letter-spacing:1.05pt;"> </span>the<span style="letter-spacing:1.1pt;"> </span>courts,<span style="letter-spacing:1.1pt;"> </span>and<span style="letter-spacing:1.05pt;"> </span>the interpretation<span style="letter-spacing:0.2pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>always<span style="letter-spacing:0.1pt;"> </span>uniform.<span style="letter-spacing:0.15pt;"> </span>If<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>were<span style="letter-spacing:0.05pt;"> </span>sued<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>infringement,<span style="letter-spacing:0.2pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>would<span style="letter-spacing:0.05pt;"> </span>need<span style="letter-spacing:0.05pt;"> </span>to demonstrate<span style="letter-spacing:0.1pt;"> </span>that our<span style="letter-spacing:1.25pt;"> </span>product<span style="letter-spacing:1.3pt;"> </span>candidates,<span style="letter-spacing:1.35pt;"> </span>products<span style="letter-spacing:1.3pt;"> </span>or<span style="letter-spacing:1.25pt;"> </span>methods<span style="letter-spacing:1.25pt;"> </span>of<span style="letter-spacing:1.2pt;"> </span>use,<span style="letter-spacing:1.2pt;"> </span>manufacturing<span style="letter-spacing:1.35pt;"> </span>or<span style="letter-spacing:1.2pt;"> </span>other<span style="letter-spacing:1.25pt;"> </span>applicable<span style="letter-spacing:1.3pt;"> </span>activities<span style="letter-spacing:1.35pt;"> </span>either<span style="letter-spacing:1.3pt;"> </span>do<span style="letter-spacing:1.2pt;"> </span>not infringe<span style="letter-spacing:1.15pt;"> </span>the<span style="letter-spacing:1.1pt;"> </span>patent<span style="letter-spacing:1.1pt;"> </span>claims<span style="letter-spacing:1.15pt;"> </span>of<span style="letter-spacing:1.05pt;"> </span>the<span style="letter-spacing:1.1pt;"> </span>relevant<span style="letter-spacing:1.15pt;"> </span>patent<span style="letter-spacing:1.1pt;"> </span>or<span style="letter-spacing:1.05pt;"> </span>that<span style="letter-spacing:1.1pt;"> </span>the<span style="letter-spacing:1.1pt;"> </span>patent<span style="letter-spacing:1.1pt;"> </span>claims<span style="letter-spacing:1.15pt;"> </span>are<span style="letter-spacing:1.1pt;"> </span>invalid<span style="letter-spacing:1.1pt;"> </span>or<span style="letter-spacing:1pt;"> </span>unenforceable,<span style="letter-spacing:1.1pt;"> </span>and<span style="letter-spacing:1pt;"> </span>we may<span style="letter-spacing:0.75pt;"> </span>not<span style="letter-spacing:0.7pt;"> </span>be<span style="letter-spacing:0.7pt;"> </span>successful<span style="letter-spacing:0.8pt;"> </span>in<span style="letter-spacing:0.7pt;"> </span>doing<span style="letter-spacing:0.7pt;"> </span>so.<span style="letter-spacing:0.7pt;"> </span>However,<span style="letter-spacing:0.7pt;"> </span>proving<span style="letter-spacing:0.7pt;"> </span>invalidity<span style="letter-spacing:0.75pt;"> </span>or<span style="letter-spacing:0.65pt;"> </span>unenforceability<span style="letter-spacing:0.8pt;"> </span>is<span style="letter-spacing:0.7pt;"> </span>difficult.<span style="letter-spacing:0.8pt;"> </span>For<span style="letter-spacing:0.65pt;"> </span>example,<span style="letter-spacing:0.7pt;"> </span>in the<span style="letter-spacing:0.1pt;"> </span>United<span style="letter-spacing:0.1pt;"> </span>States,<span style="letter-spacing:0.1pt;"> </span>proving<span style="letter-spacing:0.1pt;"> </span>invalidity<span style="letter-spacing:0.15pt;"> </span>requires<span style="letter-spacing:0.15pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>showing of clear<span style="letter-spacing:0.05pt;"> </span>and convincing<span style="letter-spacing:0.05pt;"> </span>evidence<span style="letter-spacing:0.05pt;"> </span>to overcome<span style="letter-spacing:0.05pt;"> </span>the presumption<span style="letter-spacing:0.15pt;"> </span>of validity<span style="letter-spacing:0.1pt;"> </span></p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">58</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">enjoyed</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">by issued</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">patents.</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Even if</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we believe</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">third-party</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">intellectual</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">property</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">claims</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">are without</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">merit,</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">there</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">is</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">no assurance</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">that</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">a court</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">would find</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in our favor</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">on questions</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of infringement,</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">validity,</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or enforceability.</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Even if</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we are</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">successful</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in these</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">proceedings,</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we may</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">incur</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">substantial</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">costs</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and the</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">time</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and attention</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">management</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and business</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and scientific</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">personnel</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">be diverted</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in pursuing</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">these proceedings,</span><span style="letter-spacing:1.3pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">which</span><span style="letter-spacing:1.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</span><span style="letter-spacing:1.25pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">significantly</span><span style="letter-spacing:1.35pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">harm</span><span style="letter-spacing:1.25pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our</span><span style="letter-spacing:1.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">business</span><span style="letter-spacing:1.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</span><span style="letter-spacing:1.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">operating</span><span style="letter-spacing:1.25pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">results.</span><span style="letter-spacing:1.25pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In</span><span style="letter-spacing:1.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">addition,</span><span style="letter-spacing:1.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we</span><span style="letter-spacing:1.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">may</span><span style="letter-spacing:1.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">not</span><span style="letter-spacing:1.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">have sufficient</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">resources</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to bring</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">these</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">actions</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to a successful</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">conclusion.</span></p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>found<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>infringe,<span style="letter-spacing:0.15pt;"> </span>misappropriate<span style="letter-spacing:0.2pt;"> </span>or otherwise<span style="letter-spacing:0.05pt;"> </span>violate<span style="letter-spacing:0.1pt;"> </span>a third<span style="letter-spacing:0.05pt;"> </span>party&#8217;s<span style="letter-spacing:0.1pt;"> </span>intellectual<span style="letter-spacing:0.15pt;"> </span>property<span style="letter-spacing:0.05pt;"> </span>or proprietary<span style="letter-spacing:0.9pt;"> </span>rights<span style="letter-spacing:0.85pt;"> </span>and<span style="letter-spacing:0.8pt;"> </span>we<span style="letter-spacing:0.8pt;"> </span>are<span style="letter-spacing:0.85pt;"> </span>unsuccessful<span style="letter-spacing:0.9pt;"> </span>in<span style="letter-spacing:0.8pt;"> </span>demonstrating<span style="letter-spacing:0.95pt;"> </span>that<span style="letter-spacing:0.85pt;"> </span>such<span style="letter-spacing:0.8pt;"> </span>intellectual<span style="letter-spacing:0.95pt;"> </span>property<span style="letter-spacing:0.85pt;"> </span>or<span style="letter-spacing:0.8pt;"> </span>proprietary<span style="letter-spacing:0.9pt;"> </span>rights are<span style="letter-spacing:0.05pt;"> </span>invalid<span style="letter-spacing:0.05pt;"> </span>or unenforceable,<span style="letter-spacing:0.1pt;"> </span>we could<span style="letter-spacing:0.05pt;"> </span>be forced,<span style="letter-spacing:0.05pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>by court<span style="letter-spacing:0.05pt;"> </span>order,<span style="letter-spacing:0.05pt;"> </span>to cease developing, manufacturing<span style="letter-spacing:0.1pt;"> </span>or commercializing<span style="letter-spacing:2.1pt;"> </span>the<span style="letter-spacing:1.95pt;"> </span>infringing<span style="letter-spacing:2pt;"> </span>product<span style="letter-spacing:1.95pt;"> </span>candidate<span style="letter-spacing:2pt;"> </span>or<span style="letter-spacing:1.9pt;"> </span>product.<span style="letter-spacing:1.95pt;"> </span>Alternatively,<span style="letter-spacing:2.05pt;"> </span>we<span style="letter-spacing:1.9pt;"> </span>may<span style="letter-spacing:1.9pt;"> </span>be<span style="letter-spacing:1.85pt;"> </span>required<span style="letter-spacing:1.95pt;"> </span>to<span style="letter-spacing:1.85pt;"> </span>obtain<span style="letter-spacing:1.9pt;"> </span>a license<span style="letter-spacing:0.15pt;"> </span>from<span style="letter-spacing:0.1pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.1pt;"> </span>party<span style="letter-spacing:0.1pt;"> </span>in order<span style="letter-spacing:0.05pt;"> </span>to use the<span style="letter-spacing:0.05pt;"> </span>infringing<span style="letter-spacing:0.1pt;"> </span>technology<span style="letter-spacing:0.05pt;"> </span>and continue<span style="letter-spacing:0.05pt;"> </span>developing,<span style="letter-spacing:0.05pt;"> </span>manufacturing<span style="letter-spacing:0.15pt;"> </span>or marketing<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>infringing<span style="letter-spacing:0.15pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidate.<span style="letter-spacing:0.15pt;"> </span>However,<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>not be able<span style="letter-spacing:0.05pt;"> </span>to obtain<span style="letter-spacing:0.05pt;"> </span>any required<span style="letter-spacing:0.1pt;"> </span>license<span style="letter-spacing:0.1pt;"> </span>on commercially<span style="letter-spacing:1.15pt;"> </span>reasonable<span style="letter-spacing:1.1pt;"> </span>terms<span style="letter-spacing:1.1pt;"> </span>or<span style="letter-spacing:1pt;"> </span>at<span style="letter-spacing:1.05pt;"> </span>all.<span style="letter-spacing:1.05pt;"> </span>Even<span style="letter-spacing:1pt;"> </span>if<span style="letter-spacing:1.05pt;"> </span>we<span style="letter-spacing:1pt;"> </span>were<span style="letter-spacing:1pt;"> </span>able<span style="letter-spacing:1.05pt;"> </span>to<span style="letter-spacing:1pt;"> </span>obtain<span style="letter-spacing:1.05pt;"> </span>such<span style="letter-spacing:1pt;"> </span>a<span style="letter-spacing:0.95pt;"> </span>license,<span style="letter-spacing:1.05pt;"> </span>it<span style="letter-spacing:1pt;"> </span>could<span style="letter-spacing:1pt;"> </span>be<span style="letter-spacing:0.95pt;"> </span>granted<span style="letter-spacing:1pt;"> </span>on non-exclusive<span style="letter-spacing:0.15pt;"> </span>terms,<span style="letter-spacing:0.15pt;"> </span>thereby<span style="letter-spacing:0.05pt;"> </span>giving<span style="letter-spacing:0.05pt;"> </span>our competitors<span style="letter-spacing:0.15pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.1pt;"> </span>access<span style="letter-spacing:0.05pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>same<span style="letter-spacing:0.05pt;"> </span>technologies licensed<span style="letter-spacing:0.1pt;"> </span>to us. In addition,<span style="letter-spacing:0.05pt;"> </span>we could<span style="letter-spacing:0.05pt;"> </span>be found liable<span style="letter-spacing:0.05pt;"> </span>for significant<span style="letter-spacing:0.1pt;"> </span>monetary<span style="letter-spacing:0.05pt;"> </span>damages, including treble<span style="letter-spacing:0.05pt;"> </span>damages and<span style="letter-spacing:0.05pt;"> </span>attorneys&#8217;<span style="letter-spacing:0.15pt;"> </span>fees<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>we are<span style="letter-spacing:0.05pt;"> </span>found to have willfully<span style="letter-spacing:0.1pt;"> </span>infringed<span style="letter-spacing:0.1pt;"> </span>such third-party<span style="letter-spacing:0.15pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>rights.<span style="letter-spacing:0.05pt;"> </span>A finding<span style="letter-spacing:0.05pt;"> </span>of infringement<span style="letter-spacing:1.4pt;"> </span>could<span style="letter-spacing:1.3pt;"> </span>prevent<span style="letter-spacing:1.3pt;"> </span>us<span style="letter-spacing:1.25pt;"> </span>from<span style="letter-spacing:1.3pt;"> </span>commercializing<span style="letter-spacing:1.45pt;"> </span>our<span style="letter-spacing:1.25pt;"> </span>product<span style="letter-spacing:1.3pt;"> </span>candidates<span style="letter-spacing:1.35pt;"> </span>or<span style="letter-spacing:1.2pt;"> </span>force<span style="letter-spacing:1.25pt;"> </span>us<span style="letter-spacing:1.2pt;"> </span>to<span style="letter-spacing:1.2pt;"> </span>cease<span style="letter-spacing:1.25pt;"> </span>some<span style="letter-spacing:1.25pt;"> </span>of<span style="letter-spacing:1.2pt;"> </span>our business<span style="letter-spacing:0.1pt;"> </span>operations,<span style="letter-spacing:0.15pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>materially<span style="letter-spacing:0.2pt;"> </span>harm<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>business.<span style="letter-spacing:0.05pt;"> </span>Claims<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we have misappropriated<span style="letter-spacing:0.15pt;"> </span>the confidential<span style="letter-spacing:0.2pt;"> </span>information<span style="letter-spacing:0.2pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>trade<span style="letter-spacing:0.1pt;"> </span>secrets<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.1pt;"> </span>parties<span style="letter-spacing:0.15pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>have a similar<span style="letter-spacing:0.1pt;"> </span>negative<span style="letter-spacing:0.05pt;"> </span>impact<span style="letter-spacing:0.1pt;"> </span>on our business, financial<span style="letter-spacing:0.1pt;"> </span>condition,<span style="letter-spacing:0.05pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>of operations<span style="letter-spacing:0.1pt;"> </span>and prospects.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We may<span style="letter-spacing:0.05pt;"> </span>be subject<span style="letter-spacing:0.05pt;"> </span>to claims<span style="letter-spacing:0.1pt;"> </span>by third<span style="letter-spacing:0.05pt;"> </span>parties<span style="letter-spacing:0.05pt;"> </span>asserting<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>our employees<span style="letter-spacing:0.1pt;"> </span>or consultants<span style="letter-spacing:0.05pt;"> </span>or we have misappropriated<span style="letter-spacing:0.1pt;"> </span>their<span style="letter-spacing:0.05pt;"> </span>intellectual<span style="letter-spacing:0.15pt;"> </span>property,<span style="letter-spacing:0.05pt;"> </span>or claiming<span style="letter-spacing:0.1pt;"> </span>ownership of what we regard<span style="letter-spacing:0.05pt;"> </span>as our own intellectual<span style="letter-spacing:0.15pt;"> </span>property.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Some<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>employees<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>consultants<span style="letter-spacing:0.15pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>currently<span style="letter-spacing:0.15pt;"> </span>or have been previously<span style="letter-spacing:0.1pt;"> </span>employed<span style="letter-spacing:0.05pt;"> </span>at<span style="letter-spacing:0.05pt;"> </span>universities<span style="letter-spacing:0.15pt;"> </span>or at other<span style="letter-spacing:0.1pt;"> </span>biotechnology<span style="letter-spacing:0.15pt;"> </span>or pharmaceutical<span style="letter-spacing:0.15pt;"> </span>companies,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>our competitors<span style="letter-spacing:0.15pt;"> </span>or potential<span style="letter-spacing:0.1pt;"> </span>competitors.<span style="letter-spacing:0.15pt;"> </span>These employees and consultants may have executed proprietary rights, non-disclosure and non-competition agreements,<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>similar<span style="letter-spacing:0.15pt;"> </span>agreements,<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>connection<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>such other<span style="letter-spacing:0.05pt;"> </span>current<span style="letter-spacing:0.1pt;"> </span>or previous<span style="letter-spacing:0.05pt;"> </span>employment.<span style="letter-spacing:0.1pt;"> </span>Although we try<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>ensure<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>employees<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>consultants<span style="letter-spacing:0.1pt;"> </span>do not use the<span style="letter-spacing:0.05pt;"> </span>proprietary<span style="letter-spacing:0.1pt;"> </span>information<span style="letter-spacing:0.15pt;"> </span>or know-how of others<span style="letter-spacing:0.05pt;"> </span>in their<span style="letter-spacing:0.05pt;"> </span>work for<span style="letter-spacing:0.05pt;"> </span>us, we may<span style="letter-spacing:0.05pt;"> </span>be subject<span style="letter-spacing:0.05pt;"> </span>to claims<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we or these<span style="letter-spacing:0.05pt;"> </span>individuals<span style="letter-spacing:0.1pt;"> </span>have used or disclosed<span style="letter-spacing:0.05pt;"> </span>intellectual property,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.1pt;"> </span>trade<span style="letter-spacing:0.1pt;"> </span>secrets<span style="letter-spacing:0.15pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>proprietary<span style="letter-spacing:0.1pt;"> </span>information,<span style="letter-spacing:0.15pt;"> </span>of third<span style="letter-spacing:0.05pt;"> </span>parties.<span style="letter-spacing:0.1pt;"> </span>Litigation<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be necessary<span style="letter-spacing:0.1pt;"> </span>to defend<span style="letter-spacing:0.05pt;"> </span>against<span style="letter-spacing:0.05pt;"> </span>such claims.<span style="letter-spacing:0.1pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>we fail<span style="letter-spacing:0.05pt;"> </span>in defending<span style="letter-spacing:0.05pt;"> </span>any such claims,<span style="letter-spacing:0.1pt;"> </span>in addition<span style="letter-spacing:0.05pt;"> </span>to paying<span style="letter-spacing:0.05pt;"> </span>monetary<span style="letter-spacing:0.1pt;"> </span>damages, we may<span style="letter-spacing:0.05pt;"> </span>lose<span style="letter-spacing:0.05pt;"> </span>valuable<span style="letter-spacing:0.05pt;"> </span>intellectual<span style="letter-spacing:0.15pt;"> </span>property<span style="letter-spacing:0.05pt;"> </span>or personnel<span style="letter-spacing:0.05pt;"> </span>or sustain<span style="letter-spacing:0.05pt;"> </span>damages.<span style="letter-spacing:0.05pt;"> </span>Such intellectual<span style="letter-spacing:0.15pt;"> </span>property<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>be awarded<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.1pt;"> </span>party,<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>required<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>obtain<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>license<span style="letter-spacing:0.15pt;"> </span>from<span style="letter-spacing:0.1pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.1pt;"> </span>party<span style="letter-spacing:0.05pt;"> </span>to commercialize<span style="letter-spacing:0.2pt;"> </span>our technology<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>products.<span style="letter-spacing:0.1pt;"> </span>Such<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>license<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>available<span style="letter-spacing:0.15pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>commercially<span style="letter-spacing:0.2pt;"> </span>reasonable<span style="letter-spacing:0.15pt;"> </span>terms<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>at<span style="letter-spacing:0.1pt;"> </span>all.<span style="letter-spacing:0.05pt;"> </span>Even if we<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>successful<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>defending<span style="letter-spacing:0.1pt;"> </span>against<span style="letter-spacing:0.1pt;"> </span>such claims,<span style="letter-spacing:0.1pt;"> </span>litigation<span style="letter-spacing:0.15pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>result<span style="letter-spacing:0.1pt;"> </span>in substantial<span style="letter-spacing:0.1pt;"> </span>costs<span style="letter-spacing:0.05pt;"> </span>and be a distraction to<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>management.<span style="letter-spacing:0.15pt;"> </span>Any<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>foregoing<span style="letter-spacing:0.1pt;"> </span>would<span style="letter-spacing:0.05pt;"> </span>have a material<span style="letter-spacing:0.15pt;"> </span>adverse<span style="letter-spacing:0.05pt;"> </span>effect<span style="letter-spacing:0.1pt;"> </span>on our business,<span style="letter-spacing:0.05pt;"> </span>financial condition,<span style="letter-spacing:0.05pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>of operations<span style="letter-spacing:0.1pt;"> </span>and prospects.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In<span style="letter-spacing:2.3pt;"> </span>addition,<span style="letter-spacing:2.35pt;"> </span>while<span style="letter-spacing:2.35pt;"> </span>it<span style="letter-spacing:2.35pt;"> </span>is<span style="letter-spacing:2.35pt;"> </span>our<span style="letter-spacing:2.3pt;"> </span>policy<span style="letter-spacing:2.35pt;"> </span>to<span style="letter-spacing:2.3pt;"> </span>require<span style="letter-spacing:2.4pt;"> </span>our<span style="letter-spacing:2.25pt;"> </span>employees,<span style="letter-spacing:2.35pt;"> </span>consultants<span style="letter-spacing:2.35pt;"> </span>and<span style="letter-spacing:2.25pt;"> </span>contractors<span style="letter-spacing:2.35pt;"> </span>who<span style="letter-spacing:2.25pt;"> </span>may<span style="letter-spacing:2.3pt;"> </span>be involved<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>conception<span style="letter-spacing:0.05pt;"> </span>or development<span style="letter-spacing:0.1pt;"> </span>of intellectual<span style="letter-spacing:0.15pt;"> </span>property<span style="letter-spacing:0.05pt;"> </span>to execute<span style="letter-spacing:0.05pt;"> </span>agreements<span style="letter-spacing:0.1pt;"> </span>assigning<span style="letter-spacing:0.05pt;"> </span>such intellectual<span style="letter-spacing:0.2pt;"> </span>property<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>us,<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>be unsuccessful<span style="letter-spacing:0.1pt;"> </span>in executing<span style="letter-spacing:0.05pt;"> </span>such an agreement<span style="letter-spacing:0.1pt;"> </span>with each<span style="letter-spacing:0.05pt;"> </span>party<span style="letter-spacing:0.05pt;"> </span>who, in fact, conceives<span style="letter-spacing:0.65pt;"> </span>or<span style="letter-spacing:0.6pt;"> </span>develops<span style="letter-spacing:0.65pt;"> </span>intellectual<span style="letter-spacing:0.75pt;"> </span>property<span style="letter-spacing:0.65pt;"> </span>that<span style="letter-spacing:0.65pt;"> </span>we<span style="letter-spacing:0.6pt;"> </span>regard<span style="letter-spacing:0.65pt;"> </span>as<span style="letter-spacing:0.6pt;"> </span>our<span style="letter-spacing:0.6pt;"> </span>own,<span style="letter-spacing:0.6pt;"> </span>which<span style="letter-spacing:0.6pt;"> </span>may<span style="letter-spacing:0.65pt;"> </span>result<span style="letter-spacing:0.65pt;"> </span>in<span style="letter-spacing:0.55pt;"> </span>claims<span style="letter-spacing:0.65pt;"> </span>by<span style="letter-spacing:0.55pt;"> </span>or<span style="letter-spacing:0.55pt;"> </span>against us<span style="letter-spacing:0.05pt;"> </span>related<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>ownership<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>intellectual<span style="letter-spacing:0.2pt;"> </span>property.<span style="letter-spacing:0.1pt;"> </span>In<span style="letter-spacing:0.05pt;"> </span>addition,<span style="letter-spacing:0.1pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>agreements<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>not be self-executing such<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>intellectual<span style="letter-spacing:0.2pt;"> </span>property<span style="letter-spacing:0.1pt;"> </span>subject<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>agreements<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>assigned<span style="letter-spacing:0.05pt;"> </span>to us without<span style="letter-spacing:0.05pt;"> </span>additional assignments<span style="letter-spacing:0.1pt;"> </span>being<span style="letter-spacing:0.05pt;"> </span>executed,<span style="letter-spacing:0.05pt;"> </span>and we may<span style="letter-spacing:0.05pt;"> </span>fail<span style="letter-spacing:0.05pt;"> </span>to obtain<span style="letter-spacing:0.05pt;"> </span>such assignments.<span style="letter-spacing:0.1pt;"> </span>In addition,<span style="letter-spacing:0.05pt;"> </span>such agreements<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be breached.<span style="letter-spacing:0.1pt;"> </span>In<span style="letter-spacing:0.05pt;"> </span>addition,<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>multiple<span style="letter-spacing:0.15pt;"> </span>sponsored<span style="letter-spacing:0.05pt;"> </span>research<span style="letter-spacing:0.1pt;"> </span>agreements<span style="letter-spacing:0.1pt;"> </span>relating<span style="letter-spacing:0.1pt;"> </span>to our lead<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.05pt;"> </span>candidates with<span style="letter-spacing:0.05pt;"> </span>various<span style="letter-spacing:0.1pt;"> </span>academic<span style="letter-spacing:0.15pt;"> </span>institutions.<span style="letter-spacing:0.2pt;"> </span>Some<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>these<span style="letter-spacing:0.05pt;"> </span>academic<span style="letter-spacing:0.1pt;"> </span>institutions<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>not have intellectual<span style="letter-spacing:0.15pt;"> </span>property assignments<span style="letter-spacing:2.15pt;"> </span>or<span style="letter-spacing:2.05pt;"> </span>similar<span style="letter-spacing:2.15pt;"> </span>agreements<span style="letter-spacing:2.1pt;"> </span>with<span style="letter-spacing:2pt;"> </span>their<span style="letter-spacing:2.05pt;"> </span>employees<span style="letter-spacing:2.1pt;"> </span>and<span style="letter-spacing:2pt;"> </span>consultants,<span style="letter-spacing:2.1pt;"> </span>which<span style="letter-spacing:2pt;"> </span>may<span style="letter-spacing:2.05pt;"> </span>result<span style="letter-spacing:2.1pt;"> </span>in<span style="letter-spacing:2pt;"> </span>claims<span style="letter-spacing:2.1pt;"> </span>by<span style="letter-spacing:2pt;"> </span>or against<span style="letter-spacing:1.7pt;"> </span>us<span style="letter-spacing:1.65pt;"> </span>related<span style="letter-spacing:1.75pt;"> </span>to<span style="letter-spacing:1.65pt;"> </span>ownership<span style="letter-spacing:1.7pt;"> </span>of<span style="letter-spacing:1.65pt;"> </span>any<span style="letter-spacing:1.65pt;"> </span>intellectual<span style="letter-spacing:1.8pt;"> </span>property.<span style="letter-spacing:1.7pt;"> </span>Accordingly,<span style="letter-spacing:1.7pt;"> </span>we<span style="letter-spacing:1.65pt;"> </span>may<span style="letter-spacing:1.7pt;"> </span>be<span style="letter-spacing:1.65pt;"> </span>forced<span style="letter-spacing:1.7pt;"> </span>to<span style="letter-spacing:1.65pt;"> </span>bring<span style="letter-spacing:1.7pt;"> </span>claims against<span style="letter-spacing:1.35pt;"> </span>third<span style="letter-spacing:1.35pt;"> </span>parties,<span style="letter-spacing:1.4pt;"> </span>or<span style="letter-spacing:1.3pt;"> </span>defend<span style="letter-spacing:1.35pt;"> </span>claims<span style="letter-spacing:1.4pt;"> </span>that<span style="letter-spacing:1.35pt;"> </span>they<span style="letter-spacing:1.35pt;"> </span>may<span style="letter-spacing:1.35pt;"> </span>bring<span style="letter-spacing:1.35pt;"> </span>against<span style="letter-spacing:1.35pt;"> </span>us<span style="letter-spacing:1.3pt;"> </span>to<span style="letter-spacing:1.3pt;"> </span>determine<span style="letter-spacing:1.4pt;"> </span>the<span style="letter-spacing:1.35pt;"> </span>ownership<span style="letter-spacing:1.35pt;"> </span>of<span style="letter-spacing:1.25pt;"> </span>what<span style="letter-spacing:1.25pt;"> </span>we regard<span style="letter-spacing:0.1pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>intellectual<span style="letter-spacing:0.2pt;"> </span>property.<span style="letter-spacing:0.1pt;"> </span>If<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>fail<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>prosecuting<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>defending<span style="letter-spacing:0.1pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>claims,<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>addition<span style="letter-spacing:0.1pt;"> </span>to paying monetary<span style="letter-spacing:0.15pt;"> </span>damages,<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>lose<span style="letter-spacing:0.1pt;"> </span>valuable<span style="letter-spacing:0.1pt;"> </span>intellectual<span style="letter-spacing:0.2pt;"> </span>property.<span style="letter-spacing:0.1pt;"> </span>Even<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>successful<span style="letter-spacing:0.1pt;"> </span>in prosecuting<span style="letter-spacing:0.1pt;"> </span>or defending<span style="letter-spacing:0.1pt;"> </span>against<span style="letter-spacing:0.1pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>claims,<span style="letter-spacing:0.15pt;"> </span>litigation<span style="letter-spacing:0.2pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>result<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>substantial<span style="letter-spacing:0.15pt;"> </span>costs<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>a distraction<span style="letter-spacing:0.15pt;"> </span>to our senior management<span style="letter-spacing:0.1pt;"> </span>and scientific<span style="letter-spacing:0.15pt;"> </span>personnel,<span style="letter-spacing:0.05pt;"> </span>which would have a material<span style="letter-spacing:0.15pt;"> </span>adverse<span style="letter-spacing:0.05pt;"> </span>effect<span style="letter-spacing:0.1pt;"> </span>on our business, financial condition,<span style="letter-spacing:0.05pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>of operations<span style="letter-spacing:0.1pt;"> </span>and prospects.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Rights to improvements<span style="letter-spacing:0.1pt;"> </span>to our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be held by third<span style="letter-spacing:0.05pt;"> </span>parties.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In<span style="letter-spacing:2.05pt;"> </span>the<span style="letter-spacing:2.1pt;"> </span>course<span style="letter-spacing:2.1pt;"> </span>of<span style="letter-spacing:2.05pt;"> </span>testing<span style="letter-spacing:2.15pt;"> </span>our<span style="letter-spacing:2.05pt;"> </span>product<span style="letter-spacing:2.1pt;"> </span>candidates,<span style="letter-spacing:2.15pt;"> </span>we<span style="letter-spacing:2.05pt;"> </span>have<span style="letter-spacing:2.05pt;"> </span>entered<span style="letter-spacing:2.1pt;"> </span>into<span style="letter-spacing:2.1pt;"> </span>agreements<span style="letter-spacing:2.15pt;"> </span>with<span style="letter-spacing:2.05pt;"> </span>third<span style="letter-spacing:2.1pt;"> </span>parties<span style="letter-spacing:2.15pt;"> </span>to conduct<span style="letter-spacing:0.1pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>testing,<span style="letter-spacing:0.15pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>provide<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>improvements<span style="letter-spacing:0.15pt;"> </span>to our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be owned solely<span style="letter-spacing:0.05pt;"> </span>by a party<span style="letter-spacing:0.1pt;"> </span>or jointly<span style="letter-spacing:0.1pt;"> </span>between<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>parties.<span style="letter-spacing:0.1pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>we determine<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>rights<span style="letter-spacing:0.05pt;"> </span>to such improvements<span style="letter-spacing:0.15pt;"> </span>owned solely<span style="letter-spacing:0.05pt;"> </span>by a third party<span style="letter-spacing:1.5pt;"> </span>are<span style="letter-spacing:1.5pt;"> </span>necessary<span style="letter-spacing:1.55pt;"> </span>to<span style="letter-spacing:1.45pt;"> </span>commercialize<span style="letter-spacing:1.65pt;"> </span>our<span style="letter-spacing:1.45pt;"> </span>product<span style="letter-spacing:1.5pt;"> </span>candidates<span style="letter-spacing:1.5pt;"> </span>or<span style="letter-spacing:1.4pt;"> </span>maintain<span style="letter-spacing:1.5pt;"> </span>our<span style="letter-spacing:1.4pt;"> </span>competitive<span style="letter-spacing:1.55pt;"> </span>advantage,<span style="letter-spacing:1.45pt;"> </span>we<span style="letter-spacing:1.4pt;"> </span>may need<span style="letter-spacing:2.15pt;"> </span>to<span style="letter-spacing:2.15pt;"> </span>obtain<span style="letter-spacing:2.2pt;"> </span>a<span style="letter-spacing:2.15pt;"> </span>license<span style="letter-spacing:2.25pt;"> </span>from<span style="letter-spacing:2.2pt;"> </span>such<span style="letter-spacing:2.15pt;"> </span>third<span style="letter-spacing:2.2pt;"> </span>party<span style="letter-spacing:2.2pt;"> </span>in<span style="letter-spacing:2.15pt;"> </span>order<span style="letter-spacing:2.2pt;"> </span>to<span style="letter-spacing:2.15pt;"> </span>use<span style="letter-spacing:2.15pt;"> </span>the<span style="letter-spacing:2.2pt;"> </span>improvements<span style="letter-spacing:2.25pt;"> </span>and<span style="letter-spacing:2.1pt;"> </span>continue<span style="letter-spacing:2.15pt;"> </span>developing, manufacturing<span style="letter-spacing:0.2pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>marketing<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>candidates.<span style="letter-spacing:0.15pt;"> </span>However,<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>able<span style="letter-spacing:0.05pt;"> </span>to obtain<span style="letter-spacing:0.05pt;"> </span></p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">59</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">any required</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">license on</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">commercially</span><span style="letter-spacing:0.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">reasonable</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">terms</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">at</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">all.</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Even</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">if</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">were</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">able</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">obtain</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">such</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">a</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">license,</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">it</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">be granted</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">on non-exclusive</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">terms,</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">thereby</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">giving</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our competitors</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and other</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">third</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">parties</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">access</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to the</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">same</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">technologies licensed</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">us.</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Failure</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">obtain</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">a</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">license</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">on</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">commercially</span><span style="letter-spacing:0.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">reasonable</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">terms</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">at</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">all,</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or to obtain</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">an exclusive license,</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">prevent</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">us</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">from</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">commercializing</span><span style="letter-spacing:0.25pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">product</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">candidates</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or force</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">us to cease</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">some</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of our business operations,</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">which</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">materially</span><span style="letter-spacing:0.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">harm</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">business.</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">determine</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">that</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">rights</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to improvements</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">jointly</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">owned between</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">us</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">a</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">third</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">party</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">are</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">necessary</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">commercialize</span><span style="letter-spacing:0.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our product</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">candidates</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or maintain</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our competitive advantage,</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">may</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">need</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">obtain</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">an</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">exclusive</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">license</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">from</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">such</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">third</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">party.</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we are</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">unable</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to obtain</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">an exclusive</span><span style="letter-spacing:0.45pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">license</span><span style="letter-spacing:0.45pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:0.35pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">any</span><span style="letter-spacing:0.35pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">such</span><span style="letter-spacing:0.35pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">third-party</span><span style="letter-spacing:0.5pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">co-owners&#8217;</span><span style="letter-spacing:0.4pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">interest</span><span style="letter-spacing:0.45pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in</span><span style="letter-spacing:0.35pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">such</span><span style="letter-spacing:0.35pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">improvements,</span><span style="letter-spacing:0.5pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">such</span><span style="letter-spacing:0.35pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">co-owners</span><span style="letter-spacing:0.4pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">may</span><span style="letter-spacing:0.4pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">be</span><span style="letter-spacing:0.35pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">able to</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">license</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">their</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">rights</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">other</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">third</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">parties,</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">including</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our competitors,</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and our competitors</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">market competing</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">products</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">technology.</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">addition,</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">may</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">need</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">cooperation</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of any such co-owners</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of our intellectual</span><span style="letter-spacing:0.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">property</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in order</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to enforce</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">such intellectual</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">property</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">against</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">third</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">parties,</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and such cooperation</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">may not</span><span style="letter-spacing:1.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">be</span><span style="letter-spacing:1.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">provided</span><span style="letter-spacing:1.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:1.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">us.</span><span style="letter-spacing:1.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Any</span><span style="letter-spacing:1.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="letter-spacing:1.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="letter-spacing:1.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">foregoing</span><span style="letter-spacing:1.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</span><span style="letter-spacing:1.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">have</span><span style="letter-spacing:1.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">a</span><span style="letter-spacing:1.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">material</span><span style="letter-spacing:1.25pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">adverse</span><span style="letter-spacing:1.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">effect</span><span style="letter-spacing:1.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">on</span><span style="letter-spacing:1.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our</span><span style="letter-spacing:1.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">competitive</span><span style="letter-spacing:1.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">position, business,</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">financial</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">conditions,</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">results</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of operations,</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and prospects.</span></p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">The term<span style="letter-spacing:0.05pt;"> </span>of our patents<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be inadequate<span style="letter-spacing:0.05pt;"> </span>to protect<span style="letter-spacing:0.05pt;"> </span>our competitive<span style="letter-spacing:0.15pt;"> </span>position<span style="letter-spacing:0.05pt;"> </span>on our products.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Given<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>amount<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>time<span style="letter-spacing:0.05pt;"> </span>required<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>development,<span style="letter-spacing:0.1pt;"> </span>testing<span style="letter-spacing:0.1pt;"> </span>and regulatory<span style="letter-spacing:0.1pt;"> </span>review<span style="letter-spacing:0.05pt;"> </span>of new product candidates,<span style="letter-spacing:0.1pt;"> </span>patents<span style="letter-spacing:0.05pt;"> </span>protecting<span style="letter-spacing:0.1pt;"> </span>such candidates<span style="letter-spacing:0.1pt;"> </span>might<span style="letter-spacing:0.05pt;"> </span>expire<span style="letter-spacing:0.05pt;"> </span>before<span style="letter-spacing:0.05pt;"> </span>or shortly<span style="letter-spacing:0.05pt;"> </span>after<span style="letter-spacing:0.1pt;"> </span>such candidates<span style="letter-spacing:0.1pt;"> </span>are commercialized.<span style="letter-spacing:0.3pt;"> </span>Depending<span style="letter-spacing:0.1pt;"> </span>upon<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>timing,<span style="letter-spacing:0.2pt;"> </span>duration<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.1pt;"> </span>other<span style="letter-spacing:0.15pt;"> </span>factors<span style="letter-spacing:0.15pt;"> </span>relating<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>FDA marketing<span style="letter-spacing:0.15pt;"> </span>approval we<span style="letter-spacing:0.1pt;"> </span>receive<span style="letter-spacing:0.2pt;"> </span>for<span style="letter-spacing:0.15pt;"> </span>any<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.15pt;"> </span>candidates,<span style="letter-spacing:0.2pt;"> </span>one<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>more<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>U.S. patents<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>eligible<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>limited<span style="letter-spacing:0.15pt;"> </span>patent term<span style="letter-spacing:1.3pt;"> </span>extension<span style="letter-spacing:1.3pt;"> </span>under<span style="letter-spacing:1.3pt;"> </span>the<span style="letter-spacing:1.3pt;"> </span>Drug<span style="letter-spacing:1.25pt;"> </span>Price<span style="letter-spacing:1.3pt;"> </span>Competition<span style="letter-spacing:1.35pt;"> </span>and<span style="letter-spacing:1.2pt;"> </span>Patent<span style="letter-spacing:1.25pt;"> </span>Term<span style="letter-spacing:1.25pt;"> </span>Restoration<span style="letter-spacing:1.3pt;"> </span>Action<span style="letter-spacing:1.25pt;"> </span>of<span style="letter-spacing:1.2pt;"> </span>1984,<span style="letter-spacing:1.2pt;"> </span>or<span style="letter-spacing:1.2pt;"> </span>the<span style="letter-spacing:1.25pt;"> </span>Hatch- Waxman<span style="letter-spacing:0.1pt;"> </span>Amendments.<span style="letter-spacing:0.1pt;"> </span>We<span style="letter-spacing:0.05pt;"> </span>expect<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>seek<span style="letter-spacing:0.1pt;"> </span>extensions<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>terms<span style="letter-spacing:0.15pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>States<span style="letter-spacing:0.05pt;"> </span>and, if<span style="letter-spacing:0.05pt;"> </span>available,<span style="letter-spacing:0.1pt;"> </span>in other<span style="letter-spacing:0.05pt;"> </span>countries<span style="letter-spacing:0.1pt;"> </span>where we are<span style="letter-spacing:0.05pt;"> </span>prosecuting<span style="letter-spacing:0.1pt;"> </span>patents.<span style="letter-spacing:0.05pt;"> </span>In the United States, the Hatch-Waxman<span style="letter-spacing:0.05pt;"> </span>Amendments permit<span style="letter-spacing:0.05pt;"> </span>a patent<span style="letter-spacing:0.1pt;"> </span>term<span style="letter-spacing:0.1pt;"> </span>extension<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>up to five<span style="letter-spacing:0.05pt;"> </span>years<span style="letter-spacing:0.05pt;"> </span>beyond the<span style="letter-spacing:0.05pt;"> </span>normal<span style="letter-spacing:0.05pt;"> </span>expiration<span style="letter-spacing:0.1pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>patent,<span style="letter-spacing:0.05pt;"> </span>limited<span style="letter-spacing:0.1pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>approved indication<span style="letter-spacing:1.3pt;"> </span>(or<span style="letter-spacing:1.25pt;"> </span>any<span style="letter-spacing:1.2pt;"> </span>additional<span style="letter-spacing:1.3pt;"> </span>indications<span style="letter-spacing:1.3pt;"> </span>approved<span style="letter-spacing:1.25pt;"> </span>during<span style="letter-spacing:1.25pt;"> </span>the<span style="letter-spacing:1.25pt;"> </span>period<span style="letter-spacing:1.25pt;"> </span>of<span style="letter-spacing:1.2pt;"> </span>extension),<span style="letter-spacing:1.25pt;"> </span>as<span style="letter-spacing:1.15pt;"> </span>compensation<span style="letter-spacing:1.25pt;"> </span>for<span style="letter-spacing:1.2pt;"> </span>patent term<span style="letter-spacing:0.1pt;"> </span>lost<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>regulatory<span style="letter-spacing:0.15pt;"> </span>review<span style="letter-spacing:0.1pt;"> </span>process<span style="letter-spacing:0.1pt;"> </span>during<span style="letter-spacing:0.05pt;"> </span>which the<span style="letter-spacing:0.05pt;"> </span>sponsor<span style="letter-spacing:0.05pt;"> </span>was unable<span style="letter-spacing:0.05pt;"> </span>to commercially<span style="letter-spacing:0.15pt;"> </span>market<span style="letter-spacing:0.1pt;"> </span>its<span style="letter-spacing:0.05pt;"> </span>new product.<span style="letter-spacing:0.8pt;"> </span>A<span style="letter-spacing:0.75pt;"> </span>patent<span style="letter-spacing:0.8pt;"> </span>term<span style="letter-spacing:0.8pt;"> </span>extension<span style="letter-spacing:0.8pt;"> </span>cannot<span style="letter-spacing:0.8pt;"> </span>extend<span style="letter-spacing:0.8pt;"> </span>the<span style="letter-spacing:0.8pt;"> </span>remaining<span style="letter-spacing:0.85pt;"> </span>term<span style="letter-spacing:0.8pt;"> </span>of<span style="letter-spacing:0.75pt;"> </span>a<span style="letter-spacing:0.75pt;"> </span>patent<span style="letter-spacing:0.8pt;"> </span>beyond<span style="letter-spacing:0.75pt;"> </span>a<span style="letter-spacing:0.75pt;"> </span>total<span style="letter-spacing:0.8pt;"> </span>of<span style="letter-spacing:0.75pt;"> </span>14<span style="letter-spacing:0.7pt;"> </span>years<span style="letter-spacing:0.75pt;"> </span>from the<span style="letter-spacing:0.1pt;"> </span>date<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>approval,<span style="letter-spacing:0.1pt;"> </span>only<span style="letter-spacing:0.05pt;"> </span>one<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>applicable<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>an<span style="letter-spacing:0.05pt;"> </span>approved<span style="letter-spacing:0.1pt;"> </span>drug<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>eligible<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>extension<span style="letter-spacing:0.05pt;"> </span>and only those<span style="letter-spacing:2.15pt;"> </span>claims<span style="letter-spacing:2.15pt;"> </span>covering<span style="letter-spacing:2.1pt;"> </span>the<span style="letter-spacing:2.1pt;"> </span>approved<span style="letter-spacing:2.1pt;"> </span>drug,<span style="letter-spacing:2.05pt;"> </span>a<span style="letter-spacing:2.05pt;"> </span>method<span style="letter-spacing:2.1pt;"> </span>for<span style="letter-spacing:2.1pt;"> </span>using<span style="letter-spacing:2.1pt;"> </span>it,<span style="letter-spacing:2.1pt;"> </span>or<span style="letter-spacing:2.05pt;"> </span>a<span style="letter-spacing:2.05pt;"> </span>method<span style="letter-spacing:2.1pt;"> </span>for<span style="letter-spacing:2.1pt;"> </span>manufacturing<span style="letter-spacing:2.2pt;"> </span>it<span style="letter-spacing:2.1pt;"> </span>may<span style="letter-spacing:2.1pt;"> </span>be extended,<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>application<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>extension<span style="letter-spacing:0.1pt;"> </span>must<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>submitted<span style="letter-spacing:0.15pt;"> </span>prior<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>expiration<span style="letter-spacing:0.15pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>patent.<span style="letter-spacing:0.05pt;"> </span>However, the<span style="letter-spacing:0.1pt;"> </span>applicable<span style="letter-spacing:0.15pt;"> </span>authorities,<span style="letter-spacing:0.2pt;"> </span>including<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>FDA and<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>USPTO in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>States,<span style="letter-spacing:0.05pt;"> </span>and any equivalent<span style="letter-spacing:0.1pt;"> </span>regulatory authority<span style="letter-spacing:0.1pt;"> </span>in other<span style="letter-spacing:0.05pt;"> </span>countries,<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>not agree<span style="letter-spacing:0.05pt;"> </span>with our assessment<span style="letter-spacing:0.1pt;"> </span>of whether<span style="letter-spacing:0.05pt;"> </span>such extensions<span style="letter-spacing:0.05pt;"> </span>are available<span style="letter-spacing:0.05pt;"> </span>for our patents,<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>refuse<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>grant<span style="letter-spacing:0.05pt;"> </span>extensions<span style="letter-spacing:0.1pt;"> </span>to our patents,<span style="letter-spacing:0.05pt;"> </span>or may<span style="letter-spacing:0.05pt;"> </span>grant<span style="letter-spacing:0.05pt;"> </span>more<span style="letter-spacing:0.05pt;"> </span>limited<span style="letter-spacing:0.1pt;"> </span>extensions<span style="letter-spacing:0.1pt;"> </span>than<span style="letter-spacing:0.05pt;"> </span>we request.<span style="letter-spacing:0.05pt;"> </span>We may<span style="letter-spacing:1.4pt;"> </span>not<span style="letter-spacing:1.35pt;"> </span>be<span style="letter-spacing:1.3pt;"> </span>granted<span style="letter-spacing:1.35pt;"> </span>an<span style="letter-spacing:1.3pt;"> </span>extension<span style="letter-spacing:1.35pt;"> </span>because<span style="letter-spacing:1.35pt;"> </span>of,<span style="letter-spacing:1.3pt;"> </span>for<span style="letter-spacing:1.35pt;"> </span>example,<span style="letter-spacing:1.35pt;"> </span>failing<span style="letter-spacing:1.4pt;"> </span>to<span style="letter-spacing:1.3pt;"> </span>exercise<span style="letter-spacing:1.4pt;"> </span>due<span style="letter-spacing:1.3pt;"> </span>diligence<span style="letter-spacing:1.4pt;"> </span>during<span style="letter-spacing:1.35pt;"> </span>the<span style="letter-spacing:1.35pt;"> </span>testing phase or regulatory review process, failing to apply within applicable deadlines, failing to apply prior to expiration<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>relevant<span style="letter-spacing:0.15pt;"> </span>patents,<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>otherwise<span style="letter-spacing:0.1pt;"> </span>failing<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>satisfy<span style="letter-spacing:0.15pt;"> </span>applicable<span style="letter-spacing:0.15pt;"> </span>requirements.<span style="letter-spacing:0.15pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>we are<span style="letter-spacing:0.05pt;"> </span>unable<span style="letter-spacing:0.05pt;"> </span>to obtain patent<span style="letter-spacing:0.1pt;"> </span>term<span style="letter-spacing:0.1pt;"> </span>extension<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>term<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>extension<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>less<span style="letter-spacing:0.05pt;"> </span>than<span style="letter-spacing:0.05pt;"> </span>we request,<span style="letter-spacing:0.05pt;"> </span>our competitors<span style="letter-spacing:0.15pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>third parties<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>able<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>obtain<span style="letter-spacing:0.1pt;"> </span>approval<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>competing<span style="letter-spacing:0.1pt;"> </span>products<span style="letter-spacing:0.05pt;"> </span>following<span style="letter-spacing:0.05pt;"> </span>our patent<span style="letter-spacing:0.05pt;"> </span>expiration<span style="letter-spacing:0.1pt;"> </span>and take<span style="letter-spacing:0.05pt;"> </span>advantage of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>investment<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trials<span style="letter-spacing:0.15pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>referencing<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>preclinical<span style="letter-spacing:0.15pt;"> </span>data<span style="letter-spacing:0.05pt;"> </span>and launch their<span style="letter-spacing:0.1pt;"> </span>product<span style="letter-spacing:0.1pt;"> </span>earlier<span style="letter-spacing:0.15pt;"> </span>than<span style="letter-spacing:0.1pt;"> </span>might<span style="letter-spacing:0.1pt;"> </span>otherwise<span style="letter-spacing:0.05pt;"> </span>be the<span style="letter-spacing:0.05pt;"> </span>case.<span style="letter-spacing:0.05pt;"> </span>Any of the<span style="letter-spacing:0.05pt;"> </span>foregoing<span style="letter-spacing:0.05pt;"> </span>would have a material<span style="letter-spacing:0.15pt;"> </span>adverse<span style="letter-spacing:0.05pt;"> </span>effect on our business,<span style="letter-spacing:0.05pt;"> </span>financial<span style="letter-spacing:0.1pt;"> </span>condition,<span style="letter-spacing:0.05pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>of operations<span style="letter-spacing:0.1pt;"> </span>and prospects.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Obtaining and maintaining<span style="letter-spacing:0.05pt;"> </span>our patent<span style="letter-spacing:0.05pt;"> </span>protection<span style="letter-spacing:0.1pt;"> </span>depends on compliance<span style="letter-spacing:0.1pt;"> </span>with various<span style="letter-spacing:0.05pt;"> </span>procedural, documentary,<span style="letter-spacing:0.05pt;"> </span>fee<span style="letter-spacing:0.05pt;"> </span>payment<span style="letter-spacing:0.05pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>requirements<span style="letter-spacing:0.1pt;"> </span>imposed<span style="letter-spacing:0.05pt;"> </span>by governmental<span style="letter-spacing:0.1pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>offices,<span style="letter-spacing:0.1pt;"> </span>and our patent<span style="letter-spacing:0.05pt;"> </span>protection<span style="letter-spacing:0.1pt;"> </span>could be reduced<span style="letter-spacing:0.05pt;"> </span>or eliminated<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>noncompliance<span style="letter-spacing:0.05pt;"> </span>with these<span style="letter-spacing:0.05pt;"> </span>requirements.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Periodic<span style="letter-spacing:1.75pt;"> </span>maintenance<span style="letter-spacing:1.8pt;"> </span>fees,<span style="letter-spacing:1.75pt;"> </span>renewal<span style="letter-spacing:1.75pt;"> </span>fees,<span style="letter-spacing:1.75pt;"> </span>annuity<span style="letter-spacing:1.75pt;"> </span>fees<span style="letter-spacing:1.75pt;"> </span>and<span style="letter-spacing:1.7pt;"> </span>various<span style="letter-spacing:1.75pt;"> </span>other<span style="letter-spacing:1.75pt;"> </span>government<span style="letter-spacing:1.8pt;"> </span>fees<span style="letter-spacing:1.75pt;"> </span>on<span style="letter-spacing:1.65pt;"> </span>any<span style="letter-spacing:1.65pt;"> </span>issued patent<span style="letter-spacing:0.4pt;"> </span>are<span style="letter-spacing:0.4pt;"> </span>due<span style="letter-spacing:0.35pt;"> </span>to<span style="letter-spacing:0.35pt;"> </span>be<span style="letter-spacing:0.35pt;"> </span>paid<span style="letter-spacing:0.4pt;"> </span>to<span style="letter-spacing:0.35pt;"> </span>the<span style="letter-spacing:0.4pt;"> </span>USPTO<span style="letter-spacing:0.3pt;"> </span>and<span style="letter-spacing:0.35pt;"> </span>patent<span style="letter-spacing:0.4pt;"> </span>offices<span style="letter-spacing:0.45pt;"> </span>in<span style="letter-spacing:0.35pt;"> </span>foreign<span style="letter-spacing:0.4pt;"> </span>countries<span style="letter-spacing:0.45pt;"> </span>in<span style="letter-spacing:0.35pt;"> </span>several<span style="letter-spacing:0.45pt;"> </span>stages<span style="letter-spacing:0.4pt;"> </span>over<span style="letter-spacing:0.35pt;"> </span>the<span style="letter-spacing:0.35pt;"> </span>lifetime of the patent. The USPTO and patent offices in foreign countries require compliance with a number of procedural,<span style="letter-spacing:2.3pt;"> </span>documentary,<span style="letter-spacing:2.3pt;"> </span>fee<span style="letter-spacing:2.25pt;"> </span>payment<span style="letter-spacing:2.25pt;"> </span>and<span style="letter-spacing:2.2pt;"> </span>other<span style="letter-spacing:2.25pt;"> </span>requirements<span style="letter-spacing:2.35pt;"> </span>during<span style="letter-spacing:2.25pt;"> </span>the<span style="letter-spacing:2.25pt;"> </span>patent<span style="letter-spacing:2.25pt;"> </span>application<span style="letter-spacing:2.3pt;"> </span>process.<span style="letter-spacing:2.25pt;"> </span>In<span style="letter-spacing:2.2pt;"> </span>the future,<span style="letter-spacing:1.55pt;"> </span>we<span style="letter-spacing:1.5pt;"> </span>may<span style="letter-spacing:1.55pt;"> </span>rely<span style="letter-spacing:1.55pt;"> </span>on<span style="letter-spacing:1.5pt;"> </span>licensing<span style="letter-spacing:1.6pt;"> </span>partners<span style="letter-spacing:1.6pt;"> </span>to<span style="letter-spacing:1.5pt;"> </span>pay<span style="letter-spacing:1.5pt;"> </span>these<span style="letter-spacing:1.55pt;"> </span>fees<span style="letter-spacing:1.55pt;"> </span>due<span style="letter-spacing:1.5pt;"> </span>to<span style="letter-spacing:1.5pt;"> </span>U.S.<span style="letter-spacing:1.45pt;"> </span>and<span style="letter-spacing:1.45pt;"> </span>non-U.S.<span style="letter-spacing:1.45pt;"> </span>patent<span style="letter-spacing:1.5pt;"> </span>agencies<span style="letter-spacing:1.5pt;"> </span>and<span style="letter-spacing:1.45pt;"> </span>to comply<span style="letter-spacing:0.7pt;"> </span>with<span style="letter-spacing:0.6pt;"> </span>these<span style="letter-spacing:0.65pt;"> </span>other<span style="letter-spacing:0.65pt;"> </span>requirements<span style="letter-spacing:0.75pt;"> </span>with<span style="letter-spacing:0.6pt;"> </span>respect<span style="letter-spacing:0.7pt;"> </span>to<span style="letter-spacing:0.6pt;"> </span>any<span style="letter-spacing:0.6pt;"> </span>future<span style="letter-spacing:0.65pt;"> </span>licensed<span style="letter-spacing:0.7pt;"> </span>patents<span style="letter-spacing:0.65pt;"> </span>and<span style="letter-spacing:0.6pt;"> </span>patent<span style="letter-spacing:0.65pt;"> </span>applications.<span style="letter-spacing:0.7pt;"> </span>While an<span style="letter-spacing:0.05pt;"> </span>inadvertent<span style="letter-spacing:0.15pt;"> </span>lapse<span style="letter-spacing:0.1pt;"> </span>can<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>cured<span style="letter-spacing:0.1pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>payment<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>late<span style="letter-spacing:0.1pt;"> </span>fee<span style="letter-spacing:0.05pt;"> </span>or by other<span style="letter-spacing:0.05pt;"> </span>means<span style="letter-spacing:0.05pt;"> </span>in accordance<span style="letter-spacing:0.1pt;"> </span>with the<span style="letter-spacing:0.05pt;"> </span>applicable rules,<span style="letter-spacing:0.1pt;"> </span>there<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>situations<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>noncompliance<span style="letter-spacing:0.15pt;"> </span>can result<span style="letter-spacing:0.1pt;"> </span>in abandonment<span style="letter-spacing:0.05pt;"> </span>or lapse<span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>or patent application, resulting in partial or complete loss of a patent or patent rights in the relevant jurisdiction. Non-compliance<span style="letter-spacing:1pt;"> </span>events<span style="letter-spacing:0.95pt;"> </span>that<span style="letter-spacing:0.95pt;"> </span>could<span style="letter-spacing:0.95pt;"> </span>result<span style="letter-spacing:1pt;"> </span>in<span style="letter-spacing:0.85pt;"> </span>abandonment<span style="letter-spacing:0.9pt;"> </span>or<span style="letter-spacing:0.85pt;"> </span>lapse<span style="letter-spacing:0.9pt;"> </span>of<span style="letter-spacing:0.85pt;"> </span>a<span style="letter-spacing:0.85pt;"> </span>patent<span style="letter-spacing:0.9pt;"> </span>or<span style="letter-spacing:0.85pt;"> </span>patent<span style="letter-spacing:0.9pt;"> </span>application<span style="letter-spacing:0.95pt;"> </span>include,<span style="letter-spacing:0.9pt;"> </span>but are<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>limited<span style="letter-spacing:0.15pt;"> </span>to,<span style="letter-spacing:0.05pt;"> </span>failure<span style="letter-spacing:0.15pt;"> </span>to respond<span style="letter-spacing:0.05pt;"> </span>to official<span style="letter-spacing:0.1pt;"> </span>actions<span style="letter-spacing:0.05pt;"> </span>within<span style="letter-spacing:0.05pt;"> </span>prescribed<span style="letter-spacing:0.1pt;"> </span>time<span style="letter-spacing:0.05pt;"> </span>limits,<span style="letter-spacing:0.1pt;"> </span>non-payment<span style="letter-spacing:0.1pt;"> </span>of fees<span style="letter-spacing:0.05pt;"> </span>and failure<span style="letter-spacing:1.85pt;"> </span>to<span style="letter-spacing:1.75pt;"> </span>properly<span style="letter-spacing:1.8pt;"> </span>legalize<span style="letter-spacing:1.85pt;"> </span>and<span style="letter-spacing:1.7pt;"> </span>submit<span style="letter-spacing:1.75pt;"> </span>formal<span style="letter-spacing:1.8pt;"> </span>documents.<span style="letter-spacing:1.75pt;"> </span>In<span style="letter-spacing:1.7pt;"> </span>such<span style="letter-spacing:1.7pt;"> </span>an<span style="letter-spacing:1.7pt;"> </span>event,<span style="letter-spacing:1.75pt;"> </span>our<span style="letter-spacing:1.7pt;"> </span>competitors<span style="letter-spacing:1.85pt;"> </span>and<span style="letter-spacing:1.7pt;"> </span>other<span style="letter-spacing:1.75pt;"> </span>third parties<span style="letter-spacing:0.15pt;"> </span>might<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>able<span style="letter-spacing:0.1pt;"> </span>to enter<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>market<span style="letter-spacing:0.1pt;"> </span>with similar<span style="letter-spacing:0.1pt;"> </span>or identical<span style="letter-spacing:0.1pt;"> </span>products<span style="letter-spacing:0.05pt;"> </span>of technology,<span style="letter-spacing:0.05pt;"> </span>which would have a material<span style="letter-spacing:0.15pt;"> </span>adverse<span style="letter-spacing:0.05pt;"> </span>effect<span style="letter-spacing:0.1pt;"> </span>on our business,<span style="letter-spacing:0.05pt;"> </span>financial<span style="letter-spacing:0.1pt;"> </span>condition,<span style="letter-spacing:0.05pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>of operations<span style="letter-spacing:0.1pt;"> </span>and prospects.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">60</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">If<span style="letter-spacing:0.05pt;"> </span>we are unable to protect<span style="letter-spacing:0.05pt;"> </span>the confidentiality<span style="letter-spacing:0.15pt;"> </span>of our trade<span style="letter-spacing:0.05pt;"> </span>secrets,<span style="letter-spacing:0.1pt;"> </span>the value<span style="letter-spacing:0.05pt;"> </span>of our technology<span style="letter-spacing:0.05pt;"> </span>could be materially<span style="letter-spacing:0.15pt;"> </span>adversely<span style="letter-spacing:0.1pt;"> </span>affected<span style="letter-spacing:0.1pt;"> </span>and our business<span style="letter-spacing:0.05pt;"> </span>would be harmed.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.05pt;"> </span>rely<span style="letter-spacing:0.1pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>proprietary<span style="letter-spacing:0.15pt;"> </span>know-how<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>trade<span style="letter-spacing:0.1pt;"> </span>secret<span style="letter-spacing:0.15pt;"> </span>protection<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>confidentiality<span style="letter-spacing:0.15pt;"> </span>agreements<span style="letter-spacing:0.1pt;"> </span>to protect proprietary<span style="letter-spacing:0.95pt;"> </span>know-how<span style="letter-spacing:0.8pt;"> </span>or<span style="letter-spacing:0.8pt;"> </span>trade<span style="letter-spacing:0.85pt;"> </span>secrets<span style="letter-spacing:0.9pt;"> </span>that<span style="letter-spacing:0.85pt;"> </span>are<span style="letter-spacing:0.85pt;"> </span>not<span style="letter-spacing:0.8pt;"> </span>patentable<span style="letter-spacing:0.9pt;"> </span>or<span style="letter-spacing:0.8pt;"> </span>that<span style="letter-spacing:0.85pt;"> </span>we<span style="letter-spacing:0.8pt;"> </span>elect<span style="letter-spacing:0.85pt;"> </span>not<span style="letter-spacing:0.8pt;"> </span>to<span style="letter-spacing:0.8pt;"> </span>patent.<span style="letter-spacing:0.85pt;"> </span>We<span style="letter-spacing:0.8pt;"> </span>seek<span style="letter-spacing:0.85pt;"> </span>to<span style="letter-spacing:0.8pt;"> </span>protect our trade secrets and proprietary know-how in part by entering into non-disclosure and confidentiality agreements<span style="letter-spacing:0.1pt;"> </span>with parties<span style="letter-spacing:0.1pt;"> </span>who have access<span style="letter-spacing:0.05pt;"> </span>to such knowledge, such as our employees,<span style="letter-spacing:0.05pt;"> </span>consultants,<span style="letter-spacing:0.05pt;"> </span>independent contractors,<span style="letter-spacing:0.15pt;"> </span>advisors,<span style="letter-spacing:0.1pt;"> </span>CMOs,<span style="letter-spacing:0.05pt;"> </span>CROs, hospitals,<span style="letter-spacing:0.15pt;"> </span>independent<span style="letter-spacing:0.1pt;"> </span>treatment<span style="letter-spacing:0.2pt;"> </span>centers,<span style="letter-spacing:0.1pt;"> </span>suppliers,<span style="letter-spacing:0.1pt;"> </span>collaborators<span style="letter-spacing:0.15pt;"> </span>and other third<span style="letter-spacing:0.95pt;"> </span>parties.<span style="letter-spacing:1pt;"> </span>We<span style="letter-spacing:0.9pt;"> </span>also<span style="letter-spacing:0.9pt;"> </span>enter<span style="letter-spacing:0.9pt;"> </span>into<span style="letter-spacing:0.9pt;"> </span>confidentiality<span style="letter-spacing:1pt;"> </span>and<span style="letter-spacing:0.85pt;"> </span>invention<span style="letter-spacing:0.9pt;"> </span>or<span style="letter-spacing:0.85pt;"> </span>patent<span style="letter-spacing:0.9pt;"> </span>assignment<span style="letter-spacing:0.95pt;"> </span>agreements<span style="letter-spacing:0.95pt;"> </span>with<span style="letter-spacing:0.85pt;"> </span>employees and<span style="letter-spacing:1.5pt;"> </span>certain<span style="letter-spacing:1.6pt;"> </span>consultants.<span style="letter-spacing:1.55pt;"> </span>However,<span style="letter-spacing:1.45pt;"> </span>we<span style="letter-spacing:1.45pt;"> </span>cannot<span style="letter-spacing:1.5pt;"> </span>guarantee<span style="letter-spacing:1.55pt;"> </span>that<span style="letter-spacing:1.5pt;"> </span>we<span style="letter-spacing:1.45pt;"> </span>have<span style="letter-spacing:1.45pt;"> </span>entered<span style="letter-spacing:1.5pt;"> </span>into<span style="letter-spacing:1.5pt;"> </span>such<span style="letter-spacing:1.45pt;"> </span>agreements<span style="letter-spacing:1.55pt;"> </span>with<span style="letter-spacing:1.45pt;"> </span>each party<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>had<span style="letter-spacing:0.05pt;"> </span>access<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>trade<span style="letter-spacing:0.1pt;"> </span>secrets<span style="letter-spacing:0.1pt;"> </span>or proprietary<span style="letter-spacing:0.1pt;"> </span>know-how. Additionally,<span style="letter-spacing:0.1pt;"> </span>our confidentiality<span style="letter-spacing:0.2pt;"> </span>agreements<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>contractual<span style="letter-spacing:0.15pt;"> </span>protections<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>adequate<span style="letter-spacing:0.1pt;"> </span>to protect<span style="letter-spacing:0.1pt;"> </span>our intellectual property<span style="letter-spacing:0.05pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>unauthorized<span style="letter-spacing:0.1pt;"> </span>disclosure,<span style="letter-spacing:0.1pt;"> </span>third-party<span style="letter-spacing:0.15pt;"> </span>infringement<span style="letter-spacing:0.15pt;"> </span>or misappropriation.<span style="letter-spacing:0.15pt;"> </span>Any party<span style="letter-spacing:0.05pt;"> </span>with whom we have<span style="letter-spacing:0.05pt;"> </span>executed<span style="letter-spacing:0.1pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>an<span style="letter-spacing:0.05pt;"> </span>agreement<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>breach<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>agreement<span style="letter-spacing:0.1pt;"> </span>and disclose<span style="letter-spacing:0.1pt;"> </span>our proprietary<span style="letter-spacing:0.1pt;"> </span>information,<span style="letter-spacing:0.15pt;"> </span>including our trade<span style="letter-spacing:0.05pt;"> </span>secrets,<span style="letter-spacing:0.1pt;"> </span>and we may<span style="letter-spacing:0.05pt;"> </span>not be able<span style="letter-spacing:0.05pt;"> </span>to obtain<span style="letter-spacing:0.05pt;"> </span>adequate<span style="letter-spacing:0.05pt;"> </span>remedies<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>such breaches.<span style="letter-spacing:0.05pt;"> </span>Enforcing<span style="letter-spacing:0.05pt;"> </span>a claim<span style="letter-spacing:0.1pt;"> </span>that a party<span style="letter-spacing:0.1pt;"> </span>illegally<span style="letter-spacing:0.15pt;"> </span>disclosed<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>misappropriated<span style="letter-spacing:0.15pt;"> </span>a trade<span style="letter-spacing:0.05pt;"> </span>secret<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>difficult,<span style="letter-spacing:0.15pt;"> </span>expensive<span style="letter-spacing:0.05pt;"> </span>and time-consuming,<span style="letter-spacing:0.15pt;"> </span>and the outcome<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>unpredictable.<span style="letter-spacing:0.1pt;"> </span>In addition,<span style="letter-spacing:0.05pt;"> </span>some<span style="letter-spacing:0.05pt;"> </span>courts<span style="letter-spacing:0.05pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>States<span style="letter-spacing:0.05pt;"> </span>and certain<span style="letter-spacing:0.1pt;"> </span>foreign<span style="letter-spacing:0.05pt;"> </span>jurisdictions<span style="letter-spacing:0.15pt;"> </span>are less willing<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>unwilling<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>protect<span style="letter-spacing:0.15pt;"> </span>trade<span style="letter-spacing:0.1pt;"> </span>secrets.<span style="letter-spacing:0.15pt;"> </span>If<span style="letter-spacing:0.1pt;"> </span>any of our trade<span style="letter-spacing:0.05pt;"> </span>secrets<span style="letter-spacing:0.1pt;"> </span>were to be lawfully<span style="letter-spacing:0.05pt;"> </span>obtained<span style="letter-spacing:0.05pt;"> </span>or independently<span style="letter-spacing:0.15pt;"> </span>developed<span style="letter-spacing:0.1pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>competitor<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>third<span style="letter-spacing:0.1pt;"> </span>party,<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>would<span style="letter-spacing:0.05pt;"> </span>have no right<span style="letter-spacing:0.05pt;"> </span>to prevent<span style="letter-spacing:0.05pt;"> </span>such third<span style="letter-spacing:0.05pt;"> </span>party, or<span style="letter-spacing:0.5pt;"> </span>those<span style="letter-spacing:0.55pt;"> </span>to<span style="letter-spacing:0.5pt;"> </span>whom<span style="letter-spacing:0.5pt;"> </span>they<span style="letter-spacing:0.55pt;"> </span>communicate<span style="letter-spacing:0.6pt;"> </span>such<span style="letter-spacing:0.5pt;"> </span>technology<span style="letter-spacing:0.55pt;"> </span>or<span style="letter-spacing:0.5pt;"> </span>information,<span style="letter-spacing:0.65pt;"> </span>from<span style="letter-spacing:0.55pt;"> </span>using<span style="letter-spacing:0.55pt;"> </span>that<span style="letter-spacing:0.55pt;"> </span>technology<span style="letter-spacing:0.55pt;"> </span>or<span style="letter-spacing:0.45pt;"> </span>information to<span style="letter-spacing:2.4pt;"> </span>compete<span style="letter-spacing:2.45pt;"> </span>with<span style="letter-spacing:2.4pt;"> </span>us.<span style="letter-spacing:2.4pt;"> </span>If<span style="letter-spacing:2.4pt;"> </span>any<span style="letter-spacing:2.35pt;"> </span>of<span style="letter-spacing:2.35pt;"> </span>our<span style="letter-spacing:2.35pt;"> </span>trade<span style="letter-spacing:2.4pt;"> </span>secrets<span style="letter-spacing:2.45pt;"> </span>were<span style="letter-spacing:2.35pt;"> </span>to<span style="letter-spacing:2.35pt;"> </span>be<span style="letter-spacing:2.35pt;"> </span>disclosed<span style="letter-spacing:2.45pt;"> </span>to<span style="letter-spacing:2.35pt;"> </span>or<span style="letter-spacing:2.35pt;"> </span>independently<span style="letter-spacing:2.45pt;"> </span>developed<span style="letter-spacing:2.4pt;"> </span>by<span style="letter-spacing:2.35pt;"> </span>a competitor<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.1pt;"> </span>third<span style="letter-spacing:0.1pt;"> </span>party,<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>business,<span style="letter-spacing:0.1pt;"> </span>financial<span style="letter-spacing:0.15pt;"> </span>condition,<span style="letter-spacing:0.1pt;"> </span>results<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>operations<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>prospects<span style="letter-spacing:0.1pt;"> </span>our business and competitive<span style="letter-spacing:0.15pt;"> </span>position<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>be materially<span style="letter-spacing:0.15pt;"> </span>harmed.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Intellectual<span style="letter-spacing:0.1pt;"> </span>property<span style="letter-spacing:0.05pt;"> </span>rights<span style="letter-spacing:0.05pt;"> </span>do not necessarily<span style="letter-spacing:0.1pt;"> </span>address<span style="letter-spacing:0.05pt;"> </span>all<span style="letter-spacing:0.05pt;"> </span>potential<span style="letter-spacing:0.1pt;"> </span>threats.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The degree<span style="letter-spacing:0.05pt;"> </span>of future<span style="letter-spacing:0.05pt;"> </span>protection<span style="letter-spacing:0.1pt;"> </span>afforded<span style="letter-spacing:0.1pt;"> </span>by our intellectual<span style="letter-spacing:0.15pt;"> </span>property<span style="letter-spacing:0.05pt;"> </span>rights is uncertain<span style="letter-spacing:0.05pt;"> </span>because intellectual property<span style="letter-spacing:0.1pt;"> </span>rights<span style="letter-spacing:0.1pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>limitations<span style="letter-spacing:0.2pt;"> </span>and may<span style="letter-spacing:0.05pt;"> </span>not adequately<span style="letter-spacing:0.1pt;"> </span>protect<span style="letter-spacing:0.1pt;"> </span>our business<span style="letter-spacing:0.05pt;"> </span>or permit<span style="letter-spacing:0.1pt;"> </span>us to maintain<span style="letter-spacing:0.1pt;"> </span>our competitive<span style="letter-spacing:0.15pt;"> </span>advantage.<span style="letter-spacing:0.05pt;"> </span>For example:</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">others<span style="letter-spacing:1.75pt;"> </span>may<span style="letter-spacing:1.75pt;"> </span>be<span style="letter-spacing:1.7pt;"> </span>able<span style="letter-spacing:1.75pt;"> </span>to<span style="letter-spacing:1.7pt;"> </span>make<span style="letter-spacing:1.75pt;"> </span>products<span style="letter-spacing:1.75pt;"> </span>similar<span style="letter-spacing:1.8pt;"> </span>to<span style="letter-spacing:1.7pt;"> </span>any<span style="letter-spacing:1.7pt;"> </span>product<span style="letter-spacing:1.75pt;"> </span>candidates<span style="letter-spacing:1.8pt;"> </span>we<span style="letter-spacing:1.65pt;"> </span>may<span style="letter-spacing:1.7pt;"> </span>develop<span style="letter-spacing:1.7pt;"> </span>or<span style="letter-spacing:1.65pt;"> </span>utilize similarly<span style="letter-spacing:0.2pt;"> </span>related<span style="letter-spacing:0.15pt;"> </span>technologies<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>not covered<span style="letter-spacing:0.05pt;"> </span>by the<span style="letter-spacing:0.05pt;"> </span>claims<span style="letter-spacing:0.1pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>patents<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>license<span style="letter-spacing:0.1pt;"> </span>or may<span style="letter-spacing:0.05pt;"> </span>own in the<span style="letter-spacing:0.05pt;"> </span>future&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">we,<span style="letter-spacing:1.1pt;"> </span>or<span style="letter-spacing:1.1pt;"> </span>any<span style="letter-spacing:1.1pt;"> </span>future<span style="letter-spacing:1.15pt;"> </span>license<span style="letter-spacing:1.2pt;"> </span>partners<span style="letter-spacing:1.2pt;"> </span>or<span style="letter-spacing:1.1pt;"> </span>current<span style="letter-spacing:1.2pt;"> </span>or<span style="letter-spacing:1.1pt;"> </span>future<span style="letter-spacing:1.1pt;"> </span>collaborators,<span style="letter-spacing:1.2pt;"> </span>might<span style="letter-spacing:1.1pt;"> </span>not<span style="letter-spacing:1.05pt;"> </span>have<span style="letter-spacing:1.05pt;"> </span>been<span style="letter-spacing:1.05pt;"> </span>the<span style="letter-spacing:1.1pt;"> </span>first<span style="letter-spacing:1.15pt;"> </span>to make<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>inventions<span style="letter-spacing:0.15pt;"> </span>covered<span style="letter-spacing:0.1pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>issued<span style="letter-spacing:0.1pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>pending<span style="letter-spacing:0.1pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>application<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we license<span style="letter-spacing:0.1pt;"> </span>or may own in the<span style="letter-spacing:0.05pt;"> </span>future&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">we,<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.15pt;"> </span>any<span style="letter-spacing:0.15pt;"> </span>future<span style="letter-spacing:0.2pt;"> </span>license<span style="letter-spacing:0.25pt;"> </span>partners<span style="letter-spacing:0.25pt;"> </span>or<span style="letter-spacing:0.15pt;"> </span>current<span style="letter-spacing:0.25pt;"> </span>or<span style="letter-spacing:0.15pt;"> </span>future<span style="letter-spacing:0.2pt;"> </span>collaborators,<span style="letter-spacing:0.3pt;"> </span>might<span style="letter-spacing:0.2pt;"> </span>not<span style="letter-spacing:0.1pt;"> </span>have<span style="letter-spacing:0.1pt;"> </span>been<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>first<span style="letter-spacing:0.2pt;"> </span>to<span style="letter-spacing:0.1pt;"> </span>file patent<span style="letter-spacing:0.05pt;"> </span>applications<span style="letter-spacing:0.1pt;"> </span>covering<span style="letter-spacing:0.05pt;"> </span>certain<span style="letter-spacing:0.1pt;"> </span>of our or their<span style="letter-spacing:0.05pt;"> </span>inventions&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">others may independently develop similar or alternative technologies or duplicate any of our technologies<span style="letter-spacing:0.15pt;"> </span>without<span style="letter-spacing:0.1pt;"> </span>infringing,<span style="letter-spacing:0.1pt;"> </span>misappropriating<span style="letter-spacing:0.15pt;"> </span>or otherwise<span style="letter-spacing:0.05pt;"> </span>violating<span style="letter-spacing:0.1pt;"> </span>any of our owned or licensed intellectual<span style="letter-spacing:0.15pt;"> </span>property<span style="letter-spacing:0.05pt;"> </span>rights&#59;</p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-top:3pt;margin-bottom:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-top:3pt;margin-bottom:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-top:3pt;margin-bottom:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">it<span style="letter-spacing:0.6pt;"> </span>is<span style="letter-spacing:0.6pt;"> </span>possible<span style="letter-spacing:0.6pt;"> </span>that<span style="letter-spacing:0.6pt;"> </span>our<span style="letter-spacing:0.55pt;"> </span>pending<span style="letter-spacing:0.6pt;"> </span>patent<span style="letter-spacing:0.6pt;"> </span>applications<span style="letter-spacing:0.65pt;"> </span>or<span style="letter-spacing:0.55pt;"> </span>those<span style="letter-spacing:0.6pt;"> </span>that<span style="letter-spacing:0.55pt;"> </span>we<span style="letter-spacing:0.5pt;"> </span>may<span style="letter-spacing:0.55pt;"> </span>own<span style="letter-spacing:0.5pt;"> </span>in<span style="letter-spacing:0.5pt;"> </span>the<span style="letter-spacing:0.55pt;"> </span>future<span style="letter-spacing:0.55pt;"> </span>will<span style="letter-spacing:0.55pt;"> </span>not<span style="letter-spacing:0.5pt;"> </span>lead to issued<span style="letter-spacing:0.05pt;"> </span>patents&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-top:3pt;margin-bottom:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-top:3pt;margin-bottom:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-top:3pt;margin-bottom:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">issued<span style="letter-spacing:0.2pt;"> </span>patents<span style="letter-spacing:0.2pt;"> </span>that<span style="letter-spacing:0.2pt;"> </span>we<span style="letter-spacing:0.15pt;"> </span>hold<span style="letter-spacing:0.15pt;"> </span>rights<span style="letter-spacing:0.2pt;"> </span>to<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.2pt;"> </span>be<span style="letter-spacing:0.1pt;"> </span>held<span style="letter-spacing:0.15pt;"> </span>invalid<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.1pt;"> </span>unenforceable,<span style="letter-spacing:0.2pt;"> </span>including<span style="letter-spacing:0.15pt;"> </span>as<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.1pt;"> </span>result<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.1pt;"> </span>legal challenges<span style="letter-spacing:0.1pt;"> </span>by our competitors<span style="letter-spacing:0.15pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>third<span style="letter-spacing:0.05pt;"> </span>parties&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-top:3pt;margin-bottom:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-top:3pt;margin-bottom:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-top:3pt;margin-bottom:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">our<span style="letter-spacing:1pt;"> </span>competitors<span style="letter-spacing:1.15pt;"> </span>or<span style="letter-spacing:1pt;"> </span>other<span style="letter-spacing:1.05pt;"> </span>third<span style="letter-spacing:1.05pt;"> </span>parties<span style="letter-spacing:1.1pt;"> </span>might<span style="letter-spacing:1pt;"> </span>conduct<span style="letter-spacing:1pt;"> </span>research<span style="letter-spacing:1.05pt;"> </span>and<span style="letter-spacing:0.95pt;"> </span>development<span style="letter-spacing:1.05pt;"> </span>activities<span style="letter-spacing:1.1pt;"> </span>in<span style="letter-spacing:0.95pt;"> </span>countries where<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>do<span style="letter-spacing:0.05pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.1pt;"> </span>rights<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>then<span style="letter-spacing:0.1pt;"> </span>use<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>information<span style="letter-spacing:0.2pt;"> </span>learned<span style="letter-spacing:0.05pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>such activities<span style="letter-spacing:0.15pt;"> </span>to develop competitive<span style="letter-spacing:0.15pt;"> </span>products<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>sale<span style="letter-spacing:0.05pt;"> </span>in our major<span style="letter-spacing:0.05pt;"> </span>commercial<span style="letter-spacing:0.15pt;"> </span>markets&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">we may<span style="letter-spacing:0.05pt;"> </span>not develop<span style="letter-spacing:0.05pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>proprietary<span style="letter-spacing:0.1pt;"> </span>technologies<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>patentable&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.05pt;"> </span>patents<span style="letter-spacing:0.05pt;"> </span>of others<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>harm<span style="letter-spacing:0.05pt;"> </span>our business&#59;<span style="letter-spacing:0.1pt;"> </span>and</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-top:3pt;margin-bottom:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-top:3pt;margin-bottom:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-top:3pt;margin-bottom:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">we<span style="letter-spacing:0.6pt;"> </span>may<span style="letter-spacing:0.65pt;"> </span>choose<span style="letter-spacing:0.65pt;"> </span>not<span style="letter-spacing:0.6pt;"> </span>to<span style="letter-spacing:0.6pt;"> </span>file<span style="letter-spacing:0.65pt;"> </span>a<span style="letter-spacing:0.6pt;"> </span>patent<span style="letter-spacing:0.65pt;"> </span>in<span style="letter-spacing:0.6pt;"> </span>order<span style="letter-spacing:0.65pt;"> </span>to<span style="letter-spacing:0.6pt;"> </span>maintain<span style="letter-spacing:0.7pt;"> </span>certain<span style="letter-spacing:0.7pt;"> </span>trade<span style="letter-spacing:0.65pt;"> </span>secrets<span style="letter-spacing:0.7pt;"> </span>or<span style="letter-spacing:0.55pt;"> </span>know<span style="letter-spacing:0.55pt;"> </span>how,<span style="letter-spacing:0.55pt;"> </span>and<span style="letter-spacing:0.55pt;"> </span>a<span style="letter-spacing:0.55pt;"> </span>third party<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>subsequently<span style="letter-spacing:0.1pt;"> </span>file<span style="letter-spacing:0.05pt;"> </span>a patent<span style="letter-spacing:0.05pt;"> </span>covering<span style="letter-spacing:0.05pt;"> </span>such intellectual<span style="letter-spacing:0.15pt;"> </span>property.</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:10pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Should<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>these<span style="letter-spacing:0.1pt;"> </span>events<span style="letter-spacing:0.05pt;"> </span>occur,<span style="letter-spacing:0.05pt;"> </span>they<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>have a material<span style="letter-spacing:0.15pt;"> </span>adverse<span style="letter-spacing:0.05pt;"> </span>effect<span style="letter-spacing:0.1pt;"> </span>on our business,<span style="letter-spacing:0.05pt;"> </span>financial condition,<span style="letter-spacing:0.05pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>of operations<span style="letter-spacing:0.1pt;"> </span>and prospects.</p>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">61</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Risks Related<span style="letter-spacing:0.05pt;"> </span>to Our Common Stock</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">An<span style="letter-spacing:-0.05pt;"> </span>active<span style="letter-spacing:0.05pt;"> </span>and liquid<span style="letter-spacing:0.05pt;"> </span>trading<span style="letter-spacing:0.05pt;"> </span>market<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our common<span style="letter-spacing:0.05pt;"> </span>stock<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>never<span style="letter-spacing:0.05pt;"> </span>be sustained.<span style="letter-spacing:0.05pt;"> </span>As a result,<span style="letter-spacing:0.05pt;"> </span>you may not be able<span style="letter-spacing:0.05pt;"> </span>to resell<span style="letter-spacing:0.1pt;"> </span>your shares<span style="letter-spacing:0.05pt;"> </span>of common<span style="letter-spacing:0.05pt;"> </span>stock<span style="letter-spacing:0.05pt;"> </span>at or above the purchase price.</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">An<span style="letter-spacing:0.05pt;"> </span>active<span style="letter-spacing:0.1pt;"> </span>trading<span style="letter-spacing:0.1pt;"> </span>market<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>common<span style="letter-spacing:0.1pt;"> </span>stock<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>never<span style="letter-spacing:0.05pt;"> </span>be sustained.<span style="letter-spacing:0.1pt;"> </span>The market value<span style="letter-spacing:0.8pt;"> </span>of<span style="letter-spacing:0.75pt;"> </span>our<span style="letter-spacing:0.75pt;"> </span>common<span style="letter-spacing:0.8pt;"> </span>stock<span style="letter-spacing:0.8pt;"> </span>may<span style="letter-spacing:0.8pt;"> </span>decrease<span style="letter-spacing:0.85pt;"> </span>from<span style="letter-spacing:0.8pt;"> </span>the<span style="letter-spacing:0.8pt;"> </span>purchase<span style="letter-spacing:0.8pt;"> </span>price.<span style="letter-spacing:0.75pt;"> </span>As<span style="letter-spacing:0.7pt;"> </span>a<span style="letter-spacing:0.7pt;"> </span>result<span style="letter-spacing:0.8pt;"> </span>of<span style="letter-spacing:0.7pt;"> </span>these<span style="letter-spacing:0.75pt;"> </span>and<span style="letter-spacing:0.7pt;"> </span>other<span style="letter-spacing:0.75pt;"> </span>factors, you<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be unable<span style="letter-spacing:0.05pt;"> </span>to resell<span style="letter-spacing:0.1pt;"> </span>your shares<span style="letter-spacing:0.05pt;"> </span>of our common<span style="letter-spacing:0.05pt;"> </span>stock<span style="letter-spacing:0.05pt;"> </span>at<span style="letter-spacing:0.05pt;"> </span>or above the<span style="letter-spacing:0.05pt;"> </span>purchase<span style="letter-spacing:0.05pt;"> </span>price.<span style="letter-spacing:0.05pt;"> </span>The lack<span style="letter-spacing:0.05pt;"> </span>of an active<span style="letter-spacing:0.1pt;"> </span>market<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>impair<span style="letter-spacing:0.15pt;"> </span>your<span style="letter-spacing:0.05pt;"> </span>ability<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>sell<span style="letter-spacing:0.1pt;"> </span>your<span style="letter-spacing:0.05pt;"> </span>shares<span style="letter-spacing:0.1pt;"> </span>at<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>time<span style="letter-spacing:0.05pt;"> </span>you wish to sell<span style="letter-spacing:0.05pt;"> </span>them<span style="letter-spacing:0.05pt;"> </span>or at<span style="letter-spacing:0.05pt;"> </span>a price<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>you consider<span style="letter-spacing:0.1pt;"> </span>reasonable.<span style="letter-spacing:0.15pt;"> </span>The<span style="letter-spacing:0.05pt;"> </span>lack<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>an<span style="letter-spacing:0.05pt;"> </span>active<span style="letter-spacing:0.1pt;"> </span>market<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>also<span style="letter-spacing:0.1pt;"> </span>reduce<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>fair<span style="letter-spacing:0.05pt;"> </span>market<span style="letter-spacing:0.1pt;"> </span>value<span style="letter-spacing:0.05pt;"> </span>of your shares. Furthermore,<span style="letter-spacing:1.35pt;"> </span>an<span style="letter-spacing:1.25pt;"> </span>inactive<span style="letter-spacing:1.35pt;"> </span>market<span style="letter-spacing:1.35pt;"> </span>may<span style="letter-spacing:1.3pt;"> </span>also<span style="letter-spacing:1.3pt;"> </span>impair<span style="letter-spacing:1.35pt;"> </span>our<span style="letter-spacing:1.25pt;"> </span>ability<span style="letter-spacing:1.35pt;"> </span>to<span style="letter-spacing:1.25pt;"> </span>raise<span style="letter-spacing:1.3pt;"> </span>capital<span style="letter-spacing:1.35pt;"> </span>by<span style="letter-spacing:1.25pt;"> </span>selling<span style="letter-spacing:1.35pt;"> </span>shares<span style="letter-spacing:1.3pt;"> </span>of<span style="letter-spacing:1.25pt;"> </span>our<span style="letter-spacing:1.2pt;"> </span>common stock<span style="letter-spacing:0.05pt;"> </span>and may<span style="letter-spacing:0.05pt;"> </span>impair<span style="letter-spacing:0.1pt;"> </span>our ability<span style="letter-spacing:0.1pt;"> </span>to enter<span style="letter-spacing:0.05pt;"> </span>into<span style="letter-spacing:0.05pt;"> </span>strategic<span style="letter-spacing:0.1pt;"> </span>collaborations<span style="letter-spacing:0.15pt;"> </span>or acquire<span style="letter-spacing:0.05pt;"> </span>companies<span style="letter-spacing:0.1pt;"> </span>or products<span style="letter-spacing:0.05pt;"> </span>by using our shares<span style="letter-spacing:0.05pt;"> </span>of common<span style="letter-spacing:0.05pt;"> </span>stock<span style="letter-spacing:0.05pt;"> </span>as consideration.</p>
<p style="margin-top:0pt;line-height:10pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Our quarterly<span style="letter-spacing:0.05pt;"> </span>operating<span style="letter-spacing:0.05pt;"> </span>results<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>fluctuate<span style="letter-spacing:0.1pt;"> </span>significantly<span style="letter-spacing:0.15pt;"> </span>or may<span style="letter-spacing:0.05pt;"> </span>fall<span style="letter-spacing:0.05pt;"> </span>below the expectations<span style="letter-spacing:0.1pt;"> </span>of investors or securities<span style="letter-spacing:0.1pt;"> </span>analysts,<span style="letter-spacing:0.05pt;"> </span>each of which may<span style="letter-spacing:0.05pt;"> </span>cause our stock<span style="letter-spacing:0.05pt;"> </span>price<span style="letter-spacing:0.05pt;"> </span>to fluctuate<span style="letter-spacing:0.1pt;"> </span>or decline.</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.05pt;"> </span>expect<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>operating<span style="letter-spacing:0.15pt;"> </span>results<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>subject<span style="letter-spacing:0.05pt;"> </span>to quarterly<span style="letter-spacing:0.1pt;"> </span>fluctuations.<span style="letter-spacing:0.15pt;"> </span>Our net<span style="letter-spacing:0.05pt;"> </span>loss<span style="letter-spacing:0.05pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>operating results<span style="letter-spacing:0.1pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>be affected<span style="letter-spacing:0.1pt;"> </span>by numerous<span style="letter-spacing:0.05pt;"> </span>factors,<span style="letter-spacing:0.1pt;"> </span>including:</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">variations<span style="letter-spacing:2pt;"> </span>in<span style="letter-spacing:1.9pt;"> </span>the<span style="letter-spacing:1.95pt;"> </span>level<span style="letter-spacing:1.95pt;"> </span>of<span style="letter-spacing:1.9pt;"> </span>expense<span style="letter-spacing:1.95pt;"> </span>related<span style="letter-spacing:2pt;"> </span>to<span style="letter-spacing:1.9pt;"> </span>the<span style="letter-spacing:1.95pt;"> </span>planned<span style="letter-spacing:1.95pt;"> </span>and<span style="letter-spacing:1.9pt;"> </span>ongoing<span style="letter-spacing:1.9pt;"> </span>development<span style="letter-spacing:2pt;"> </span>of<span style="letter-spacing:1.9pt;"> </span>our<span style="letter-spacing:1.85pt;"> </span>product candidates<span style="letter-spacing:0.1pt;"> </span>or future<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>programs,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>scale-up<span style="letter-spacing:0.1pt;"> </span>CMC<span style="letter-spacing:-0.05pt;"> </span>expenses&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">results<span style="letter-spacing:0.7pt;"> </span>of<span style="letter-spacing:0.6pt;"> </span>clinical<span style="letter-spacing:0.7pt;"> </span>trials,<span style="letter-spacing:0.7pt;"> </span>or<span style="letter-spacing:0.6pt;"> </span>the<span style="letter-spacing:0.65pt;"> </span>addition<span style="letter-spacing:0.6pt;"> </span>or<span style="letter-spacing:0.55pt;"> </span>termination<span style="letter-spacing:0.7pt;"> </span>of<span style="letter-spacing:0.55pt;"> </span>future<span style="letter-spacing:0.6pt;"> </span>preclinical<span style="letter-spacing:0.7pt;"> </span>or<span style="letter-spacing:0.55pt;"> </span>clinical<span style="letter-spacing:0.65pt;"> </span>trials<span style="letter-spacing:0.65pt;"> </span>or<span style="letter-spacing:0.55pt;"> </span>funding support<span style="letter-spacing:0.05pt;"> </span>by us, or future<span style="letter-spacing:0.05pt;"> </span>collaborators<span style="letter-spacing:0.15pt;"> </span>or licensing<span style="letter-spacing:0.1pt;"> </span>partners&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">our<span style="letter-spacing:0.75pt;"> </span>execution<span style="letter-spacing:0.8pt;"> </span>of<span style="letter-spacing:0.75pt;"> </span>any<span style="letter-spacing:0.75pt;"> </span>collaboration,<span style="letter-spacing:0.9pt;"> </span>licensing<span style="letter-spacing:0.85pt;"> </span>or<span style="letter-spacing:0.75pt;"> </span>similar<span style="letter-spacing:0.85pt;"> </span>arrangements,<span style="letter-spacing:0.9pt;"> </span>and<span style="letter-spacing:0.7pt;"> </span>the<span style="letter-spacing:0.75pt;"> </span>timing<span style="letter-spacing:0.8pt;"> </span>of<span style="letter-spacing:0.7pt;"> </span>payments<span style="letter-spacing:0.75pt;"> </span>we may<span style="letter-spacing:0.1pt;"> </span>make<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>receive<span style="letter-spacing:0.1pt;"> </span>under<span style="letter-spacing:0.05pt;"> </span>existing<span style="letter-spacing:0.1pt;"> </span>or future<span style="letter-spacing:0.05pt;"> </span>arrangements<span style="letter-spacing:0.15pt;"> </span>or the<span style="letter-spacing:0.05pt;"> </span>termination<span style="letter-spacing:0.15pt;"> </span>or modification<span style="letter-spacing:0.15pt;"> </span>of any such existing<span style="letter-spacing:0.1pt;"> </span>or future<span style="letter-spacing:0.05pt;"> </span>arrangements&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">any<span style="letter-spacing:0.45pt;"> </span>intellectual<span style="letter-spacing:0.6pt;"> </span>property<span style="letter-spacing:0.5pt;"> </span>infringement<span style="letter-spacing:0.6pt;"> </span>lawsuit<span style="letter-spacing:0.45pt;"> </span>or<span style="letter-spacing:0.4pt;"> </span>opposition,<span style="letter-spacing:0.45pt;"> </span>interference<span style="letter-spacing:0.55pt;"> </span>or<span style="letter-spacing:0.4pt;"> </span>cancellation<span style="letter-spacing:0.55pt;"> </span>proceeding<span style="letter-spacing:0.45pt;"> </span>in which we may<span style="letter-spacing:0.05pt;"> </span>become<span style="letter-spacing:0.05pt;"> </span>involved&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">additions<span style="letter-spacing:0.1pt;"> </span>and departures<span style="letter-spacing:0.1pt;"> </span>of key personnel&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">strategic<span style="letter-spacing:0.35pt;"> </span>decisions<span style="letter-spacing:0.35pt;"> </span>by<span style="letter-spacing:0.25pt;"> </span>us<span style="letter-spacing:0.25pt;"> </span>or<span style="letter-spacing:0.25pt;"> </span>our<span style="letter-spacing:0.25pt;"> </span>competitors,<span style="letter-spacing:0.35pt;"> </span>such<span style="letter-spacing:0.2pt;"> </span>as<span style="letter-spacing:0.2pt;"> </span>acquisitions,<span style="letter-spacing:0.3pt;"> </span>divestitures,<span style="letter-spacing:0.35pt;"> </span>spin-offs,<span style="letter-spacing:0.3pt;"> </span>joint<span style="letter-spacing:0.25pt;"> </span>ventures, strategic<span style="letter-spacing:0.1pt;"> </span>investments<span style="letter-spacing:0.1pt;"> </span>or changes<span style="letter-spacing:0.05pt;"> </span>in business<span style="letter-spacing:0.05pt;"> </span>strategy&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">if<span style="letter-spacing:0.95pt;"> </span>any<span style="letter-spacing:0.9pt;"> </span>of<span style="letter-spacing:0.9pt;"> </span>our<span style="letter-spacing:0.9pt;"> </span>product<span style="letter-spacing:0.95pt;"> </span>candidates<span style="letter-spacing:1pt;"> </span>receives<span style="letter-spacing:1pt;"> </span>regulatory<span style="letter-spacing:0.95pt;"> </span>approval,<span style="letter-spacing:0.9pt;"> </span>the<span style="letter-spacing:0.9pt;"> </span>terms<span style="letter-spacing:0.95pt;"> </span>of<span style="letter-spacing:0.85pt;"> </span>such<span style="letter-spacing:0.85pt;"> </span>approval<span style="letter-spacing:0.9pt;"> </span>and<span style="letter-spacing:0.85pt;"> </span>market acceptance<span style="letter-spacing:0.1pt;"> </span>and demand<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>such product<span style="letter-spacing:0.05pt;"> </span>candidates&#59;</p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-top:6pt;margin-bottom:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-top:6pt;margin-bottom:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-top:6pt;margin-bottom:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">regulatory<span style="letter-spacing:0.1pt;"> </span>developments<span style="letter-spacing:0.1pt;"> </span>affecting<span style="letter-spacing:0.1pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>or those<span style="letter-spacing:0.05pt;"> </span>of our competitors&#59;<span style="letter-spacing:0.15pt;"> </span>and</p></td></tr></table></div>
<p style="line-height:7pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:7pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">changes<span style="letter-spacing:0.05pt;"> </span>in general<span style="letter-spacing:0.05pt;"> </span>market<span style="letter-spacing:0.1pt;"> </span>and economic<span style="letter-spacing:0.05pt;"> </span>conditions,<span style="letter-spacing:0.1pt;"> </span>such as due to the<span style="letter-spacing:0.05pt;"> </span>recent<span style="letter-spacing:0.05pt;"> </span>COVID-19<span style="letter-spacing:-0.05pt;"> </span>pandemic.</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:13pt;margin-bottom:0pt;text-indent:0%;font-size:13pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If<span style="letter-spacing:0.1pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>quarterly<span style="letter-spacing:0.15pt;"> </span>operating<span style="letter-spacing:0.15pt;"> </span>results<span style="letter-spacing:0.15pt;"> </span>fall<span style="letter-spacing:0.1pt;"> </span>below<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>expectations<span style="letter-spacing:0.15pt;"> </span>of investors<span style="letter-spacing:0.1pt;"> </span>or securities<span style="letter-spacing:0.15pt;"> </span>analysts,<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>price<span style="letter-spacing:0.05pt;"> </span>of our<span style="letter-spacing:0.05pt;"> </span>common<span style="letter-spacing:0.1pt;"> </span>stock<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>decline<span style="letter-spacing:0.05pt;"> </span>substantially.<span style="letter-spacing:0.15pt;"> </span>Furthermore,<span style="letter-spacing:0.1pt;"> </span>any quarterly<span style="letter-spacing:0.1pt;"> </span>fluctuations<span style="letter-spacing:0.15pt;"> </span>in our operating<span style="letter-spacing:0.1pt;"> </span>results may,<span style="letter-spacing:0.05pt;"> </span>in turn,<span style="letter-spacing:0.05pt;"> </span>cause<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>price<span style="letter-spacing:0.05pt;"> </span>of our common<span style="letter-spacing:0.05pt;"> </span>stock<span style="letter-spacing:0.05pt;"> </span>to fluctuate<span style="letter-spacing:0.1pt;"> </span>substantially.<span style="letter-spacing:0.15pt;"> </span>We believe<span style="letter-spacing:0.05pt;"> </span>that quarterly comparisons<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>financial<span style="letter-spacing:0.15pt;"> </span>results<span style="letter-spacing:0.15pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>necessarily<span style="letter-spacing:0.15pt;"> </span>meaningful<span style="letter-spacing:0.15pt;"> </span>and should<span style="letter-spacing:0.05pt;"> </span>not be relied<span style="letter-spacing:0.1pt;"> </span>upon as an indication of our future<span style="letter-spacing:0.05pt;"> </span>performance.</p>
<p style="margin-top:0pt;line-height:9pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">62</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">The market<span style="letter-spacing:0.05pt;"> </span>price<span style="letter-spacing:0.05pt;"> </span>of our common<span style="letter-spacing:0.05pt;"> </span>stock<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>likely<span style="letter-spacing:0.1pt;"> </span>to be highly<span style="letter-spacing:0.05pt;"> </span>volatile,<span style="letter-spacing:0.1pt;"> </span>which could result<span style="letter-spacing:0.05pt;"> </span>in substantial losses<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>purchasers<span style="letter-spacing:0.05pt;"> </span>of our common<span style="letter-spacing:0.05pt;"> </span>stock.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The<span style="letter-spacing:0.55pt;"> </span>market<span style="letter-spacing:0.65pt;"> </span>price<span style="letter-spacing:0.6pt;"> </span>of<span style="letter-spacing:0.55pt;"> </span>our<span style="letter-spacing:0.55pt;"> </span>common<span style="letter-spacing:0.6pt;"> </span>stock<span style="letter-spacing:0.6pt;"> </span>has<span style="letter-spacing:0.55pt;"> </span>been<span style="letter-spacing:0.55pt;"> </span>highly<span style="letter-spacing:0.6pt;"> </span>volatile<span style="letter-spacing:0.65pt;"> </span>since<span style="letter-spacing:0.6pt;"> </span>our initial public offering, or<span style="letter-spacing:0.5pt;"> </span>IPO,<span style="letter-spacing:0.5pt;"> </span>and<span style="letter-spacing:0.5pt;"> </span>has<span style="letter-spacing:0.5pt;"> </span>ranged<span style="letter-spacing:0.55pt;"> </span>from<span style="letter-spacing:0.55pt;"> </span>$23.69 to<span style="letter-spacing:0.05pt;"> </span>$95.38<span style="letter-spacing:0.05pt;"> </span>per<span style="letter-spacing:0.1pt;"> </span>share.<span style="letter-spacing:0.05pt;"> </span>The<span style="letter-spacing:0.05pt;"> </span>market<span style="letter-spacing:0.1pt;"> </span>price<span style="letter-spacing:0.05pt;"> </span>of our common<span style="letter-spacing:0.05pt;"> </span>stock<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>likely<span style="letter-spacing:0.05pt;"> </span>to continue<span style="letter-spacing:0.05pt;"> </span>to be highly<span style="letter-spacing:0.05pt;"> </span>volatile<span style="letter-spacing:0.1pt;"> </span>and subject to<span style="letter-spacing:0.05pt;"> </span>wide<span style="letter-spacing:0.05pt;"> </span>fluctuations<span style="letter-spacing:0.2pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>response<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>various<span style="letter-spacing:0.1pt;"> </span>factors,<span style="letter-spacing:0.1pt;"> </span>some<span style="letter-spacing:0.05pt;"> </span>of which we cannot<span style="letter-spacing:0.05pt;"> </span>control.<span style="letter-spacing:0.05pt;"> </span>As a result<span style="letter-spacing:0.1pt;"> </span>of this<span style="letter-spacing:0.05pt;"> </span>volatility, investors<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>able<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>sell<span style="letter-spacing:0.1pt;"> </span>their<span style="letter-spacing:0.1pt;"> </span>common<span style="letter-spacing:0.1pt;"> </span>stock<span style="letter-spacing:0.1pt;"> </span>at<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>above<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>price<span style="letter-spacing:0.1pt;"> </span>paid.<span style="letter-spacing:0.15pt;"> </span>The market<span style="letter-spacing:0.1pt;"> </span>price for<span style="letter-spacing:0.7pt;"> </span>our<span style="letter-spacing:0.65pt;"> </span>common<span style="letter-spacing:0.7pt;"> </span>stock<span style="letter-spacing:0.7pt;"> </span>may<span style="letter-spacing:0.7pt;"> </span>be<span style="letter-spacing:0.65pt;"> </span>influenced<span style="letter-spacing:0.75pt;"> </span>by<span style="letter-spacing:0.65pt;"> </span>many<span style="letter-spacing:0.7pt;"> </span>factors,<span style="letter-spacing:0.75pt;"> </span>including<span style="letter-spacing:0.7pt;"> </span>the<span style="letter-spacing:0.7pt;"> </span>other<span style="letter-spacing:0.7pt;"> </span>risks<span style="letter-spacing:0.7pt;"> </span>described<span style="letter-spacing:0.75pt;"> </span>in<span style="letter-spacing:0.65pt;"> </span>this<span style="letter-spacing:0.65pt;"> </span>section<span style="letter-spacing:0.65pt;"> </span>of this Quarterly Report on Form 10-Q<span style="letter-spacing:0.1pt;"> </span>and the<span style="letter-spacing:0.05pt;"> </span>following:</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">enrollment<span style="letter-spacing:1.55pt;"> </span>or<span style="letter-spacing:1.45pt;"> </span>results<span style="letter-spacing:1.55pt;"> </span>of<span style="letter-spacing:1.45pt;"> </span>clinical<span style="letter-spacing:1.55pt;"> </span>trials<span style="letter-spacing:1.5pt;"> </span>of<span style="letter-spacing:1.4pt;"> </span>our<span style="letter-spacing:1.4pt;"> </span>product<span style="letter-spacing:1.45pt;"> </span>candidates,<span style="letter-spacing:1.5pt;"> </span>or<span style="letter-spacing:1.4pt;"> </span>those<span style="letter-spacing:1.45pt;"> </span>of<span style="letter-spacing:1.4pt;"> </span>our<span style="letter-spacing:1.4pt;"> </span>competitors<span style="letter-spacing:1.55pt;"> </span>or<span style="letter-spacing:1.4pt;"> </span>our future<span style="letter-spacing:0.05pt;"> </span>collaborators,<span style="letter-spacing:0.15pt;"> </span>or changes<span style="letter-spacing:0.05pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>development<span style="letter-spacing:0.1pt;"> </span>status<span style="letter-spacing:0.05pt;"> </span>of our product<span style="letter-spacing:0.05pt;"> </span>candidates&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">regulatory<span style="letter-spacing:0.2pt;"> </span>or<span style="letter-spacing:0.1pt;"> </span>legal<span style="letter-spacing:0.15pt;"> </span>developments<span style="letter-spacing:0.2pt;"> </span>in<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>United<span style="letter-spacing:0.15pt;"> </span>States<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.1pt;"> </span>other<span style="letter-spacing:0.15pt;"> </span>countries,<span style="letter-spacing:0.2pt;"> </span>especially<span style="letter-spacing:0.2pt;"> </span>changes<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>laws<span style="letter-spacing:0.05pt;"> </span>or regulations<span style="letter-spacing:0.1pt;"> </span>applicable<span style="letter-spacing:0.1pt;"> </span>to our product<span style="letter-spacing:0.05pt;"> </span>candidates&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.05pt;"> </span>success<span style="letter-spacing:0.05pt;"> </span>of competitive<span style="letter-spacing:0.15pt;"> </span>products<span style="letter-spacing:0.05pt;"> </span>or technologies&#59;</p></td></tr></table></div>
<p style="line-height:7pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:7pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">introductions<span style="letter-spacing:0.45pt;"> </span>and<span style="letter-spacing:0.35pt;"> </span>announcements<span style="letter-spacing:0.45pt;"> </span>of<span style="letter-spacing:0.35pt;"> </span>new<span style="letter-spacing:0.35pt;"> </span>products<span style="letter-spacing:0.4pt;"> </span>by<span style="letter-spacing:0.35pt;"> </span>us,<span style="letter-spacing:0.35pt;"> </span>our<span style="letter-spacing:0.35pt;"> </span>future<span style="letter-spacing:0.4pt;"> </span>commercialization<span style="letter-spacing:0.55pt;"> </span>partners,<span style="letter-spacing:0.45pt;"> </span>or<span style="letter-spacing:0.3pt;"> </span>our competitors,<span style="letter-spacing:0.15pt;"> </span>and the<span style="letter-spacing:0.05pt;"> </span>timing<span style="letter-spacing:0.1pt;"> </span>of these<span style="letter-spacing:0.05pt;"> </span>introductions<span style="letter-spacing:0.1pt;"> </span>or announcements&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">actions<span style="letter-spacing:2.35pt;"> </span>taken<span style="letter-spacing:2.35pt;"> </span>by<span style="letter-spacing:2.3pt;"> </span>regulatory<span style="letter-spacing:2.4pt;"> </span>agencies<span style="letter-spacing:2.35pt;"> </span>with<span style="letter-spacing:2.3pt;"> </span>respect<span style="letter-spacing:2.4pt;"> </span>to<span style="letter-spacing:2.3pt;"> </span>our<span style="letter-spacing:2.3pt;"> </span>products,<span style="letter-spacing:2.35pt;"> </span>clinical<span style="letter-spacing:2.35pt;"> </span>studies,<span style="letter-spacing:2.3pt;"> </span>manufacturing process<span style="letter-spacing:0.05pt;"> </span>or sales<span style="letter-spacing:0.05pt;"> </span>and marketing<span style="letter-spacing:0.1pt;"> </span>terms&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">actual<span style="letter-spacing:0.9pt;"> </span>or<span style="letter-spacing:0.85pt;"> </span>anticipated<span style="letter-spacing:0.95pt;"> </span>variations<span style="letter-spacing:0.95pt;"> </span>in<span style="letter-spacing:0.85pt;"> </span>our<span style="letter-spacing:0.85pt;"> </span>financial<span style="letter-spacing:0.95pt;"> </span>results<span style="letter-spacing:0.95pt;"> </span>or<span style="letter-spacing:0.85pt;"> </span>those<span style="letter-spacing:0.9pt;"> </span>of<span style="letter-spacing:0.85pt;"> </span>companies<span style="letter-spacing:0.95pt;"> </span>that<span style="letter-spacing:0.9pt;"> </span>are<span style="letter-spacing:0.9pt;"> </span>perceived<span style="letter-spacing:0.9pt;"> </span>to<span style="letter-spacing:0.8pt;"> </span>be similar<span style="letter-spacing:0.1pt;"> </span>to us&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the success of our efforts to acquire or in-license additional technologies, products or product candidates&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">developments concerning any future collaborations, including but not limited to those with development<span style="letter-spacing:0.1pt;"> </span>and commercialization<span style="letter-spacing:0.2pt;"> </span>partners&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">market<span style="letter-spacing:0.1pt;"> </span>conditions<span style="letter-spacing:0.1pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>pharmaceutical<span style="letter-spacing:0.15pt;"> </span>and biotechnology<span style="letter-spacing:0.1pt;"> </span>sectors&#59;</p></td></tr></table></div>
<p style="line-height:7pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:7pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">announcements<span style="letter-spacing:2.45pt;"> </span>by<span style="letter-spacing:2.35pt;"> </span>us<span style="letter-spacing:2.35pt;"> </span>or<span style="letter-spacing:2.3pt;"> </span>our<span style="letter-spacing:2.3pt;"> </span>competitors<span style="letter-spacing:2.45pt;"> </span>of<span style="letter-spacing:2.3pt;"> </span>significant<span style="letter-spacing:2.45pt;"> </span>acquisitions,<span style="letter-spacing:2.4pt;"> </span>strategic<span style="letter-spacing:2.4pt;"> </span>collaborations,<span style="letter-spacing:2.45pt;"> </span>joint ventures<span style="letter-spacing:0.05pt;"> </span>or capital<span style="letter-spacing:0.1pt;"> </span>commitments&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">developments<span style="letter-spacing:1.5pt;"> </span>or<span style="letter-spacing:1.35pt;"> </span>disputes<span style="letter-spacing:1.4pt;"> </span>concerning<span style="letter-spacing:1.4pt;"> </span>patents<span style="letter-spacing:1.4pt;"> </span>or<span style="letter-spacing:1.35pt;"> </span>other<span style="letter-spacing:1.4pt;"> </span>proprietary<span style="letter-spacing:1.45pt;"> </span>rights,<span style="letter-spacing:1.4pt;"> </span>including<span style="letter-spacing:1.4pt;"> </span>patents,<span style="letter-spacing:1.4pt;"> </span>litigation matters<span style="letter-spacing:0.1pt;"> </span>and our ability<span style="letter-spacing:0.1pt;"> </span>to obtain<span style="letter-spacing:0.05pt;"> </span>patent<span style="letter-spacing:0.05pt;"> </span>protection<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our product<span style="letter-spacing:0.05pt;"> </span>candidates<span style="letter-spacing:0.1pt;"> </span>and products&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">our ability<span style="letter-spacing:0.1pt;"> </span>or inability<span style="letter-spacing:0.1pt;"> </span>to raise<span style="letter-spacing:0.05pt;"> </span>additional<span style="letter-spacing:0.1pt;"> </span>capital<span style="letter-spacing:0.1pt;"> </span>and the<span style="letter-spacing:0.05pt;"> </span>terms<span style="letter-spacing:0.1pt;"> </span>on which we raise<span style="letter-spacing:0.05pt;"> </span>it&#59;</p></td></tr></table></div>
<p style="line-height:7pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:7pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.05pt;"> </span>recruitment<span style="letter-spacing:0.15pt;"> </span>or departure<span style="letter-spacing:0.1pt;"> </span>of key personnel&#59;</p></td></tr></table></div>
<p style="line-height:7pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:7pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">changes<span style="letter-spacing:0.05pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>structure<span style="letter-spacing:0.1pt;"> </span>of healthcare<span style="letter-spacing:0.1pt;"> </span>payment<span style="letter-spacing:0.05pt;"> </span>systems&#59;</p></td></tr></table></div>
<p style="line-height:7pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:7pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">actual or anticipated changes in earnings estimates or changes in stock market analyst recommendations<span style="letter-spacing:0.15pt;"> </span>regarding<span style="letter-spacing:0.1pt;"> </span>our common<span style="letter-spacing:0.05pt;"> </span>stock,<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.05pt;"> </span>comparable<span style="letter-spacing:0.1pt;"> </span>companies<span style="letter-spacing:0.1pt;"> </span>or our industry<span style="letter-spacing:0.05pt;"> </span>generally&#59;</p></td></tr></table></div>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-top:6pt;margin-bottom:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-top:6pt;margin-bottom:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-top:6pt;margin-bottom:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">our<span style="letter-spacing:1.05pt;"> </span>failure<span style="letter-spacing:1.15pt;"> </span>or<span style="letter-spacing:1.05pt;"> </span>the<span style="letter-spacing:1.1pt;"> </span>failure<span style="letter-spacing:1.15pt;"> </span>of<span style="letter-spacing:1.05pt;"> </span>our<span style="letter-spacing:1.05pt;"> </span>competitors<span style="letter-spacing:1.2pt;"> </span>to<span style="letter-spacing:1.05pt;"> </span>meet<span style="letter-spacing:1.1pt;"> </span>analysts&#8217;<span style="letter-spacing:1.15pt;"> </span>projections<span style="letter-spacing:1.15pt;"> </span>or<span style="letter-spacing:1.05pt;"> </span>guidance<span style="letter-spacing:1.1pt;"> </span>that<span style="letter-spacing:1.05pt;"> </span>we<span style="letter-spacing:1pt;"> </span>or<span style="letter-spacing:1pt;"> </span>our competitors<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>give<span style="letter-spacing:0.05pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>market&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">fluctuations<span style="letter-spacing:0.15pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>valuation<span style="letter-spacing:0.1pt;"> </span>of companies<span style="letter-spacing:0.1pt;"> </span>perceived<span style="letter-spacing:0.1pt;"> </span>by investors<span style="letter-spacing:0.1pt;"> </span>to be comparable<span style="letter-spacing:0.1pt;"> </span>to us&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">announcement<span style="letter-spacing:0.1pt;"> </span>and expectation<span style="letter-spacing:0.1pt;"> </span>of additional<span style="letter-spacing:0.1pt;"> </span>financing<span style="letter-spacing:0.1pt;"> </span>efforts&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">speculation<span style="letter-spacing:0.1pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>press<span style="letter-spacing:0.05pt;"> </span>or investment<span style="letter-spacing:0.1pt;"> </span>community&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">share<span style="letter-spacing:0.05pt;"> </span>price<span style="letter-spacing:0.05pt;"> </span>and fluctuations<span style="letter-spacing:0.15pt;"> </span>of trading<span style="letter-spacing:0.05pt;"> </span>volume<span style="letter-spacing:0.05pt;"> </span>of our common<span style="letter-spacing:0.05pt;"> </span>stock&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">sales<span style="letter-spacing:0.05pt;"> </span>of our common<span style="letter-spacing:0.05pt;"> </span>stock<span style="letter-spacing:0.05pt;"> </span>by us, insiders<span style="letter-spacing:0.1pt;"> </span>or our stockholders&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">the<span style="letter-spacing:0.05pt;"> </span>concentrated<span style="letter-spacing:0.1pt;"> </span>ownership<span style="letter-spacing:0.05pt;"> </span>of our common<span style="letter-spacing:0.05pt;"> </span>stock&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">changes<span style="letter-spacing:0.05pt;"> </span>in accounting<span style="letter-spacing:0.05pt;"> </span>principles&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">terrorist<span style="letter-spacing:0.15pt;"> </span>acts,<span style="letter-spacing:0.05pt;"> </span>acts<span style="letter-spacing:0.05pt;"> </span>of war or periods<span style="letter-spacing:0.05pt;"> </span>of widespread<span style="letter-spacing:0.05pt;"> </span>civil<span style="letter-spacing:0.05pt;"> </span>unrest&#59;</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">natural<span style="letter-spacing:0.1pt;"> </span>disasters<span style="letter-spacing:0.1pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>calamities&#59;<span style="letter-spacing:0.15pt;"> </span>and</p></td></tr></table></div>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">general<span style="letter-spacing:2.25pt;"> </span>economic,<span style="letter-spacing:2.25pt;"> </span>industry<span style="letter-spacing:2.25pt;"> </span>and<span style="letter-spacing:2.2pt;"> </span>market<span style="letter-spacing:2.3pt;"> </span>conditions,<span style="letter-spacing:2.3pt;"> </span>or<span style="letter-spacing:2.2pt;"> </span>other<span style="letter-spacing:2.25pt;"> </span>events<span style="letter-spacing:2.25pt;"> </span>or<span style="letter-spacing:2.2pt;"> </span>factors,<span style="letter-spacing:2.3pt;"> </span>many<span style="letter-spacing:2.2pt;"> </span>of<span style="letter-spacing:2.15pt;"> </span>which<span style="letter-spacing:2.15pt;"> </span>are beyond our control,<span style="letter-spacing:0.05pt;"> </span>such as the<span style="letter-spacing:0.05pt;"> </span>recent<span style="letter-spacing:0.05pt;"> </span>COVID-19<span style="letter-spacing:-0.05pt;"> </span>pandemic.</p></td></tr></table></div>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">63</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In addition,<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>stock<span style="letter-spacing:0.05pt;"> </span>market<span style="letter-spacing:0.1pt;"> </span>in general,<span style="letter-spacing:0.05pt;"> </span>and the<span style="letter-spacing:0.05pt;"> </span>markets<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>pharmaceutical,<span style="letter-spacing:0.15pt;"> </span>biopharmaceutical<span style="letter-spacing:0.15pt;"> </span>and biotechnology<span style="letter-spacing:0.15pt;"> </span>stocks<span style="letter-spacing:0.05pt;"> </span>in particular,<span style="letter-spacing:0.15pt;"> </span>have experienced<span style="letter-spacing:0.1pt;"> </span>extreme<span style="letter-spacing:0.1pt;"> </span>price<span style="letter-spacing:0.05pt;"> </span>and volume<span style="letter-spacing:0.05pt;"> </span>fluctuations<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>have been often unrelated<span style="letter-spacing:0.1pt;"> </span>or disproportionate<span style="letter-spacing:0.15pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>operating<span style="letter-spacing:0.1pt;"> </span>performance<span style="letter-spacing:0.1pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>issuer.<span style="letter-spacing:0.05pt;"> </span>These broad<span style="letter-spacing:0.05pt;"> </span>market<span style="letter-spacing:0.1pt;"> </span>and industry factors may<span style="letter-spacing:0.1pt;"> </span>seriously<span style="letter-spacing:0.15pt;"> </span>harm<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>market<span style="letter-spacing:0.15pt;"> </span>price<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>common<span style="letter-spacing:0.1pt;"> </span>stock,<span style="letter-spacing:0.1pt;"> </span>regardless<span style="letter-spacing:0.15pt;"> </span>of our actual<span style="letter-spacing:0.05pt;"> </span>operating<span style="letter-spacing:0.1pt;"> </span>performance.<span style="letter-spacing:0.1pt;"> </span>The realization<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>above<span style="letter-spacing:0.05pt;"> </span>risks<span style="letter-spacing:0.05pt;"> </span>or any of a broad<span style="letter-spacing:0.05pt;"> </span>range<span style="letter-spacing:0.05pt;"> </span>of other<span style="letter-spacing:0.05pt;"> </span>risks,<span style="letter-spacing:0.05pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>those<span style="letter-spacing:0.05pt;"> </span>described<span style="letter-spacing:0.1pt;"> </span>in this<span style="letter-spacing:0.05pt;"> </span>&#8220;Risk Factors&#8221;<span style="letter-spacing:0.05pt;"> </span>section,<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>have a dramatic<span style="letter-spacing:0.1pt;"> </span>and adverse<span style="letter-spacing:0.05pt;"> </span>impact<span style="letter-spacing:0.1pt;"> </span>on the<span style="letter-spacing:0.05pt;"> </span>market<span style="letter-spacing:0.1pt;"> </span>price<span style="letter-spacing:0.05pt;"> </span>of our common<span style="letter-spacing:0.05pt;"> </span>stock.</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Our principal<span style="letter-spacing:0.05pt;"> </span>stockholders<span style="letter-spacing:0.1pt;"> </span>and management<span style="letter-spacing:0.05pt;"> </span>own<span style="letter-spacing:-0.05pt;"> </span>a significant<span style="letter-spacing:0.1pt;"> </span>percentage<span style="letter-spacing:0.05pt;"> </span>of our stock<span style="letter-spacing:0.05pt;"> </span>and are able<span style="letter-spacing:0.05pt;"> </span>to exert<span style="letter-spacing:0.05pt;"> </span>significant<span style="letter-spacing:0.1pt;"> </span>control<span style="letter-spacing:0.05pt;"> </span>over<span style="letter-spacing:0.05pt;"> </span>matters<span style="letter-spacing:0.1pt;"> </span>subject<span style="letter-spacing:0.05pt;"> </span>to stockholder<span style="letter-spacing:0.05pt;"> </span>approval.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">As<span style="letter-spacing:0.65pt;"> </span>of<span style="letter-spacing:0.65pt;"> </span>June 30,<span style="letter-spacing:0.65pt;"> </span>2021,<span style="letter-spacing:0.75pt;"> </span>our<span style="letter-spacing:0.6pt;"> </span>executive<span style="letter-spacing:0.7pt;"> </span>officers,<span style="letter-spacing:0.7pt;"> </span>directors,<span style="letter-spacing:0.7pt;"> </span>beneficial<span style="letter-spacing:0.7pt;"> </span>owners<span style="letter-spacing:0.6pt;"> </span>of<span style="letter-spacing:0.6pt;"> </span>5% or<span style="letter-spacing:0.05pt;"> </span>more<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>capital<span style="letter-spacing:0.15pt;"> </span>stock<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>their<span style="letter-spacing:0.05pt;"> </span>respective<span style="letter-spacing:0.1pt;"> </span>affiliates<span style="letter-spacing:0.15pt;"> </span>beneficially<span style="letter-spacing:0.15pt;"> </span>owned a substantial portion of our common<span style="letter-spacing:0.1pt;"> </span>stock.<span style="letter-spacing:0.1pt;"> </span>The voting<span style="letter-spacing:0.05pt;"> </span>power of this group may<span style="letter-spacing:0.05pt;"> </span>increase<span style="letter-spacing:0.1pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>extent<span style="letter-spacing:0.05pt;"> </span>they<span style="letter-spacing:0.05pt;"> </span>convert<span style="letter-spacing:0.05pt;"> </span>shares<span style="letter-spacing:0.05pt;"> </span>of non-voting<span style="letter-spacing:0.05pt;"> </span>common<span style="letter-spacing:0.05pt;"> </span>stock<span style="letter-spacing:0.05pt;"> </span>they<span style="letter-spacing:0.05pt;"> </span>hold into<span style="letter-spacing:0.05pt;"> </span>common<span style="letter-spacing:0.05pt;"> </span>stock.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">This<span style="letter-spacing:1.25pt;"> </span>group<span style="letter-spacing:1.25pt;"> </span>of<span style="letter-spacing:1.25pt;"> </span>stockholders<span style="letter-spacing:1.35pt;"> </span>have<span style="letter-spacing:1.2pt;"> </span>the<span style="letter-spacing:1.25pt;"> </span>ability<span style="letter-spacing:1.3pt;"> </span>to<span style="letter-spacing:1.2pt;"> </span>control<span style="letter-spacing:1.25pt;"> </span>us<span style="letter-spacing:1.2pt;"> </span>through<span style="letter-spacing:1.25pt;"> </span>this<span style="letter-spacing:1.25pt;"> </span>ownership<span style="letter-spacing:1.25pt;"> </span>position<span style="letter-spacing:1.25pt;"> </span>and<span style="letter-spacing:1.2pt;"> </span>are<span style="letter-spacing:1.25pt;"> </span>able<span style="letter-spacing:1.25pt;"> </span>to determine all matters requiring stockholder approval.<span style="letter-spacing:0.05pt;"> </span>For example, these stockholders are able<span style="letter-spacing:0.05pt;"> </span>to control elections<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>directors,<span style="letter-spacing:0.15pt;"> </span>amendments<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>organizational<span style="letter-spacing:0.2pt;"> </span>documents<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>approval<span style="letter-spacing:0.1pt;"> </span>of any merger,<span style="letter-spacing:0.1pt;"> </span>sale<span style="letter-spacing:0.05pt;"> </span>of assets<span style="letter-spacing:0.05pt;"> </span>or other<span style="letter-spacing:0.1pt;"> </span>major<span style="letter-spacing:0.1pt;"> </span>corporate<span style="letter-spacing:0.15pt;"> </span>transaction.<span style="letter-spacing:0.15pt;"> </span>This<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>prevent<span style="letter-spacing:0.1pt;"> </span>or discourage<span style="letter-spacing:0.1pt;"> </span>unsolicited<span style="letter-spacing:0.1pt;"> </span>acquisition<span style="letter-spacing:0.1pt;"> </span>proposals<span style="letter-spacing:0.05pt;"> </span>or offers<span style="letter-spacing:0.1pt;"> </span>for our<span style="letter-spacing:1.05pt;"> </span>common<span style="letter-spacing:1.1pt;"> </span>stock<span style="letter-spacing:1.1pt;"> </span>that<span style="letter-spacing:1.1pt;"> </span>you<span style="letter-spacing:1.05pt;"> </span>may<span style="letter-spacing:1.1pt;"> </span>feel<span style="letter-spacing:1.1pt;"> </span>are<span style="letter-spacing:1.1pt;"> </span>in<span style="letter-spacing:1.05pt;"> </span>your<span style="letter-spacing:1.05pt;"> </span>best<span style="letter-spacing:1.05pt;"> </span>interest<span style="letter-spacing:1.1pt;"> </span>as<span style="letter-spacing:1pt;"> </span>one<span style="letter-spacing:1pt;"> </span>of<span style="letter-spacing:1pt;"> </span>our<span style="letter-spacing:1pt;"> </span>stockholders.<span style="letter-spacing:1.1pt;"> </span>The<span style="letter-spacing:1pt;"> </span>interests<span style="letter-spacing:1.1pt;"> </span>of<span style="letter-spacing:1pt;"> </span>this group<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>stockholders<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>not always<span style="letter-spacing:0.05pt;"> </span>coincide<span style="letter-spacing:0.05pt;"> </span>with your interests<span style="letter-spacing:0.1pt;"> </span>or the<span style="letter-spacing:0.05pt;"> </span>interests<span style="letter-spacing:0.1pt;"> </span>of other<span style="letter-spacing:0.05pt;"> </span>stockholders<span style="letter-spacing:0.1pt;"> </span>and they may<span style="letter-spacing:0.1pt;"> </span>act<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>manner<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>advances<span style="letter-spacing:0.05pt;"> </span>their<span style="letter-spacing:0.05pt;"> </span>best<span style="letter-spacing:0.05pt;"> </span>interests<span style="letter-spacing:0.1pt;"> </span>and not necessarily<span style="letter-spacing:0.1pt;"> </span>those<span style="letter-spacing:0.05pt;"> </span>of other<span style="letter-spacing:0.05pt;"> </span>stockholders,<span style="letter-spacing:0.1pt;"> </span>including seeking<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>premium<span style="letter-spacing:0.15pt;"> </span>value<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>their<span style="letter-spacing:0.1pt;"> </span>common<span style="letter-spacing:0.1pt;"> </span>stock,<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>might<span style="letter-spacing:0.1pt;"> </span>affect<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>prevailing<span style="letter-spacing:0.15pt;"> </span>market<span style="letter-spacing:0.15pt;"> </span>price<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>our common stock.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">The dual class<span style="letter-spacing:0.05pt;"> </span>structure<span style="letter-spacing:0.05pt;"> </span>of our common<span style="letter-spacing:0.05pt;"> </span>stock<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>limit<span style="letter-spacing:0.1pt;"> </span>your ability<span style="letter-spacing:0.1pt;"> </span>to influence<span style="letter-spacing:0.05pt;"> </span>corporate<span style="letter-spacing:0.05pt;"> </span>matters<span style="letter-spacing:0.1pt;"> </span>and may<span style="letter-spacing:0.05pt;"> </span>limit<span style="letter-spacing:0.1pt;"> </span>your visibility<span style="letter-spacing:0.15pt;"> </span>with respect<span style="letter-spacing:0.05pt;"> </span>to certain<span style="letter-spacing:0.05pt;"> </span>transactions.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The<span style="letter-spacing:0.05pt;"> </span>dual<span style="letter-spacing:0.1pt;"> </span>class<span style="letter-spacing:0.1pt;"> </span>structure<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>common<span style="letter-spacing:0.1pt;"> </span>stock<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>limit<span style="letter-spacing:0.15pt;"> </span>your<span style="letter-spacing:0.05pt;"> </span>ability<span style="letter-spacing:0.1pt;"> </span>to influence<span style="letter-spacing:0.1pt;"> </span>corporate<span style="letter-spacing:0.1pt;"> </span>matters.<span style="letter-spacing:0.1pt;"> </span>Holders of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>common<span style="letter-spacing:0.1pt;"> </span>stock<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>entitled<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>one vote<span style="letter-spacing:0.05pt;"> </span>per<span style="letter-spacing:0.05pt;"> </span>share,<span style="letter-spacing:0.05pt;"> </span>while<span style="letter-spacing:0.05pt;"> </span>holders<span style="letter-spacing:0.05pt;"> </span>of our non-voting<span style="letter-spacing:0.05pt;"> </span>common<span style="letter-spacing:0.05pt;"> </span>stock<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>not entitled<span style="letter-spacing:0.1pt;"> </span>to any votes.<span style="letter-spacing:0.05pt;"> </span>Nonetheless,<span style="letter-spacing:0.05pt;"> </span>each<span style="letter-spacing:0.05pt;"> </span>share<span style="letter-spacing:0.05pt;"> </span>of our non-voting<span style="letter-spacing:0.05pt;"> </span>common<span style="letter-spacing:0.05pt;"> </span>stock<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be converted<span style="letter-spacing:0.05pt;"> </span>at<span style="letter-spacing:0.05pt;"> </span>any time into one<span style="letter-spacing:0.05pt;"> </span>share<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>common<span style="letter-spacing:0.1pt;"> </span>stock<span style="letter-spacing:0.1pt;"> </span>at<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>option<span style="letter-spacing:0.1pt;"> </span>of its<span style="letter-spacing:0.05pt;"> </span>holder<span style="letter-spacing:0.05pt;"> </span>by providing<span style="letter-spacing:0.05pt;"> </span>written<span style="letter-spacing:0.05pt;"> </span>notice<span style="letter-spacing:0.05pt;"> </span>to us, subject<span style="letter-spacing:0.05pt;"> </span>to the limitations<span style="letter-spacing:0.2pt;"> </span>provided<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>restated<span style="letter-spacing:0.15pt;"> </span>certificate<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>incorporation.<span style="letter-spacing:0.15pt;"> </span>Consequently,<span style="letter-spacing:0.1pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>holders<span style="letter-spacing:0.05pt;"> </span>of our non-voting common<span style="letter-spacing:0.1pt;"> </span>stock<span style="letter-spacing:0.1pt;"> </span>exercise<span style="letter-spacing:0.15pt;"> </span>their<span style="letter-spacing:0.1pt;"> </span>option<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>make<span style="letter-spacing:0.1pt;"> </span>this<span style="letter-spacing:0.1pt;"> </span>conversion,<span style="letter-spacing:0.05pt;"> </span>this<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>have the<span style="letter-spacing:0.05pt;"> </span>effect<span style="letter-spacing:0.1pt;"> </span>of increasing<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>relative voting<span style="letter-spacing:0.1pt;"> </span>power<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>those<span style="letter-spacing:0.1pt;"> </span>prior<span style="letter-spacing:0.1pt;"> </span>holders<span style="letter-spacing:0.1pt;"> </span>of our non-voting<span style="letter-spacing:0.05pt;"> </span>common<span style="letter-spacing:0.05pt;"> </span>stock,<span style="letter-spacing:0.05pt;"> </span>and correspondingly<span style="letter-spacing:0.1pt;"> </span>decreasing<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>voting power<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>holders<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>common<span style="letter-spacing:0.1pt;"> </span>stock,<span style="letter-spacing:0.1pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>limit<span style="letter-spacing:0.15pt;"> </span>your<span style="letter-spacing:0.05pt;"> </span>ability<span style="letter-spacing:0.1pt;"> </span>to influence<span style="letter-spacing:0.1pt;"> </span>corporate<span style="letter-spacing:0.1pt;"> </span>matters.<span style="letter-spacing:0.1pt;"> </span>For example,<span style="letter-spacing:1.05pt;"> </span>at<span style="letter-spacing:1.05pt;"> </span>June 30,<span style="letter-spacing:1pt;"> </span>2021,<span style="letter-spacing:1pt;"> </span>the<span style="letter-spacing:1.05pt;"> </span>common<span style="letter-spacing:1.05pt;"> </span>stock<span style="letter-spacing:1.05pt;"> </span>will<span style="letter-spacing:1.05pt;"> </span>have<span style="letter-spacing:0.95pt;"> </span>100%<span style="letter-spacing:0.95pt;"> </span>of<span style="letter-spacing:0.95pt;"> </span>the<span style="letter-spacing:1pt;"> </span>voting<span style="letter-spacing:1pt;"> </span>power,<span style="letter-spacing:0.95pt;"> </span>but<span style="letter-spacing:0.95pt;"> </span>if<span style="letter-spacing:1pt;"> </span>the<span style="letter-spacing:1pt;"> </span>holders<span style="letter-spacing:1pt;"> </span>of non-voting<span style="letter-spacing:0.1pt;"> </span>common<span style="letter-spacing:0.1pt;"> </span>stock<span style="letter-spacing:0.1pt;"> </span>were to convert<span style="letter-spacing:0.05pt;"> </span>all<span style="letter-spacing:0.05pt;"> </span>of their<span style="letter-spacing:0.05pt;"> </span>shares<span style="letter-spacing:0.05pt;"> </span>into<span style="letter-spacing:0.05pt;"> </span>common<span style="letter-spacing:0.05pt;"> </span>stock,<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>prior<span style="letter-spacing:0.05pt;"> </span>common<span style="letter-spacing:0.05pt;"> </span>stock<span style="letter-spacing:0.05pt;"> </span>would have<span style="letter-spacing:0.05pt;"> </span>75.8%<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>voting<span style="letter-spacing:0.1pt;"> </span>power,<span style="letter-spacing:0.05pt;"> </span>and the<span style="letter-spacing:0.05pt;"> </span>former<span style="letter-spacing:0.1pt;"> </span>non-voting<span style="letter-spacing:0.05pt;"> </span>common<span style="letter-spacing:0.05pt;"> </span>stock<span style="letter-spacing:0.05pt;"> </span>would represent<span style="letter-spacing:0.1pt;"> </span>24.2% of the<span style="letter-spacing:0.05pt;"> </span>voting power. Additionally, stockholders who hold, in the aggregate, more than 10% of our common stock and non-voting<span style="letter-spacing:2.15pt;"> </span>common<span style="letter-spacing:2.15pt;"> </span>stock,<span style="letter-spacing:2.15pt;"> </span>but<span style="letter-spacing:2.1pt;"> </span>10%<span style="letter-spacing:2.1pt;"> </span>or<span style="letter-spacing:2.1pt;"> </span>less<span style="letter-spacing:2.15pt;"> </span>of<span style="letter-spacing:2.1pt;"> </span>our<span style="letter-spacing:2.1pt;"> </span>common<span style="letter-spacing:2.15pt;"> </span>stock,<span style="letter-spacing:2.15pt;"> </span>and<span style="letter-spacing:2.1pt;"> </span>are<span style="letter-spacing:2.15pt;"> </span>not<span style="letter-spacing:2.1pt;"> </span>otherwise<span style="letter-spacing:2.1pt;"> </span>an<span style="letter-spacing:2.05pt;"> </span>insider<span style="letter-spacing:2.15pt;"> </span>of<span style="letter-spacing:2.05pt;"> </span>the company,<span style="letter-spacing:2.35pt;"> </span>may<span style="letter-spacing:2.35pt;"> </span>not<span style="letter-spacing:2.3pt;"> </span>be<span style="letter-spacing:2.3pt;"> </span>required<span style="letter-spacing:2.4pt;"> </span>to<span style="letter-spacing:2.3pt;"> </span>report<span style="letter-spacing:2.35pt;"> </span>changes<span style="letter-spacing:2.35pt;"> </span>in<span style="letter-spacing:2.3pt;"> </span>their<span style="letter-spacing:2.35pt;"> </span>ownership<span style="letter-spacing:2.35pt;"> </span>due<span style="letter-spacing:2.3pt;"> </span>to<span style="letter-spacing:2.3pt;"> </span>transactions<span style="letter-spacing:2.45pt;"> </span>in<span style="letter-spacing:2.3pt;"> </span>our<span style="letter-spacing:2.25pt;"> </span>non-voting common<span style="letter-spacing:0.05pt;"> </span>stock<span style="letter-spacing:0.05pt;"> </span>pursuant<span style="letter-spacing:0.05pt;"> </span>to Section<span style="letter-spacing:0.05pt;"> </span>16(a)<span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>Securities<span style="letter-spacing:0.1pt;"> </span>Exchange Act of 1934, as amended,<span style="letter-spacing:0.05pt;"> </span>or the Exchange Act, and may<span style="letter-spacing:0.05pt;"> </span>not be subject<span style="letter-spacing:0.05pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>short-swing<span style="letter-spacing:0.1pt;"> </span>profit<span style="letter-spacing:0.1pt;"> </span>provisions<span style="letter-spacing:0.1pt;"> </span>of Section<span style="letter-spacing:0.05pt;"> </span>16(b)<span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>Exchange Act.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We are an &#8220;emerging<span style="letter-spacing:0.05pt;"> </span>growth company&#8221;<span style="letter-spacing:0.05pt;"> </span>and a &#8220;smaller<span style="letter-spacing:0.1pt;"> </span>reporting<span style="letter-spacing:0.05pt;"> </span>company&#8221;<span style="letter-spacing:0.05pt;"> </span>and we cannot be certain<span style="letter-spacing:0.05pt;"> </span>if the reduced<span style="letter-spacing:0.05pt;"> </span>reporting<span style="letter-spacing:0.05pt;"> </span>requirements<span style="letter-spacing:0.1pt;"> </span>applicable<span style="letter-spacing:0.1pt;"> </span>to emerging<span style="letter-spacing:0.05pt;"> </span>growth companies<span style="letter-spacing:0.05pt;"> </span>or smaller<span style="letter-spacing:0.1pt;"> </span>reporting companies<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>make<span style="letter-spacing:0.05pt;"> </span>our common<span style="letter-spacing:0.05pt;"> </span>stock<span style="letter-spacing:0.05pt;"> </span>less<span style="letter-spacing:0.05pt;"> </span>attractive<span style="letter-spacing:0.1pt;"> </span>to investors.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.65pt;"> </span>are<span style="letter-spacing:0.7pt;"> </span>an<span style="letter-spacing:0.65pt;"> </span>&#8220;emerging<span style="letter-spacing:0.75pt;"> </span>growth<span style="letter-spacing:0.65pt;"> </span>company&#8221;<span style="letter-spacing:0.7pt;"> </span>as<span style="letter-spacing:0.65pt;"> </span>defined<span style="letter-spacing:0.7pt;"> </span>in<span style="letter-spacing:0.65pt;"> </span>the<span style="letter-spacing:0.7pt;"> </span>Jumpstart<span style="letter-spacing:0.75pt;"> </span>Our<span style="letter-spacing:0.65pt;"> </span>Business<span style="letter-spacing:0.7pt;"> </span>Startups<span style="letter-spacing:0.7pt;"> </span>Act<span style="letter-spacing:0.65pt;"> </span>of<span style="letter-spacing:0.65pt;"> </span>2012,<span style="letter-spacing:0.6pt;"> </span>or the<span style="letter-spacing:1.9pt;"> </span>JOBS<span style="letter-spacing:1.8pt;"> </span>Act.<span style="letter-spacing:1.85pt;"> </span>For<span style="letter-spacing:1.85pt;"> </span>as<span style="letter-spacing:1.85pt;"> </span>long<span style="letter-spacing:1.85pt;"> </span>as<span style="letter-spacing:1.85pt;"> </span>we<span style="letter-spacing:1.85pt;"> </span>continue<span style="letter-spacing:1.9pt;"> </span>to<span style="letter-spacing:1.85pt;"> </span>be<span style="letter-spacing:1.85pt;"> </span>an<span style="letter-spacing:1.85pt;"> </span>emerging<span style="letter-spacing:1.9pt;"> </span>growth<span style="letter-spacing:1.8pt;"> </span>company,<span style="letter-spacing:1.85pt;"> </span>we<span style="letter-spacing:1.8pt;"> </span>may<span style="letter-spacing:1.85pt;"> </span>take<span style="letter-spacing:1.85pt;"> </span>advantage<span style="letter-spacing:1.85pt;"> </span>of exemptions<span style="letter-spacing:0.15pt;"> </span>from<span style="letter-spacing:0.1pt;"> </span>various<span style="letter-spacing:0.1pt;"> </span>reporting<span style="letter-spacing:0.15pt;"> </span>requirements<span style="letter-spacing:0.2pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>applicable<span style="letter-spacing:0.1pt;"> </span>to other<span style="letter-spacing:0.05pt;"> </span>public<span style="letter-spacing:0.05pt;"> </span>companies<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>not emerging<span style="letter-spacing:0.15pt;"> </span>growth<span style="letter-spacing:0.05pt;"> </span>companies,<span style="letter-spacing:0.15pt;"> </span>including<span style="letter-spacing:0.1pt;"> </span>(i)<span style="letter-spacing:0.1pt;"> </span>not being<span style="letter-spacing:0.05pt;"> </span>required<span style="letter-spacing:0.1pt;"> </span>to comply<span style="letter-spacing:0.05pt;"> </span>with the<span style="letter-spacing:0.05pt;"> </span>auditor<span style="letter-spacing:0.05pt;"> </span>attestation<span style="letter-spacing:0.15pt;"> </span>requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended, or the Sarbanes-Oxley Act, (ii) reduced disclosure<span style="letter-spacing:1.25pt;"> </span>obligations<span style="letter-spacing:1.25pt;"> </span>regarding<span style="letter-spacing:1.25pt;"> </span>executive<span style="letter-spacing:1.25pt;"> </span>compensation<span style="letter-spacing:1.25pt;"> </span>in<span style="letter-spacing:1.15pt;"> </span>this<span style="letter-spacing:1.2pt;"> </span>Quarterly Report on<span style="letter-spacing:1.2pt;"> </span>Form 10-Q<span style="letter-spacing:1.2pt;"> </span>as<span style="letter-spacing:1.1pt;"> </span>well<span style="letter-spacing:1.15pt;"> </span>as<span style="letter-spacing:1.1pt;"> </span>our<span style="letter-spacing:1.1pt;"> </span>periodic<span style="letter-spacing:1.2pt;"> </span>reports<span style="letter-spacing:1.2pt;"> </span>and proxy<span style="letter-spacing:0.85pt;"> </span>statements<span style="letter-spacing:1pt;"> </span>and<span style="letter-spacing:0.85pt;"> </span>(iii)<span style="letter-spacing:0.95pt;"> </span>exemptions<span style="letter-spacing:0.95pt;"> </span>from<span style="letter-spacing:0.9pt;"> </span>the<span style="letter-spacing:0.9pt;"> </span>requirements<span style="letter-spacing:1pt;"> </span>of<span style="letter-spacing:0.85pt;"> </span>holding<span style="letter-spacing:0.9pt;"> </span>nonbinding<span style="letter-spacing:0.9pt;"> </span>advisory<span style="letter-spacing:0.9pt;"> </span>stockholder<span style="letter-spacing:0.9pt;"> </span>votes on<span style="letter-spacing:0.05pt;"> </span>executive<span style="letter-spacing:0.15pt;"> </span>compensation<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>stockholder<span style="letter-spacing:0.15pt;"> </span>approval<span style="letter-spacing:0.1pt;"> </span>of any golden<span style="letter-spacing:0.05pt;"> </span>parachute<span style="letter-spacing:0.1pt;"> </span>payments<span style="letter-spacing:0.05pt;"> </span>not approved<span style="letter-spacing:0.05pt;"> </span>previously. In<span style="letter-spacing:0.05pt;"> </span>addition,<span style="letter-spacing:0.1pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>an<span style="letter-spacing:0.05pt;"> </span>emerging<span style="letter-spacing:0.1pt;"> </span>growth company,<span style="letter-spacing:0.05pt;"> </span>we are<span style="letter-spacing:0.05pt;"> </span>only required<span style="letter-spacing:0.1pt;"> </span>to provide<span style="letter-spacing:0.05pt;"> </span>two years<span style="letter-spacing:0.05pt;"> </span>of audited<span style="letter-spacing:0.05pt;"> </span>financial statements<span style="letter-spacing:0.15pt;"> </span>and two years<span style="letter-spacing:0.05pt;"> </span>of selected<span style="letter-spacing:0.1pt;"> </span>financial<span style="letter-spacing:0.1pt;"> </span>data<span style="letter-spacing:0.05pt;"> </span>in this Quarterly Report on<span style="letter-spacing:0.05pt;"> </span>Form 10-Q.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-size:12pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">64</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We could<span style="letter-spacing:0.05pt;"> </span>be an emerging<span style="letter-spacing:0.1pt;"> </span>growth company<span style="letter-spacing:0.05pt;"> </span>until<span style="letter-spacing:0.05pt;"> </span>December<span style="letter-spacing:0.05pt;"> </span>31, 2025, although<span style="letter-spacing:0.05pt;"> </span>circumstances<span style="letter-spacing:0.15pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>cause<span style="letter-spacing:0.05pt;"> </span>us to lose<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>status<span style="letter-spacing:0.05pt;"> </span>earlier,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>we are<span style="letter-spacing:0.05pt;"> </span>deemed<span style="letter-spacing:0.05pt;"> </span>to be a &#8220;large<span style="letter-spacing:0.05pt;"> </span>accelerated<span style="letter-spacing:0.15pt;"> </span>filer,&#8221;<span style="letter-spacing:0.1pt;"> </span>which occurs<span style="letter-spacing:0.05pt;"> </span>when the market<span style="letter-spacing:0.15pt;"> </span>value<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>common<span style="letter-spacing:0.1pt;"> </span>stock<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>held<span style="letter-spacing:0.05pt;"> </span>by non-affiliates<span style="letter-spacing:0.2pt;"> </span>equals<span style="letter-spacing:0.05pt;"> </span>or exceeds<span style="letter-spacing:0.05pt;"> </span>$700 million<span style="letter-spacing:0.1pt;"> </span>as of the<span style="letter-spacing:0.05pt;"> </span>prior June<span style="letter-spacing:0.05pt;"> </span>30,<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>total<span style="letter-spacing:0.1pt;"> </span>annual<span style="letter-spacing:0.1pt;"> </span>gross<span style="letter-spacing:0.1pt;"> </span>revenue<span style="letter-spacing:0.05pt;"> </span>of $1.07 billion<span style="letter-spacing:0.1pt;"> </span>or more<span style="letter-spacing:0.05pt;"> </span>during<span style="letter-spacing:0.05pt;"> </span>any fiscal<span style="letter-spacing:0.1pt;"> </span>year<span style="letter-spacing:0.05pt;"> </span>before<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>time, in<span style="letter-spacing:0.05pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>cases<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>would<span style="letter-spacing:0.05pt;"> </span>no<span style="letter-spacing:0.05pt;"> </span>longer<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>an<span style="letter-spacing:0.05pt;"> </span>emerging<span style="letter-spacing:0.15pt;"> </span>growth<span style="letter-spacing:0.05pt;"> </span>company<span style="letter-spacing:0.1pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>following<span style="letter-spacing:0.1pt;"> </span>December<span style="letter-spacing:0.1pt;"> </span>31, or if<span style="letter-spacing:0.05pt;"> </span>we issue<span style="letter-spacing:0.1pt;"> </span>more<span style="letter-spacing:0.1pt;"> </span>than<span style="letter-spacing:0.05pt;"> </span>$1.0 billion<span style="letter-spacing:0.1pt;"> </span>in non-convertible<span style="letter-spacing:0.15pt;"> </span>debt<span style="letter-spacing:0.05pt;"> </span>during<span style="letter-spacing:0.05pt;"> </span>any three-year<span style="letter-spacing:0.1pt;"> </span>period<span style="letter-spacing:0.05pt;"> </span>before<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>time,<span style="letter-spacing:0.05pt;"> </span>in which case we<span style="letter-spacing:0.05pt;"> </span>would<span style="letter-spacing:0.05pt;"> </span>no<span style="letter-spacing:0.05pt;"> </span>longer<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>an<span style="letter-spacing:0.05pt;"> </span>emerging<span style="letter-spacing:0.15pt;"> </span>growth<span style="letter-spacing:0.05pt;"> </span>company<span style="letter-spacing:0.05pt;"> </span>immediately.<span style="letter-spacing:0.15pt;"> </span>Even after<span style="letter-spacing:0.1pt;"> </span>we no longer<span style="letter-spacing:0.05pt;"> </span>qualify<span style="letter-spacing:0.05pt;"> </span>as an emerging<span style="letter-spacing:0.1pt;"> </span>growth company,<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>still<span style="letter-spacing:0.1pt;"> </span>qualify<span style="letter-spacing:0.05pt;"> </span>as a &#8220;smaller<span style="letter-spacing:0.1pt;"> </span>reporting<span style="letter-spacing:0.1pt;"> </span>company,&#8221;<span style="letter-spacing:0.05pt;"> </span>which would allow<span style="letter-spacing:0.05pt;"> </span>us to take advantage<span style="letter-spacing:0.05pt;"> </span>of many<span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>same<span style="letter-spacing:0.05pt;"> </span>exemptions<span style="letter-spacing:0.1pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>disclosure<span style="letter-spacing:0.1pt;"> </span>requirements,<span style="letter-spacing:0.15pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>not being<span style="letter-spacing:0.05pt;"> </span>required<span style="letter-spacing:0.1pt;"> </span>to comply with<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>auditor<span style="letter-spacing:0.1pt;"> </span>attestation<span style="letter-spacing:0.2pt;"> </span>requirements<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>Section<span style="letter-spacing:0.1pt;"> </span>404<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>Sarbanes-Oxley<span style="letter-spacing:0.15pt;"> </span>Act,<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>our revenues<span style="letter-spacing:0.05pt;"> </span>remain<span style="letter-spacing:0.1pt;"> </span>less than<span style="letter-spacing:0.1pt;"> </span>$100.0<span style="letter-spacing:0.05pt;"> </span>million,<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>reduced<span style="letter-spacing:0.05pt;"> </span>disclosure<span style="letter-spacing:0.1pt;"> </span>obligations<span style="letter-spacing:0.1pt;"> </span>regarding<span style="letter-spacing:0.1pt;"> </span>executive<span style="letter-spacing:0.1pt;"> </span>compensation<span style="letter-spacing:0.1pt;"> </span>in this<span style="letter-spacing:0.05pt;"> </span>Quarterly Report on Form 10-Q<span style="letter-spacing:0.1pt;"> </span>as well<span style="letter-spacing:0.1pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>periodic<span style="letter-spacing:0.15pt;"> </span>reports<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>proxy<span style="letter-spacing:0.05pt;"> </span>statements.<span style="letter-spacing:0.2pt;"> </span>We<span style="letter-spacing:0.05pt;"> </span>cannot<span style="letter-spacing:0.1pt;"> </span>predict<span style="letter-spacing:0.15pt;"> </span>if<span style="letter-spacing:0.1pt;"> </span>investors<span style="letter-spacing:0.15pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>find<span style="letter-spacing:0.05pt;"> </span>our common<span style="letter-spacing:0.05pt;"> </span>stock<span style="letter-spacing:0.05pt;"> </span>less attractive<span style="letter-spacing:0.2pt;"> </span>because<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>rely<span style="letter-spacing:0.1pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>these<span style="letter-spacing:0.1pt;"> </span>exemptions.<span style="letter-spacing:0.15pt;"> </span>If<span style="letter-spacing:0.1pt;"> </span>some<span style="letter-spacing:0.1pt;"> </span>investors<span style="letter-spacing:0.1pt;"> </span>find<span style="letter-spacing:0.05pt;"> </span>our common<span style="letter-spacing:0.05pt;"> </span>stock<span style="letter-spacing:0.05pt;"> </span>less<span style="letter-spacing:0.05pt;"> </span>attractive<span style="letter-spacing:0.15pt;"> </span>as a result,<span style="letter-spacing:0.1pt;"> </span>there<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be a less<span style="letter-spacing:0.05pt;"> </span>active<span style="letter-spacing:0.05pt;"> </span>trading<span style="letter-spacing:0.05pt;"> </span>market<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>our common<span style="letter-spacing:0.05pt;"> </span>stock<span style="letter-spacing:0.05pt;"> </span>and our share<span style="letter-spacing:0.05pt;"> </span>price<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>be more<span style="letter-spacing:0.05pt;"> </span>volatile.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Under<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>JOBS Act,<span style="letter-spacing:0.05pt;"> </span>emerging<span style="letter-spacing:0.15pt;"> </span>growth<span style="letter-spacing:0.05pt;"> </span>companies<span style="letter-spacing:0.15pt;"> </span>can also<span style="letter-spacing:0.05pt;"> </span>delay<span style="letter-spacing:0.05pt;"> </span>adopting<span style="letter-spacing:0.05pt;"> </span>new or revised<span style="letter-spacing:0.05pt;"> </span>accounting standards<span style="letter-spacing:0.15pt;"> </span>until<span style="letter-spacing:0.1pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>time<span style="letter-spacing:0.05pt;"> </span>as those<span style="letter-spacing:0.05pt;"> </span>standards<span style="letter-spacing:0.1pt;"> </span>apply<span style="letter-spacing:0.05pt;"> </span>to private<span style="letter-spacing:0.1pt;"> </span>companies.<span style="letter-spacing:0.1pt;"> </span>We have elected<span style="letter-spacing:0.1pt;"> </span>to take<span style="letter-spacing:0.05pt;"> </span>advantage<span style="letter-spacing:0.05pt;"> </span>of the benefits<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>this<span style="letter-spacing:0.05pt;"> </span>extended<span style="letter-spacing:0.05pt;"> </span>transition<span style="letter-spacing:0.1pt;"> </span>period.<span style="letter-spacing:0.05pt;"> </span>Our financial<span style="letter-spacing:0.1pt;"> </span>statements<span style="letter-spacing:0.15pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>therefore<span style="letter-spacing:0.1pt;"> </span>not be comparable<span style="letter-spacing:0.1pt;"> </span>to those<span style="letter-spacing:0.05pt;"> </span>of companies<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>comply<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>new<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>revised<span style="letter-spacing:0.1pt;"> </span>accounting<span style="letter-spacing:0.1pt;"> </span>standards.<span style="letter-spacing:0.15pt;"> </span>Until<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>date<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>we are<span style="letter-spacing:0.05pt;"> </span>no longer<span style="letter-spacing:0.05pt;"> </span>an &#8220;emerging growth company&#8221; or affirmatively and irrevocably opt out of the exemption provided by Section<span style="letter-spacing:0.95pt;"> </span>7(a)(2)(B)<span style="letter-spacing:1pt;"> </span>of<span style="letter-spacing:0.9pt;"> </span>the<span style="letter-spacing:0.95pt;"> </span>Securities<span style="letter-spacing:1pt;"> </span>Act,<span style="letter-spacing:0.9pt;"> </span>upon<span style="letter-spacing:0.9pt;"> </span>issuance<span style="letter-spacing:0.95pt;"> </span>of<span style="letter-spacing:0.9pt;"> </span>a<span style="letter-spacing:0.9pt;"> </span>new<span style="letter-spacing:0.9pt;"> </span>or<span style="letter-spacing:0.9pt;"> </span>revised<span style="letter-spacing:0.95pt;"> </span>accounting<span style="letter-spacing:0.95pt;"> </span>standard<span style="letter-spacing:0.95pt;"> </span>that<span style="letter-spacing:0.95pt;"> </span>applies<span style="letter-spacing:0.95pt;"> </span>to our financial<span style="letter-spacing:0.1pt;"> </span>statements<span style="letter-spacing:0.15pt;"> </span>and that<span style="letter-spacing:0.05pt;"> </span>has a different<span style="letter-spacing:0.1pt;"> </span>effective<span style="letter-spacing:0.1pt;"> </span>date<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>public<span style="letter-spacing:0.05pt;"> </span>and private<span style="letter-spacing:0.1pt;"> </span>companies,<span style="letter-spacing:0.1pt;"> </span>we will<span style="letter-spacing:0.05pt;"> </span>disclose the<span style="letter-spacing:0.1pt;"> </span>date<span style="letter-spacing:0.1pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>adoption<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>required<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>non-emerging<span style="letter-spacing:0.15pt;"> </span>growth<span style="letter-spacing:0.05pt;"> </span>companies<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>date<span style="letter-spacing:0.05pt;"> </span>on which we will<span style="letter-spacing:0.05pt;"> </span>adopt the<span style="letter-spacing:0.05pt;"> </span>recently<span style="letter-spacing:0.1pt;"> </span>issued<span style="letter-spacing:0.05pt;"> </span>accounting<span style="letter-spacing:0.05pt;"> </span>standard.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-size:12pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We are also a &#8220;smaller reporting company,&#8221; meaning that the market value of our stock held by non-affiliates<span style="letter-spacing:0.25pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>less<span style="letter-spacing:0.1pt;"> </span>than<span style="letter-spacing:0.1pt;"> </span>$700.0<span style="letter-spacing:0.05pt;"> </span>million as of the prior June 30<span style="letter-spacing:0.1pt;"> </span>and our annual<span style="letter-spacing:0.05pt;"> </span>revenue<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>less<span style="letter-spacing:0.05pt;"> </span>than<span style="letter-spacing:0.05pt;"> </span>$100.0 million<span style="letter-spacing:0.1pt;"> </span>during<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>most recently<span style="letter-spacing:0.15pt;"> </span>completed<span style="letter-spacing:0.15pt;"> </span>fiscal<span style="letter-spacing:0.15pt;"> </span>year.<span style="letter-spacing:0.1pt;"> </span>We<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>continue<span style="letter-spacing:0.05pt;"> </span>to be a smaller<span style="letter-spacing:0.1pt;"> </span>reporting<span style="letter-spacing:0.1pt;"> </span>company<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>either<span style="letter-spacing:0.1pt;"> </span>(i)<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>market<span style="letter-spacing:0.1pt;"> </span>value of our stock held by non-affiliates is less than $250.0 million or (ii) our annual revenue is less than $100.0<span style="letter-spacing:2.35pt;"> </span>million<span style="letter-spacing:2.45pt;"> </span>during<span style="letter-spacing:2.4pt;"> </span>the<span style="letter-spacing:2.4pt;"> </span>most<span style="letter-spacing:2.4pt;"> </span>recently<span style="letter-spacing:2.45pt;"> </span>completed<span style="letter-spacing:2.45pt;"> </span>fiscal<span style="letter-spacing:2.45pt;"> </span>year<span style="letter-spacing:2.4pt;"> </span>and<span style="letter-spacing:2.35pt;"> </span>the<span style="letter-spacing:2.4pt;"> </span>market<span style="letter-spacing:2.45pt;"> </span>value<span style="letter-spacing:2.35pt;"> </span>of<span style="letter-spacing:2.3pt;"> </span>our<span style="letter-spacing:2.3pt;"> </span>stock<span style="letter-spacing:2.35pt;"> </span>held<span style="letter-spacing:2.35pt;"> </span>by non-affiliates<span style="letter-spacing:0.25pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>less<span style="letter-spacing:0.05pt;"> </span>than<span style="letter-spacing:0.05pt;"> </span>$700.0 million as of the prior June 30.<span style="letter-spacing:0.1pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>we are<span style="letter-spacing:0.05pt;"> </span>a smaller<span style="letter-spacing:0.1pt;"> </span>reporting<span style="letter-spacing:0.1pt;"> </span>company<span style="letter-spacing:0.05pt;"> </span>at<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>time<span style="letter-spacing:0.05pt;"> </span>we cease<span style="letter-spacing:0.05pt;"> </span>to be an emerging<span style="letter-spacing:0.1pt;"> </span>growth company,<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>continue<span style="letter-spacing:0.05pt;"> </span>to rely<span style="letter-spacing:0.05pt;"> </span>on exemptions<span style="letter-spacing:0.1pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>certain<span style="letter-spacing:0.1pt;"> </span>disclosure<span style="letter-spacing:0.1pt;"> </span>requirements<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>are available<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>smaller<span style="letter-spacing:0.15pt;"> </span>reporting<span style="letter-spacing:0.15pt;"> </span>companies.<span style="letter-spacing:0.1pt;"> </span>Specifically,<span style="letter-spacing:0.15pt;"> </span>as a smaller<span style="letter-spacing:0.1pt;"> </span>reporting<span style="letter-spacing:0.1pt;"> </span>company<span style="letter-spacing:0.05pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>choose<span style="letter-spacing:0.05pt;"> </span>to present only<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>two<span style="letter-spacing:0.05pt;"> </span>most<span style="letter-spacing:0.1pt;"> </span>recent<span style="letter-spacing:0.1pt;"> </span>fiscal<span style="letter-spacing:0.15pt;"> </span>years<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>audited<span style="letter-spacing:0.1pt;"> </span>financial<span style="letter-spacing:0.15pt;"> </span>statements<span style="letter-spacing:0.15pt;"> </span>in our Annual Report<span style="letter-spacing:0.05pt;"> </span>on Form<span style="letter-spacing:0.05pt;"> </span>10-K and, similar to emerging growth companies, smaller reporting companies have reduced disclosure obligations regarding<span style="letter-spacing:0.1pt;"> </span>executive<span style="letter-spacing:0.1pt;"> </span>compensation.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Anti-takeover<span style="letter-spacing:0.1pt;"> </span>provisions<span style="letter-spacing:0.05pt;"> </span>in our charter<span style="letter-spacing:0.05pt;"> </span>documents<span style="letter-spacing:0.05pt;"> </span>and under Delaware law could prevent<span style="letter-spacing:0.05pt;"> </span>or delay<span style="letter-spacing:0.05pt;"> </span>an acquisition<span style="letter-spacing:0.1pt;"> </span>of us, which may<span style="letter-spacing:0.05pt;"> </span>be beneficial<span style="letter-spacing:0.1pt;"> </span>to our stockholders,<span style="letter-spacing:0.1pt;"> </span>and may<span style="letter-spacing:0.05pt;"> </span>prevent<span style="letter-spacing:0.05pt;"> </span>attempts<span style="letter-spacing:0.1pt;"> </span>by our stockholders<span style="letter-spacing:0.1pt;"> </span>to replace<span style="letter-spacing:0.05pt;"> </span>or remove<span style="letter-spacing:0.05pt;"> </span>our current<span style="letter-spacing:0.05pt;"> </span>management.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our restated<span style="letter-spacing:0.1pt;"> </span>certificate<span style="letter-spacing:0.15pt;"> </span>of incorporation<span style="letter-spacing:0.1pt;"> </span>and our restated<span style="letter-spacing:0.1pt;"> </span>bylaws contain<span style="letter-spacing:0.05pt;"> </span>provisions<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>could delay or prevent<span style="letter-spacing:1.25pt;"> </span>a<span style="letter-spacing:1.2pt;"> </span>change<span style="letter-spacing:1.25pt;"> </span>in<span style="letter-spacing:1.15pt;"> </span>control<span style="letter-spacing:1.2pt;"> </span>of<span style="letter-spacing:1.15pt;"> </span>our<span style="letter-spacing:1.15pt;"> </span>company.<span style="letter-spacing:1.2pt;"> </span>These<span style="letter-spacing:1.15pt;"> </span>provisions<span style="letter-spacing:1.25pt;"> </span>could<span style="letter-spacing:1.2pt;"> </span>also<span style="letter-spacing:1.2pt;"> </span>make<span style="letter-spacing:1.2pt;"> </span>it<span style="letter-spacing:1.2pt;"> </span>difficult<span style="letter-spacing:1.3pt;"> </span>for<span style="letter-spacing:1.2pt;"> </span>stockholders<span style="letter-spacing:1.25pt;"> </span>to elect<span style="letter-spacing:1.75pt;"> </span>directors<span style="letter-spacing:1.8pt;"> </span>who<span style="letter-spacing:1.7pt;"> </span>are<span style="letter-spacing:1.75pt;"> </span>not<span style="letter-spacing:1.7pt;"> </span>nominated<span style="letter-spacing:1.75pt;"> </span>by<span style="letter-spacing:1.65pt;"> </span>current<span style="letter-spacing:1.75pt;"> </span>members<span style="letter-spacing:1.75pt;"> </span>of<span style="letter-spacing:1.65pt;"> </span>our<span style="letter-spacing:1.65pt;"> </span>board<span style="letter-spacing:1.7pt;"> </span>of<span style="letter-spacing:1.65pt;"> </span>directors<span style="letter-spacing:1.75pt;"> </span>or<span style="letter-spacing:1.65pt;"> </span>take<span style="letter-spacing:1.7pt;"> </span>other<span style="letter-spacing:1.7pt;"> </span>corporate actions,<span style="letter-spacing:0.05pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>effecting<span style="letter-spacing:0.1pt;"> </span>changes<span style="letter-spacing:0.05pt;"> </span>in our management.<span style="letter-spacing:0.1pt;"> </span>These provisions:</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">establish<span style="letter-spacing:0.1pt;"> </span>a classified<span style="letter-spacing:0.15pt;"> </span>board<span style="letter-spacing:0.05pt;"> </span>of directors<span style="letter-spacing:0.1pt;"> </span>so that<span style="letter-spacing:0.05pt;"> </span>not all<span style="letter-spacing:0.05pt;"> </span>members<span style="letter-spacing:0.1pt;"> </span>of our board<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>elected<span style="letter-spacing:0.1pt;"> </span>at<span style="letter-spacing:0.05pt;"> </span>one time&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">permit<span style="letter-spacing:0.1pt;"> </span>only the<span style="letter-spacing:0.05pt;"> </span>board<span style="letter-spacing:0.05pt;"> </span>of directors<span style="letter-spacing:0.1pt;"> </span>to establish<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>number<span style="letter-spacing:0.05pt;"> </span>of directors<span style="letter-spacing:0.1pt;"> </span>and fill<span style="letter-spacing:0.1pt;"> </span>vacancies<span style="letter-spacing:0.1pt;"> </span>on the<span style="letter-spacing:0.05pt;"> </span>board&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">provide<span style="letter-spacing:0.2pt;"> </span>that<span style="letter-spacing:0.15pt;"> </span>directors<span style="letter-spacing:0.2pt;"> </span>may<span style="letter-spacing:0.15pt;"> </span>only<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.1pt;"> </span>removed<span style="letter-spacing:0.15pt;"> </span>&#8220;for<span style="letter-spacing:0.15pt;"> </span>cause&#8221;<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.1pt;"> </span>only<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.15pt;"> </span>approval<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.1pt;"> </span>two-thirds<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.1pt;"> </span>our stockholders&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">require<span style="letter-spacing:0.4pt;"> </span>super-majority<span style="letter-spacing:0.45pt;"> </span>voting<span style="letter-spacing:0.35pt;"> </span>to<span style="letter-spacing:0.3pt;"> </span>amend<span style="letter-spacing:0.35pt;"> </span>some<span style="letter-spacing:0.35pt;"> </span>provisions<span style="letter-spacing:0.4pt;"> </span>in<span style="letter-spacing:0.3pt;"> </span>our<span style="letter-spacing:0.3pt;"> </span>restated<span style="letter-spacing:0.4pt;"> </span>certificate<span style="letter-spacing:0.4pt;"> </span>of<span style="letter-spacing:0.25pt;"> </span>incorporation<span style="letter-spacing:0.35pt;"> </span>and restated<span style="letter-spacing:0.1pt;"> </span>bylaws&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">authorize<span style="letter-spacing:2.3pt;"> </span>the<span style="letter-spacing:2.2pt;"> </span>issuance<span style="letter-spacing:2.2pt;"> </span>of<span style="letter-spacing:2.15pt;"> </span>&#8220;blank<span style="letter-spacing:2.2pt;"> </span>check&#8221;<span style="letter-spacing:2.2pt;"> </span>preferred<span style="letter-spacing:2.25pt;"> </span>stock<span style="letter-spacing:2.2pt;"> </span>that<span style="letter-spacing:2.2pt;"> </span>our<span style="letter-spacing:2.15pt;"> </span>board<span style="letter-spacing:2.2pt;"> </span>could<span style="letter-spacing:2.2pt;"> </span>use<span style="letter-spacing:2.15pt;"> </span>to<span style="letter-spacing:2.15pt;"> </span>implement<span style="letter-spacing:2.25pt;"> </span>a stockholder<span style="letter-spacing:0.1pt;"> </span>rights<span style="letter-spacing:0.05pt;"> </span>plan&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">eliminate<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>ability<span style="letter-spacing:0.1pt;"> </span>of our stockholders<span style="letter-spacing:0.1pt;"> </span>to call<span style="letter-spacing:0.05pt;"> </span>special<span style="letter-spacing:0.1pt;"> </span>meetings<span style="letter-spacing:0.1pt;"> </span>of stockholders&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">prohibit<span style="letter-spacing:0.9pt;"> </span>stockholder<span style="letter-spacing:0.9pt;"> </span>action<span style="letter-spacing:0.85pt;"> </span>by<span style="letter-spacing:0.75pt;"> </span>written<span style="letter-spacing:0.8pt;"> </span>consent,<span style="letter-spacing:0.8pt;"> </span>which<span style="letter-spacing:0.75pt;"> </span>requires<span style="letter-spacing:0.85pt;"> </span>all<span style="letter-spacing:0.8pt;"> </span>stockholder<span style="letter-spacing:0.85pt;"> </span>actions<span style="letter-spacing:0.8pt;"> </span>to<span style="letter-spacing:0.75pt;"> </span>be<span style="letter-spacing:0.75pt;"> </span>taken<span style="letter-spacing:0.8pt;"> </span>at<span style="letter-spacing:0.8pt;"> </span>a meeting<span style="letter-spacing:0.1pt;"> </span>of our stockholders&#59;</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:5.5pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">prohibit<span style="letter-spacing:0.1pt;"> </span>cumulative<span style="letter-spacing:0.1pt;"> </span>voting&#59;<span style="letter-spacing:0.05pt;"> </span>and</p></td></tr></table></div>
<p style="margin-top:0pt;line-height:6pt;margin-bottom:0pt;margin-left:7.41%;text-indent:-3.7%;font-size:6pt;">&#160;</p>
<div style="align:left;">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="width:3.7%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</span></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">establish<span style="letter-spacing:2.45pt;"> </span>advance<span style="letter-spacing:2.4pt;"> </span>notice<span style="letter-spacing:2.35pt;"> </span>requirements<span style="letter-spacing:2.45pt;"> </span>for<span style="letter-spacing:2.35pt;"> </span>nominations<span style="letter-spacing:2.4pt;"> </span>for<span style="letter-spacing:2.35pt;"> </span>election<span style="letter-spacing:2.4pt;"> </span>to<span style="letter-spacing:2.3pt;"> </span>our<span style="letter-spacing:2.3pt;"> </span>board<span style="letter-spacing:2.35pt;"> </span>or<span style="letter-spacing:2.3pt;"> </span>for<span style="letter-spacing:2.35pt;"> </span>proposing matters<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>can be acted<span style="letter-spacing:0.05pt;"> </span>upon by stockholders<span style="letter-spacing:0.1pt;"> </span>at<span style="letter-spacing:0.05pt;"> </span>annual<span style="letter-spacing:0.05pt;"> </span>stockholder<span style="letter-spacing:0.1pt;"> </span>meetings.</p></td></tr></table></div>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">65</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-top:0pt;line-height:11pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In<span style="letter-spacing:1.3pt;"> </span>addition,<span style="letter-spacing:1.35pt;"> </span>Section<span style="letter-spacing:1.35pt;"> </span>203<span style="letter-spacing:1.3pt;"> </span>of<span style="letter-spacing:1.3pt;"> </span>the<span style="letter-spacing:1.35pt;"> </span>Delaware<span style="letter-spacing:1.35pt;"> </span>General<span style="letter-spacing:1.35pt;"> </span>Corporation<span style="letter-spacing:1.35pt;"> </span>Law,<span style="letter-spacing:1.3pt;"> </span>or<span style="letter-spacing:1.25pt;"> </span>DGCL,<span style="letter-spacing:1.2pt;"> </span>may<span style="letter-spacing:1.3pt;"> </span>discourage,<span style="letter-spacing:1.35pt;"> </span>delay<span style="letter-spacing:1.3pt;"> </span>or prevent<span style="letter-spacing:0.05pt;"> </span>a change<span style="letter-spacing:0.05pt;"> </span>in control<span style="letter-spacing:0.05pt;"> </span>of our company.<span style="letter-spacing:0.05pt;"> </span>Section<span style="letter-spacing:0.05pt;"> </span>203 imposes<span style="letter-spacing:0.05pt;"> </span>certain<span style="letter-spacing:0.1pt;"> </span>restrictions<span style="letter-spacing:0.15pt;"> </span>on mergers,<span style="letter-spacing:0.1pt;"> </span>business combinations<span style="letter-spacing:0.1pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>transactions<span style="letter-spacing:0.15pt;"> </span>between<span style="letter-spacing:0.05pt;"> </span>us and holders<span style="letter-spacing:0.05pt;"> </span>of 15% or more<span style="letter-spacing:0.05pt;"> </span>of our common<span style="letter-spacing:0.05pt;"> </span>stock.</p>
<p style="margin-top:0pt;line-height:7pt;margin-bottom:0pt;text-indent:0%;font-size:7pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">The exclusive<span style="letter-spacing:0.1pt;"> </span>forum<span style="letter-spacing:0.05pt;"> </span>provision<span style="letter-spacing:0.05pt;"> </span>in our organizational<span style="letter-spacing:0.1pt;"> </span>documents<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>limit<span style="letter-spacing:0.1pt;"> </span>a stockholder&#8217;s<span style="letter-spacing:0.1pt;"> </span>ability<span style="letter-spacing:0.1pt;"> </span>to bring a claim<span style="letter-spacing:0.05pt;"> </span>in a judicial<span style="letter-spacing:0.1pt;"> </span>forum<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>it<span style="letter-spacing:0.05pt;"> </span>finds<span style="letter-spacing:0.05pt;"> </span>favorable<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>disputes<span style="letter-spacing:0.05pt;"> </span>with us or any of our directors,<span style="letter-spacing:0.1pt;"> </span>officers,<span style="letter-spacing:0.1pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>employees,<span style="letter-spacing:0.1pt;"> </span>which may<span style="letter-spacing:0.05pt;"> </span>discourage<span style="letter-spacing:0.05pt;"> </span>lawsuits<span style="letter-spacing:0.05pt;"> </span>with respect<span style="letter-spacing:0.05pt;"> </span>to such claims.</p>
<p style="margin-top:0pt;line-height:5pt;margin-bottom:0pt;text-indent:0%;font-size:5.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our<span style="letter-spacing:0.05pt;"> </span>restated<span style="letter-spacing:0.15pt;"> </span>certificate<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>incorporation<span style="letter-spacing:0.15pt;"> </span>provides<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>Court<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>Chancery<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>State<span style="letter-spacing:0.1pt;"> </span>of Delaware<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.05pt;"> </span>the exclusive<span style="letter-spacing:0.15pt;"> </span>forum<span style="letter-spacing:0.1pt;"> </span>for:<span style="letter-spacing:0.1pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>derivative<span style="letter-spacing:0.15pt;"> </span>action<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>proceeding<span style="letter-spacing:0.1pt;"> </span>brought<span style="letter-spacing:0.1pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>behalf&#59;<span style="letter-spacing:0.15pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>action<span style="letter-spacing:0.05pt;"> </span>asserting<span style="letter-spacing:0.1pt;"> </span>a breach<span style="letter-spacing:0.05pt;"> </span>of fiduciary<span style="letter-spacing:0.15pt;"> </span>duty&#59;<span style="letter-spacing:0.1pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>action<span style="letter-spacing:0.1pt;"> </span>asserting<span style="letter-spacing:0.15pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>claim<span style="letter-spacing:0.15pt;"> </span>against<span style="letter-spacing:0.1pt;"> </span>us<span style="letter-spacing:0.05pt;"> </span>arising<span style="letter-spacing:0.15pt;"> </span>pursuant<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>DGCL, our<span style="letter-spacing:0.05pt;"> </span>restated<span style="letter-spacing:0.1pt;"> </span>certificate<span style="letter-spacing:0.15pt;"> </span>of incorporation,<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>restated<span style="letter-spacing:0.15pt;"> </span>bylaws&#59;<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>action<span style="letter-spacing:0.1pt;"> </span>asserting<span style="letter-spacing:0.15pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>claim<span style="letter-spacing:0.15pt;"> </span>against<span style="letter-spacing:0.1pt;"> </span>us<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>governed<span style="letter-spacing:0.05pt;"> </span>by the<span style="letter-spacing:0.05pt;"> </span>internal affairs<span style="letter-spacing:0.15pt;"> </span>doctrine.<span style="letter-spacing:0.15pt;"> </span>This<span style="letter-spacing:0.05pt;"> </span>exclusive<span style="letter-spacing:0.15pt;"> </span>forum<span style="letter-spacing:0.1pt;"> </span>provision<span style="letter-spacing:0.05pt;"> </span>does not apply<span style="letter-spacing:0.05pt;"> </span>to suits<span style="letter-spacing:0.05pt;"> </span>brought<span style="letter-spacing:0.05pt;"> </span>to enforce<span style="letter-spacing:0.05pt;"> </span>a duty or liability created<span style="letter-spacing:0.1pt;"> </span>by the<span style="letter-spacing:0.05pt;"> </span>Exchange Act. It<span style="letter-spacing:0.05pt;"> </span>could<span style="letter-spacing:0.05pt;"> </span>apply,<span style="letter-spacing:0.05pt;"> </span>however, to a suit<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>falls<span style="letter-spacing:0.1pt;"> </span>within<span style="letter-spacing:0.05pt;"> </span>one or more<span style="letter-spacing:0.05pt;"> </span>of the categories enumerated<span style="letter-spacing:0.1pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>exclusive<span style="letter-spacing:0.1pt;"> </span>forum<span style="letter-spacing:0.05pt;"> </span>provision.</p>
<p style="margin-top:0pt;line-height:11pt;margin-bottom:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">This choice<span style="letter-spacing:0.05pt;"> </span>of forum<span style="letter-spacing:0.05pt;"> </span>provision<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>limit<span style="letter-spacing:0.1pt;"> </span>a stockholder&#8217;s<span style="letter-spacing:0.1pt;"> </span>ability<span style="letter-spacing:0.1pt;"> </span>to bring<span style="letter-spacing:0.05pt;"> </span>a claim<span style="letter-spacing:0.1pt;"> </span>in a judicial<span style="letter-spacing:0.05pt;"> </span>forum that it finds<span style="letter-spacing:0.1pt;"> </span>favorable<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>disputes<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>us<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>any of our directors,<span style="letter-spacing:0.1pt;"> </span>officers,<span style="letter-spacing:0.1pt;"> </span>or other<span style="letter-spacing:0.05pt;"> </span>employees,<span style="letter-spacing:0.1pt;"> </span>which may<span style="letter-spacing:0.05pt;"> </span>discourage lawsuits<span style="letter-spacing:2.25pt;"> </span>with<span style="letter-spacing:2.15pt;"> </span>respect<span style="letter-spacing:2.25pt;"> </span>to<span style="letter-spacing:2.15pt;"> </span>such<span style="letter-spacing:2.15pt;"> </span>claims.<span style="letter-spacing:2.25pt;"> </span>Alternatively,<span style="letter-spacing:2.3pt;"> </span>if<span style="letter-spacing:2.2pt;"> </span>a<span style="letter-spacing:2.15pt;"> </span>court<span style="letter-spacing:2.2pt;"> </span>were<span style="letter-spacing:2.15pt;"> </span>to<span style="letter-spacing:2.15pt;"> </span>find<span style="letter-spacing:2.2pt;"> </span>the<span style="letter-spacing:2.2pt;"> </span>choice<span style="letter-spacing:2.2pt;"> </span>of<span style="letter-spacing:2.15pt;"> </span>forum<span style="letter-spacing:2.2pt;"> </span>provisions contained<span style="letter-spacing:1.2pt;"> </span>in<span style="letter-spacing:1.15pt;"> </span>our<span style="letter-spacing:1.1pt;"> </span>restated<span style="letter-spacing:1.2pt;"> </span>certificate<span style="letter-spacing:1.25pt;"> </span>of<span style="letter-spacing:1.1pt;"> </span>incorporation<span style="letter-spacing:1.2pt;"> </span>to<span style="letter-spacing:1.1pt;"> </span>be<span style="letter-spacing:1.1pt;"> </span>inapplicable<span style="letter-spacing:1.2pt;"> </span>or<span style="letter-spacing:1.1pt;"> </span>unenforceable<span style="letter-spacing:1.2pt;"> </span>in<span style="letter-spacing:1.1pt;"> </span>an<span style="letter-spacing:1.1pt;"> </span>action,<span style="letter-spacing:1.15pt;"> </span>we<span style="letter-spacing:1.1pt;"> </span>may incur<span style="letter-spacing:0.1pt;"> </span>additional<span style="letter-spacing:0.15pt;"> </span>costs<span style="letter-spacing:0.1pt;"> </span>associated<span style="letter-spacing:0.15pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>resolving<span style="letter-spacing:0.1pt;"> </span>such action<span style="letter-spacing:0.05pt;"> </span>in other<span style="letter-spacing:0.05pt;"> </span>jurisdictions,<span style="letter-spacing:0.15pt;"> </span>which could<span style="letter-spacing:0.05pt;"> </span>harm<span style="letter-spacing:0.05pt;"> </span>our business, results<span style="letter-spacing:0.1pt;"> </span>of operations<span style="letter-spacing:0.1pt;"> </span>and financial<span style="letter-spacing:0.1pt;"> </span>condition.</p>
<p style="margin-top:0pt;line-height:11pt;margin-bottom:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Section<span style="letter-spacing:0.1pt;"> </span>22<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>Securities<span style="letter-spacing:0.15pt;"> </span>Act<span style="letter-spacing:0.05pt;"> </span>creates<span style="letter-spacing:0.15pt;"> </span>concurrent<span style="letter-spacing:0.15pt;"> </span>jurisdiction<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>federal<span style="letter-spacing:0.1pt;"> </span>and state<span style="letter-spacing:0.05pt;"> </span>courts<span style="letter-spacing:0.05pt;"> </span>over<span style="letter-spacing:0.05pt;"> </span>all<span style="letter-spacing:0.05pt;"> </span>claims brought<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>enforce<span style="letter-spacing:0.1pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>duty<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>liability<span style="letter-spacing:0.2pt;"> </span>created<span style="letter-spacing:0.15pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>Securities<span style="letter-spacing:0.1pt;"> </span>Act or the<span style="letter-spacing:0.05pt;"> </span>rules<span style="letter-spacing:0.05pt;"> </span>and regulations<span style="letter-spacing:0.1pt;"> </span>thereunder.<span style="letter-spacing:0.1pt;"> </span>Our restated<span style="letter-spacing:0.1pt;"> </span>bylaws provide<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>federal<span style="letter-spacing:0.1pt;"> </span>district<span style="letter-spacing:0.1pt;"> </span>courts<span style="letter-spacing:0.05pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>United<span style="letter-spacing:0.05pt;"> </span>States<span style="letter-spacing:0.05pt;"> </span>of America<span style="letter-spacing:0.05pt;"> </span>will,<span style="letter-spacing:0.05pt;"> </span>to the<span style="letter-spacing:0.05pt;"> </span>fullest extent<span style="letter-spacing:0.1pt;"> </span>permitted<span style="letter-spacing:0.15pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>law,<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>exclusive<span style="letter-spacing:0.15pt;"> </span>forum<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>resolving<span style="letter-spacing:0.15pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>complaint<span style="letter-spacing:0.15pt;"> </span>asserting<span style="letter-spacing:0.15pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>cause<span style="letter-spacing:0.1pt;"> </span>of action<span style="letter-spacing:0.05pt;"> </span>arising under<span style="letter-spacing:2.3pt;"> </span>the<span style="letter-spacing:2.3pt;"> </span>Securities<span style="letter-spacing:2.35pt;"> </span>Act,<span style="letter-spacing:2.25pt;"> </span>or<span style="letter-spacing:2.2pt;"> </span>a<span style="letter-spacing:2.2pt;"> </span>Federal<span style="letter-spacing:2.25pt;"> </span>Forum<span style="letter-spacing:2.25pt;"> </span>Provision.<span style="letter-spacing:2.25pt;"> </span>Our<span style="letter-spacing:2.2pt;"> </span>decision<span style="letter-spacing:2.25pt;"> </span>to<span style="letter-spacing:2.2pt;"> </span>adopt<span style="letter-spacing:2.25pt;"> </span>a<span style="letter-spacing:2.2pt;"> </span>Federal<span style="letter-spacing:2.25pt;"> </span>Forum<span style="letter-spacing:2.25pt;"> </span>Provision followed<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>decision<span style="letter-spacing:0.1pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>Supreme<span style="letter-spacing:0.1pt;"> </span>Court<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>State<span style="letter-spacing:0.1pt;"> </span>of Delaware<span style="letter-spacing:0.05pt;"> </span>holding<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>such provisions<span style="letter-spacing:0.1pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>facially<span style="letter-spacing:0.1pt;"> </span>valid under<span style="letter-spacing:0.1pt;"> </span>Delaware<span style="letter-spacing:0.1pt;"> </span>law.<span style="letter-spacing:0.05pt;"> </span>While<span style="letter-spacing:0.1pt;"> </span>there<span style="letter-spacing:0.1pt;"> </span>can<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>no<span style="letter-spacing:0.05pt;"> </span>assurance<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>federal<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>state<span style="letter-spacing:0.1pt;"> </span>courts<span style="letter-spacing:0.1pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>follow<span style="letter-spacing:0.1pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>holding<span style="letter-spacing:0.1pt;"> </span>of the Delaware<span style="letter-spacing:0.5pt;"> </span>Supreme<span style="letter-spacing:0.5pt;"> </span>Court<span style="letter-spacing:0.45pt;"> </span>or<span style="letter-spacing:0.45pt;"> </span>determine<span style="letter-spacing:0.55pt;"> </span>that<span style="letter-spacing:0.5pt;"> </span>the<span style="letter-spacing:0.45pt;"> </span>Federal<span style="letter-spacing:0.45pt;"> </span>Forum<span style="letter-spacing:0.45pt;"> </span>Provision<span style="letter-spacing:0.45pt;"> </span>should<span style="letter-spacing:0.45pt;"> </span>be<span style="letter-spacing:0.4pt;"> </span>enforced<span style="letter-spacing:0.45pt;"> </span>in<span style="letter-spacing:0.4pt;"> </span>a<span style="letter-spacing:0.4pt;"> </span>particular<span style="letter-spacing:0.55pt;"> </span>case, application<span style="letter-spacing:0.75pt;"> </span>of<span style="letter-spacing:0.65pt;"> </span>the<span style="letter-spacing:0.7pt;"> </span>Federal<span style="letter-spacing:0.7pt;"> </span>Forum<span style="letter-spacing:0.7pt;"> </span>Provision<span style="letter-spacing:0.7pt;"> </span>means<span style="letter-spacing:0.7pt;"> </span>that<span style="letter-spacing:0.65pt;"> </span>suits<span style="letter-spacing:0.65pt;"> </span>brought<span style="letter-spacing:0.65pt;"> </span>by<span style="letter-spacing:0.6pt;"> </span>our<span style="letter-spacing:0.6pt;"> </span>stockholders<span style="letter-spacing:0.7pt;"> </span>to<span style="letter-spacing:0.6pt;"> </span>enforce<span style="letter-spacing:0.65pt;"> </span>any<span style="letter-spacing:0.6pt;"> </span>duty<span style="letter-spacing:0.6pt;"> </span>or liability<span style="letter-spacing:0.15pt;"> </span>created<span style="letter-spacing:0.1pt;"> </span>by the<span style="letter-spacing:0.05pt;"> </span>Securities<span style="letter-spacing:0.1pt;"> </span>Act must<span style="letter-spacing:0.05pt;"> </span>be brought<span style="letter-spacing:0.05pt;"> </span>in federal<span style="letter-spacing:0.1pt;"> </span>court<span style="letter-spacing:0.05pt;"> </span>and cannot<span style="letter-spacing:0.05pt;"> </span>be brought<span style="letter-spacing:0.05pt;"> </span>in state<span style="letter-spacing:0.05pt;"> </span>court.</p>
<p style="margin-top:0pt;line-height:9pt;margin-bottom:0pt;text-indent:3.7%;font-size:9.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Section<span style="letter-spacing:0.1pt;"> </span>27<span style="letter-spacing:0.05pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>Exchange<span style="letter-spacing:0.05pt;"> </span>Act<span style="letter-spacing:0.05pt;"> </span>creates<span style="letter-spacing:0.15pt;"> </span>exclusive<span style="letter-spacing:0.15pt;"> </span>federal<span style="letter-spacing:0.15pt;"> </span>jurisdiction<span style="letter-spacing:0.2pt;"> </span>over<span style="letter-spacing:0.1pt;"> </span>all<span style="letter-spacing:0.1pt;"> </span>claims<span style="letter-spacing:0.15pt;"> </span>brought<span style="letter-spacing:0.1pt;"> </span>to enforce<span style="letter-spacing:0.05pt;"> </span>any duty<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>liability<span style="letter-spacing:0.2pt;"> </span>created<span style="letter-spacing:0.15pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>Exchange<span style="letter-spacing:0.05pt;"> </span>Act<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>rules<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>regulations<span style="letter-spacing:0.15pt;"> </span>thereunder.<span style="letter-spacing:0.1pt;"> </span>In addition,<span style="letter-spacing:0.05pt;"> </span>neither<span style="letter-spacing:0.1pt;"> </span>the exclusive<span style="letter-spacing:2.05pt;"> </span>forum<span style="letter-spacing:2pt;"> </span>provision<span style="letter-spacing:2pt;"> </span>nor<span style="letter-spacing:1.95pt;"> </span>the<span style="letter-spacing:2pt;"> </span>Federal<span style="letter-spacing:2pt;"> </span>Forum<span style="letter-spacing:2pt;"> </span>Provision<span style="letter-spacing:2pt;"> </span>applies<span style="letter-spacing:2pt;"> </span>to<span style="letter-spacing:1.9pt;"> </span>suits<span style="letter-spacing:1.95pt;"> </span>brought<span style="letter-spacing:1.95pt;"> </span>to<span style="letter-spacing:1.9pt;"> </span>enforce<span style="letter-spacing:1.95pt;"> </span>any<span style="letter-spacing:1.9pt;"> </span>duty<span style="letter-spacing:1.9pt;"> </span>or liability<span style="letter-spacing:0.2pt;"> </span>created<span style="letter-spacing:0.15pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>Exchange<span style="letter-spacing:0.05pt;"> </span>Act.<span style="letter-spacing:0.05pt;"> </span>Accordingly,<span style="letter-spacing:0.1pt;"> </span>actions<span style="letter-spacing:0.1pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>stockholders<span style="letter-spacing:0.1pt;"> </span>to enforce<span style="letter-spacing:0.05pt;"> </span>any duty or liability created<span style="letter-spacing:0.1pt;"> </span>by the<span style="letter-spacing:0.05pt;"> </span>Exchange Act or the<span style="letter-spacing:0.05pt;"> </span>rules<span style="letter-spacing:0.05pt;"> </span>and regulations<span style="letter-spacing:0.1pt;"> </span>thereunder<span style="letter-spacing:0.1pt;"> </span>must<span style="letter-spacing:0.05pt;"> </span>be brought<span style="letter-spacing:0.05pt;"> </span>in federal<span style="letter-spacing:0.1pt;"> </span>court.</p>
<p style="margin-top:0pt;line-height:9pt;margin-bottom:0pt;text-indent:3.7%;font-size:9.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our<span style="letter-spacing:0.05pt;"> </span>stockholders<span style="letter-spacing:0.15pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>deemed<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>waived<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>compliance<span style="letter-spacing:0.15pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>federal<span style="letter-spacing:0.1pt;"> </span>securities<span style="letter-spacing:0.15pt;"> </span>laws and the regulations<span style="letter-spacing:0.1pt;"> </span>promulgated<span style="letter-spacing:0.1pt;"> </span>thereunder.</p>
<p style="margin-top:0pt;line-height:9pt;margin-bottom:0pt;text-indent:3.7%;font-size:9.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Any<span style="letter-spacing:0.05pt;"> </span>person<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>entity<span style="letter-spacing:0.1pt;"> </span>purchasing<span style="letter-spacing:0.1pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>otherwise<span style="letter-spacing:0.1pt;"> </span>acquiring<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>holding<span style="letter-spacing:0.05pt;"> </span>any interest<span style="letter-spacing:0.1pt;"> </span>in any of our securities<span style="letter-spacing:0.15pt;"> </span>shall be<span style="letter-spacing:0.05pt;"> </span>deemed<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>notice<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>consented<span style="letter-spacing:0.05pt;"> </span>to our exclusive<span style="letter-spacing:0.1pt;"> </span>forum<span style="letter-spacing:0.05pt;"> </span>provisions,<span style="letter-spacing:0.1pt;"> </span>including<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>Federal<span style="letter-spacing:0.05pt;"> </span>Forum Provision.<span style="letter-spacing:2.25pt;"> </span>These<span style="letter-spacing:2.2pt;"> </span>provisions<span style="letter-spacing:2.3pt;"> </span>may<span style="letter-spacing:2.25pt;"> </span>limit<span style="letter-spacing:2.3pt;"> </span>a<span style="letter-spacing:2.2pt;"> </span>stockholders&#8217;<span style="letter-spacing:2.3pt;"> </span>ability<span style="letter-spacing:2.3pt;"> </span>to<span style="letter-spacing:2.2pt;"> </span>bring<span style="letter-spacing:2.25pt;"> </span>a<span style="letter-spacing:2.2pt;"> </span>claim<span style="letter-spacing:2.3pt;"> </span>in<span style="letter-spacing:2.2pt;"> </span>a<span style="letter-spacing:2.2pt;"> </span>judicial<span style="letter-spacing:2.3pt;"> </span>forum<span style="letter-spacing:2.2pt;"> </span>of<span style="letter-spacing:2.15pt;"> </span>their choosing<span style="letter-spacing:1.85pt;"> </span>for<span style="letter-spacing:1.85pt;"> </span>disputes<span style="letter-spacing:1.85pt;"> </span>with<span style="letter-spacing:1.75pt;"> </span>us<span style="letter-spacing:1.75pt;"> </span>or<span style="letter-spacing:1.75pt;"> </span>our<span style="letter-spacing:1.75pt;"> </span>directors,<span style="letter-spacing:1.85pt;"> </span>officers,<span style="letter-spacing:1.85pt;"> </span>or<span style="letter-spacing:1.75pt;"> </span>other<span style="letter-spacing:1.8pt;"> </span>employees,<span style="letter-spacing:1.85pt;"> </span>which<span style="letter-spacing:1.75pt;"> </span>may<span style="letter-spacing:1.8pt;"> </span>discourage<span style="letter-spacing:1.85pt;"> </span>lawsuits against<span style="letter-spacing:0.05pt;"> </span>us and our directors,<span style="letter-spacing:0.1pt;"> </span>officers,<span style="letter-spacing:0.1pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>employees.</p>
<p style="margin-top:0pt;line-height:14pt;margin-bottom:0pt;text-indent:0%;font-size:14pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We will<span style="letter-spacing:0.05pt;"> </span>continue<span style="letter-spacing:0.05pt;"> </span>to incur increased<span style="letter-spacing:0.05pt;"> </span>costs<span style="letter-spacing:0.05pt;"> </span>as a result<span style="letter-spacing:0.05pt;"> </span>of operating<span style="letter-spacing:0.05pt;"> </span>as a public<span style="letter-spacing:0.05pt;"> </span>company,<span style="letter-spacing:0.05pt;"> </span>and our management<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>be required<span style="letter-spacing:0.05pt;"> </span>to devote<span style="letter-spacing:0.05pt;"> </span>substantial<span style="letter-spacing:0.1pt;"> </span>time<span style="letter-spacing:0.05pt;"> </span>to new compliance<span style="letter-spacing:0.1pt;"> </span>initiatives<span style="letter-spacing:0.15pt;"> </span>and corporate governance<span style="letter-spacing:0.05pt;"> </span>practices.</p>
<p style="margin-top:4pt;margin-bottom:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">As<span style="letter-spacing:2.25pt;"> </span>a<span style="letter-spacing:2.25pt;"> </span>public<span style="letter-spacing:2.3pt;"> </span>company,<span style="letter-spacing:2.3pt;"> </span>and<span style="letter-spacing:2.25pt;"> </span>particularly<span style="letter-spacing:2.4pt;"> </span>after<span style="letter-spacing:2.3pt;"> </span>we<span style="letter-spacing:2.2pt;"> </span>are<span style="letter-spacing:2.25pt;"> </span>no<span style="letter-spacing:2.2pt;"> </span>longer<span style="letter-spacing:2.25pt;"> </span>an<span style="letter-spacing:2.2pt;"> </span>emerging<span style="letter-spacing:2.3pt;"> </span>growth<span style="letter-spacing:2.2pt;"> </span>company,<span style="letter-spacing:2.25pt;"> </span>we<span style="letter-spacing:2.2pt;"> </span>will continue<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>incur<span style="letter-spacing:0.1pt;"> </span>significant<span style="letter-spacing:0.2pt;"> </span>legal,<span style="letter-spacing:0.1pt;"> </span>accounting<span style="letter-spacing:0.1pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>expenses<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>we did not incur<span style="letter-spacing:0.05pt;"> </span>as a private<span style="letter-spacing:0.1pt;"> </span>company.<span style="letter-spacing:0.05pt;"> </span>The Sarbanes-Oxley<span style="letter-spacing:0.1pt;"> </span>Act, the<span style="letter-spacing:0.05pt;"> </span>Dodd-Frank Wall<span style="letter-spacing:0.05pt;"> </span>Street<span style="letter-spacing:0.05pt;"> </span>Reform<span style="letter-spacing:0.05pt;"> </span>and Consumer<span style="letter-spacing:0.05pt;"> </span>Protection<span style="letter-spacing:0.1pt;"> </span>Act, the<span style="letter-spacing:0.05pt;"> </span>listing<span style="letter-spacing:0.05pt;"> </span>requirements of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>Nasdaq Global<span style="letter-spacing:0.05pt;"> </span>Select<span style="letter-spacing:0.05pt;"> </span>Market<span style="letter-spacing:0.05pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>applicable<span style="letter-spacing:0.1pt;"> </span>securities<span style="letter-spacing:0.15pt;"> </span>rules<span style="letter-spacing:0.05pt;"> </span>and regulations<span style="letter-spacing:0.1pt;"> </span>impose<span style="letter-spacing:0.05pt;"> </span>various requirements<span style="letter-spacing:0.2pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>public<span style="letter-spacing:0.1pt;"> </span>companies,<span style="letter-spacing:0.15pt;"> </span>including<span style="letter-spacing:0.1pt;"> </span>establishment<span style="letter-spacing:0.2pt;"> </span>and maintenance<span style="letter-spacing:0.1pt;"> </span>of effective<span style="letter-spacing:0.1pt;"> </span>disclosure<span style="letter-spacing:0.1pt;"> </span>and financial controls<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>corporate<span style="letter-spacing:0.1pt;"> </span>governance<span style="letter-spacing:0.05pt;"> </span>practices.<span style="letter-spacing:0.1pt;"> </span>Our management<span style="letter-spacing:0.1pt;"> </span>and other<span style="letter-spacing:0.05pt;"> </span>personnel<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>need to devote<span style="letter-spacing:0.05pt;"> </span>a substantial<span style="letter-spacing:0.15pt;"> </span>amount<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>time<span style="letter-spacing:0.1pt;"> </span>to these<span style="letter-spacing:0.05pt;"> </span>compliance<span style="letter-spacing:0.1pt;"> </span>initiatives.<span style="letter-spacing:0.15pt;"> </span>Moreover,<span style="letter-spacing:0.05pt;"> </span>we expect<span style="letter-spacing:0.05pt;"> </span>these<span style="letter-spacing:0.05pt;"> </span>rules<span style="letter-spacing:0.05pt;"> </span>and regulations<span style="letter-spacing:0.1pt;"> </span>to substantially<span style="letter-spacing:0.2pt;"> </span>increase<span style="letter-spacing:0.15pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>legal<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>financial<span style="letter-spacing:0.15pt;"> </span>compliance<span style="letter-spacing:0.1pt;"> </span>costs<span style="letter-spacing:0.05pt;"> </span>and to make<span style="letter-spacing:0.05pt;"> </span>some<span style="letter-spacing:0.05pt;"> </span>activities<span style="letter-spacing:0.15pt;"> </span>more<span style="letter-spacing:0.05pt;"> </span>time<span style="letter-spacing:0.05pt;"> </span>consuming and<span style="letter-spacing:2.25pt;"> </span>costly.<span style="letter-spacing:2.3pt;"> </span>For<span style="letter-spacing:2.25pt;"> </span>example,<span style="letter-spacing:2.3pt;"> </span>we<span style="letter-spacing:2.25pt;"> </span>expect<span style="letter-spacing:2.3pt;"> </span>that<span style="letter-spacing:2.3pt;"> </span>these<span style="letter-spacing:2.25pt;"> </span>rules<span style="letter-spacing:2.25pt;"> </span>and<span style="letter-spacing:2.2pt;"> </span>regulations<span style="letter-spacing:2.3pt;"> </span>may<span style="letter-spacing:2.25pt;"> </span>make<span style="letter-spacing:2.25pt;"> </span>it<span style="letter-spacing:2.25pt;"> </span>more<span style="letter-spacing:2.25pt;"> </span>difficult<span style="letter-spacing:2.35pt;"> </span>and<span style="letter-spacing:2.2pt;"> </span>more expensive<span style="letter-spacing:1.3pt;"> </span>for<span style="letter-spacing:1.25pt;"> </span>us<span style="letter-spacing:1.2pt;"> </span>to<span style="letter-spacing:1.2pt;"> </span>obtain<span style="letter-spacing:1.25pt;"> </span>director<span style="letter-spacing:1.3pt;"> </span>and<span style="letter-spacing:1.2pt;"> </span>officer<span style="letter-spacing:1.3pt;"> </span>liability<span style="letter-spacing:1.35pt;"> </span>insurance<span style="letter-spacing:1.3pt;"> </span>and<span style="letter-spacing:1.2pt;"> </span>we<span style="letter-spacing:1.2pt;"> </span>may<span style="letter-spacing:1.25pt;"> </span>be<span style="letter-spacing:1.2pt;"> </span>required<span style="letter-spacing:1.3pt;"> </span>to<span style="letter-spacing:1.2pt;"> </span>incur<span style="letter-spacing:1.25pt;"> </span>substantial costs<span style="letter-spacing:0.05pt;"> </span>to maintain<span style="letter-spacing:0.1pt;"> </span>sufficient<span style="letter-spacing:0.15pt;"> </span>coverage.<span style="letter-spacing:0.05pt;"> </span>We cannot<span style="letter-spacing:0.05pt;"> </span>predict<span style="letter-spacing:0.1pt;"> </span>or estimate<span style="letter-spacing:0.1pt;"> </span></p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">66</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-top:4pt;margin-bottom:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">amount</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or timing</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of additional</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">costs we may</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">incur</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:0.6pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">respond</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:0.6pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">these</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">requirements.</span><span style="letter-spacing:0.75pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The</span><span style="letter-spacing:0.6pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">impact</span><span style="letter-spacing:0.7pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="letter-spacing:0.6pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">these</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">requirements</span><span style="letter-spacing:0.75pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">also</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">make</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">it</span><span style="letter-spacing:0.6pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">more</span><span style="letter-spacing:0.6pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">difficult for</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">us</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">attract</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">retain</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">qualified</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">persons</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">serve</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">on</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">board</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">directors,</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">board</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">committees</span><span style="letter-spacing:0.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or as executive</span><span style="letter-spacing:0.75pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">officers.</span><span style="letter-spacing:0.75pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">increased</span><span style="letter-spacing:0.75pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">costs</span><span style="letter-spacing:0.7pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">may</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">require</span><span style="letter-spacing:0.7pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">us</span><span style="letter-spacing:0.6pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:0.6pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">reduce</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">costs</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in</span><span style="letter-spacing:0.6pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">other</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">areas</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="letter-spacing:0.6pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our</span><span style="letter-spacing:0.6pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">business</span><span style="letter-spacing:0.65pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or</span><span style="letter-spacing:0.6pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">increase the</span><span style="letter-spacing:2.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">prices</span><span style="letter-spacing:2.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="letter-spacing:2.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our</span><span style="letter-spacing:2.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">products</span><span style="letter-spacing:2.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">once</span><span style="letter-spacing:2.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">commercialized.</span><span style="letter-spacing:2.25pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Moreover,</span><span style="letter-spacing:2.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">these</span><span style="letter-spacing:2.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">rules</span><span style="letter-spacing:2.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</span><span style="letter-spacing:2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">regulations</span><span style="letter-spacing:2.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">are</span><span style="letter-spacing:2.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">often</span><span style="letter-spacing:2.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">subject</span><span style="letter-spacing:2.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to varying</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">interpretations,</span><span style="letter-spacing:0.25pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">many</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">cases</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">due</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">their</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">lack</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">specificity,</span><span style="letter-spacing:0.2pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and,</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">as</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">a</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">result,</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">their</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">application</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in practice may</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">evolve</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">over</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">time</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">as new guidance</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">is</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">provided</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">by regulatory</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and governing</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">bodies.</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">This could result</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in continuing</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">uncertainty</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">regarding</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">compliance</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">matters</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">higher</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">costs</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">necessitated</span><span style="letter-spacing:0.15pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">by ongoing revisions</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to disclosure</span><span style="letter-spacing:0.1pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and governance</span><span style="letter-spacing:0.05pt;"> </span><span style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">practices.</span></p>
<p style="margin-top:0pt;line-height:9pt;margin-bottom:0pt;text-indent:3.7%;font-size:9.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>currently<span style="letter-spacing:0.15pt;"> </span>required<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>comply<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>SEC&#8217;s rules<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>implement<span style="letter-spacing:0.1pt;"> </span>Section<span style="letter-spacing:0.05pt;"> </span>404 of the<span style="letter-spacing:0.05pt;"> </span>Sarbanes- Oxley<span style="letter-spacing:0.05pt;"> </span>Act,<span style="letter-spacing:0.05pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>therefore<span style="letter-spacing:0.15pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>required<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>make<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>formal<span style="letter-spacing:0.15pt;"> </span>assessment<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>effectiveness<span style="letter-spacing:0.15pt;"> </span>of our internal<span style="letter-spacing:0.1pt;"> </span>control over<span style="letter-spacing:0.1pt;"> </span>financial<span style="letter-spacing:0.15pt;"> </span>reporting<span style="letter-spacing:0.15pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>purpose.<span style="letter-spacing:0.1pt;"> </span>Pursuant<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>Section<span style="letter-spacing:0.1pt;"> </span>404,<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>required<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>furnish<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>report<span style="letter-spacing:0.1pt;"> </span>by our management<span style="letter-spacing:0.15pt;"> </span>on<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>internal<span style="letter-spacing:0.15pt;"> </span>control<span style="letter-spacing:0.1pt;"> </span>over<span style="letter-spacing:0.1pt;"> </span>financial<span style="letter-spacing:0.15pt;"> </span>reporting.<span style="letter-spacing:0.15pt;"> </span>However,<span style="letter-spacing:0.05pt;"> </span>while<span style="letter-spacing:0.1pt;"> </span>we remain<span style="letter-spacing:0.1pt;"> </span>an emerging<span style="letter-spacing:0.1pt;"> </span>growth company,<span style="letter-spacing:1.55pt;"> </span>we<span style="letter-spacing:1.45pt;"> </span>will<span style="letter-spacing:1.5pt;"> </span>not<span style="letter-spacing:1.45pt;"> </span>be<span style="letter-spacing:1.45pt;"> </span>required<span style="letter-spacing:1.55pt;"> </span>to<span style="letter-spacing:1.45pt;"> </span>include<span style="letter-spacing:1.5pt;"> </span>an<span style="letter-spacing:1.45pt;"> </span>attestation<span style="letter-spacing:1.6pt;"> </span>report<span style="letter-spacing:1.5pt;"> </span>on<span style="letter-spacing:1.45pt;"> </span>internal<span style="letter-spacing:1.55pt;"> </span>control<span style="letter-spacing:1.5pt;"> </span>over<span style="letter-spacing:1.5pt;"> </span>financial<span style="letter-spacing:1.55pt;"> </span>reporting issued<span style="letter-spacing:0.1pt;"> </span>by<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>independent<span style="letter-spacing:0.1pt;"> </span>registered<span style="letter-spacing:0.15pt;"> </span>public<span style="letter-spacing:0.1pt;"> </span>accounting<span style="letter-spacing:0.1pt;"> </span>firm.<span style="letter-spacing:0.15pt;"> </span>In<span style="letter-spacing:0.05pt;"> </span>addition,<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.1pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>long<span style="letter-spacing:0.05pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>a smaller<span style="letter-spacing:0.1pt;"> </span>reporting company<span style="letter-spacing:0.1pt;"> </span>with<span style="letter-spacing:0.05pt;"> </span>less<span style="letter-spacing:0.1pt;"> </span>than<span style="letter-spacing:0.1pt;"> </span>$100<span style="letter-spacing:0.05pt;"> </span>million<span style="letter-spacing:0.15pt;"> </span>in annual<span style="letter-spacing:0.05pt;"> </span>revenue,<span style="letter-spacing:0.05pt;"> </span>we would be exempt<span style="letter-spacing:0.05pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>requirement<span style="letter-spacing:0.15pt;"> </span>to obtain<span style="letter-spacing:0.05pt;"> </span>an external<span style="letter-spacing:0.15pt;"> </span>audit<span style="letter-spacing:0.05pt;"> </span>on the<span style="letter-spacing:0.05pt;"> </span>effectiveness<span style="letter-spacing:0.15pt;"> </span>of internal<span style="letter-spacing:0.1pt;"> </span>control<span style="letter-spacing:0.05pt;"> </span>over<span style="letter-spacing:0.05pt;"> </span>financial<span style="letter-spacing:0.1pt;"> </span>reporting<span style="letter-spacing:0.1pt;"> </span>provided<span style="letter-spacing:0.05pt;"> </span>in Section<span style="letter-spacing:0.05pt;"> </span>404(b)<span style="letter-spacing:0.05pt;"> </span>of the Sarbanes-Oxley<span style="letter-spacing:0.75pt;"> </span>Act.<span style="letter-spacing:0.65pt;"> </span>To<span style="letter-spacing:0.6pt;"> </span>achieve<span style="letter-spacing:0.65pt;"> </span>compliance<span style="letter-spacing:0.7pt;"> </span>with<span style="letter-spacing:0.6pt;"> </span>Section<span style="letter-spacing:0.65pt;"> </span>404<span style="letter-spacing:0.6pt;"> </span>within<span style="letter-spacing:0.65pt;"> </span>the<span style="letter-spacing:0.65pt;"> </span>prescribed<span style="letter-spacing:0.7pt;"> </span>period,<span style="letter-spacing:0.65pt;"> </span>we<span style="letter-spacing:0.6pt;"> </span>will<span style="letter-spacing:0.65pt;"> </span>be<span style="letter-spacing:0.6pt;"> </span>engaged in<span style="letter-spacing:0.05pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>process<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>document<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>evaluate<span style="letter-spacing:0.15pt;"> </span>our internal<span style="letter-spacing:0.1pt;"> </span>control<span style="letter-spacing:0.05pt;"> </span>over<span style="letter-spacing:0.05pt;"> </span>financial<span style="letter-spacing:0.1pt;"> </span>reporting,<span style="letter-spacing:0.1pt;"> </span>which is<span style="letter-spacing:0.05pt;"> </span>both costly<span style="letter-spacing:0.05pt;"> </span>and challenging.<span style="letter-spacing:1.3pt;"> </span>In<span style="letter-spacing:1.2pt;"> </span>this<span style="letter-spacing:1.25pt;"> </span>regard,<span style="letter-spacing:1.25pt;"> </span>we<span style="letter-spacing:1.15pt;"> </span>will<span style="letter-spacing:1.2pt;"> </span>need<span style="letter-spacing:1.15pt;"> </span>to<span style="letter-spacing:1.15pt;"> </span>continue<span style="letter-spacing:1.2pt;"> </span>to<span style="letter-spacing:1.15pt;"> </span>dedicate<span style="letter-spacing:1.25pt;"> </span>internal<span style="letter-spacing:1.25pt;"> </span>resources,<span style="letter-spacing:1.25pt;"> </span>potentially<span style="letter-spacing:1.25pt;"> </span>engage<span style="letter-spacing:1.2pt;"> </span>outside consultants<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>adopt<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>detailed<span style="letter-spacing:0.15pt;"> </span>work plan<span style="letter-spacing:0.05pt;"> </span>to assess<span style="letter-spacing:0.05pt;"> </span>and document<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>adequacy<span style="letter-spacing:0.05pt;"> </span>of internal<span style="letter-spacing:0.1pt;"> </span>control<span style="letter-spacing:0.05pt;"> </span>over<span style="letter-spacing:0.05pt;"> </span>financial reporting,<span style="letter-spacing:0.15pt;"> </span>continue<span style="letter-spacing:0.1pt;"> </span>steps<span style="letter-spacing:0.1pt;"> </span>to improve<span style="letter-spacing:0.05pt;"> </span>control<span style="letter-spacing:0.05pt;"> </span>processes<span style="letter-spacing:0.1pt;"> </span>as appropriate,<span style="letter-spacing:0.1pt;"> </span>validate<span style="letter-spacing:0.1pt;"> </span>through<span style="letter-spacing:0.05pt;"> </span>testing<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>controls<span style="letter-spacing:0.1pt;"> </span>are functioning<span style="letter-spacing:0.15pt;"> </span>as<span style="letter-spacing:0.05pt;"> </span>documented<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>implement<span style="letter-spacing:0.15pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>continuous<span style="letter-spacing:0.1pt;"> </span>reporting<span style="letter-spacing:0.1pt;"> </span>and improvement<span style="letter-spacing:0.1pt;"> </span>process<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>internal<span style="letter-spacing:0.1pt;"> </span>control over<span style="letter-spacing:0.5pt;"> </span>financial<span style="letter-spacing:0.55pt;"> </span>reporting.<span style="letter-spacing:0.5pt;"> </span>This<span style="letter-spacing:0.4pt;"> </span>process<span style="letter-spacing:0.45pt;"> </span>will<span style="letter-spacing:0.45pt;"> </span>be<span style="letter-spacing:0.4pt;"> </span>time-consuming,<span style="letter-spacing:0.55pt;"> </span>costly<span style="letter-spacing:0.45pt;"> </span>and<span style="letter-spacing:0.4pt;"> </span>complicated.<span style="letter-spacing:0.5pt;"> </span>Despite<span style="letter-spacing:0.45pt;"> </span>our<span style="letter-spacing:0.4pt;"> </span>efforts,<span style="letter-spacing:0.5pt;"> </span>there is<span style="letter-spacing:0.1pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>risk<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.1pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>able<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>conclude,<span style="letter-spacing:0.1pt;"> </span>within<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>prescribed<span style="letter-spacing:0.1pt;"> </span>timeframe<span style="letter-spacing:0.15pt;"> </span>or at<span style="letter-spacing:0.05pt;"> </span>all,<span style="letter-spacing:0.05pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>our internal<span style="letter-spacing:0.1pt;"> </span>control over<span style="letter-spacing:0.55pt;"> </span>financial<span style="letter-spacing:0.55pt;"> </span>reporting<span style="letter-spacing:0.55pt;"> </span>is<span style="letter-spacing:0.5pt;"> </span>effective<span style="letter-spacing:0.55pt;"> </span>as<span style="letter-spacing:0.45pt;"> </span>required<span style="letter-spacing:0.55pt;"> </span>by<span style="letter-spacing:0.45pt;"> </span>Section<span style="letter-spacing:0.5pt;"> </span>404.<span style="letter-spacing:0.45pt;"> </span>If<span style="letter-spacing:0.5pt;"> </span>we<span style="letter-spacing:0.45pt;"> </span>identify<span style="letter-spacing:0.55pt;"> </span>one<span style="letter-spacing:0.45pt;"> </span>or<span style="letter-spacing:0.45pt;"> </span>more<span style="letter-spacing:0.5pt;"> </span>material<span style="letter-spacing:0.6pt;"> </span>weaknesses, it<span style="letter-spacing:0.1pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>result<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>an<span style="letter-spacing:0.05pt;"> </span>adverse<span style="letter-spacing:0.1pt;"> </span>reaction<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>financial<span style="letter-spacing:0.1pt;"> </span>markets<span style="letter-spacing:0.1pt;"> </span>due to a loss<span style="letter-spacing:0.05pt;"> </span>of confidence<span style="letter-spacing:0.1pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>reliability<span style="letter-spacing:0.15pt;"> </span>of our financial<span style="letter-spacing:0.15pt;"> </span>statements.<span style="letter-spacing:0.2pt;"> </span>In addition,<span style="letter-spacing:0.05pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>we are<span style="letter-spacing:0.05pt;"> </span>not able<span style="letter-spacing:0.05pt;"> </span>to continue<span style="letter-spacing:0.05pt;"> </span>to meet<span style="letter-spacing:0.05pt;"> </span>these<span style="letter-spacing:0.05pt;"> </span>requirements,<span style="letter-spacing:0.15pt;"> </span>we may<span style="letter-spacing:0.05pt;"> </span>not be able<span style="letter-spacing:0.05pt;"> </span>to remain<span style="letter-spacing:0.1pt;"> </span>listed<span style="letter-spacing:0.1pt;"> </span>on the<span style="letter-spacing:0.05pt;"> </span>Nasdaq Global<span style="letter-spacing:0.05pt;"> </span>Select<span style="letter-spacing:0.05pt;"> </span>Market.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Because we do not anticipate<span style="letter-spacing:0.1pt;"> </span>paying any cash dividends<span style="letter-spacing:0.05pt;"> </span>on our capital<span style="letter-spacing:0.05pt;"> </span>stock<span style="letter-spacing:0.05pt;"> </span>in the foreseeable<span style="letter-spacing:0.1pt;"> </span>future, capital<span style="letter-spacing:0.05pt;"> </span>appreciation,<span style="letter-spacing:0.1pt;"> </span>if<span style="letter-spacing:0.05pt;"> </span>any, will<span style="letter-spacing:0.05pt;"> </span>be your sole<span style="letter-spacing:0.05pt;"> </span>source<span style="letter-spacing:0.05pt;"> </span>of gain.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.05pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>never<span style="letter-spacing:0.1pt;"> </span>declared<span style="letter-spacing:0.1pt;"> </span>or paid<span style="letter-spacing:0.05pt;"> </span>cash<span style="letter-spacing:0.05pt;"> </span>dividends<span style="letter-spacing:0.05pt;"> </span>on our capital<span style="letter-spacing:0.1pt;"> </span>stock.<span style="letter-spacing:0.05pt;"> </span>We currently<span style="letter-spacing:0.1pt;"> </span>intend<span style="letter-spacing:0.05pt;"> </span>to retain<span style="letter-spacing:0.1pt;"> </span>all<span style="letter-spacing:0.05pt;"> </span>of our future<span style="letter-spacing:0.7pt;"> </span>earnings,<span style="letter-spacing:0.7pt;"> </span>if<span style="letter-spacing:0.7pt;"> </span>any,<span style="letter-spacing:0.65pt;"> </span>to<span style="letter-spacing:0.6pt;"> </span>finance<span style="letter-spacing:0.65pt;"> </span>the<span style="letter-spacing:0.65pt;"> </span>growth<span style="letter-spacing:0.6pt;"> </span>and<span style="letter-spacing:0.6pt;"> </span>development,<span style="letter-spacing:0.7pt;"> </span>operation<span style="letter-spacing:0.7pt;"> </span>and<span style="letter-spacing:0.6pt;"> </span>expansion<span style="letter-spacing:0.65pt;"> </span>of<span style="letter-spacing:0.6pt;"> </span>our<span style="letter-spacing:0.6pt;"> </span>business<span style="letter-spacing:0.65pt;"> </span>and<span style="letter-spacing:0.6pt;"> </span>do not<span style="letter-spacing:0.35pt;"> </span>anticipate<span style="letter-spacing:0.45pt;"> </span>declaring<span style="letter-spacing:0.4pt;"> </span>or<span style="letter-spacing:0.3pt;"> </span>paying<span style="letter-spacing:0.35pt;"> </span>any<span style="letter-spacing:0.3pt;"> </span>cash<span style="letter-spacing:0.35pt;"> </span>dividends<span style="letter-spacing:0.35pt;"> </span>for<span style="letter-spacing:0.35pt;"> </span>the<span style="letter-spacing:0.35pt;"> </span>foreseeable<span style="letter-spacing:0.4pt;"> </span>future.<span style="letter-spacing:0.35pt;"> </span>As<span style="letter-spacing:0.3pt;"> </span>a<span style="letter-spacing:0.3pt;"> </span>result,<span style="letter-spacing:0.4pt;"> </span>capital<span style="letter-spacing:0.4pt;"> </span>appreciation, if<span style="letter-spacing:0.05pt;"> </span>any, of our common<span style="letter-spacing:0.05pt;"> </span>stock<span style="letter-spacing:0.05pt;"> </span>will<span style="letter-spacing:0.05pt;"> </span>be your sole<span style="letter-spacing:0.05pt;"> </span>source<span style="letter-spacing:0.05pt;"> </span>of gain<span style="letter-spacing:0.05pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>foreseeable<span style="letter-spacing:0.1pt;"> </span>future.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">General<span style="letter-spacing:0.05pt;"> </span>Risk Factors</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">If<span style="letter-spacing:0.05pt;"> </span>securities<span style="letter-spacing:0.1pt;"> </span>or industry<span style="letter-spacing:0.05pt;"> </span>analysts<span style="letter-spacing:0.05pt;"> </span>do not publish<span style="letter-spacing:0.05pt;"> </span>research<span style="letter-spacing:0.05pt;"> </span>or reports<span style="letter-spacing:0.05pt;"> </span>about our business,<span style="letter-spacing:0.05pt;"> </span>or if<span style="letter-spacing:0.05pt;"> </span>they<span style="letter-spacing:0.05pt;"> </span>issue<span style="letter-spacing:0.05pt;"> </span>an adverse<span style="letter-spacing:0.05pt;"> </span>or misleading<span style="letter-spacing:0.1pt;"> </span>opinion regarding<span style="letter-spacing:0.05pt;"> </span>our stock,<span style="letter-spacing:0.05pt;"> </span>our stock<span style="letter-spacing:0.05pt;"> </span>price<span style="letter-spacing:0.05pt;"> </span>and trading<span style="letter-spacing:0.05pt;"> </span>volume<span style="letter-spacing:0.05pt;"> </span>could decline.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The<span style="letter-spacing:1.15pt;"> </span>trading<span style="letter-spacing:1.2pt;"> </span>market<span style="letter-spacing:1.25pt;"> </span>for<span style="letter-spacing:1.2pt;"> </span>our<span style="letter-spacing:1.1pt;"> </span>common<span style="letter-spacing:1.15pt;"> </span>stock<span style="letter-spacing:1.15pt;"> </span>will<span style="letter-spacing:1.15pt;"> </span>be<span style="letter-spacing:1.1pt;"> </span>influenced<span style="letter-spacing:1.2pt;"> </span>by<span style="letter-spacing:1.1pt;"> </span>the<span style="letter-spacing:1.15pt;"> </span>research<span style="letter-spacing:1.2pt;"> </span>and<span style="letter-spacing:1.1pt;"> </span>reports<span style="letter-spacing:1.2pt;"> </span>that<span style="letter-spacing:1.15pt;"> </span>industry<span style="letter-spacing:1.15pt;"> </span>or securities<span style="letter-spacing:0.2pt;"> </span>analysts<span style="letter-spacing:0.15pt;"> </span>publish<span style="letter-spacing:0.1pt;"> </span>about<span style="letter-spacing:0.05pt;"> </span>us or our business.<span style="letter-spacing:0.05pt;"> </span>If<span style="letter-spacing:0.05pt;"> </span>no or few securities<span style="letter-spacing:0.15pt;"> </span>or industry<span style="letter-spacing:0.05pt;"> </span>analysts<span style="letter-spacing:0.1pt;"> </span>commence coverage<span style="letter-spacing:1.25pt;"> </span>of<span style="letter-spacing:1.2pt;"> </span>us,<span style="letter-spacing:1.2pt;"> </span>the<span style="letter-spacing:1.25pt;"> </span>trading<span style="letter-spacing:1.25pt;"> </span>price<span style="letter-spacing:1.25pt;"> </span>for<span style="letter-spacing:1.25pt;"> </span>our<span style="letter-spacing:1.2pt;"> </span>common<span style="letter-spacing:1.25pt;"> </span>stock<span style="letter-spacing:1.25pt;"> </span>could<span style="letter-spacing:1.25pt;"> </span>be<span style="letter-spacing:1.2pt;"> </span>impacted<span style="letter-spacing:1.3pt;"> </span>negatively.<span style="letter-spacing:1.3pt;"> </span>In<span style="letter-spacing:1.2pt;"> </span>the<span style="letter-spacing:1.2pt;"> </span>event<span style="letter-spacing:1.2pt;"> </span>we<span style="letter-spacing:1.15pt;"> </span>obtain securities<span style="letter-spacing:2.1pt;"> </span>or<span style="letter-spacing:1.95pt;"> </span>industry<span style="letter-spacing:2pt;"> </span>analyst<span style="letter-spacing:2pt;"> </span>coverage,<span style="letter-spacing:2pt;"> </span>if<span style="letter-spacing:2pt;"> </span>any<span style="letter-spacing:1.95pt;"> </span>of<span style="letter-spacing:1.95pt;"> </span>the<span style="letter-spacing:2pt;"> </span>analysts<span style="letter-spacing:2.05pt;"> </span>who<span style="letter-spacing:1.95pt;"> </span>cover<span style="letter-spacing:2pt;"> </span>us<span style="letter-spacing:1.95pt;"> </span>issue<span style="letter-spacing:2pt;"> </span>an<span style="letter-spacing:1.95pt;"> </span>adverse<span style="letter-spacing:1.95pt;"> </span>or<span style="letter-spacing:1.9pt;"> </span>misleading opinion<span style="letter-spacing:0.1pt;"> </span>regarding<span style="letter-spacing:0.15pt;"> </span>us,<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>business<span style="letter-spacing:0.1pt;"> </span>model,<span style="letter-spacing:0.05pt;"> </span>our intellectual<span style="letter-spacing:0.15pt;"> </span>property<span style="letter-spacing:0.05pt;"> </span>or our stock<span style="letter-spacing:0.05pt;"> </span>performance,<span style="letter-spacing:0.1pt;"> </span>or if<span style="letter-spacing:0.05pt;"> </span>our preclinical studies<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>clinical<span style="letter-spacing:0.15pt;"> </span>trials<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>operating<span style="letter-spacing:0.15pt;"> </span>results<span style="letter-spacing:0.1pt;"> </span>fail<span style="letter-spacing:0.05pt;"> </span>to meet<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>expectations<span style="letter-spacing:0.1pt;"> </span>of analysts,<span style="letter-spacing:0.1pt;"> </span>our stock<span style="letter-spacing:0.05pt;"> </span>price<span style="letter-spacing:0.05pt;"> </span>would likely<span style="letter-spacing:0.1pt;"> </span>decline.<span style="letter-spacing:0.1pt;"> </span>If<span style="letter-spacing:0.1pt;"> </span>one<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>more<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>such<span style="letter-spacing:0.05pt;"> </span>analysts<span style="letter-spacing:0.15pt;"> </span>cease<span style="letter-spacing:0.05pt;"> </span>coverage<span style="letter-spacing:0.05pt;"> </span>of us or fail<span style="letter-spacing:0.05pt;"> </span>to publish<span style="letter-spacing:0.05pt;"> </span>reports<span style="letter-spacing:0.1pt;"> </span>on us regularly,<span style="letter-spacing:0.1pt;"> </span>we could<span style="letter-spacing:0.1pt;"> </span>lose<span style="letter-spacing:0.1pt;"> </span>visibility<span style="letter-spacing:0.2pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>financial<span style="letter-spacing:0.15pt;"> </span>markets,<span style="letter-spacing:0.15pt;"> </span>which<span style="letter-spacing:0.05pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>turn<span style="letter-spacing:0.1pt;"> </span>could<span style="letter-spacing:0.1pt;"> </span>cause<span style="letter-spacing:0.1pt;"> </span>a decline<span style="letter-spacing:0.05pt;"> </span>in our stock<span style="letter-spacing:0.05pt;"> </span>price<span style="letter-spacing:0.05pt;"> </span>or trading volume.</p>
<p style="line-height:8pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:8pt;">&#160;</p>
<p style="line-height:10pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Our disclosure<span style="letter-spacing:0.1pt;"> </span>controls<span style="letter-spacing:0.05pt;"> </span>and procedures<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>not prevent<span style="letter-spacing:0.05pt;"> </span>or detect<span style="letter-spacing:0.05pt;"> </span>all<span style="letter-spacing:0.05pt;"> </span>errors<span style="letter-spacing:0.05pt;"> </span>or acts<span style="letter-spacing:0.05pt;"> </span>of fraud.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.1pt;"> </span>subject<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>periodic<span style="letter-spacing:0.15pt;"> </span>reporting<span style="letter-spacing:0.15pt;"> </span>requirements<span style="letter-spacing:0.2pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>Exchange Act. We designed<span style="letter-spacing:0.05pt;"> </span>our disclosure controls<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>procedures<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>reasonably<span style="letter-spacing:0.15pt;"> </span>assure<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>information<span style="letter-spacing:0.2pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>must<span style="letter-spacing:0.1pt;"> </span>disclose<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>reports<span style="letter-spacing:0.15pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>file<span style="letter-spacing:0.05pt;"> </span>or submit<span style="letter-spacing:0.05pt;"> </span>under the<span style="letter-spacing:0.1pt;"> </span>Exchange<span style="letter-spacing:0.05pt;"> </span>Act<span style="letter-spacing:0.05pt;"> </span>is<span style="letter-spacing:0.1pt;"> </span>accumulated<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>communicated<span style="letter-spacing:0.15pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>management,<span style="letter-spacing:0.15pt;"> </span>and recorded,<span style="letter-spacing:0.05pt;"> </span>processed,<span style="letter-spacing:0.05pt;"> </span>summarized<span style="letter-spacing:0.1pt;"> </span>and reported<span style="letter-spacing:0.2pt;"> </span>within<span style="letter-spacing:0.15pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>time<span style="letter-spacing:0.1pt;"> </span>periods<span style="letter-spacing:0.1pt;"> </span>specified<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>rules<span style="letter-spacing:0.1pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>forms<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>SEC. We<span style="letter-spacing:0.05pt;"> </span>believe<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.1pt;"> </span>any<span style="letter-spacing:0.05pt;"> </span>disclosure controls<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>procedures<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>internal<span style="letter-spacing:0.15pt;"> </span>controls<span style="letter-spacing:0.15pt;"> </span>and<span style="letter-spacing:0.05pt;"> </span>procedures,<span style="letter-spacing:0.15pt;"> </span>no<span style="letter-spacing:0.05pt;"> </span>matter<span style="letter-spacing:0.15pt;"> </span>how well-conceived<span style="letter-spacing:0.1pt;"> </span>and operated,<span style="letter-spacing:0.05pt;"> </span>can provide<span style="letter-spacing:0.05pt;"> </span>only reasonable,<span style="letter-spacing:0.1pt;"> </span>not absolute,<span style="letter-spacing:0.05pt;"> </span>assurance<span style="letter-spacing:0.1pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>objectives<span style="letter-spacing:0.1pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>control<span style="letter-spacing:0.05pt;"> </span>system<span style="letter-spacing:0.05pt;"> </span>are<span style="letter-spacing:0.05pt;"> </span>met.</p>
<p style="line-height:12pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">67</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">These<span style="letter-spacing:0.05pt;"> </span>inherent<span style="letter-spacing:0.15pt;"> </span>limitations<span style="letter-spacing:0.15pt;"> </span>include<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.05pt;"> </span>realities<span style="letter-spacing:0.15pt;"> </span>that<span style="letter-spacing:0.05pt;"> </span>judgments<span style="letter-spacing:0.1pt;"> </span>in decision-making<span style="letter-spacing:0.15pt;"> </span>can be faulty,<span style="letter-spacing:0.05pt;"> </span>and that breakdowns<span style="letter-spacing:0.05pt;"> </span>can occur<span style="letter-spacing:0.05pt;"> </span>because<span style="letter-spacing:0.05pt;"> </span>of simple<span style="letter-spacing:0.1pt;"> </span>error<span style="letter-spacing:0.05pt;"> </span>or mistake.<span style="letter-spacing:0.1pt;"> </span>For example,<span style="letter-spacing:0.05pt;"> </span>our directors<span style="letter-spacing:0.1pt;"> </span>or executive<span style="letter-spacing:0.05pt;"> </span>officers<span style="letter-spacing:0.05pt;"> </span>could inadvertently<span style="letter-spacing:0.2pt;"> </span>fail<span style="letter-spacing:0.1pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>disclose<span style="letter-spacing:0.15pt;"> </span>a<span style="letter-spacing:0.05pt;"> </span>new<span style="letter-spacing:0.05pt;"> </span>relationship<span style="letter-spacing:0.2pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>arrangement<span style="letter-spacing:0.15pt;"> </span>causing<span style="letter-spacing:0.05pt;"> </span>us to fail<span style="letter-spacing:0.05pt;"> </span>to make<span style="letter-spacing:0.05pt;"> </span>any related<span style="letter-spacing:0.1pt;"> </span>party transaction<span style="letter-spacing:1.25pt;"> </span>disclosures.<span style="letter-spacing:1.25pt;"> </span>Additionally,<span style="letter-spacing:1.2pt;"> </span>controls<span style="letter-spacing:1.2pt;"> </span>can<span style="letter-spacing:1.1pt;"> </span>be<span style="letter-spacing:1.1pt;"> </span>circumvented<span style="letter-spacing:1.2pt;"> </span>by<span style="letter-spacing:1.1pt;"> </span>the<span style="letter-spacing:1.15pt;"> </span>individual<span style="letter-spacing:1.2pt;"> </span>acts<span style="letter-spacing:1.15pt;"> </span>of<span style="letter-spacing:1.1pt;"> </span>some<span style="letter-spacing:1.15pt;"> </span>persons,<span style="letter-spacing:1.15pt;"> </span>by collusion<span style="letter-spacing:0.15pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>two<span style="letter-spacing:0.05pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>more<span style="letter-spacing:0.05pt;"> </span>people<span style="letter-spacing:0.05pt;"> </span>or by an unauthorized<span style="letter-spacing:0.1pt;"> </span>override<span style="letter-spacing:0.1pt;"> </span>of the<span style="letter-spacing:0.05pt;"> </span>controls.<span style="letter-spacing:0.1pt;"> </span>Accordingly,<span style="letter-spacing:0.05pt;"> </span>because<span style="letter-spacing:0.05pt;"> </span>of the inherent<span style="letter-spacing:0.15pt;"> </span>limitations<span style="letter-spacing:0.2pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>control<span style="letter-spacing:0.1pt;"> </span>system,<span style="letter-spacing:0.1pt;"> </span>misstatements<span style="letter-spacing:0.25pt;"> </span>due<span style="letter-spacing:0.05pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>error<span style="letter-spacing:0.05pt;"> </span>or fraud<span style="letter-spacing:0.05pt;"> </span>may<span style="letter-spacing:0.05pt;"> </span>occur<span style="letter-spacing:0.05pt;"> </span>and not be detected.<span style="letter-spacing:0.1pt;"> </span>In addition,<span style="letter-spacing:0.1pt;"> </span>we<span style="letter-spacing:0.05pt;"> </span>do<span style="letter-spacing:0.05pt;"> </span>not<span style="letter-spacing:0.05pt;"> </span>have a risk<span style="letter-spacing:0.05pt;"> </span>management<span style="letter-spacing:0.1pt;"> </span>program<span style="letter-spacing:0.05pt;"> </span>or processes<span style="letter-spacing:0.1pt;"> </span>or procedures<span style="letter-spacing:0.1pt;"> </span>for<span style="letter-spacing:0.05pt;"> </span>identifying<span style="letter-spacing:0.1pt;"> </span>and addressing risks<span style="letter-spacing:0.05pt;"> </span>to our business<span style="letter-spacing:0.05pt;"> </span>in other<span style="letter-spacing:0.05pt;"> </span>areas.</p>
<p style="margin-top:12pt;margin-bottom:0pt;margin-left:3.7%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We may<span style="letter-spacing:0.05pt;"> </span>be subject<span style="letter-spacing:0.05pt;"> </span>to securities<span style="letter-spacing:0.1pt;"> </span>litigation,<span style="letter-spacing:0.1pt;"> </span>which is<span style="letter-spacing:0.05pt;"> </span>expensive<span style="letter-spacing:0.05pt;"> </span>and could divert<span style="letter-spacing:0.05pt;"> </span>management<span style="letter-spacing:0.05pt;"> </span>attention.</p>
<p style="line-height:6pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6.5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:3.7%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The<span style="letter-spacing:0.05pt;"> </span>market<span style="letter-spacing:0.15pt;"> </span>price<span style="letter-spacing:0.1pt;"> </span>of<span style="letter-spacing:0.05pt;"> </span>our<span style="letter-spacing:0.05pt;"> </span>common<span style="letter-spacing:0.1pt;"> </span>stock<span style="letter-spacing:0.1pt;"> </span>may<span style="letter-spacing:0.1pt;"> </span>be<span style="letter-spacing:0.05pt;"> </span>volatile.<span style="letter-spacing:0.15pt;"> </span>The<span style="letter-spacing:0.05pt;"> </span>stock<span style="letter-spacing:0.1pt;"> </span>market<span style="letter-spacing:0.15pt;"> </span>in<span style="letter-spacing:0.05pt;"> </span>general,<span style="letter-spacing:0.05pt;"> </span>and Nasdaq and biopharmaceutical<span style="letter-spacing:0.2pt;"> </span>companies<span style="letter-spacing:0.1pt;"> </span>in particular,<span style="letter-spacing:0.15pt;"> </span>have experienced<span style="letter-spacing:0.1pt;"> </span>extreme<span style="letter-spacing:0.1pt;"> </span>price<span style="letter-spacing:0.05pt;"> </span>and volume<span style="letter-spacing:0.05pt;"> </span>fluctuations<span style="letter-spacing:0.1pt;"> </span>that have often<span style="letter-spacing:0.1pt;"> </span>been<span style="letter-spacing:0.05pt;"> </span>unrelated<span style="letter-spacing:0.15pt;"> </span>or<span style="letter-spacing:0.05pt;"> </span>disproportionate<span style="letter-spacing:0.2pt;"> </span>to<span style="letter-spacing:0.05pt;"> </span>the<span style="letter-spacing:0.1pt;"> </span>operating<span style="letter-spacing:0.15pt;"> </span>performance<span style="letter-spacing:0.15pt;"> </span>of these<span style="letter-spacing:0.05pt;"> </span>companies.<span style="letter-spacing:0.1pt;"> </span>In the<span style="letter-spacing:0.05pt;"> </span>past,<span style="letter-spacing:0.05pt;"> </span>companies that<span style="letter-spacing:0.1pt;"> </span>have<span style="letter-spacing:0.05pt;"> </span>experienced<span style="letter-spacing:0.15pt;"> </span>volatility<span style="letter-spacing:0.2pt;"> </span>in the<span style="letter-spacing:0.05pt;"> </span>market<span style="letter-spacing:0.1pt;"> </span>price<span style="letter-spacing:0.05pt;"> </span>of their<span style="letter-spacing:0.05pt;"> </span>stock<span style="letter-spacing:0.05pt;"> </span>have been subject<span style="letter-spacing:0.05pt;"> </span>to securities<span style="letter-spacing:0.15pt;"> </span>class<span style="letter-spacing:0.05pt;"> </span>action litigation.<span style="letter-spacing:0.45pt;"> </span>We<span style="letter-spacing:0.3pt;"> </span>may<span style="letter-spacing:0.35pt;"> </span>be<span style="letter-spacing:0.3pt;"> </span>the<span style="letter-spacing:0.35pt;"> </span>target<span style="letter-spacing:0.4pt;"> </span>of<span style="letter-spacing:0.3pt;"> </span>this<span style="letter-spacing:0.35pt;"> </span>type<span style="letter-spacing:0.35pt;"> </span>of<span style="letter-spacing:0.25pt;"> </span>litigation<span style="letter-spacing:0.4pt;"> </span>in<span style="letter-spacing:0.25pt;"> </span>the<span style="letter-spacing:0.3pt;"> </span>future.<span style="letter-spacing:0.3pt;"> </span>Securities<span style="letter-spacing:0.35pt;"> </span>litigation<span style="letter-spacing:0.4pt;"> </span>against<span style="letter-spacing:0.3pt;"> </span>us<span style="letter-spacing:0.25pt;"> </span>could<span style="letter-spacing:0.3pt;"> </span>result in substantial<span style="letter-spacing:0.1pt;"> </span>costs<span style="letter-spacing:0.05pt;"> </span>and divert<span style="letter-spacing:0.05pt;"> </span>our management&#8217;s<span style="letter-spacing:0.15pt;"> </span>attention<span style="letter-spacing:0.1pt;"> </span>from<span style="letter-spacing:0.05pt;"> </span>other<span style="letter-spacing:0.05pt;"> </span>business<span style="letter-spacing:0.05pt;"> </span>concerns,<span style="letter-spacing:0.05pt;"> </span>which could seriously harm<span style="letter-spacing:0.05pt;"> </span>our business.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;" id="ITEM_2_UNREGISTERED_SALES_EQUITY_SECURIT">Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;;font-size:6pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#000000;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">Unregistered Sales of Equity Securities</p>
<p style="margin-bottom:0pt;margin-top:6pt;text-indent:4.26%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">None.</p>
<p style="margin-bottom:0pt;margin-top:18pt;text-indent:0%;font-weight:bold;font-style:italic;color:#000000;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">Use of Proceeds</p>
<p style="margin-bottom:0pt;margin-top:6pt;text-indent:4.26%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In the third quarter of 2020, we completed our IPO and sold 9,573,750 shares of common stock at an IPO price of $19.00 per share. The offer and sale of all of the shares in the IPO were registered under the Securities Act pursuant to registration statements on Form&#160;S-1 (File No. 333-248628), which was declared effective by the SEC on September 24, 2020, as supplemented by a registration statement on Form S-1 filed pursuant to Rule 462(b) (File No. 333-248628). We received net proceeds from the IPO of approximately $166.6 million, after deducting underwriting discounts and commissions of approximately $12.7 million and offering expenses of approximately $2.5 million. Morgan Stanley, Goldman Sachs &#38; Co. LLC and BofA Securities acted as joint book-running managers of the offering and as representatives of the underwriters. None of the expenses associated with the IPO were paid to directors, officers, persons owning 10% or more of any class of equity securities, or to their associates, or to our affiliates.</p>
<p style="margin-bottom:0pt;margin-top:12pt;text-indent:4.26%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">There has been no material change in the planned use of proceeds from our IPO as described in the prospectus filed with the SEC pursuant to Rule&#160;424(b)(4)&#160;under the Securities Act on September 25, 2020.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;" id="ITEM_3_DEFAULTS_UPON_SENIOR_SECURITIES">Item 3. Defaults Upon Senior Securities.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">None.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;" id="ITEM_4_MINE_SAFETY_DISCLOSURES">Item 4. Mine Safety Disclosures.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Not applicable.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;" id="ITEM_5_OR_INFORMATION">Item 5. Other Information.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">None.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">68</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>

<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;" id="ITEM_6_EXHIBITS">Item 6. Exhibits.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Furnish the exhibits required by Item 601 of Regulation S-K (&#167; 229.601 of this chapter).</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" style="margin:auto;border-collapse:collapse; width:100%;">
<tr>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:7.98%; border-bottom:solid 1pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Exhibit</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Number</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;width:0.62%; border-bottom:solid 1pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:48.7%; border-bottom:solid 1pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Description</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:5.1%; border-bottom:solid 1pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Form</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:8.96%; border-bottom:solid 1pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">File No.</p></td>
<td valign="top" style="background-color:#FFFFFF;width:8.2%; border-bottom:solid 1pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Exhibit No.</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:8.6%; border-bottom:solid 1pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Exhibit Filing Date</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:11.84%; border-bottom:solid 1pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Filed/Furnished Herewith</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:7.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="Background-color:#FFFFFF;">31.1</span></p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:0.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:48.7%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="prld-ex311_7.htm"><span style="text-decoration:underline;">Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</span></a></p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:5.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:8.96%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;width:8.2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:8.6%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:11.84%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">X</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:7.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="Background-color:#FFFFFF;">31.2</span></p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:0.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:48.7%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="prld-ex312_6.htm"><span style="text-decoration:underline;">Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</span></a></p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:5.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:8.96%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;width:8.2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:8.6%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:11.84%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">X</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:7.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="Background-color:#FFFFFF;">32.1*</span></p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:0.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:48.7%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="prld-ex321_9.htm"><span style="text-decoration:underline;">Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</span></a></p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:5.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:8.96%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;width:8.2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:8.6%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:11.84%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">X</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:7.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="Background-color:#FFFFFF;">32.2*</span></p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:0.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:48.7%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="prld-ex322_8.htm"><span style="text-decoration:underline;">Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</span></a></p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:5.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:8.96%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;width:8.2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:8.6%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:11.84%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">X</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:7.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="Background-color:#FFFFFF;">101.INS</span></p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:0.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:48.7%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Inline XBRL Instance Document</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:5.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:8.96%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;width:8.2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:8.6%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:11.84%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">X</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:7.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="Background-color:#FFFFFF;">101.SCH</span></p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:0.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:48.7%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Inline XBRL Taxonomy Extension Schema Document.</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:5.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:8.96%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;width:8.2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:8.6%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:11.84%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">X</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:7.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="Background-color:#FFFFFF;">101.CAL</span></p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:0.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:48.7%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Inline XBRL Taxonomy Extension Calculation Linkbase Document.</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:5.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:8.96%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;width:8.2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:8.6%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:11.84%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">X</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:7.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="Background-color:#FFFFFF;">101.DEF</span></p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:0.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:48.7%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Inline XBRL Taxonomy Extension Definition Linkbase Document.</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:5.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:8.96%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;width:8.2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:8.6%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:11.84%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">X</p></td>
</tr>
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:7.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="Background-color:#FFFFFF;">101.LAB</span></p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:0.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:48.7%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Inline XBRL Taxonomy Extension Label Linkbase Document.</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:5.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:8.96%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;width:8.2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:8.6%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:11.84%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">X</p></td>
</tr>
<tr style="height:3.25pt;">
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:7.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="Background-color:#FFFFFF;">101.PRE</span></p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:0.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:48.7%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Inline XBRL Taxonomy Extension Presentation Linkbase Document.</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:5.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:8.96%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;width:8.2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:8.6%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:11.84%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">X</p></td>
</tr>
<tr style="height:3.25pt;">
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:7.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="Background-color:#FFFFFF;">104</span></p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:0.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:48.7%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:5.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:8.96%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;width:8.2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:8.6%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.8pt;padding-Top:0.8pt;padding-Bottom:0pt;width:11.84%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">X</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:2pt;text-indent:0%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">*<span style="font-style:italic;">The certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Form 10-Q and are not deemed &#8220;filed&#8221; for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall they be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act</span>.</p>
<p style="margin-top:2pt;margin-bottom:0pt;margin-left:4.54%;text-indent:-4.54%;font-size:5pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">69</p>
<hr style="page-break-after:always" />
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&#160;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;" id="SIGNATURES">SIGNATURES</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:4.26%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" style="margin:auto;border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:47%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td colspan="2" valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Prelude Therapeutics Incorporated</p></td>
</tr>
<tr>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:47%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
</tr>
<tr>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:47%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Date: August 12, 2021</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:2%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">By:</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">/s/&#160;Krishna Vaddi</p></td>
</tr>
<tr>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:47%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50%; border-top:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Krishna Vaddi, PhD</p></td>
</tr>
<tr>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:47%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Chief Executive Officer</p></td>
</tr>
<tr>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:47%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">(Principal Executive Officer)</p></td>
</tr>
<tr>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:47%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Date: August 12, 2021</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="top" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:2%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">By:</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">/s/&#160;Brian Piper</p></td>
</tr>
<tr>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:47%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="middle" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50%; border-top:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Brian Piper, M.B.A.</p></td>
</tr>
<tr>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:47%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Chief Financial Officer</p></td>
</tr>
<tr>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:47%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&#160;</p></td>
<td valign="bottom" style="background-color:#FFFFFF;padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">(Principal Accounting Officer)</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&#160;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">70</p></body>
</html>
{"company-data": {"conformed-name": "Prelude Therapeutics Inc", "cik": "0001678660", "assigned-sic": "2834", "irs-number": "811384762", "state-of-incorporation": "DE", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "10-Q", "act": "34", "file-number": "001-39527", "film-number": "211165956"}, "business-address": {"street1": "200 POWDER MILL ROAD", "city": "WILMINGTON", "state": "DE", "zip": "19803", "phone": "(302) 547-3768"}, "mail-address": {"street1": "200 POWDER MILL ROAD", "city": "WILMINGTON", "state": "DE", "zip": "19803"}, "former-company": {"former-conformed-name": "Prelude Therapeutics Inc.", "date-changed": "20160630"}}
prld-10q_20210630.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
10-Q
(Mark One)
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended
June 30,
2021
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:
001-39527
PRELUDE THERAPEUTICS INC
ORPORATED
(Exact Name of Registrant as Specified in its Charter)
Delaware
81-1384762
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
200 Powder Mill Road
Wilmington
,
Delaware
19803
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code: (
302
)
467-1280
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
Symbol(s)
Name of each exchange on which registered
Common Stock, par value $0.0001 per share
PRLD
The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes
☒
No
☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes
☒
No
☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
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.
☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes
☐
No
☒
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.     Yes
☒
No
☐
As of August 9, 2021, the registrant had
47,093,531
shares of voting and non-voting common stock, $0.0001 par value per share, outstanding.
Table of Contents
Page
PART I.
FINANCIAL INFORMATION
Item 1.
Financial Statements
1
Balance Sheets (Unaudited)
1
Statements of Operations (Unaudited)
2
Statements of Changes in Convertible Preferred Stock and Stockholder's Equity (Deficit) (Unaudited)
3
Statements of Cash Flows (Unaudited)
4
Notes to Unaudited Interim Financial Statements
5
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
12
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
20
Item 4.
Controls and Procedures
20
PART II.
OTHER INFORMATION
Item 1.
Legal Proceedings
20
Item 1A.
Risk Factors
21
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
68
Item 3.
Defaults Upon Senior Securities
68
Item 4.
Mine Safety Disclosures
68
Item 5.
Other Information
68
Item 6.
Exhibits
69
Signatures
70
i
PART I—FINANCIAL INFORMATION
Item 1. Financial Statements.
PRELUDE THERAPEUTICS INCORPORATED
BALANCE SHEETS
(UNAUDITED)
(in thousands, except share data)
June 30,
2021
December 31,
2020
Assets
Current assets:
Cash and cash equivalents
$
343,119
$
218,309
Prepaid expenses and other current assets
1,456
2,500
Total current assets
344,575
220,809
Property and equipment, net
3,109
2,480
Right-of-use asset
1,897
—
Deferred offering costs
—
301
Total assets
$
349,581
$
223,590
Liabilities and stockholders' equity
Current liabilities:
Accounts payable
$
6,844
$
3,920
Accrued expenses and other current liabilities
6,430
7,455
Operating lease liability
1,403
—
Total current liabilities
14,677
11,375
Other liabilities
—
32
Operating lease liability
543
—
Total liabilities
15,220
11,407
Commitments (Note 7)
Stockholders' equity:
Voting common stock, $
0.0001
par value:
487,149,741
shares authorized;
35,636,695
and
32,595,301
shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively
4
3
Non-voting common stock, $
0.0001
par value;
12,850,259
shares authorized;
11,402,037
and
11,110,371
shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively
1
1
Additional paid-in capital
489,947
319,605
Accumulated deficit
(
155,591
)
(
107,426
)
Total stockholders' equity
334,361
212,183
Total liabilities and stockholders' equity
$
349,581
$
223,590
See accompanying notes to unaudited interim financial statements.
1
PRELUDE THERAPEUTICS INCORPORATED
STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands, except share and per share data)
2021
2020
2021
2020
Operating expenses:
Research and development
$
22,409
$
9,776
$
38,879
$
18,312
General and administrative
5,513
1,660
11,010
2,861
Total operating expenses
27,922
11,436
49,889
21,173
Loss from operations
(
27,922
)
(
11,436
)
(
49,889
)
(
21,173
)
Other income, net
1,057
28
1,724
254
Net loss
$
(
26,865
)
$
(
11,408
)
$
(
48,165
)
$
(
20,919
)
Per share information:
Net loss per share of common stock, basic and diluted
$
(
0.58
)
$
(
5.50
)
$
(
1.06
)
$
(
10.65
)
Weighted average common shares outstanding, basic
and diluted
46,057,112
2,074,108
45,592,117
1,964,403
See accompanying notes to unaudited interim financial statements.
2
PRELUDE THERAPEUTICS INCORPORATED
STATEMENTS OF CHANGES IN CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)
(UNAUDITED)
Stockholders' equity
Voting common stock
Non-voting common
stock
Additional
paid-in
Accumulated
(in thousands, except shares)
Shares
Amount
Shares
Amount
capital
deficit
Total
Balance at January 1, 2021
32,595,301
$
3
11,110,371
$
1
$
319,605
$
(
107,426
)
$
212,183
Exercise of stock options
210,274
—
—
—
386
—
386
Sale of common stock,
net of offering costs of $
739
2,583,334
1
291,666
—
161,411
—
161,412
Stock-based compensation
expense
—
—
—
—
3,886
—
3,886
Net loss
—
—
—
—
—
(
21,300
)
(
21,300
)
Balance at March 31, 2021
35,388,909
$
4
11,402,037
$
1
$
485,288
$
(
128,726
)
$
356,567
Exercise of stock options
247,786
—
—
—
422
—
422
Stock-based compensation
expense
—
—
—
—
4,237
—
4,237
Net loss
—
—
—
—
—
(
26,865
)
(
26,865
)
Balance at June 30, 2021
35,636,695
$
4
11,402,037
$
1
$
489,947
$
(
155,591
)
$
334,361
Convertible preferred stock
Stockholders' deficit
Series A
Series B
Common stock
Additional
paid-in
Accumulated
(in thousands, except shares)
Shares
Amount
Shares
Amount
Shares
Amount
capital
deficit
Total
Balance at January 1, 2020
11,736,119
$
36,595
7,628,846
$
29,848
3,161,653
$
—
$
1,085
$
(
50,497
)
$
(
49,412
)
Sale of Series B convertible
preferred stock, net of
offering costs of $
152
—
—
7,628,846
29,942
—
—
—
—
—
Stock-based compensation
expense, including issuance of RSAs
—
—
—
—
432,301
—
362
—
362
Net loss
—
—
—
—
—
—
—
(
9,511
)
(
9,511
)
Balance at March 31, 2020
11,736,119
$
36,595
15,257,692
$
59,790
3,593,954
$
—
$
1,447
$
(
60,008
)
$
(
58,561
)
Exercise of stock options
—
—
—
—
36,745
—
31
—
31
Stock-based compensation
expense
—
—
—
—
—
—
627
—
627
Net loss
—
—
—
—
—
—
—
(
11,408
)
(
11,408
)
Balance at June 30, 2020
11,736,119
$
36,595
15,257,692
$
59,790
3,630,699
$
—
$
2,105
$
(
71,416
)
$
(
69,311
)
See accompanying notes to unaudited interim financial statements.
3
PRELUDE THERAPEUTICS INCORPORATED
STATEMENTS OF CASH FLOWS
(UNAUDITED)
Six months ended June 30,
(in thousands)
2021
2020
Cash flows used in operating activities:
Net loss
$
(
48,165
)
$
(
20,919
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
359
267
Noncash lease expense
572
—
Stock-based compensation
8,123
989
Changes in operating assets and liabilities:
Prepaid expenses and other current assets
1,044
364
Accounts payable
3,327
1,134
Accrued expenses and other liabilities
(
856
)
(
658
)
Operating lease liabilities
(
459
)
—
Net cash used in operating activities
(
36,055
)
(
18,823
)
Cash flows used in investing activities:
Purchases of property and equipment
(
1,367
)
(
122
)
Net cash used in investing activities
(
1,367
)
(
122
)
Cash flows provided by financing activities:
Proceeds from the sale of common stock, net of offering costs
161,424
—
Proceeds from the sale of Series B convertible preferred stock, net of offering costs
—
29,942
Payment of capital lease obligation
—
(
191
)
Proceeds from the exercise of stock options
808
31
Net cash provided by financing activities
162,232
29,782
Net increase in cash and cash equivalents
124,810
10,837
Cash and cash equivalents at beginning of period
218,309
18,879
Cash and cash equivalents at end of period
$
343,119
$
29,716
Supplemental disclosures:
Property and equipment in accounts payable
$
386
$
73
Offering costs in accounts payable
$
—
$
290
Offering costs in accrued expenses and other current liabilities
$
—
$
185
See accompanying notes to unaudited interim financial statements.
4
PRELUDE THERAPEUTICS INCORPORATED
NOTES TO UNAUDITED INTERIM FINANCIAL STATEMENTS
1. Background
Prelude Therapeutics Incorporated (the "Company") was incorporated in Delaware on February 5, 2016 and is a clinical-stage precision oncology company focused on discovering and developing small molecule therapies optimized to target the key driver mechanisms in cancers with high unmet need. Since beginning operations, the Company has devoted substantially all its efforts to research and development, conducting preclinical and clinical studies, recruiting management and technical staff, administration, and raising capital.
2. Risks and liquidity
The Company is subject to a number of risks common to early-stage companies in the biotechnology industry. Principal among these risks are the uncertainties in the development process, development of the same or similar technological innovations by competitors, protection of proprietary technology, dependence on key personnel, compliance with government regulations and approval requirements, and the need to obtain additional financing to fund operations. Product candidates currently under development will require significant additional research and development efforts, including extensive pre-clinical and clinical testing and regulatory approval, prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel infrastructure, and extensive compliance-reporting capabilities. There can be no assurance that the Company's research and development will be successfully completed, that adequate protection for the Company's technology will be obtained, that any products developed will obtain necessary government regulatory approval, or that any approved products will be commercially viable. The Company operates in an environment of rapid change in technology and substantial competition from pharmaceutical and biotechnology companies. In addition, the Company is dependent upon the services of its employees, consultants and contractors.
Since its inception, the Company has incurred operating losses and has an accumulated deficit of $
155.6
million at June 30, 2021. The Company has no revenue to date and devotes its efforts to research and development. The Company anticipates incurring additional losses until such time, if ever, that it can generate significant sales of its product candidates currently in development.
The Company believes that its cash and cash equivalents as of June 30, 2021 will be sufficient to fund its operating expenses and capital expenditure requirements into mid-2023.
To fund its operating expenses and capital expenditure requirements after that date, the Company plans to seek additional funding through public or private equity offerings, debt financings, collaborations, strategic alliances and licensing arrangements. The Company may not be able to obtain financing on acceptable terms, or at all, and the Company may not be able to enter into strategic alliances or other arrangements on favorable terms, or at all. The terms of any financing may adversely affect the holdings or the rights of the Company's stockholders. If the Company is unable to obtain funding, the Company could be required to delay, reduce or eliminate research and development programs, product portfolio expansion or future commercialization efforts, which could adversely affect its business prospects.
On March 10, 2020, the World Health Organization characterized the novel COVID-19 virus as a global pandemic. There is significant uncertainty as to the likely effects of this disease which may, among other things, materially impact the Company's planned clinical trials. This pandemic or outbreak could result in difficulty securing clinical trial site locations, CROs, and/or trial monitors and other critical vendors and consultants supporting the trial. In addition, outbreaks or the perception of an outbreak near a clinical trial site location could impact the Company's ability to enroll patients. These situations, or others associated with COVID-19, could cause delays in the Company's clinical trial plans and could increase expected costs, all of which could have a material adverse effect on the Company's business and its financial condition. At the current time, the Company is unable to quantify the potential effects of this pandemic on its future financial statements.
3. Summary of significant accounting policies
The summary of significant accounting policies included in the Company's financial statements for the year ended December 31, 2020 can be found in "Note 3. Summary of significant accounting policies" of the Company's Form 10-K filed with the Securities and Exchange Commission (the "SEC") on March 16, 2021. Those policies have not materially changed, except as set forth below.
5
Basis of presentation
The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles ("GAAP") for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X.  They do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six month periods ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The accompanying unaudited interim financial statements should be read in conjunction with the annual audited financial statements and related notes as of and for the year ended December 31, 2020 found in the Form 10-K filed with the SEC on March 16, 2021. Any reference in these notes to applicable guidance is meant to refer to GAAP as found in the Accounting Standards Codification ("ASC") and Accounting Standards Updates ("ASU") of the Financial Accounting Standards Board ("FASB").
Use of estimates
The preparation of the unaudited interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and contingent liabilities at the date of the unaudited interim financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates.
Estimates and assumptions are periodically reviewed and the effects of the revisions are reflected in the accompanying unaudited interim financial statements in the period they are determined to be necessary. The most significant estimate relates to accrued clinical trial expenses.
Income taxes
Based upon the historical and anticipated future losses, management has determined that the deferred tax assets generated by net operating losses and research and development credits do not meet the more likely than not threshold for realizability. Accordingly, a full valuation allowance has been recorded against the Company's net deferred tax assets as of June 30, 2021 and December 31, 2020.
Net Loss Per Share
Basic net loss per share of common stock is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during each period. The weighted-average number of shares of common stock outstanding used in the basic net loss per share calculation does not include unvested restricted stock awards as these instruments are considered contingently issuable shares until they vest. Diluted net loss per share of common stock includes the effect, if any, from the potential exercise or conversion of securities, such as stock options and convertible preferred stock, and the effect from unvested restricted stock awards which would result in the issuance of incremental shares of common stock. For diluted net loss per share, the weighted-average number of shares of common stock is the same for basic net loss per share due to the fact that when a net loss exists, dilutive securities are not included in the calculation as the impact is anti-dilutive. The Company's convertible preferred stock and unvested restricted stock entitles the holder to participate in dividends and earnings of the Company, and, if the Company were to recognize net income, it would have to use the two-class method to calculate earnings per share. The two-class method is not applicable during periods with a net loss, as the holders of the convertible preferred stock and unvested restricted stock have no obligation to fund losses.
The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares of common stock outstanding, as they would be anti-dilutive:
June 30,
2021
2020
Series A convertible preferred stock
—
11,736,119
Series B convertible preferred stock
—
15,257,692
Unvested restricted stock awards
841,965
1,409,250
Unvested restricted stock units
25,000
—
Stock options
6,769,438
3,578,863
7,636,403
31,981,924
Amounts in the above table reflect the common stock equivalents.
6
Recently Issued Accounting Pronouncements
Emerging Growth Company Status
The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act, until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, these unaudited interim financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates.
Recently Adopted Accounting Pronouncements
On
January 1, 2021
, the Company adopted ASC 842 issued by the FASB in February 2016, which was subsequently supplemented by clarifying guidance to improve financial reporting of leasing transactions. The new lease accounting guidance requires lessees to recognize lease liabilities and right-of-use assets on the balance sheet for all leases with initial terms longer than 12 months and provides enhanced disclosures on key information of leasing arrangements.
The Company adopted the new standard using the modified retrospective transition method utilizing the optional transition method and elected the package of practical expedients. Accordingly, prior periods were not restated to reflect the adopted standard.
In accordance with the guidance in
ASC 842
, components of a lease should be split into three categories: lease components (e.g., land, building, etc.), non-lease components (e.g., common area maintenance, maintenance, consumables, etc.), and non-components (e.g., property taxes, insurance, etc.). The Company has elected the practical expedient to account for the lease and non-lease components of each of its operating leases as a single lease component and allocate all of the contract consideration to the lease component only
. Upon adoption, the Company recorded a right of use asset of $
2.5
million and corresponding operating lease liabilities of $
2.5
million, with an offset to accrued expenses and other current liabilities of approximately $
64,000
to eliminate deferred rent on the balance sheets.
At lease commencement, the Company records a lease liability based on the present value of lease payments over the expected lease term including any options to extend the lease that the Company is reasonably certain to exercise. The Company calculates the present value of lease payments using an incremental borrowing rate as the Company's leases do not provide an implicit interest rate. The Company's incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. At the lease commencement date, the Company records a corresponding right-of-use lease asset based on the lease liability, adjusted for any lease incentives received and any initial direct costs paid to the lessor prior to the lease commencement date. The Company may enter into leases with an initial term of 12 months or less ("Short-Term Leases"). For Short-Term Leases, the Company records the rent expense on a straight-line basis and does not record the leases on the balance sheet. The Company entered into a short-term lease in June 2021 and elected the short-term lease exemption that allows the Company to record the rent expense on a straight-line basis and does not require the recognition of a right-of-use asset or corresponding operating lease liability.
Refer to Note 7 for the Company's lease disclosures.
After lease commencement, the Company measures its leases as follows: (i) the lease liability based on the present value of the remaining lease payments using the discount rate determined at lease commencement and (ii) the right-of-use lease asset based on the re-measured lease liability, adjusted for any unamortized lease incentives received, any unamortized initial direct costs and the cumulative difference between rent expense and amounts paid under the lease agreement. Any lease incentives received, and any initial direct costs incurred are amortized on a straight-line basis over the expected lease term. Rent expense is recorded on a straight-line basis over the expected lease term.
The adoption of the new lease accounting standard did not have a material impact on the Company's results of operations or cash flows for the six months ended June 30, 2021.
4. Fair Value of Financial Instruments
Fair value is the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value determination in accordance with applicable accounting guidance requires that a number of significant judgments be made. Additionally, fair value is used on a nonrecurring basis to evaluate assets for impairment or as required for disclosure purposes by applicable accounting guidance on disclosures about fair value of financial instruments. Depending on the nature of the assets and liabilities, various valuation techniques and assumptions are used when estimating fair value. The Company follows the provisions of ASC 820, for financial assets and liabilities measured on a recurring basis. The guidance requires fair value measurements be classified and disclosed in one of the following three categories:
•
Level 1:
Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
7
•
Level 2:
Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liabilities.
•
Level 3:
Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
The following fair value hierarchy table presents information about the Company's assets and liabilities measured at fair value on a recurring basis:
Fair value measurement at reporting date using
(in thousands)
Quoted prices
in active
markets for
identical
assets
(Level 1)
Significant
other
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
June 30, 2021:
Assets:
Cash equivalents (Money Market Funds)
$
341,198
$
—
$
—
December 31, 2020:
Assets:
Cash equivalents (Money Market Funds)
$
217,072
$
—
$
—
5. Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following:
(in thousands)
June 30,
2021
December 31,
2020
Compensation and related benefits
$
2,330
$
3,614
Research and development
4,071
3,421
Other
29
420
$
6,430
$
7,455
6. Common Stock
Common Stock Offering
In January 2021, the Company sold
2,875,000
shares of its common stock at a public offering price of $
60.00
per share. The Company received net proceeds of $
161.4
million after deducting underwriting discounts, commissions, and other offering expenses paid by the Company.
The Company has two classes of common stock; "voting common stock" and "non-voting common stock."
The holders of the voting common stock are entitled to one vote for each share of voting common stock held at all meetings of stockholders.
Except as otherwise required by law, the holders of non-voting common stock shall not be entitled to vote at any meetings of stockholders (or written actions in lieu of meetings) and the shares of non-voting common stock shall not be included in determining the number of shares voting or entitled to vote on any matter. Unless required by law, there shall be no cumulative voting. Any holder of non-voting common stock may elect to convert each share of non-voting common stock into one fully paid and non-assessable share of voting common stock at any time by providing written notice to the Company; provided that as a result of such conversion, such holder, together with its affiliates and any members of a Schedule 13(d) group with such holder, would not beneficially own in excess of
9.99
% of the Company's common stock immediately prior to and following such conversion, unless otherwise as expressly provided for in the Company's restated certificate of incorporation. However, this ownership limitation may be increased (not to exceed
19.99
%) or decreased to any other percentage designated by such holder of non-voting common stock upon 61 days' notice to the Company.
8
7. Commitments
Leases
The Company leases office and laboratory space in Wilmington, Delaware under a noncancelable lease, which expires in December 2022. The Company has an option to renew the leases for an additional
1
-year period.
This
option
to
extend
was
not
recognized
as part
of the
Company's measurement
of the
right-of-use
asset
and operating
lease
liability
as of June 30, 2021
.
The
discount
rate
used
to
account
for
the
Company's operating
lease
under
ASC 842
is
the
Company's
estimated
incremental
borrowing
rate
of
10.0
%.
In June 2021, the Company signed a
12
-month noncancelable lease, which commenced on
July 1, 2021
and will expire on
June 30, 2022
and has remaining lease payments of approximately $
0.2
million in both 2021 and 2022.
Rent
expense
for
the
three months
ended
June 30,
2021
and
2020
was
$
0.3
million
and $
0.2
million, respectively.
Rent
expense
for
the
six months
ended
June 30,
2021
and
2020
was
$
0.7
million
and $
0.5
million, respectively.
Future
minimum
annual
lease
payments
under
the Company's
noncancelable
lease
at
June 30,
2021
is
as
follows:
(in thousands)
2021 (remaining)
$
702
2022
1,403
Total undiscounted lease payments
2,105
Less imputed interest
(
159
)
Current and noncurrent lease liability
$
1,946
Employment Agreements
The Company entered into employment agreements with key personnel providing for compensation and severance in certain circumstances, as defined in the respective employment agreements
401(k) Defined Contribution Plan
The Company sponsors a 401(k) defined‑contribution plan covering all employees. Participants are permitted to contribute up to
100
% of their eligible annual pretax compensation up to an established federal limit on aggregate participant contributions. The Company provides a safe harbor match with a maximum amount of
3
% of the participant's compensation. During the three and six months ended June 30, 2021, the Company made matching contributions of $
0.1
million and $
0.3
million, respectively.
Other Research and Development Arrangements
The Company enters into agreements with contract research organizations ("CROs") to assist in the performance of research and development activities. Expenditures to CROs will represent a significant cost in clinical development for the Company.
8. Stock-Based Compensation
The Company has
two
equity incentive plans: the 2016 Equity Incentive Plan, as amended, and the 2020 Equity Incentive Plan. New awards can only be granted under the 2020 Equity Incentive Plan (the "Plan") and as of June 30, 2021,
6,282,783
shares were available for future grants.
The number of shares of the Company's common stock that may be issued pursuant to rights granted under the Plan shall automatically increase on January 1st of each year, commencing on January 1, 2021, and continuing for
ten years
, in an amount equal to
five
percent of the total number of shares of the Company's common stock outstanding on December 31st of the preceding calendar year, subject to the discretion of the board of directors or compensation committee to determine a lesser number of shares shall be added for such year.
The Plan provides for the granting of common stock, incentive stock options, nonqualified stock options, restricted stock awards, and/or stock appreciation rights to employees, directors, and other persons, as determined by the Company's board of directors. The Company's stock options vest based on the terms in each award agreement, generally over
four-year
periods with
25
% of options vesting after
1
year and then monthly thereafter, and have a term of
ten years
. In September 2020, the Company adopted the 2020 Employee Stock Purchase Plan (the "ESPP"), which, as of June 30, 2021, had
957,056
shares of common stock reserved for future issuance.
No
shares have been issued from the ESPP as of June 30, 2021.
9
The Company measures stock-based awards at their grant-date fair value and records compensation expense on a straight-line basis over the vesting period of the awards.
The Company recorded stock-based compensation expense in the following expense categories in its accompanying statements of operations:
Three Months Ended
June 30,
Six Months
June 30,
(in thousands)
2021
2020
2021
2020
Research and development
$
2,203
$
244
$
4,043
$
417
General and administrative
2,034
383
4,080
572
$
4,237
$
627
$
8,123
$
989
Stock Options
The following table summarizes stock option activity for the periods indicated:
Number
of shares
Weighted
average
exercise price
per share
Weighted
average
remaining
contractual
term (years)
Outstanding at January 1, 2021
6,839,091
$
8.46
9.17
Granted
423,395
$
45.30
Exercised
(
458,060
)
$
1.76
Forfeited
(
34,988
)
$
43.36
Outstanding at June 30, 2021
6,769,438
$
11.04
8.79
Exercisable at June 30, 2021
1,255,060
$
2.21
8.13
At June 30, 2021, the aggregate intrinsic value of outstanding options and exercisable options was $
131.1
million and $
33.2
million, respectively.
The following table summarizes information about stock options outstanding at June 30, 2021 under the Plan:
Options Outstanding
Options Exercisable
Range of Exercise Prices
Number
Outstanding
Weighted Average
Remaining
Contractual Life
(in years)
Weighted
Average
Exercise
Price
Number
Exercisable
Weighted
Average
Exercise
Price
$0.31 - $7.37
3,051,304
8.23
$
1.80
1,205,008
$
1.76
$7.38 - $15.93
3,116,323
9.17
12.85
48,322
12.85
$15.94 - $88.98
601,811
9.72
48.42
1,730
19.00
6,769,438
1,255,060
The weighted-average grant date fair value of options granted was $
38.31
and $
2.88
per share for the six months ended June 30, 2021 and 2020, respectively. The aggregate intrinsic value of options exercised was $
18.3
million for the six months ended June 30, 2021. The Company recorded stock-based compensation expense of $
4.2
million and $
0.6
million for the three months ended June 30, 2021 and 2020, respectively, related to stock options. The Company recorded stock-based compensation expense of $
7.7
million and $
0.7
million for the six months ended June 30, 2021 and 2020, respectively, related to stock options. As of June 30, 2021, the total unrecognized compensation expense related to unvested stock option awards was $
55.6
million, which the Company expects to recognize over a weighted-average period of
3.05
years.
10
The fair value of each option was estimated on the date of grant using the weighted average assumptions in the table below:
Six months ended
June 30,
2021
2020
Expected volatility
115.05
%
111.81
%
Risk-free interest rate
0.93
%
0.51
%
Expected life (in years)
5.91
6.25
Expected dividend yield
—
—
Restricted Stock Awards and Units
The Company issues restricted stock awards ("RSA") to employees that generally vest over a
four-year
period with
25
% of awards vesting after one year and then monthly thereafter. Any unvested shares will be forfeited upon termination of services. The fair value of an RSA is equal to the fair market value price of the Company's common stock on the date of grant. RSA expense is recorded on a straight-line basis over the vesting period.
The following table summarizes activity related to RSA stock-based payment awards:
Number of
shares
Weighted-average
grant date fair
value
Unvested balance at January 1, 2021
1,214,778
$
2.09
Vested
(
372,813
)
$
1.95
Unvested balance at June 30, 2021
841,965
$
2.16
The Company recorded stock-based compensation expense of $
0.2
million and $
0.2
million for the three months ended June 30, 2021 and 2020, respectively, related to RSAs. The Company recorded stock-based compensation expense of $
0.4
million and $
0.3
million for the six months ended June 30, 2021 and 2020, respectively, related to RSAs. As of June 30, 2021, the total unrecognized expense related to all RSAs was $
1.8
million, which the Company expects to recognize over a weighted-average period of
2.26
years.
During the six months ended June 30, 2021, the Company granted
25,000
restricted stock units
("RSU") to an employee that vest over a
four-year
period with
25
% of awards vesting after one year and then quarterly thereafter. Any unvested units will be forfeited upon termination of services.
At June 30, 2021
the total unrecognized expense related to the RSUs was $
0.8
million, which the Company expects to recognize over
3.95
years.
11
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this Quarterly Report on Form 10-Q.
In addition to historical financial information, this discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties, such as statements of our plans, objectives, expectations, intentions and belief. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in the section titled "Risk Factors" under Part II, Item 1A below. These forward-looking statements may include, but are not limited to, statements regarding our future results of operations and financial position, the impact of the COVID-19 pandemic, business strategy, market size, potential growth opportunities, preclinical and clinical development activities, efficacy and safety profile of our product candidates, use of net proceeds from our offerings, our ability to maintain and recognize the benefits of certain designations received by product candidates, the timing and results of preclinical studies and clinical trials, commercial collaborations with third parties and the receipt and timing of potential regulatory designations, approvals and commercialization of product candidates. The words "believe," "may," "will," "potentially," "estimate," "continue," "anticipate," "predict," "target," "intend," "could," "would," "should," "project," "plan," "expect," and similar expressions that convey uncertainty of future events or outcomes are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.
These statements are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements.
Overview
We are a clinical-stage precision oncology company focused on discovering and developing small molecule therapies optimized to target the key driver mechanisms in cancers with high unmet need. By leveraging our core competencies in cancer biology and medicinal chemistry, combined with our target class- and technology platform-agnostic approach, we have built an efficient, fully-integrated drug discovery engine to identify compelling biological targets and create new chemical entities, or NCEs, that we rapidly advance into clinical development. We believe our approach could result in better targeted cancer therapies. Our discovery excellence has been validated by our rapid progress in creating a wholly-owned, internally developed pipeline. Since our inception in 2016, we have received clearance from the U.S. Food and Drug Administration, or the FDA, for four investigational new drug applications, or INDs, and successfully advanced these programs into clinical development. In addition, we have three unique programs in various stages of preclinical development that we plan to advance into clinical development beginning in 2021.
By focusing on developing agents using broad mechanisms that have multiple links to oncogenic driver pathways in select patients, we have developed a diverse pipeline consisting of six distinct programs spanning methyltransferases, kinases, protein-protein interactions and targeted protein degraders. Our pipeline is geared towards serving patients with high unmet medical need where there are limited or no treatment options. We are exploring therapies in both solid tumors and hematological malignancies such as adenoid cystic carcinoma, or ACC, homologous recombination deficient positive, or HRD+, cancers, myelofibrosis, or MF, and glioblastoma multiforme, or GBM, amongst others. We believe we can best address these diseases by developing therapies that target primary and secondary resistance mechanisms.
Our lead product candidates are designed to be oral, potent and selective inhibitors of protein arginine methyltransferase 5, or PRMT5. The potency and selectivity of our product candidates is supported by preclinical data demonstrating nanomolar inhibition of PRMT5 and no inhibition of related enzymes at 1,000 times higher concentration of our product candidates. We are currently advancing our first clinical candidate, PRT543, in a Phase 1 clinical trial in select solid tumors and myeloid malignancies in patients who are refractory to or intolerant of established therapies. Interim Phase 1 results indicate dose-dependent increases in exposure and target engagement, and we have observed early signs of clinical activity, including an ongoing confirmed complete response, or CR, in a patient with HRD+ high grade serous ovarian cancer through nine months of therapy. A complete response is defined as the disappearance of all target lesions. We will need to enroll and demonstrate objective responses in additional patients to support further development and potential approval by the FDA or other regulatory authorities, and while such approval is not guaranteed, we are encouraged by the clinical activity as of the date of this Quarterly Report on Form 10-Q. Patient enrollment is continuing in multiple biomarker-selected solid tumor and hematologic malignancy expansion cohorts. We anticipate presenting data from the dose escalation portion of the Phase 1 trial in unselected patient populations, including safety, PK and PD data and markers of target engagement, at the AACR-NCI-EORTC Annual Meeting in October 2021 and data from the expansion cohorts of the trial at medical meetings throughout 2022.
12
We are also advancing PRT811, a second PRMT5 inhibitor that we have optimized for high brain exposure, in a Phase 1 clinical trial in solid tumors, including GBM. As of the date of this Quarterly Report on Form 10-Q, the trial has
demonstrated early signs of clinical activity and tolerability. The previously disclosed refractory GBM patient whose tumor had demonstrated a 66% reduction on monotherapy PRT811 subsequently underwent a follow-up MRI at week 18 and the regression improved to 77% from baseline, confirming a partial response, or PR, per RANO (response assessment in neuro-oncology) criteria. We will present data from the dose escalation portion of the Phase 1 trial in unselected patient populations, including safety, PK and PD data and markers of target engagement, at the AACR-NCI-EORTC Annual Meeting in October 2021. We anticipate beginning the dose expansion portion of the Phase 1 trial in the third quarter of 2021 in selected patients with central nervous system cancers, including high grade gliomas and CNS metastatic cancers. We expect to present data from these expansion cohorts at medical meetings throughout 2022.
PRT1419, our third clinical candidate, is designed to be a potent and selective inhibitor of the anti-apoptotic protein, MCL1. The potency and selectivity of PRT1419 is supported by preclinical data demonstrating nanomolar inhibition of MCL1 and no inhibition of related enzymes at 200 times higher concentration of our product candidate. We have begun enrolling patients with hematologic malignancies, including patients with myelodysplastic syndrome, or MDS, acute myeloid
leukemia, or AML, non-Hodgkin's lymphoma, or NHL, and multiple myeloma, or MM, into the dose escalation portion of a Phase 1 open-label, multicenter clinical trial for the oral formulation of PRT1419. We expect to add dose expansion and combination cohorts to the Phase 1 clinical trial in the second half of 2021. Additionally, in March 2021, the FDA cleared our IND for an intravenous (IV) formulation of PRT1419.
The Phase 1 trial of the IV formulation of PRT1419, which leverages the optimized physicochemical properties of PRT1419, is now underway in patients with solid tumors
.
We were incorporated in February 2016 under the laws of the State of Delaware. Since inception, we have devoted substantially all of our resources to developing product and technology rights, conducting research and development, organizing and staffing our company, business planning and raising capital. We have incurred recurring losses, the majority of which are attributable to research and development activities, and negative cash flows from operations. We have funded our operations primarily through the sale of convertible preferred stock and common stock. Our net loss was $48.2 million for the six months ended June 30, 2021 as compared to $20.9 million for the six months ended June 30, 2020, and as of June 30, 2021, we had an accumulated deficit of $155.6 million. Our primary use of cash is to fund operating expenses, which consist primarily of research and development expenditures, and to a lesser extent, general and administrative expenditures. Our ability to generate product revenue sufficient to achieve profitability will depend heavily on the successful development and eventual commercialization of one or more of our current or future product candidates. We expect to continue to incur significant expenses and operating losses for the foreseeable future as we advance our product candidates through all stages of development and clinical trials and, ultimately, seek regulatory approval. In addition, if we obtain marketing approval for any of our product candidates, we expect to incur significant commercialization expenses related to product manufacturing, marketing, sales and distribution. Furthermore, we expect to incur additional costs associated with operating as a public company, including significant legal, accounting, investor relations and other expenses that we did not incur as a private company. Our net losses may fluctuate significantly from quarter-to-quarter and year-to-year, depending on the timing of our clinical trials and our expenditures on other research and development activities.
We will need to raise substantial additional capital to support our continuing operations and pursue our growth strategy. Until such time as we can generate significant revenue from product sales, if ever, we plan to finance our operations through the sale of equity, debt financings or other capital sources, which may include collaborations with other companies or other strategic transactions. There are no assurances that we will be successful in obtaining an adequate level of financing as and when needed to finance our operations on terms acceptable to us or at all. Any failure to raise capital as and when needed could have a negative impact on our financial condition and on our ability to pursue our business plans and strategies. If we are unable to secure adequate additional funding, we may have to significantly delay, scale back or discontinue the development and commercialization of one or more product candidates or delay our pursuit of potential in-licenses or acquisitions.
As of June 30, 2021, we had $343.1 million in cash and cash equivalents. We expect our existing cash and cash equivalents will enable us to fund our operating expenses and capital expenditures into mid-2023.
COVID-19 Impact
We are continuing to proactively monitor and assess the current coronavirus disease 2019, or COVID-19, global pandemic. Since early March 2020, we have been monitoring the potential impact on our business that may result from this rapidly evolving crisis and to avoid any unnecessary potential delays to our programs. At this time, our lead programs and research activities remain on track. The safety and well-being of employees, patients and partners is our highest priority.
13
Components of Results of Operations
Revenue
To date, we have not recognized any revenue from any sources, including from product sales, and we do not expect to generate any revenue from the sale of products in the foreseeable future. If our development efforts for our product candidates are successful and result in regulatory approval, or license agreements with third parties, we may generate revenue in the future from product sales. However, there can be no assurance as to when we will generate such revenue, if at all.
Operating Expenses
Research and Development Expenses
Research and development expenses consist primarily of costs incurred in connection with the discovery and development of our product candidates. We expense research and development costs as incurred, including:
•
expenses incurred to conduct the necessary discovery-stage laboratory work, preclinical studies and clinical trials required to obtain regulatory approval;
•
personnel expenses, including salaries, benefits and stock-based compensation expense for our employees engaged in research and development functions;
•
costs of funding research performed by third parties, including pursuant to agreements with clinical research organizations, or CROs, that conduct our clinical trials, as well as investigative sites, consultants and CROs that conduct our preclinical and nonclinical studies;
•
expenses incurred under agreements with contract manufacturing organizations, or CMOs, including manufacturing scale-up expenses and the cost of acquiring and manufacturing preclinical study and clinical trial materials;
•
fees paid to consultants who assist with research and development activities;
•
expenses related to regulatory activities, including filing fees paid to regulatory agencies; and
•
allocated expenses for facility costs, including rent, utilities, depreciation and maintenance.
We track outsourced development costs and other external research and development costs to specific product candidates on a program-by-program basis, fees paid to CROs, CMOs and research laboratories in connection with our preclinical development, process development, manufacturing and clinical development activities. However, we do not track our internal research and development expenses on a program-by-program basis as they primarily relate to compensation, early research and other costs which are deployed across multiple projects under development.
Research and development activities are central to our business model. Product candidates in later stages of clinical development generally have higher development costs than those in earlier stages of clinical development, primarily due to the increased size and duration of later-stage clinical trials. We expect our research and development expenses to increase significantly over the next several years as we increase personnel costs, including stock-based compensation, conduct our clinical trials, including later-stage clinical trials, for current and future product candidates and prepare regulatory filings for our product candidates.
General and Administrative Expenses
General and administrative expenses consist primarily of personnel expenses, including salaries, benefits and stock-based compensation expense, for employees and consultants in executive, finance and accounting, legal, operations support, information technology and human resource functions. General and administrative expense also includes corporate facility costs not otherwise included in research and development expense, including rent, utilities, depreciation and maintenance, as well as legal fees related to intellectual property and corporate matters and fees for accounting and consulting services.
We expect that our general and administrative expense will increase in the future to support our continued research and development activities, potential commercialization efforts and increased costs of operating as a public company. These increases will likely include increased costs related to the hiring of additional personnel and fees to outside consultants, legal support and accountants, among other expenses. Additionally, we anticipate increased costs associated with being a public company, including expenses related to services associated with maintaining compliance with the requirements of Nasdaq and the Securities and Exchange Commission, or SEC,
insurance and investor relations costs. If any of our current or future product candidates obtains U.S. regulatory approval, we expect that we would incur significantly increased expenses associated with building a sales and marketing team.
14
Other Income, Net
Other income, net consists primarily of interest earned on our cash equivalents and grant income received from the State of Delaware. We anticipate re-applying for the grant from the State of Delaware from time to time as long as we maintain qualifying headcount levels in the State of Delaware. We expect our interest income, net to increase due to our investment of cash received our stock offerings.
Income Taxes
Since our inception, we have not recorded any income tax benefits for the net operating losses, or NOLs, we have incurred or for our research and development tax credits, as we believe, based upon the weight of available evidence, that it is more likely than not that all of our NOLs and tax credits will not be realized.
Results of Operations
Comparison of the Three Months Ended June 30, 2021 and 2020
The following table sets forth our results of operations for the three months ended June 30, 2021 and 2020.
Three months ended
June 30,
Change
(in thousands)
2021
2020
Operating expenses:
Research and development
$
22,409
$
9,776
$
12,633
General and administrative
5,513
1,660
3,853
Total operating expenses
27,922
11,436
16,486
Loss from operations
(27,922
)
(11,436
)
(16,486
)
Other income, net
1,057
28
1,029
Net loss
$
(26,865
)
$
(11,408
)
$
(15,457
)
Research and Development Expenses
Research and development expenses increased by $12.6 million to $22.4 million for the three months ended June 30, 2021 from $9.8 million for the three months ended June 30, 2020. The increase was mainly due to increased clinical research costs for the PRT543, PRT811 and PRT1419 (Oral and IV). Our chemistry, manufacturing and other costs for those trials also increased. We track our external research and development expenses on a program-by-program basis, such as fees paid to CROs, CMOs and research laboratories in connection with our pre-clinical development, process development, manufacturing and clinical development activities. However, we do not track our internal research and development expenses on a program-by-program basis as they primarily relate to compensation, early research and other costs which are deployed across multiple projects under development.
Research and development expenses by program are summarized in the table below:
Three months ended
June 30,
(in thousands)
2021
2020
PRT543
$
4,415
$
1,886
PRT811
4,550
1,217
PRT1419 (Oral and IV)
1,863
2,109
Discovery programs
4,215
1,442
Internal costs, including personnel related
7,366
3,122
$
22,409
$
9,776
General and Administrative Expenses
General and administrative expenses increased by $3.9 million to $5.5 million for the three months ended June 30, 2021 from $1.6 million for the three months ended June 30, 2020. The increase was primarily due to an increase in personnel related expense due to an increase in employee headcount and an increase in our professional fees as we expanded our operations to support our research and development efforts and incurred additional costs to operate as a public company.
15
Other Income, net
Other income, net increased by $1.0 million primarily due to the receipt and recognition of a research and development tax credit from the State of Delaware in the second quarter of 2021.
Results of Operations
Comparison of the Six Months Ended June 30, 2021 and 2020
The following table sets forth our results of operations for the six months ended June 30, 2021 and 2020.
Six months ended
June 30,
Change
(in thousands)
2021
2020
Operating expenses:
Research and development
$
38,879
$
18,312
$
20,567
General and administrative
11,010
2,861
8,149
Total operating expenses
49,889
21,173
28,716
Loss from operations
(49,889
)
(21,173
)
(28,716
)
Other income, net
1,724
254
1,470
Net loss
$
(48,165
)
$
(20,919
)
$
(27,246
)
Research and Development Expenses
Research and development expenses increased by $20.6 million to $38.9 million for the six months ended June 30, 2021 from $18.3 million for the six months ended June 30, 2020. The increase was mainly due to increased clinical research costs for the PRT543 and PRT811. Our chemistry, manufacturing and other costs for those trials also increased. We track our external research and development expenses on a program-by-program basis, such as fees paid to CROs, CMOs and research laboratories in connection with our pre-clinical development, process development, manufacturing and clinical development activities. However, we do not track our internal research and development expenses on a program-by-program basis as they primarily relate to compensation, early research and other costs which are deployed across multiple projects under development.
Research and development expenses by program are summarized in the table below:
Six months ended
June 30,
(in thousands)
2021
2020
PRT543
$
7,680
$
4,060
PRT811
6,340
1,566
PRT1419 (Oral and IV)
3,800
4,007
Discovery programs
7,387
1,970
Internal costs, including personnel related
13,672
6,709
$
38,879
$
18,312
General and Administrative Expenses
General and administrative expenses increased by $8.1 million to $11.0 million for the six months ended June 30, 2021 from $2.9 million for the six months ended June 30, 2020. The increase was primarily due to an increase in personnel related expense due to increases in employee headcount and an increase in our professional fees as we expanded our operations to support our research and development efforts and incurred additional costs to operate as a public company.
Other Income, net
Other income, net increased by $1.5 million primarily due to the receipt and recognition of a research and development tax credit from the State of Delaware in the first and second quarter of 2021.
16
Liquidity and Capital Resources
Overview
Since our inception, we have not recognized any revenue and have incurred operating losses and negative cash flows from our operations. We have not yet commercialized any product and we do not expect to generate revenue from sales of any products for several years, if at all. Since our inception, we have funded our operations through the sale of convertible preferred stock and common stock
.
As of June 30, 2021, we had $343.1 million in cash and cash equivalents and had an accumulated deficit of $155.6 million. We expect our existing cash and cash equivalents to enable us to fund our operating expenses and capital expenditure requirements into mid-2023. We have based these estimates on assumptions that may prove to be imprecise, and we could utilize our available capital resources sooner than we expect.
Funding Requirements
Our primary use of cash is to fund operating expenses, primarily research and development expenditures. Cash used to fund operating expenses is impacted by the timing of when we pay these expenses, as reflected in the change in our outstanding accounts payable, accrued expenses and prepaid expenses.
Because of the numerous risks and uncertainties associated with research, development and commercialization of pharmaceutical products, we are unable to estimate the exact amount of our operating capital requirements. Our future funding requirements will depend on many factors, including, but not limited to:
•
the scope, timing, progress and results of discovery, preclinical development, laboratory testing and clinical trials for our product candidates;
•
the costs of manufacturing our product candidates for clinical trials and in preparation for marketing approval and commercialization;
•
the extent to which we enter into collaborations or other arrangements with additional third parties in order to further develop our product candidates;
•
the costs of preparing, filing and prosecuting patent applications, maintaining and enforcing our intellectual property rights and defending intellectual property-related claims;
•
the costs and fees associated with the discovery, acquisition or in-license of additional product candidates or technologies;
•
expenses needed to attract and retain skilled personnel;
•
costs associated with being a public company;
•
the costs required to scale up our clinical, regulatory and manufacturing capabilities;
•
the costs of future commercialization activities, if any, including establishing sales, marketing, manufacturing and distribution capabilities, for any of our product candidates for which we receive marketing approval; and
•
revenue, if any, received from commercial sales of our product candidates, should any of our product candidates receive marketing approval.
We will need additional funds to meet operational needs and capital requirements for clinical trials, other research and development expenditures, and business development activities. We currently have no credit facility or committed sources of capital. Because of the numerous risks and uncertainties associated with the development and commercialization of our product candidates, we are unable to estimate the amounts of increased capital outlays and operating expenditures associated with our current and anticipated clinical studies.
Until such time, if ever, as we can generate substantial product revenue, we expect to finance our operations through a combination of equity offerings, debt financings, collaborations, strategic alliances and marketing, distribution or licensing arrangements. To the extent that we raise additional capital through the sale of equity or convertible debt securities, ownership interests will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of common stockholders. Debt financing and preferred equity financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making acquisitions or capital expenditures or declaring dividends. If we raise additional funds through collaborations, strategic alliances or marketing, distribution or licensing arrangements with third parties, we may have to relinquish valuable rights to our technologies, future revenue streams, research programs or product candidates, or grant licenses on terms that may not be favorable to us. If we are unable to raise additional funds through equity or debt financings or other arrangements when needed, we may be required to delay, limit, reduce or terminate our research, product development or future commercialization efforts, or grant rights to develop and market product candidates that we would otherwise prefer to develop and market ourselves.
17
Cash Flows
The following table shows a summary of our cash flows for the periods indicated:
Six months ended
June 30,
(in thousands)
2021
2020
Cash used in operating activities
$
(36,055
)
$
(18,823
)
Cash used in investing activities
(1,367
)
(122
)
Cash provided by financing activities
162,232
29,782
Net increase in cash and cash equivalents
$
124,810
$
10,837
Operating Activities
During the six months ended June 30, 2021, we used $36.1 million of cash in operating activities. Cash used in operating activities reflected our net loss of $48.2 million, offset by a $3.1 million net decrease in our operating assets and liabilities and noncash charges of $9.1 million, which consisted of $0.4 million in depreciation, $0.6 million noncash lease expense and $8.1 million in stock-based compensation. The primary use of cash was to fund our operations related to the development of our product candidates.
During the six months ended June 30, 2020, we used $18.8 million of cash in operating activities. Cash used in operating activities reflected our net loss of $20.9 million, offset by a $0.8 million net decrease in our operating assets and liabilities and noncash charges of $1.3 million, which consisted of $0.3 million in depreciation and $1.0 million in stock-based compensation. The primary use of cash was to fund our operations related to the development of our product candidates.
Investing Activities
During the six months ended June 30, 2021 and 2020, we used $1.4 million and $0.1 million of cash, respectively, for the purchase of property and equipment.
Financing Activities
During the six months ended June 30, 2021, financing activities provided $162.2 million, which reflected the receipt of net cash of $161.4 million from the sale of common stock as well as the receipt of $0.8 million from the exercise of stock options. During the six months ended June 30, 2020, financing activities provided $29.8 million of cash. Net cash provided by financing activities for the six months ended June 30, 2020 consisted of $29.9 million from the sale of our Series B convertible preferred stock and $31,000 of proceeds received from the exercise of stock options, offset by payments of $0.2 million for our capital lease obligation.
Off-Balance Sheet Arrangements
During the periods presented, we did not have, nor do we currently have, any relationships with unconsolidated entities or financial partnerships, including entities sometimes referred to as structured finance or special purpose entities that were established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. We do not engage in off-balance sheet financing arrangements. In addition, we do not engage in trading activities involving non-exchange traded contracts. We therefore believe that we are not materially exposed to any financing, liquidity, market or credit risk that could arise if we had engaged in these relationships.
Critical Accounting Policies
During the three months ended June 30, 2021, there were no material changes to our critical accounting policies and estimates from those described under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations-Critical Accounting Policies and Estimates" on our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 16, 2021.
JOBS Act Accounting Election
We are an "emerging growth company," as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies.
18
We have elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.
We will remain an emerging growth company until the earliest of (1) the last day of our first fiscal year (a) in which we have total annual gross revenues of at least $1.07 billion, or (b) in which we are deemed to be a large accelerated filer, which means the market value of our common stock that is held by non-affiliates exceeds $700.0 million as of the prior June 30
th
, (2) the date on which we have issued more than $1.0 billion in non-convertible debt securities during the prior three-year period and (3) December 31, 2025.
Recent Accounting Pronouncements
See Note 3
to our interim financial statements included elsewhere in this Quarterly Report on Form 10-Q for a description of recent accounting pronouncements applicable to our financial statements.
Emerging Growth Company and Smaller Reporting Company Status
In April 2012, the Jumpstart Our Business Startups Act of 2012, or the JOBS Act, was enacted. Section 107 of the JOBS Act provides that an "emerging growth company" can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, for complying with new or revised accounting standards. Thus, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to avail ourselves of this exemption from complying with new or revised accounting standards and, therefore, will not be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.
We are in the process of evaluating the benefits of relying on other exemptions and reduced reporting requirements under the JOBS Act, including without limitation, exemption to the requirements for providing an auditor's attestation report on our system of internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act. We will remain an emerging growth company until the earlier to occur of (a) the last day of the fiscal year (i) following the fifth anniversary of the completion of our IPO, (ii) in which we have total annual gross revenues of at least $1.07 billion or (iii) in which we are deemed to be a "large accelerated filer" under the rules of the SEC, which means the market value of our common stock that is held by non-affiliates exceeds $700.0 million as of the prior June 30th, or (b) the date on which we have issued more than $1.0 billion in non-convertible debt during the prior three-year period.
We are also a "smaller reporting company," meaning that the market value of our stock held by non-affiliates is less than $700.0 million and our annual revenue is less than $100.0 million during the most recently completed fiscal year. We may continue to be a smaller reporting company after if either (i) the market value of our stock held by non-affiliates is less than $250.0 million or (ii) our annual revenue is less than $100.0 million during the most recently completed fiscal year and the market value of our stock held by non-affiliates is less than $700.0 million. If we are a smaller reporting company at the time we cease to be an emerging growth company, we may continue to rely on exemptions from certain disclosure requirements that are available to smaller reporting companies. Specifically, as a smaller reporting company we may choose to present only the two most recent fiscal years of audited financial statements in our Annual Report on Form 10-K and, similar to emerging growth companies, smaller reporting companies have reduced disclosure obligations regarding executive compensation.
19
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.
Item 4. Controls and Procedures.
Evaluation of Disclosure Controls and Procedure
As of June 30, 2021, management, with the participation of our Principal Executive Officer and Principal Financial and Accounting Officer, performed an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rules
13a-15(e)
and
15d-15(e)
of the
Securities Exchange Act of 1934
, as amended, or the
Exchange Act
. Our disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports we file or submit under the
Exchange Act
is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including the Principal Executive Officer and the Principal Financial and Accounting Officer, to allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objective and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on this evaluation, our Principal Executive Officer and Principal Financial and Accounting Officer concluded that, as of June 30, 2021, the design and operation of our disclosure controls and procedures were effective at a reasonable assurance level.
Changes in Internal Control over Financial Reporting
Management determined that, as of June 30, 2021, there were no changes in our internal control over financial reporting that occurred during the fiscal quarter then ended that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Item 1. Legal Proceedings.
From time to time, we may be involved in legal proceedings arising in the ordinary course of our business. In addition, we may receive letters alleging infringement of patents or other intellectual property rights. We are not presently a party to any legal proceedings that, in the opinion of management, would have a material adverse effect on our business, operating results, cash flows or financial conditions should such litigation be resolved unfavorably. Regardless of outcome, litigation can have an adverse impact on us due to defense and settlement costs, diversion of management resources, negative publicity and reputational harm, and other factors.
20
Item 1A. Ri
sk Factors
RISK FACTORS
Investing in our common stock involves a high degree of risk. Before making your decision to invest in shares of our common stock, you should carefully consider the risks and uncertainties described below, together with the other information contained in this
Quarterly
R
eport
on Form 10-Q
, including our financial statements and the related notes and "Management's Discussion and Analysis of Financial Condition and Results of Operations". The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties that we are unaware of, or that we currently believe are not material, may also become important factors that affect us. We cannot assure you that any of the events discussed below will not occur. These events could have a material and adverse impact on our business, financial condition, results of operations and prospects. If that were to happen, the trading price of our common stock could decline, and you could lose all or part of your investment.
Summary of Risk Factors
Our business is subject to a number of risks and uncertainties, including those immediately following this summary. Some of these risks are:
•
We are a clinical-stage precision oncology company with a history of operating losses, and we may not achieve or sustain profitability. We anticipate that we will continue to incur losses for the foreseeable future. Our limited operating history may make it difficult for you to evaluate our success to date and to assess our future viability.
•
The outbreak of the novel strain of coronavirus, SARS-CoV-2, which causes COVID-19, could adversely impact our business, including our clinical development activities and clinical trials.
•
We will need to raise additional funding before we can expect to become profitable from any potential future sales of our products.
•
We are very early in our development efforts. Our business is dependent on our ability to advance our current and future product candidates through preclinical studies and clinical trials, obtain marketing approval and ultimately commercialize them.
•
Preclinical and clinical development involve a lengthy and expensive process with an uncertain outcome. We may incur additional costs or experience delays in completing, or ultimately be unable to complete, the development and commercialization of our current product candidates or any future product candidates.
•
Our product candidates may cause undesirable and unforeseen side effects, which could delay or prevent their advancement into clinical trials or regulatory approval, limit the commercial potential or result in significant negative consequences.
•
We face significant competition in an environment of rapid technological change and the possibility that our competitors may achieve regulatory approval before us or develop therapies or technologies that are more advanced or effective than ours.
•
We currently rely and expect to continue to rely on third-party manufacturers to produce clinical supply of our product candidates.
•
If we are unable to obtain and maintain patent protection or other necessary rights for our products and technology, or if the scope of the patent protection obtained is not sufficiently broad or our rights under licensed patents is not sufficiently broad, our competitors could develop and commercialize products and technology similar or identical to ours, and our ability to successfully commercialize our products and technology may be adversely affected.
Risks Related
to Our Financial
Position
and Need for
Capital
We have a limited
operating
history,
which may
make
it
difficult
to evaluate
the success
of our business
to date
and to assess
our future
viability.
We have incurred
significant
operating
losses
since
our inception and have not generated
any revenue.
We expect
to incur continued
losses
for
the foreseeable
future
and may
never
achieve
or maintain
profitability.
Investment
in
drug
development
is
a
highly
speculative
undertaking
and
involves
a
substantial
degree
of risk.
We
commenced
operations
in
2016
and are
a clinical-stage
biopharmaceutical
company
with a limited operating
history.
We
have not yet
commercialized
any product
and we do not expect
to generate
revenue
from sales
of
any products
for
several
years,
if
at
all.
Consequently,
there
have been limited
operations
upon which we or
you
can
evaluate
our
business,
and
predictions
about
our future
success
or viability
may
not be as accurate
as they
could
be
if
we
had
a longer
operating
history
or a history
of successfully
developing
and commercializing cancer
therapies.
For
the
six months
June 30, 2021 and 2020,
we
reported
a
net
loss
of
$48.2
million and $20.9 million, respectively.
As
of
June 30,
2021,
we
had
an
accumulated
deficit
of
$155.6
million.
We
expect
to
continue to incur
significant
research
and development
and other
expenses
related
to our ongoing operations.
21
Since
our
inception,
we
have
focused
substantially
all
of
our
efforts
and
financial
resources
on the
research, preclinical
and
clinical
development
of
our product
candidates,
PRT543,
PRT811
and PRT1419,
and our research efforts
on
other
potential
product
candidates
targeting
Protein
Arginine
Methyltransferase
5,
or
PRMT5, Myeloid Cell
Leukemia
Sequence
1,
or
MCL1,
Cyclin-dependent
kinase
9,
or
CDK9, and
Brahma
homologue,
or BRM, otherwise
known
as
SMARCA2.
As of June 30, 2021, our cash
and cash
equivalents
were $343.1 million.
We
expect
to
incur
increasing
levels
of
operating
losses
for
the
foreseeable
future,
particularly
as
we advance PRT543, PRT811 and PRT1419 through clinical development. Our prior losses, combined with expected
future
losses,
have
had,
and
will
continue
to have, an adverse
effect
on our stockholders'
equity
and working
capital.
We
expect
our
research
and
development
expenses
to
significantly
increase
in connection
with our additional
planned
clinical
trials
for
our lead
product
candidates,
including
the
ongoing Phase 1 clinical
trials and
the
planned
expansion
cohorts
of
PRT543 and
PRT811, the
ongoing
Phase
1
clinical
trial
for
oral
PRT1419 and development
and
subsequent
INDs
of
other
future
product
candidates
we
may
choose
to pursue,
including IV PRT1419, PRT2527,
our
CDK9
inhibitor,
a
SMARCA2 protein
degrader
and
a
kinase
inhibitor.
In
addition,
if
we
obtain marketing
approval
for
PRT543,
PRT811, PRT1419 or
another
product
candidate,
we
will
incur
significant
sales, marketing and outsourced manufacturing expenses in connection with the commercialization of PRT543, PRT811, PRT1419 or
such
other
product
candidate,
respectively.
We
will
also
continue
to
incur
additional
costs associated
with operating
as a public
company.
As a result,
we expect
to continue
to incur
significant
and increasing
operating
losses
for
the
foreseeable
future.
Because
of
the
numerous
risks
and uncertainties
associated with
developing
pharmaceutical
products,
we
are
unable
to
predict
the
extent
of
any
future
losses
or
when
we will
become
profitable,
if
at
all.
Even
if
we
do
become
profitable,
we
may
not
be
able
to
sustain
or
increase
our profitability
on a quarterly
or annual
basis.
We expect
our financial
condition
and operating
results
to fluctuate significantly
from
quarter-to-quarter
and year-to-year
due to a variety
of factors,
many
of which are
beyond our control.
Accordingly,
you
should
not
rely
upon the
results
of any quarterly
or annual
periods
as indications
of future
operating
performance.
Our
ability
to
become
profitable
depends
upon our ability
to generate
revenue.
To date,
we have not generated
any
revenue
and we do not know when, or if,
we will
generate
any revenue.
We do not expect
to generate
significant
revenue
unless
and until
we obtain
marketing
approval
for,
and begin
to sell,
PRT543, PRT811, PRT1419 or
another
product
candidate.
Our
ability
to
generate
revenue
depends
on a number
of factors, including,
but not limited
to, our ability
to:
•
complete
successful
Phase 1 portions
of PRT543,
PRT811
and PRT1419
clinical
trials;
•
initiate
and
successfully
complete
all
safety,
pharmacokinetic
and
other
studies
required
to
obtain
U.S. and foreign marketing approval for PRT543 as a treatment for patients with hematological malignancies
and
advanced
solid
tumors,
PRT811 as
a
treatment
for
patients
with
glioblastoma
and advanced
solid
tumors
and
PRT1419 as
a
treatment
for
patients
with certain
solid tumors and
hematological malignancies;
•
initiate
and complete
successful
later-stage
clinical
trials
that
meet
their
clinical
endpoints;
•
obtain favorable results from our
clinical trials and
apply for and
obtain
marketing approval
for PRT543,
PRT811
and PRT1419;
•
establish
licenses,
collaborations
or strategic
partnerships
that
may
increase
the
value
of our programs;
•
successfully
manufacture
or
contract
with
others
to
manufacture
PRT543,
PRT811,
PRT1419
and
our other
product
candidates;
•
commercialize
PRT543,
PRT811,
PRT1419,
if
approved,
respectively,
by
building
a
sales
force
or entering
into
collaborations
with third
parties;
•
submit
INDs
for
PRT2527
and
the
SMARCA2
protein
degrader
that
are
made
effective
by
the
U.S.
Food and Drug Administration,
or the
FDA;
•
obtain,
maintain,
protect
and defend
our intellectual
property
portfolio;
and
•
achieve
market
acceptance
of
PRT543,
PRT811,
PRT1419
and
our
other
successful
product
candidates with the
medical
community
and with third-party
payors.
To become and remain profitable, we must succeed in designing, developing and eventually commercializing
products
that
generate
significant
revenue.
This
will
require
us
to
be
successful
in
a
range
of challenging
activities,
including
completing
preclinical
testing
and
clinical
trials
for
our product
candidates, designing
additional
product
candidates,
establishing
arrangements
with third parties
for the manufacture
of clinical
supplies
of
our
product
candidates,
obtaining
marketing
approval
for
our product
candidates
and manufacturing,
marketing
and
selling
any products
for
which we may
obtain
marketing
approval.
We are
only in the
preliminary
stages
of
most
of these
activities.
We may
never
succeed
in these
activities
and, even if
we do, may
never
generate
revenues
that
are
significant
enough to achieve
profitability.
22
In
cases
where
we
are
successful
in
obtaining
regulatory
approval
to
market
one
or
more
of
our
product candidates,
our
revenue
will
be
dependent,
in
part,
upon
the
size
of
the
markets
in
the
territories
for
which
we gain
regulatory
approval,
the
accepted
price
for
the
product,
the
ability
to
obtain
coverage
and
reimbursement, and
whether
we
own
the
commercial
rights
for
that
territory.
If
the
number
of
our
addressable
patients
is
not as significant
as
we
estimate,
the
indication
approved
by
regulatory
authorities
is
narrower
than
we
expect,
or the treatment
population
is
narrowed
by
competition,
physician
choice
or treatment
guidelines,
we may
not generate significant
revenue
from
sales
of such products,
even if
approved.
Because
of
the
numerous
risks
and
uncertainties
associated
with
pharmaceutical
product
development,
we are
unable
to
accurately
predict
the
timing
or
amount
of increased
expenses
we will
incur
or when, or if,
we will be
able
to
achieve
profitability.
If
we
decide
to
or
are
required
by
the
FDA or
regulatory
authorities
in
other jurisdictions
to
perform
studies
or clinical
trials
in addition
to those
currently
expected,
or if
there
are
any delays in
establishing
appropriate
manufacturing
arrangements
for,
in
initiating
or completing
our current
and planned clinical
trials
for,
or in the
development
of, any of our product
candidates,
our expenses
could
increase
materially and profitability
could
be further
delayed.
Even
if
we
do
achieve
profitability,
we
may
not
be
able
to
sustain
or
increase
profitability
on a quarterly
or annual
basis.
Our
failure
to
become
and remain
profitable
would depress
the
value
of our company
and could impair
our
ability
to
raise
capital,
expand our business,
maintain
our research
and development
efforts,
diversify our
product
offerings
or
even
continue
our
operations.
A
decline
in
the
value
of
our
company
could
also
cause you to lose
all
or part
of your investment.
We will
require
substantial
additional
funding to pursue our business objectives.
If
we are unable to raise
capital
when
needed or on terms
acceptable
to us, we could be forced to delay,
reduce
or eliminate
our research
or drug development
programs,
any future
commercialization efforts
or other
operations.
We
expect
our
expenses
to
increase
substantially
in
connection
with
our
ongoing
activities,
particularly
as we
advance
our
product
candidates,
PRT543,
PRT811
and
PRT1419, and
other
pipeline
product
candidates through
clinical
development,
and seek
to design
additional
product
candidates
from
our discovery
programs.
We expect
increased
expenses
as
we
continue
our
research
and
development,
initiate
additional
clinical
trials,
and seek
marketing
approval
for
our
lead
programs
and
our
other
product
candidates.
In addition,
if
we obtain marketing
approval
for
any of our product
candidates,
we expect
to incur
significant
commercialization
expenses related
to
product
manufacturing,
marketing,
sales
and
distribution.
Furthermore,
we expect
to continue
to incur additional
costs
associated
with
operating
as a public
company.
Accordingly,
we will
need to obtain
substantial additional
funding
in
connection
with
our
continuing
operations.
Adequate
additional
financing
may
not be available
to
us on favorable
terms,
or at
all.
In addition,
we may
seek
additional
capital
due to favorable
market conditions
or
strategic
considerations
even
if
we
believe
we
have
sufficient
funds
for
our
current
or future operating
plans.
If
we
are
unable
to
raise
capital
when
needed
or
on
favorable
terms,
we could
be forced
to delay, reduce
or eliminate
our research
and development
programs,
our commercialization
plans
or other
operations.
We
believe
that
our
existing
cash
and
cash
equivalents will
enable
us
to
fund
our
operating
expenses,
and
capital
expenditure
requirements
into mid-2023. We have based this estimate on assumptions that may prove to be wrong, and we could use our capital resources sooner than we currently expect. Changes beyond our control may occur that would cause us to use our available capital before that time, including changes in and progress of our drug development activities and changes in regulation. Our future
capital
requirements
will
depend on many
factors,
including:
•
the
progress,
timing
and
results
of
preclinical
studies
and
clinical
trials
for
our
current
or
any
future product
candidates;
•
the
extent
to which we develop,
in-license
or acquire
other
pipeline
product
candidates
or technologies;
•
the
number
and
development
requirements
of
other
product
candidates
that
we
may
pursue,
and
other indications
for
our current
product
candidates
that
we may
pursue;
•
the
costs,
timing
and
outcome
of
obtaining
regulatory
approvals
of
our
current
or
future
product candidates
and any companion
diagnostics
we may
pursue;
•
the scope and costs of making arrangements with third-party manufacturers, or establishing manufacturing
capabilities,
for
both
clinical
and
commercial
supplies
of our current
or future
product candidates;
•
the costs involved in growing our organization to the size needed to allow for the research, development
and potential
commercialization
of our current
or future
product
candidates;
•
the
cost
associated
with
commercializing any
approved
product
candidates,
including
establishing sales,
marketing
and distribution
capabilities;
23
•
the
cost
associated
with
completing
any
post-marketing
studies
or
trials
required
by
the
FDA
or
other regulatory
authorities;
•
the
revenue,
if
any,
received
from
commercial
sales
of
PRT543, PRT811, PRT1419, or
PRT2527
if
any are
approved,
or our other
pipeline
product
candidates
that
receive
marketing
approval;
•
the costs of preparing, filing and prosecuting patent applications, maintaining and enforcing our intellectual
property
rights
and defending
intellectual
property-related
claims
that
we may
become subject
to, including
any litigation
costs
and the
outcome
of such litigation;
•
the costs associated with potential product liability claims, including the costs associated with obtaining
insurance
against
such claims
and with defending
against
such claims;
and
•
to
the
extent
we
pursue
strategic
collaborations,
including
collaborations
to
commercialize
PRT543, PRT811, PRT1419, PRT2527 or
any of our other
pipeline
product
candidates,
our ability
to establish and
maintain
collaborations
on
favorable
terms,
if
at
all,
as
well
as
the
timing
and
amount
of any milestone
or
royalty
payments
we are
required
to make
or are
eligible
to receive
under
such collaborations,
if
any.
We will
require
additional
capital
to complete
our planned clinical development
programs
for
our
current
product
candidates
to obtain
regulatory
approval.
Our ability
to raise additional
funds
will
depend on financial,
economic
and market
conditions
and other
factors,
over
which we may have
no
or
limited
control.
If
adequate
funds
are
not
available
on
commercially
acceptable
terms
when
needed, we
may
be
forced
to
delay,
reduce
or
terminate
the
development
or
commercialization
of
all
or
part
of
our research
programs
or
product
candidates
or we may
be unable
to take
advantage
of future
business
opportunities. Furthermore,
any additional
capital-raising
efforts
may
divert
our management
from their day-to-day
activities, which
may
adversely
affect
our
ability
to
develop
and
commercialize
our
current
and
future
product
candidates, if
approved.
Raising additional
capital
may
cause dilution
to our stockholders
restrict
our operations
or require
us to relinquish
rights
to our technologies
or product candidates.
Until
such
time,
if
ever,
as
we can generate
substantial
product
revenue,
we expect
to finance
our cash
needs through
a
combination
of
equity
offerings,
debt
financings,
collaborations,
strategic
alliances
and marketing, distribution
or
licensing
arrangements.
In
addition,
we
may
seek
additional
capital
due to favorable
market conditions
or
strategic
considerations,
even
if
we
believe
we
have
sufficient
funds
for
our current
or future operating
plans.
To
the
extent
that
we
raise
additional
capital
through
the
sale
of equity
or convertible
debt securities,
your
ownership
interest
will
be diluted,
and the
terms
of these
securities
may
include
liquidation
or other
preferences
that
adversely
affect
your
rights
as
a
common
stockholder.
Debt financing
and preferred
equity financing,
if
available,
may
involve
agreements
that
include
covenants
limiting
or restricting
our ability
to take specific
actions,
such
as
incurring
additional
debt,
making
acquisitions
or capital
expenditures
or declaring dividends.
If
we raise
additional
funds
through
collaborations,
strategic
alliances
or marketing,
distribution
or licensing arrangements
with
third
parties,
we
may
have
to
relinquish
valuable
rights
to
our
technologies,
future
revenue streams,
research
programs
or
product
candidates
or
grant
licenses
on
terms
that
may
not
be
favorable
to
us.
If we
are
unable
to
raise
additional
funds
through
equity
or
debt
financings
or other
arrangements
when needed,
we may be required to delay, limit, reduce or terminate our research, product development or future commercialization
efforts
or
grant
rights
to
third
parties
to
develop
and
market
product
candidates
that
we
would otherwise
prefer
to develop
and market
ourselves.
Risks Related to Design and Development of our Product Candidates
We are highly
dependent
on the success
of our product
candidates,
PRT543,
PRT811
and PRT1419, which are in early
clinical
development,
and PRT2527,
which is
in preclinical
development.
We have not completed
successful
late-stage
pivotal
clinical
trials
or obtained
regulatory
approval
for
any product candidate.
We may
never
obtain
approval
for
any of our product
candidates
or achieve
or sustain profitability.
Our future
success
is
highly
dependent
on our ability
to obtain
regulatory
approval
for,
and then
successfully commercialize,
our
product
candidates,
PRT543,
PRT811
and
PRT1419. We
are
early
in
our
development
efforts and
our
lead
product
candidates,
PRT543,
PRT811
and
PRT1419,
are
each
currently
in
a
Phase
1
clinical
trial. Our
other
product
candidates,
including
PRT2527, are
in
earlier
stages
of
development.
We
currently
have
no products
that
are
approved
for
sale
in
any
jurisdiction.
There
can
be
no
assurance
that
PRT543, PRT811, PRT1419, PRT2527 or our other
product
candidates
in development
will
achieve
success
in their
clinical
trials
or obtain
regulatory
approval.
24
Our
ability
to
generate
product
revenues,
which we do not expect
will
occur
for
many
years,
if
ever,
will depend
heavily
on
the
successful
development
and
eventual
commercialization
of
PRT543, PRT811, PRT1419, PRT2527 or
other
product
candidates
in
development.
The success
of our product
candidates,
including
PRT543, PRT811,
PRT1419
and PRT2527,
will
depend on several
factors,
including
the
following:
•
successful
completion
of preclinical
studies
and clinical
trials;
•
acceptance
of
INDs
by
the
FDA
or
other
similar
clinical
trial
applications
from
foreign
regulatory authorities
for
our future
clinical
trials
for
our pipeline
product
candidates;
•
timely
and successful
enrollment
of patients
in, and completion
of, clinical
trials
with favorable
results;
•
demonstration
of
safety,
efficacy
and
acceptable
risk-benefit
profiles
of
our
product
candidates
to
the satisfaction
of the
FDA
and foreign
regulatory
agencies;
•
our
ability,
or
that
of
our
collaborators,
to
develop
and
obtain
clearance
or
approval
of
companion diagnostics,
on a timely
basis,
or at
all;
•
receipt
and
related
terms
of
marketing
approvals
from
applicable
regulatory
authorities,
including
the completion
of any required
post-marketing
studies
or trials;
•
raising
additional
funds
necessary
to
complete
clinical
development
of
and
commercialize
our
product candidates;
•
obtaining
and
maintaining
patent,
trade
secret
and
other
intellectual
property
protection
and
regulatory exclusivity
for
our product
candidates;
•
making
arrangements
with
third-party
manufacturers,
or
establishing
manufacturing
capabilities,
for both clinical
and commercial
supplies
of our product
candidates;
•
developing
and implementing
marketing
and reimbursement
strategies;
•
establishing sales, marketing and distribution capabilities and launching commercial sales of our products,
if
and when approved,
whether
alone
or in collaboration
with others;
•
acceptance
of
our
products,
if
and
when
approved,
by
patients,
the
medical
community
and
third-party payors;
•
effectively
competing
with other
therapies;
•
obtaining
and maintaining
third-party
payor
coverage
and adequate
reimbursement;
•
protecting
and enforcing
our rights
in our intellectual
property
portfolio;
and
•
maintaining
a continued
acceptable
safety
profile
of the
products
following
approval.
Many
of
these
factors
are
beyond
our
control,
and
it
is
possible
that
none of our product
candidates
will
ever obtain
regulatory
approval
even
if
we
expend
substantial
time
and
resources
seeking
such
approval.
If
we
do not achieve
one
or
more
of
these
factors
in
a
timely
manner
or
at
all,
we could
experience
significant
delays
or an inability
to successfully
commercialize
our product
candidates,
which would materially
harm
our business. For example,
our
business
could
be
harmed
if
results
of
our
ongoing
clinical
trials
of
PRT543, PRT811 or
PRT1419, vary
adversely
from
our expectations.
Drug development
involves
a lengthy
and expensive
process,
and clinical
testing
is
uncertain
as to the outcome.
We currently
have three
product
candidates
in Phase 1 clinical
development
and additional
product candidates
in
preclinical
development,
and
the
risk
of failure
for
each
is
high. We are
unable
to predict
when or if our
product
candidates
will
prove
effective
or
safe
in
humans
or will
obtain
marketing
approval.
Before
obtaining marketing approval from regulatory authorities for the sale of any product candidate, we must complete preclinical
development
and then
conduct
extensive
clinical
trials
to demonstrate
the
safety
and efficacy
of our product
candidates
in
humans.
Clinical
testing
is
expensive,
difficult
to
design
and
implement,
can
take
many years
to complete
and is
uncertain
as to the
outcome.
A
failure
of
one
or
more
clinical
trials
can
occur
at
any
stage
of testing.
The outcome
of preclinical
testing and
early
clinical
trials
may
not
be
predictive
of
the
success
of later
clinical
trials
or of clinical
trials
of the
same product
candidates
in
other
indications,
and
interim
or
preliminary
results
of
a
clinical
trial
do
not
necessarily predict
final
results.
Later-stage
clinical
trials
could
differ
in significant
ways from
early-stage
clinical
trials, including
changes
to
inclusion
and
exclusion
criteria,
efficacy
endpoints,
dosing
regimen
and
statistical
design. In
particular,
the
small
number
of
patients
in
our
current
Phase
1
clinical
trials
may
make
the
results
of
these trials
less
predictive
of
the
outcome
of
later
clinical
trials.
In addition,
although
we have observed
25
encouraging clinical
activity
in
the
dose
escalation
portion
of
the
Phase
1
portion
of
our
ongoing
PRT543 and
PRT811 clinical trials,
the
primary
objectives
were
to
determine
the
safety,
tolerability
and maximum
tolerated
dose of PRT543 and
PRT811,
respectively,
and
to
determine
a
recommended
Phase
2
dose
for
the
expansion
portion
of
our Phase
1
clinical
trials,
and
not
to
demonstrate
efficacy.
The
assessments
of
clinical
activity
from
this
portion
of the
clinical
trials,
some
of
which
were
not
pre-specified,
may
not
be
predictive
of
the
results
in dose expansion cohorts,
specific
tumor
types
or
further
clinical
trials
of
PRT543 and
PRT811. In
addition,
while
we
may
believe certain
results
in patients,
such as stable
disease,
suggest
encouraging
clinical
activity,
stable
disease is not considered
a
response
for
regulatory
purposes.
Stable
disease,
or
SD,
is
defined
as
failure
to
meet
the
definition of
objective
clinical
response
or progressive
disease.
Furthermore,
safety
events
may
be observed
in later
trials that
alter
the
anticipated
risk-benefit
profiles
of PRT543
and PRT811.
We may
incur additional
costs
or experience
delays
in completing,
or ultimately
be unable to complete
the development
and/or commercialization
of PRT543,
PRT811,
PRT1419,
PRT2527
or our other
product candidates.
Before
we
can
initiate
clinical
trials
of
a
product
candidate
in
any
indication,
we must
submit
the
results
of preclinical
studies
to
the
FDA or
to
comparable
foreign
authorities,
respectively,
along
with
other
information, including
information
about
the
product
candidate's
chemistry,
manufacturing
and controls
and our proposed clinical
trial
protocol,
as part
of an IND or comparable
foreign
regulatory
filings.
The
FDA may
require
us
to
conduct
additional
preclinical
studies
for
any product
candidate
before
it
allows us
to
initiate
subsequent
clinical
trials
under
any
IND,
which
may
lead
to additional
delays
and increase
the
costs of our preclinical
development
programs.
Any
delays
in
the
commencement
or
completion
of our ongoing, planned
or future
clinical
trials
could significantly
affect
our product
development
costs.
We may
experience
numerous
unforeseen
events
during,
or as a
result
of,
clinical
trials
that
could
delay
or
prevent
our
ability
to
obtain
marketing
approval
or
commercialize our product
candidates,
including:
•
regulators,
institutional
review
boards,
or
IRBs,
or
ethics
committees,
or
ECs,
may
not
authorize
us
or our investigators
to commence
a clinical
trial
or conduct
a clinical
trial
at
a prospective
trial
site;
•
the FDA may disagree as to the design or implementation of our clinical trials or with our recommended
Phase 2 doses
for
any of our pipeline
programs;
•
we
may
experience
delays
in
reaching,
or
fail
to
reach,
agreement
on
acceptable
clinical
trial
contracts or
clinical
trial
protocols
with
prospective
clinical
research
organizations,
or
CROs,
and
prospective trial
sites;
•
clinical
trials
for
our
product
candidates
may
produce
negative
or
inconclusive
results,
and
we
may decide,
or
regulators
may
require
us,
to
conduct
additional
clinical
trials,
delay
or halt
clinical
trials
or abandon product
development
programs;
•
lack
of adequate
funding
to continue
the
clinical
trial;
•
the
number
of
patients
required
for
clinical
trials
for
our
product
candidates
may
be
larger
than
we anticipate,
enrollment
in these
clinical
trials
may
be slower
than
we anticipate
or may
be lower than we anticipate
due to challenges
in recruiting
and enrolling
suitable
patients
that
meet
the
study criteria, participants
may
drop
out
of these
clinical
trials
at
a higher
rate
than
we anticipate
or the
duration
of these
clinical
trials
may
be longer
than
we anticipate;
•
competition
for
clinical
trial
participants
from
investigational
and
approved
therapies
may
make
it more
difficult
to enroll
patients
in our clinical
trials;
•
we may experience difficulties in maintaining contact with patients after treatment, resulting in incomplete
data;
•
we
or
third-party
collaborators
may
fail
to
obtain
regulatory
approval
of
companion
diagnostic
tests,
if required,
on a timely
basis,
or at
all;
•
our
third-party
contractors
may
fail
to
meet
their
contractual
obligations
to
us
in
a
timely
manner,
or
at all,
or may
fail
to comply
with regulatory
requirements;
•
we
may
have
to
suspend
or
terminate
clinical
trials
for
our
product
candidates
for
various
reasons, including
a finding
by us or by a Data Monitoring
Committee
for
a trial
that
the
participants
are being exposed
to unacceptable
health
risks;
•
our product candidates may have undesirable or unexpected side effects or other unexpected characteristics,
causing
us
or
our
investigators,
regulators
or
IRBs/ECs
to
suspend
or
terminate
the trials;
26
•
the
cost
of clinical
trials
for
our product
candidates
may
be greater
than
we anticipate;
•
changes
to clinical
trial
protocol;
•
the
supply
or
quality
of
our
product
candidates
or
other
materials
necessary
to
conduct
clinical
trials
for our
product
candidates
may
be
insufficient
or
inadequate
and
result
in
delays
or
suspension
of our clinical
trials;
and
•
the
impact
of
the
ongoing
COVID-19
pandemic,
which
may
slow
potential
enrollment,
reduce
the number
of eligible
patients
for
clinical
trials,
or reduce
the
number
of patients
that
remain
in our trials.
Delays,
including
delays
caused
by
the
above factors,
can be costly
and could
negatively
affect
our ability
to complete
a
clinical
trial
or
obtain
timely
marketing
approvals.
We
do
not
know
whether
any
of
our
planned preclinical
studies
or
clinical
trials
will
begin
on a timely
basis
or at
all,
will
need to be restructured
or will
be completed
on
schedule,
or
at
all.
For
example,
the
FDA may
place
a
partial
or
full
clinical
hold
on
any
of
our clinical trials for a variety of reasons, including safety concerns and noncompliance with regulatory requirements.
If
we
are
not
able
to
complete
successful
clinical
trials,
we
will
not
be
able
to obtain
regulatory approval
and will
not be able
to commercialize
our product
candidates.
Significant
preclinical
or
clinical
trial
delays
also
could
shorten
any periods
during
which we may
have the exclusive
right
to
commercialize
our
product
candidates
or
allow
our
competitors
to
bring
products
to
market before
we
do
and
impair
our
ability
to
successfully
commercialize
our
product
candidates
and may
harm
our business
and results
of operations.
If
we experience
delays
or difficulties
in enrolling
patients
in our ongoing or planned clinical
trials,
our receipt
of necessary
regulatory
approval
could be delayed
or prevented.
We
may
not
be
able
to
initiate
or
continue
our
ongoing
or
planned
clinical
trials
for
our
product
candidates if
we
are
unable
to
identify
and
enroll
a
sufficient
number
of
eligible
patients
to participate
in these
trials
as required
by
the
FDA or
comparable
foreign
regulatory
authorities.
In addition,
some
of our competitors
currently have
ongoing
clinical
trials
for
product
candidates
that
would
treat
the
same
patients
as our clinical
product candidates,
and
patients
who
would
otherwise
be eligible
for
our clinical
trials
may
instead
enroll
in clinical
trials of
our
competitors'
product
candidates.
This
is
acutely
relevant
for
our
development
of
PRT543 for
the
treatment of
patients
with
myeloid
malignancies
and
other
solid
tumors,
including
adenoid
cystic
carcinoma,
or ACC, indications
for
which
investigational
drugs
by
our
competitors
are
competing
for
clinical
trial
participants. Patient
enrollment
is
also
affected
by other
factors,
including:
•
severity
of the
disease
under
investigation;
•
our ability
to recruit
clinical
trial
investigators
of appropriate
competencies
and experience;
•
the
incidence
and prevalence
of our target
indications;
•
clinicians'
and
patients'
awareness
of,
and
perceptions
as
to
the
potential
advantages
and
risks
of
our product
candidates
in
relation
to
other
available
therapies,
including
any
new drugs
that
may
be approved
for
the
indications
we are
investigating;
•
competing
studies
or trials
with similar
eligibility
criteria;
•
invasive
procedures
required
to
enroll
patients
and
to
obtain
evidence
of
the
product
candidate's performance
during
the
clinical
trial;
•
availability
and efficacy
of approved
medications
for
the
disease
under
investigation;
•
eligibility
criteria
defined
in the
protocol
for
the
trial
in question;
•
the
size
and nature
of the
patient
population
required
for
analysis
of the
trial's
primary
endpoints;
•
efforts
to facilitate
timely
enrollment
in clinical
trials;
•
whether
we are
subject
to a partial
or full
clinical
hold on any of our clinical
trials;
•
reluctance
of physicians
to encourage
patient
participation
in clinical
trials;
•
the
ability
to monitor
patients
adequately
during
and after
treatment;
•
our ability
to obtain
and maintain
patient
consents;
and
•
proximity
and availability
of clinical
trial
sites
for
prospective
patients.
27
Our
inability
to
enroll
and maintain
a sufficient
number
of patients
for
our clinical
trials
would result
in significant
delays
or
may
require
us
to
abandon
one
or
more
clinical
trials
altogether.
Enrollment
delays
in our clinical
trials,
including
due
to
the
COVID-19
pandemic,
may
result
in
increased
development
costs,
which would cause
the
value
of our company
to decline
and limit
our ability
to obtain
additional
financing.
The COVID-19
pandemic
could adversely
impact
our business,
including
our clinical
trials
and clinical trial
operations.
The
COVID-19 pandemic
in
the
United
States
and in other
countries
in which we have planned
or have active
clinical
trial
sites
and where our third-party
manufacturers
operate, could cause significant
disruptions
that could
severely
impact
our business
and clinical
trials,
including:
•
delays
or difficulties
in screening,
enrolling
and maintaining
patients
in our clinical
trials;
•
delays or difficulties in clinical site initiation, including difficulties in recruiting clinical site investigators
and clinical
site
staff;
•
diversion
of
healthcare
resources
away
from
the
conduct
of
clinical
trials,
including
the
diversion
of hospitals
serving
as our clinical
trial
sites
and hospital
staff
supporting
the
conduct
of our clinical
trials;
•
inability
or unwillingness
of subjects
to travel
to the
clinical
trial
sites;
•
delays,
difficulties,
or incompleteness
in data
collection
and analysis
and other
related
activities;
•
decreased implementation of protocol required clinical trial activities and quality of source data verification
at
clinical
trial
sites;
•
interruption
of
key
clinical
trial
activities,
such
as
clinical
trial
site
monitoring,
due
to
limitations
on travel
imposed
or recommended
by federal
or state
governments,
employers
and others;
•
limitations
in
employee
resources
that
would
otherwise
be
focused
on
the
conduct
of
our
clinical
trials and
our
other
research
and development
activities,
including
because
of sickness
of employees
or their families
or mitigation
measures
such as lock-downs
and social
distancing;
•
delays due to production shortages resulting from any events affecting raw material supply or manufacturing
capabilities
domestically
and abroad;
•
delays
in receiving
approval
from
local
regulatory
authorities
to initiate
our planned
clinical
trials;
•
delays
in clinical
sites
receiving
the
supplies
and materials
needed
to conduct
our clinical
trials;
•
interruption
in
global
and
domestic
shipping
that
may
affect
the
transport
of
clinical
trial
materials, such as investigational
drug products
used in our clinical
trials;
•
changes
in
local
regulations
as
part
of
a
response
to
the
COVID-19
pandemic
which
may
require
us
to change
the
ways
in
which
our
clinical
trials
are
conducted,
which
may
result
in
unexpected
costs, delays,
or to discontinue
the
clinical
trials
altogether;
•
delays
in
necessary
interactions
with
local
regulators,
ethics
committees
and
other
important
agencies and contractors
due to limitations
in employee
resources
or forced
furlough
of government
employees;
•
refusal
of
regulatory
authorities
such
as
FDA
or
European
Medicines
Agency,
or
EMA,
to
accept
data from
clinical
trials
in affected
geographies;
and
•
adverse
impacts
on
global
economic
conditions
which
could
have
an
adverse
effect
on
our
business
and financial
condition,
including
impairing
our ability
to raise
capital
when needed.
Such
disruptions
could
impede,
delay,
limit
or
prevent
completion
of
our ongoing clinical
trials
and preclinical
studies
or commencement
of new clinical
trials
and ultimately
lead
to the
delay
or denial
of regulatory approval
of
our
product
candidates,
which
would
seriously
harm
our operations
and financial
condition
and increase
our
costs
and
expenses.
We
are
in
close
contact
with
our
CROs, CMOs
and
clinical
sites
as
we
seek
to mitigate
the
impact
of
COVID-19 on
our
studies
and current
timelines.
Measures
we have taken
in response
to COVID-19 include,
where feasible,
conducting
remote
clinical
trial
site
activations
and data
monitoring,
and limiting
on-site
patient
visits
by adjusting
patient
assessments
and protocol.
However, despite
these
efforts,
we have
experienced
limited
delays
in trial
site
initiations,
patient
participation
and patient
enrollment
in some
of our clinical
trials
and
we
may
continue
to experience
some
delays
in our clinical
trials
and preclinical
studies
and delays
in data
collection
and analysis.
These delays
so far
have
28
had a limited
impact,
but this
may
change
as the COVID-19 pandemic
and
the
response
to
such
COVID-19 pandemic
continues
to
evolve,
and could
have an adverse
impact
on
our
timelines
and
our
business.
The
COVID-19 pandemic
could
also
affect
the
business
of
the FDA, EMA
or
other
health
authorities,
which
could
result
in delays
in meetings
related
to planned
or completed clinical
trials
and
ultimately
of
reviews
and
approvals
of
our
product
candidates.
The
global
COVID-19 pandemic
continues
to
rapidly
evolve.
The
extent
to
which
the
COVID-19
pandemic
may
impact
our
business and
clinical
trials
will
depend
on
future
developments,
which are
highly
uncertain
and cannot
be predicted
with confidence,
such
as
the
ultimate
geographic
spread
of
the
disease,
the
duration
of
the
pandemic,
travel restrictions
and
social
distancing
in
the
United
States
and
other
countries,
business
closures
or
business disruptions
and
the
effectiveness
of
actions
taken
in
the
United
States
and other
countries
to contain
and treat
the disease.
Adverse
side
effects
or other
safety
risks
associated
with PRT543,
PRT811,
PRT1419
or our other
product candidates
could delay
or preclude
approval,
cause us to suspend or discontinue
clinical
trials
or abandon further
development,
limit
the commercial
profile
of an approved
product,
or result
in significant
negative
consequences
following
marketing
approval,
if
any.
As
is
the
case
with
pharmaceuticals
generally,
we have observed
side
effects
and adverse
events
associated with
our
clinical
product
candidate,
PRT543.
These
side
effects
included
diarrhea,
nausea
and
fatigue,
but
none of
these
side
effects
were
considered
related
to
PRT543. At the
highest
dose level
of our clinical
product candidate,
PRT543,
there
were
occurrences
of
grade
4
thrombocytopenia
that
were
deemed
related
to
PRT543, but
the
toxicity
was
reversible
after
a one to two week drug holiday
and the
affected
patients
remained
on the study
and
were
restarted
at
a
lower
dose.
We have also
observed
side
effects
and adverse
effects
associated
with PRT811.
These
side
effects
included
nausea,
constipation,
vomiting
and
hyponatremia,
but
none
of
these
side effects
were considered
related
to PRT811.
Results
of our ongoing and planned
clinical
trials
could
reveal
a high and unacceptable
severity
and prevalence of side effects or unexpected characteristics. Undesirable side effects caused by our product candidates
could
result
in
the
delay,
suspension
or
termination
of
clinical
trials
by
us
or
regulatory
authorities
for a number of reasons. Furthermore, clinical trials by their nature utilize a sample of the potential patient population.
With
a
limited
number
of
subjects
and
limited
duration
of
exposure,
rare
and
severe
side
effects
of our
product
candidates
or those
of our competitors
may
only be uncovered
with a significantly
larger
number
of patients
exposed
to the
drug.
Additionally,
due
to
the
high
mortality
rates
of
the
cancers
for
which we are
initially
pursuing
development and
the
pretreated
nature
of
many
patients
in
our
ongoing
clinical
trials
of
PRT543,
PRT811
and
PRT1419,
a material
percentage
of patients
in these
clinical
trials
may
die
during
a trial,
which could
impact
development
of PRT543, PRT811 and
PRT1419, respectively.
If
we
elect
or
are
required
to delay,
suspend
or terminate
any clinical
trial,
the
commercial
prospects
of
our
product
candidates
will
be
harmed
and our ability
to generate product
revenues
from
this
product
candidate
will
be
delayed
or
eliminated.
Serious
adverse
events,
or
SAEs, observed
in
clinical
trials
could
hinder
or prevent
market
acceptance
of our product
candidates.
Any of these occurrences
may
harm
our business,
prospects,
financial
condition
and results
of operations
significantly.
Moreover,
if
our
product
candidates
are
associated
with undesirable
side
effects
in clinical
trials
or have characteristics
that
are
unexpected,
we
may
elect
to abandon or limit
their
development
to more
narrow
uses
or subpopulations
in
which
the
undesirable
side
effects
or
other
characteristics
are
less
prevalent,
less
severe
or more
acceptable
from
a
risk-benefit
perspective,
which
may
limit
the
commercial
expectations
for
our product candidates,
if
approved.
We
may
also
be
required
to
modify
our
study
plans
based
on
findings
in
our
clinical trials.
Such
side
effects
could
also
affect
patient
recruitment
or
the
ability
of
enrolled
patients
to
complete
the trial.
Many
drugs
that
initially
showed
promise
in
early
stage
testing
have later
been found to cause
side
effects that
prevented
further
development.
In
addition,
regulatory
authorities
may
draw
different
conclusions,
require additional
testing
to
confirm
these
determinations,
require
more
restrictive
labeling,
or
deny
regulatory
approval of the
product
candidate.
It
is
possible
that,
as we test
our product
candidates
in larger,
longer
and more
extensive
clinical
trials, including
with
different
dosing
regimens,
or as the
use of our product
candidates
becomes
more
widespread following
any
regulatory
approval,
illnesses,
injuries,
discomforts
and
other
adverse
events
that
were observed
in earlier
trials,
as well
as conditions
that
did not occur
or went undetected
in previous
trials,
will
be reported
by patients.
If
such
side
effects
become
known
later
in
development
or
upon
approval,
if
any,
such
findings
may harm
our business,
financial
condition,
results
of operations
and prospects
significantly.
In
addition,
if
any
of
our
product
candidates
receive
marketing
approval,
and we or others
later
identify undesirable
side
effects
caused
by treatment
with such drug, a number
of potentially
significant
negative consequences
could
result,
including:
•
regulatory
authorities
may
withdraw
approval
of the
drug;
•
we may
be required
to recall
a product
or change
the
way the
drug is
administered
to patients;
29
•
regulatory
authorities
may
require
additional
warnings
in
the
labeling,
such
as
a
contraindication
or
a boxed
warning,
or
issue
safety
alerts,
Dear
Healthcare
Provider
letters,
press
releases
or other communications
containing
warnings
or other
safety
information
about
the
product;
•
we
may
be
required
to
implement
a
Risk
Evaluation
and
Mitigation
Strategy,
or
REMS,
or
create
a medication
guide
outlining
the
risks
of such side
effects
for
distribution
to patients;
•
additional
restrictions
may
be
imposed
on
the
marketing
or
promotion
of
the
particular
product
or
the manufacturing
processes
for
the
product
or any component
thereof;
•
we could
be sued and held
liable
for
harm
caused
to patients;
•
we may
be subject
to regulatory
investigations
and government
enforcement
actions;
•
the
drug could
become
less
competitive;
and
•
our reputation
may
suffer.
Any
of
these
events
could
prevent
us
from
achieving
or
maintaining
market
acceptance
of our product candidates,
if
approved,
and
could
significantly
harm
our
business,
financial
condition,
results
of operations
and prospects.
Preliminary,
interim
and topline
data from
our clinical
trials
that
we announce or publish
from
time
to time
may
change as more
patient
data become
available
and are subject
to audit
and verification procedures
that
could result
in material
changes in the final
data.
From
time
to
time,
we
may
publicly
disclose
preliminary,
interim
or
topline
data
from
our
clinical
trials, such
as
the
preliminary
data
analysis
for
the
Phase
1
dose
expansion
portions
of
our
PRT543 and
PRT811 trials. These
updates
are
based
on
a
preliminary
analysis
of
then-available
data,
and
the
results
and related
findings
and conclusions
are
subject
to change
following
a more
comprehensive
review
of the
data
related
to the
particular study
or
trial.
Additionally,
interim
data
from
clinical
trials
that
we
may
complete
are
subject
to
the
risk
that
one or
more
of
the
clinical
outcomes
may
materially
change
as patient
enrollment
continues
and more
patient
data become
available.
Therefore,
positive
interim
results
in
any
ongoing
clinical
trial
may
not be predictive
of such results
in
the
completed
study
or
trial.
We
also
make
assumptions,
estimations,
calculations
and conclusions
as part
of
our
analyses
of data,
and we may
not have received
or had the
opportunity
to fully
and carefully
evaluate all
data.
As
a
result,
the
topline
results
that
we report
may
differ
from
future
results
of the
same
studies,
or different
conclusions
or
considerations
may
qualify
such
results,
once
additional
data
have
been
received
and fully
evaluated.
Topline
data
also
remain
subject
to
audit
and
verification
procedures
that
may
result
in
the
final data
being
materially
different
from
the
preliminary
data
we
previously
published.
As
a
result,
topline
data should
be
viewed
with
caution
until
the
final
data
are
available.
In
addition,
we may
report
interim
analyses
of only
certain
endpoints
rather
than
all
endpoints.
Adverse
changes
between
preliminary
or
interim
data
and final data
could
significantly
harm
our
business
and
prospects.
Further,
additional
disclosure
of
interim
data
by
us
or by
our
competitors
in
the
future
could
result
in
volatility
in
the
price
of our common
stock.
See the
description
of
risks
under
the
heading
"Risks
Related
to
our
Common
Stock"
for
more disclosure
related
to the
risk
of volatility
in our stock
price.
Further,
others,
including
regulatory
agencies,
may
not accept
or agree
with our assumptions,
estimates, calculations,
conclusions
or
analyses
or may
interpret
or weigh the
importance
of data
differently,
which could impact
the
value
of the
particular
program,
the
approvability
or commercialization
of the
particular
product candidate
or
product
and
our
company
in
general.
In
addition,
the
information
we
choose
to
publicly
disclose regarding
a
particular
study
or
clinical
trial
is
typically
selected
from
a
more
extensive
amount
of available information.
You
or
others
may
not agree
with what we determine
is
the
material
or otherwise
appropriate information
to
include
in
our
disclosure,
and
any
information
we
determine
not
to
disclose
may
ultimately
be deemed
significant
with
respect
to
future
decisions,
conclusions,
views, activities
or otherwise
regarding
a particular
product,
product
candidate
or
our
business.
If
the
preliminary
or topline
data
that
we report
differ
from late,
final
or
actual
results,
or
if
others,
including
regulatory
authorities,
disagree
with
the
conclusions
reached, our
ability
to
obtain
approval
for,
and
commercialize,
PRT543, PRT811 or
PRT1419, or
any other
product candidates
may
be
harmed,
which
could
harm
our
business,
financial
condition,
results
of operations
and prospects.
30
We may
expend our limited
resources
to pursue a particular
product
candidate
or indication
and fail
to capitalize
on product
candidates
or indications
that
may
be more
profitable
or for
which there
is
a greater likelihood
of success.
Because
we
have
limited
financial
and
managerial
resources,
we
focus
on
research
programs
and product candidates
that
we identify
for
specific
indications.
As a result,
we may
forego
or delay
pursuit
of opportunities with
other
product
candidates
or
for
other
indications
that
later
prove
to have greater
commercial
potential.
Our resource
allocation
decisions
may
cause
us
to
fail
to
capitalize
on
viable
commercial
products
or
profitable market
opportunities.
Our spending
on current
and future
research
and development
programs
and product candidates
for
specific
indications
may
not yield
any commercially
viable
products.
If
we do not accurately evaluate
the
commercial
potential
or target
market
for
a particular
product
candidate,
we may
relinquish
valuable rights
to
that
product
candidate
through
collaboration,
licensing
or other
royalty
arrangements
in cases
in which it would
have
been more
advantageous
for
us to retain
sole
development
and commercialization
rights
to such product
candidate.
We may
not be successful
in our efforts
to design
additional
potential
product
candidates.
A
key
element
of
our
strategy
is
to
identify
molecular
targets
and intervention
points
leading
to treatment failure,
and
then
apply
our
expertise
of
cancer
biology
and medicinal
chemistry,
as well
as our in-depth understanding
of
the
current
landscape
of
oncology
treatments,
to
design
solutions
that
can
be
precisely
tailored in
a
target
class
agnostic
fashion.
The therapeutic
design
and development
activities
that
we are
conducting
may not
be
successful
in
developing
product
candidates
that
are
safe
and effective
in treating
cancer
or other
diseases. Our
research
programs
may
initially
show
promise
in
identifying
potential
product
candidates,
yet
fail
to yield product
candidates
for
clinical
development
for
a number
of reasons,
including:
•
the target selection methodology used may not be successful in identifying potential product candidates;
•
potential
product
candidates
may,
on
further
study,
be
shown
to
have
harmful
side
effects
or
other characteristics
that
indicate
that
they
are
unlikely
to
be
drugs
that
will
obtain
marketing
approval
or achieve
market
acceptance;
or
•
potential
product
candidates
may
not be effective
in treating
their
targeted
diseases.
Research
programs
to
identify
and
design
new product
candidates
require
substantial
technical,
financial
and human
resources.
We may
choose
to focus
our efforts
and resources
on a potential
product
candidate
that ultimately
proves
to
be unsuccessful.
If
we are
unable
to identify
and design
suitable
product
candidates
for preclinical
and
clinical
development,
we
will
not be able
to obtain
revenues
from
the
sale
of products
in future periods,
which
likely
would
result
in significant
harm
to our financial
position
and adversely
impact
our stock price.
Risks Related
to Government
Regulation
The development
and commercialization
of pharmaceutical
products
are subject
to extensive
regulation, and we may
not obtain
regulatory
approvals
for
PRT543,
PRT811,
PRT1419,
PRT2527
or any other product
candidates,
on a timely
basis
or at all.
The clinical
development,
manufacturing,
labeling,
packaging, storage, recordkeeping,
advertising, promotion,
export,
import,
marketing,
distribution,
adverse
event
reporting,
including
the
submission
of
safety and
other
post-marketing
information
and
reports,
and
other
possible
activities
relating
to
PRT543,
PRT811 and PRT1419, currently
our only product
candidates
in planned
or ongoing clinical
trials,
as well
as any other
product candidate
that
we
may
develop
in
the
future,
are
subject
to
extensive
regulation.
Marketing
approval
of drugs
in the
United
States
requires
the
submission
of
an
NDA to
the
FDA, and
we
are
not permitted
to market
any product candidate
in
the
United
States
until
we
obtain
approval
from
the
FDA
of
the
NDA
for
that
product.
An
NDA must
be
supported
by
extensive
clinical
and preclinical
data,
as well
as extensive
information
regarding pharmacology,
chemistry,
manufacturing
and
controls.
Our product
candidates
must
be approved
by comparable regulatory
authorities
in other
jurisdictions
prior
to commercialization.
FDA
approval
of
an
NDA is
not
guaranteed,
and
the
review
and
approval
process
is
an
expensive
and uncertain
process
that
may
take
several
years.
Of
the
large
number
of
drugs
in
development
in the
United
States, only
a
small
percentage
will
successfully
complete
the
FDA regulatory
approval
process
and
will
be commercialized. Accordingly, there can be no assurance that any of our product candidates will receive regulatory
approval
in the
United
States,
or other
jurisdictions.
The
FDA also
has
substantial
discretion
in
the
approval
process.
The
number
and types
of preclinical
studies and
clinical
trials
that
will
be
required
for
NDA
approval
varies
depending
on
the
product
candidate,
the
disease or
the
condition
that
the
product
candidate
is
designed
to
treat
and
the
regulations
applicable
to any particular product
candidate.
For
example,
if
successful,
we believe
that
the
expansion
portions
of the
Phase 1 clinical
trials of
PRT543 or
PRT811 may
be
sufficient
to
support
FDA approval
of
an
NDA for
PRT543 or
PRT811, respectively,
but
the
FDA may
disagree
with
the
sufficiency
of
our data
and require
additional
clinical
trials.
31
Additionally,
depending
upon
the
results
of
the
expansion
portions
of
the
Phase
1
clinical
trials
of
PRT543 or PRT811,
we
may
choose
to
seek
Subpart
H
accelerated
approval
for
PRT543
or
PRT811,
respectively,
which would require
completion
of a confirmatory
trial
to validate
the
clinical
benefit
of the
drug. Despite
the
time and expense
associated
with
preclinical
studies
and
clinical
trials,
failure
can occur
at
any stage.
The results
of preclinical
and
early
clinical
trials
of
PRT543, PRT811, PRT1419, PRT2527 or
any
other
product
candidate
may not be predictive
of the
results
of our later-stage
clinical
trials.
Clinical
trial
failure
may
result
from
a
multitude
of factors
including
flaws
in trial
design,
dose selection, placebo
effect,
patient
enrollment
criteria
and
failure
to
demonstrate
favorable
safety
or
efficacy
traits,
and failure
in
clinical
trials
can occur
at
any stage.
Companies
in the
pharmaceutical
industry
frequently
suffer setbacks
in
the
advancement
of
clinical
trials
due
to
lack
of
efficacy
or adverse
safety
profiles,
notwithstanding promising
results
in
earlier
trials.
Based
upon
negative
or
inconclusive
results,
we may
decide,
or regulators
may require
us,
to
conduct
additional
clinical
trials
or preclinical
studies.
In addition,
data
obtained
from
clinical
trials are
susceptible
to
varying
interpretations,
and
regulators
may
not interpret
our data
as favorably
as we do, which may
further
delay,
limit
or prevent
marketing
approval.
The
FDA
could
delay,
limit
or
deny
approval
of
a
product
candidate
for
many
reasons,
including
because the
FDA:
•
may
not deem
our product
candidate
to be safe
and effective;
•
determines
that
the
product
candidate
does not have an acceptable
benefit-risk
profile;
•
determines in
the case of
an
NDA
seeking accelerated approval
that
the
NDA
does
not
provide evidence
that
the
product
candidate
represents
a meaningful
advantage
over
available
therapies;
•
determines that the objective response rate, or ORR,
and duration of response are not clinically meaningful;
•
may
not
agree
that
the
data
collected
from
preclinical
studies
and
clinical
trials
are
acceptable
or sufficient
to
support
the
submission
of
an
NDA or
other
submission
or
to
obtain
regulatory
approval, and may
impose
requirements
for
additional
preclinical
studies
or clinical
trials;
•
may determine that adverse events experienced by participants in our clinical trials represent an unacceptable
level
of risk;
•
may determine that population studied in the clinical trial may not be sufficiently broad or representative
to assure
safety
in the
full
population
for
which we seek
approval;
•
may
not
accept
clinical
data
from
trials,
which
are
conducted
at
clinical
facilities
or
in
countries
where the
standard
of care
is
potentially
different
from
that
of the
United
States;
•
may
disagree
regarding
the
formulation,
labeling
and/or
the
specifications;
•
may
not
approve
the
manufacturing
processes
associated
with
our
product
candidate
or
may
determine that
a manufacturing
facility
does not have an acceptable
compliance
status;
•
may
change
approval
policies
or adopt
new regulations;
or
•
may
not file
a submission
due to, among
other
reasons,
the
content
or formatting
of the
submission.
We
have
not
obtained
FDA
approval
for
any
product.
This
lack
of
experience
may
impede
our
ability
to obtain
FDA
approval
in a timely
manner,
if
at
all,
for
our clinical
product
candidates.
If
we
experience
delays
in
obtaining
approval
or
if
we
fail
to
obtain
approval
of
PRT543, PRT811 or PRT1419, our
commercial
prospects
will
be
harmed
and
our
ability
to generate
revenues
will
be materially impaired
which would adversely
affect
our business,
prospects,
financial
condition
and results
of operations.
The accelerated
approval
pathway for
our product
candidates
may
not lead
to a faster
development
or regulatory
review
or approval
process
and does not increase
the likelihood
that
our product
candidates will
receive
marketing
approval.
Under
the
FDA's
accelerated
approval
program,
the
FDA may
approve
a
drug
for
a
serious
or
life- threatening
illness
that
provides
meaningful
therapeutic
benefit
to patients
over
existing
treatments
based
upon a surrogate
endpoint
that
is
reasonably
likely
to
predict
clinical
benefit,
or on a clinical
endpoint
that
can be measured
earlier
than
irreversible
morbidity
or mortality,
that
is
reasonably
likely
to predict
an effect
on irreversible
morbidity
or
mortality
or
other
clinical
benefit,
taking
into
account
the
severity,
rarity,
or prevalence of
the
condition
and
the
availability
or
lack
of
alternative
treatments.
We
may
seek
accelerated
approval
for
one or
more
of
our
product
candidates
on
the
basis
of
ORR with
an
acceptable
duration
of
response,
a
surrogate endpoint
that
we believe
is
reasonably
likely
to predict
clinical
benefit.
32
For
drugs
granted
accelerated
approval,
post-marketing
confirmatory
trials
are
required
to describe
the anticipated
effect
on
irreversible
morbidity
or
mortality
or
other
clinical
benefit.
These
confirmatory
trials
must be
completed
with
due
diligence
and,
in
some
cases,
the
FDA
may
require
that
the
trial
be
designed,
initiated, and/or
fully
enrolled
prior
to
approval.
If
any of our competitors
were to receive
full
approval
on the
basis
of a confirmatory
trial
for
an
indication
for
which
we
are
seeking
accelerated
approval
before
we receive
accelerated approval,
the
indication
we
are
seeking
may
no longer
qualify
as a condition
for
which there
is
an unmet
medical need
and
accelerated
approval
of
our product
candidate
would be more
difficult
or may
not occur.
Moreover,
the FDA may
withdraw
approval
of
our
product
candidate
approved
under
the
accelerated
approval
pathway if,
for example:
•
the
trial
or
trials
required
to
verify
the
predicted
clinical
benefit
of
our
product
candidate
fail
to
verify such
benefit
or
do
not
demonstrate
sufficient
clinical
benefit
to
justify
the
risks
associated
with
the drug;
•
other
evidence
demonstrates
that
our
product
candidate
is
not
shown
to
be
safe
or
effective
under
the conditions
of use;
•
we fail
to conduct
any required
post-approval
trial
of our product
candidate
with due diligence;
or
•
we disseminate
false
or misleading
promotional
materials
relating
to the
relevant
product
candidate.
Our failure
to obtain
marketing
approval
in foreign
jurisdictions
would prevent
our product
candidates from
being marketed
in those
jurisdictions,
and any approval
we are granted
for
our product
candidates in the United States
would not assure
approval
of product
candidates
in foreign
jurisdictions.
In
order
to
market
and
sell
our
products
in
any
jurisdiction
outside
the
United
States,
we
must
obtain separate
marketing
approvals
and
comply
with numerous
and varying
regulatory
requirements.
The approval procedure
varies
among
countries
and
can
involve
additional
testing.
The time
required
to obtain
approval
may differ
substantially
from
that
required
to
obtain
FDA
approval.
The
regulatory
approval
process
outside
the United
States
generally
includes
all
of
the
risks
associated
with
obtaining
FDA approval.
In
addition,
in
many countries
outside
the
United
States,
it
is
required
that
the
product
be approved
for
reimbursement
before
the product
can
be
approved
for
sale
in
that
country.
We
may
not
obtain
approvals
from
regulatory
authorities outside
the
United
States
on
a
timely
basis,
if
at
all.
Approval
by
the
FDA does
not
ensure
approval
by
regulatory authorities
in other
countries
or jurisdictions,
and approval
by one regulatory
authority
outside
the
United
States does
not
ensure
approval
by
regulatory
authorities
in
other
countries
or
jurisdictions
or
by
the
FDA. We
may
not be
able
to
submit
for
marketing
approvals
and
may
not
receive
necessary
approvals
to
commercialize
our products
in any market.
We may
not be able
to obtain
or maintain
orphan drug designation
or exclusivity
for
our product candidates.
Regulatory
authorities
in some
jurisdictions,
including
the United States, may designate
drugs for relatively small
patient
populations
as
"orphan
drugs."
Under
the
Orphan
Drug
Act,
the
FDA may
designate
a
drug
as
an orphan
drug
if
it
is
intended
to treat
a rare
disease
or condition,
which is
generally
defined
as a patient
population of
fewer
than
200,000
individuals
in the
United
States,
or if
the
disease
or condition
affects
more
than
200,000 individuals
in
the
United
States
and
there
is
no
reasonable
expectation
that
the
cost
of developing
the
drug for
the type
of disease
or condition
will
be recovered
from
sales
of the
product
in the
United
States.
Orphan
drug
designation
entitles
a party
to financial
incentives,
such as opportunities
for
grant
funding towards
clinical
trial
costs,
tax
advantages
and user-fee
waivers.
Additionally,
if
a product
that
has orphan designation
subsequently
receives
the
first
FDA approval
for
the
disease
or
condition
for
which it
has such designation,
the
product
is
entitled
to
orphan
drug
exclusivity,
which
means
that
the
FDA may
not
approve
any other
applications
to market
the
same
drug for
the
same
indication
for
seven
years,
except
in certain circumstances,
such
as
a
showing
of
clinical
superiority
(i.e.,
another
product
is
safer,
more
effective
or makes
a major
contribution
to
patient
care)
over
the
product
with
orphan
exclusivity
or
where
the
manufacturer
is
unable to
assure
sufficient
product
quantity.
Competitors,
however, may
receive
approval
of different
products
for
the same
indication
for
which
the
orphan
product
has exclusivity,
or obtain
approval
for
the
same
product
but for
a different
indication
than
that
for
which the
orphan
product
has exclusivity.
We
may
apply
for
an
orphan
drug designation
in the
United
States
or other
geographies
for
our product candidates
in the
future.
However, obtaining
an orphan
drug designation
can be difficult,
and we may
not be successful
in
doing so. Even if
we obtain
orphan
drug designation
for
our product
candidates
in specific indications,
we
may
not be the
first
to obtain
regulatory
approval
of these
product
candidates
for
the
orphan- designated
indication,
due
to
the
uncertainties
associated
with developing
pharmaceutical
products.
In addition, exclusive
marketing
rights
in the
United
States
may
be limited
if
we seek
approval
for
an indication
broader than the orphan-designated indication or may be lost if the FDA later determines that the request for orphan designation
was
materially
defective
or
if
the
manufacturer
is
unable
to
assure
sufficient
quantities
of the
product to meet
the
needs
of patients
with the
rare
disease
or condition.
Orphan drug designation
does not ensure
that
we will
receive
marketing
exclusivity
in
a
particular
market,
and
we
cannot
assure
you
that
any future
application
for orphan
drug
designation
in any other
geography
or with respect
to any other
product
candidate
will
be granted. Orphan drug designation
neither
shortens
the
development
time
or regulatory
review
time
of a drug, nor gives the drug any advantage
in the
regulatory
review
or approval
process.
33
A Breakthrough Therapy Designation
by the FDA
for
any of our current
or future
product
candidates may
not lead
to a faster
development
or regulatory
review
or approval
process,
and it
would not increase the likelihood
that
the product
candidate
will
receive
marketing
approval.
We
may
seek
a Breakthrough
Therapy
Designation
for
one or more
of our current
or future
product candidates.
A
breakthrough
therapy
is
defined
as
a
drug
that
is
intended,
alone
or
in
combination
with
one
or more
other
drugs,
to
treat
a
serious
or life-threatening
disease
or condition,
and preliminary
clinical
evidence indicates that the drug may demonstrate substantial improvement over existing therapies on one or more clinically
significant
endpoints,
such as substantial
treatment
effects
observed
early
in clinical
development.
For drugs
that
have
been
designated
as
breakthrough
therapies,
interaction
and
communication
between
the
FDA and the
sponsor
of the
trial
can help
to identify
the
most
efficient
path
for
clinical
development
while
minimizing
the number
of
patients
placed
in
ineffective
control
regimens.
Drugs
designated
as
breakthrough
therapies
by
the FDA
are
also
eligible
for
priority
review
if
supported
by clinical
data
at
the
time
of the
submission
of the
NDA.
Designation
as
a
breakthrough
therapy
is
at
the
discretion
of
the
FDA. Accordingly,
even
if
we
believe
that one
of
our
product
candidates
meets
the
criteria
for
designation
as
a
breakthrough
therapy,
the
FDA may
disagree and instead
determine
not to make
such designation.
In any event,
the
receipt
of a Breakthrough Therapy Designation
for
a
drug
may
not
result
in
a
faster
development
process,
review,
or approval
compared
to drugs considered
for
approval
under
conventional
FDA
procedures
and
it
would
not
assure
ultimate
approval
by
the FDA.
In
addition,
even
if
one
or
more
of
our
product
candidates
qualify
as
breakthrough
therapies,
the
FDA may later
decide
that
the
product
candidate
no longer
meets
the
conditions
for
qualification
or that
the
time
period
for FDA
review
or approval
will
not be shortened.
If
we are unable to successfully
develop,
validate,
obtain
regulatory
approval
of and commercialize companion
diagnostic
tests
for
any product
candidates
that
require
such tests,
or experience
significant delays
in doing so, we may
not realize
the full
commercial
potential
of these
product
candidates.
A
companion
diagnostic
is
a
medical
device,
often
an
in
vitro
device,
which
provides
information
that
is essential
for
the
safe
and effective
use of a corresponding
therapeutic
drug product.
A companion
diagnostic
can be
used
to
identify
patients
who
are
most
likely
to
benefit
from
the
therapeutic
product.
In the
future,
we may evaluate
opportunities
to develop,
either
by ourselves
or with collaborators,
companion diagnostic
tests for our product
candidates
for
certain
indications.
A
companion
diagnostic
is
generally
developed
in conjunction
with the
clinical
program
for
an associated therapeutic
product.
To
date,
the
FDA has required
premarket
approval
of the vast majority of
companion
diagnostics
for
cancer therapies.
Generally,
when
a
companion
diagnostic
is
essential
to
the
safe
and
effective
use
of
a drug product,
the FDA requires
that
the
companion
diagnostic
be
approved
before
or
concurrent
with approval
of the
therapeutic product
and
before
a
product
can
be
commercialized.
The
approval
of
a
companion
diagnostic
as
part
of
the therapeutic
product's
labeling
limits
the
use
of
the
therapeutic
product
to
only
those
patients
who
express
the specific
genetic
alteration
that
the
companion
diagnostic
was developed
to detect.
Development
of
a
companion
diagnostic
could
include
additional
meetings
with regulatory
authorities,
such as
a
pre-submission
meeting
and
the
requirement
to
submit
an
investigational
device
exemption
application.
In the
case
of
a
companion
diagnostic
that
is
designated
as "significant
risk
device,"
approval
of an investigational device
exemption
by
the
FDA and
IRB
is
required
before
such
diagnostic
is
used in conjunction
with the
clinical trials
for
a corresponding
product
candidate.
To be successful
in developing,
validating,
obtaining
approval
of and commercializing
a companion diagnostic,
we
or
our
collaborators
will
need
to
address
a number
of scientific,
technical,
regulatory
and logistical challenges.
We
have
no
prior
experience
with
medical
device
or
diagnostic
test
development.
If
we
choose
to develop
and
seek
FDA approval
for
companion
diagnostic
tests
on
our
own,
we
will
require
additional
personnel. We
may
rely
on
third
parties
for
the
design,
development,
testing,
validation
and
manufacture
of companion diagnostic
tests
for
our
therapeutic
product
candidates
that
require
such
tests,
the
application
for
and
receipt
of any
required
regulatory
approvals,
and
the
commercial
supply
of
these
companion
diagnostics.
If
these
parties are
unable
to
successfully
develop
companion
diagnostics
for
these
therapeutic
product
candidates,
or experience delays
in doing so, we may
be unable
to enroll
enough patients
for
our current
and planned
clinical
trials,
the development
of these
therapeutic
product
candidates
may
be adversely
affected,
these therapeutic
product candidates
may
not
obtain
marketing
approval,
and
we
may
not
realize
the
full
commercial
potential
of any of these
therapeutics
that
obtain
marketing
approval.
For any product
candidate
for
which a companion
diagnostic
is necessary
to
select
patients
who
may
benefit
from
use
of
the
product
candidate,
any
failure
to
successfully develop
a
companion
diagnostic
may
cause
or contribute
to delayed
enrollment
of our clinical
trials,
and may prevent
us
from
initiating
a
pivotal
trial.
In
addition,
the
commercial
success
of
any
of
our
product
candidates that
require
a
companion
diagnostic
will
be
tied
to
and
dependent
upon
the
receipt
of
required
regulatory approvals and the continued ability of such third parties to make the companion diagnostic commercially available
to
us on reasonable
terms
in the
relevant
geographies.
Any failure
to do so could
materially
harm
our business,
results
of operations
and financial
condition.
34
If
we decide
to pursue a Fast Track Designation
by the FDA,
it
may
not lead
to a faster
development
or regulatory
review
or approval
process.
We
may
seek
Fast
Track
Designation
for
one
or
more
of
our
product
candidates.
If
a drug is
intended
for
the treatment
of
a
serious
or
life-threatening
condition
and
the
drug
demonstrates
the
potential
to address
unmet medical
needs
for
this
condition,
the
product
sponsor
may
apply
for
FDA
Fast
Track
Designation.
The
FDA has broad
discretion
whether
to grant
this
designation,
so even if
we believe
a particular
product candidate
is eligible for
this
designation,
we
cannot
assure
you
that
the
FDA
would
decide
to
grant
it.
Even
if
we
do
receive
Fast Track
Designation,
we
may
not
experience
a
faster
development
process,
review
or approval
compared
to conventional
FDA procedures.
The
FDA may
withdraw
Fast
Track
Designation
if
it
believes
that
the
designation is
no longer
supported
by data
from
our clinical
development
program.
Even if
we obtain
marketing
approval
for
our product
candidates,
the terms
of approvals,
ongoing regulation
of our products
or other
post-approval
restrictions
may
limit
how
we manufacture
and market our products
and compliance
with such requirements
may
involve
substantial
resources,
which could materially
impair
our ability
to generate
revenue.
Any
product
candidates
for
which
we
receive
accelerated
approval
from
the
FDA
are
required
to
undergo one or more
confirmatory
clinical
trials.
If
such a product
candidate
fails
to meet
its
safety
and efficacy
endpoints in such confirmatory
clinical
trials,
the
regulatory
authority
may
withdraw its conditional
approval. There is no assurance
that
any
such
product
will
successfully
advance
through
its
confirmatory
clinical
trial(s).
Therefore, even
if
a
product
candidate
receives
accelerated
approval
from
the
FDA, such
approval
may
be
withdrawn
at
a later
date.
Even
if
marketing
approval
of a product
candidate
is
granted,
an approved
product
and its
manufacturer
and marketer are subject to ongoing review and extensive regulation, which may include the requirement to implement
a
REMS or
to
conduct
costly
post-marketing
studies
or clinical
trials
and surveillance
to monitor
the safety
or efficacy
of the
product.
We
must
also
comply
with
requirements
concerning
advertising
and promotion
for
any of our product candidates
for
which
we
obtain
marketing
approval.
Promotional
communications
with
respect
to
prescription drugs
are
subject
to
a
variety
of
legal
and
regulatory
restrictions
and
must
be
consistent
with
the
information
in the
product's
approved
labeling.
Thus, we will
not be able
to promote
any products
we develop
for indications
or uses
for
which they
are
not approved.
In
addition,
manufacturers
of approved
products
and those
manufacturers'
facilities
are
required
to ensure that
quality
control
and
manufacturing
procedures
conform
to
current
good
manufacturing
practices,
or cGMPs, which
include
requirements
relating
to
quality
control
and quality
assurance
as well
as the
corresponding maintenance
of
records
and
documentation
and
reporting
requirements.
We and our contract
manufacturing organizations,
or
CMOs,
could
be
subject
to
periodic
unannounced
inspections
by the
FDA
to monitor
and ensure compliance
with cGMPs.
Accordingly,
assuming
we
obtain
marketing
approval
for
one
or
more
of
our
product
candidates,
we
and our CMOs
will
continue
to
expend
time,
money
and
effort
in all
areas
of regulatory
compliance,
including manufacturing,
production,
product
surveillance
and
quality
control.
If
we are
not able
to comply
with post- approval
regulatory
requirements,
we
could
have
the
marketing
approvals
for
our products
withdrawn
by regulatory
authorities
and
our
ability
to
market
any
future
products
could
be
limited,
which
could
adversely affect
our
ability
to achieve
or sustain
profitability.
As a result,
the
cost
of compliance
with post-approval regulations
may
have a negative
effect
on our operating
results
and financial
condition.
Any product
candidate
for
which we obtain
marketing
approval
will
be subject
to ongoing enforcement
of post-marketing
requirements
by regulatory
agencies,
and we could be subject
to substantial
penalties, including
withdrawal of our product
from
the market,
if
we fail
to comply
with all
regulatory requirements
or if
we experience
unanticipated
problems
with our products,
when
and if
any of them
are approved.
Any
product
candidate
for
which
we
obtain
marketing
approval,
along
with
the
manufacturing
processes, post-approval
clinical
data,
labeling,
advertising
and
promotional
activities
for
such product,
will
be subject
to continual
requirements
of
and
review
by
the
FDA and
other
regulatory
authorities.
These
requirements
include, but
are
not
limited
to,
restrictions
governing
promotion
of
an
approved
product,
submissions
of
safety
and other post-marketing
information
and reports,
registration
and listing
requirements,
cGMP requirements
relating
to manufacturing,
quality
control,
quality
assurance
and corresponding
maintenance
of records
and documents,
and requirements
regarding
drug distribution
and the
distribution
of samples
to physicians
and recordkeeping.
35
The
FDA and other
federal
and state
agencies,
including
the
Department
of Justice,
closely
regulate compliance
with all
requirements
governing
prescription
drug products, including requirements
pertaining
to marketing
and
promotion
of
drugs
in
accordance
with the
provisions
of the
approved
labeling
and manufacturing of
products
in
accordance
with
cGMP
requirements.
For
example,
the
FDA
and
other
agencies
actively
enforce the
laws
and
regulations
prohibiting
the
promotion
of
off-label
uses,
and a company
that
is
found to have improperly
promoted
off-label
uses
may
be subject
to significant
liability.
Violations
of such requirements
may lead
to
investigations
alleging
violations
of
the
Federal
Food,
Drug,
and
Cosmetic
Act,
or
FDCA, and
other statutes,
including
the
False
Claims
Act
and
other
federal
and
state
healthcare
fraud
and
abuse
laws
as
well
as state
consumer
protection
laws.
Our
failure
to
comply
with
all
regulatory
requirements,
and
later
discovery
of previously
unknown
adverse
events
or
other
problems
with
our
products,
manufacturers
or manufacturing processes,
may
yield
various
results,
including:
•
litigation
involving
patients
taking
our products;
•
restrictions
on such products,
manufacturers
or manufacturing
processes;
•
restrictions
on the
labeling
or marketing
of a product;
•
restrictions
on product
distribution
or use;
•
requirements
to conduct
post-marketing
studies
or clinical
trials;
•
warning
or untitled
letters;
•
withdrawal
of the
products
from
the
market;
•
refusal
to approve
pending
applications
or supplements
to approved
applications
that
we submit;
•
recall
of products;
•
fines,
restitution
or disgorgement
of profits
or revenues;
•
suspension
or withdrawal
of marketing
approvals;
•
damage
to relationships
with any potential
collaborators;
•
unfavorable
press
coverage
and damage
to our reputation;
•
refusal
to permit
the
import
or export
of our products;
•
product
seizure;
or
•
injunctions
or the
imposition
of civil
or criminal
penalties.
Non-compliance
by
us
or any future
collaborator
with regulatory
requirements,
including
safety
monitoring or pharmacovigilance,
and with requirements
related
to the
development
of products
for the pediatric
population can also
result
in significant
financial
penalties.
Our current
and future
relationships
with customers
and third-party
payors
may
be subject
to applicable anti-kickback,
fraud and abuse, transparency,
health
privacy,
and other
healthcare
laws and regulations, which could expose
us to significant
penalties,
including
criminal,
civil,
and administrative
penalties, contractual
damages,
reputational
harm and diminished
profits
and future
earnings.
Healthcare
providers,
including
physicians,
and
third-party
payors
will
play
a primary
role
in the recommendation
and
prescription
of
any
product
candidates
for
which
we
obtain
marketing
approval.
Our current and
future
arrangements
with
healthcare
providers,
third-party
payors
and customers
may
expose
us to broadly applicable
fraud
and abuse
and other
healthcare
laws and regulations
that
may
constrain
the
business
or financial arrangements
and
relationships
through
which
we
research,
as
well
as,
market,
sell
and
distribute
any
products for
which
we
obtain
marketing
approval.
Restrictions
under
applicable
federal
and state
healthcare
laws and regulations
that
may
be applicable
to our business
include
the
following:
•
the
federal
Anti-Kickback
Statute
prohibits,
among
other
things,
persons
from
knowingly
and
willfully soliciting,
offering,
receiving
or
providing
remuneration,
directly
or
indirectly,
in
cash
or
in
kind,
to induce
or
reward,
or
in
return
for,
either
the
referral
of
an
individual
for,
or the
purchase,
order
or recommendation
of, any good or service,
for
which payment
may
be made
under
a federal
healthcare program
such as Medicare
and Medicaid;
•
the
federal
civil and criminal false claims laws,
including
the
False
Claims
Act,
which
can
be
enforced
by
civil
whistleblower
or
qui tam
actions
on
behalf
of
the
government,
and
criminal
false
claims
laws
and
the
civil
monetary penalties
law,
prohibit
individuals
or
entities
from,
among
other
things,
knowingly presenting,
or causing
to be presented
false
or fraudulent
claims
for
payment
by a federal
government
program, or making
a
false
statement
or
record
material
to
payment
of
a
false
claim
or avoiding,
decreasing
or concealing
an obligation
to pay money
to the
federal
government;
36
•
the
federal
Health
Insurance
Portability
and
Accountability
Act
of
1996,
or
HIPAA,
prohibits,
among other
things,
knowingly
and
willfully
executing,
or
attempting
to
execute,
a
scheme
to
defraud
any healthcare
benefit
program,
regardless
of
the
payor
(e.g.
public
or private),
and knowingly and willfully falsifying,
concealing
or
covering
up
by
any
trick
or
device
a
material
fact
or making
any materially false,
fictitious
or
fraudulent
statements
in
connection
with
the
delivery
of, or payment
for,
healthcare benefits,
items
or services
relating
to healthcare
matters;
•
HIPAA,
as
amended
by
the
Health
Information
Technology
for
Economic
and
Clinical
Health
Act,
or HITECH, and
their
implementing
regulations,
impose
requirements
on certain
covered
healthcare providers,
health
plans,
and
healthcare
clearinghouses
as
well
as
their
respective
business
associates and
their
subcontractors
that
perform
services
for
them
that
involve
the
use, or disclosure
of, individually
identifiable
health
information,
relating
to
the
privacy,
security,
and transmission
of such individually
identifiable
health
information;
•
the federal transparency requirements under the Patient Protection and Affordable Care Act, as amended
by
the
Health
Care
and
Education
Reconciliation
Act
of
2010, collectively
referred
to as the ACA,
requires
certain
manufacturers
of
drugs,
devices,
biologics
and
medical
supplies
to
annually report
to
the
Centers
for
Medicare
&
Medicaid
Services,
or
CMS, information
related
to payments
and other
transfers
of
value
provided
to,
and
ownership
and
investment
interests
held
by,
physicians, defined
to
include
doctors,
dentists,
optometrists,
podiatrists
and
chiropractors,
and
their
immediate family
members.
Beginning
in 2022, applicable
manufacturers
also
will
be required
to report
such information
regarding
payments
and
transfers
of
value
provided,
as well
as ownership
and investment interests
held,
during
the
previous
year
to physician
assistants,
nurse practitioners,
clinical
nurse specialists,
anesthesiologist
assistants,
certified
nurse
anesthetists
and certified
nurse-midwives;
and
•
analogous
state
laws
and
regulations
such
as
state
anti-kickback
and
false
claims
laws
and
analogous non-U.S. fraud
and abuse
laws and regulations,
may
apply
to sales
or marketing
arrangements
and claims
involving
healthcare
items
or services
reimbursed
by non-governmental
third-party
payors, including
private
insurers.
Some
state
laws
require
pharmaceutical
companies
to comply
with the pharmaceutical
industry's
voluntary
compliance
guidelines
and the
relevant
compliance
regulations promulgated
by
the
federal
government
and
may
require
drug manufacturers
to report
information related
to
payments
and
other
transfers
of
value
to
physicians
and other
healthcare
providers,
marketing expenditures,
or drug pricing,
including
price
increases.
State
and local
laws require
the registration
of pharmaceutical
sales
representatives.
State
and
non-U.S.
laws
that
also
govern
the
privacy
and security of
health
information
in
some
circumstances,
many
of
which
differ
from
each
other
in significant
ways and often
are
not preempted
by HIPAA,
thus
complicating
compliance
efforts.
Efforts
to
ensure
that
our business
arrangements
with third
parties
will
comply
with applicable
healthcare laws and regulations
will
involve
substantial
costs.
It
is
possible
that
governmental
authorities
will conclude that our business practices may not comply with current or future statutes, regulations or case law involving applicable
fraud
and
abuse
or
other
healthcare
laws
and
regulations.
If
our
operations
are
found to be in violation of
any
of
these
laws or any other
governmental
regulations
that
may
apply
to us, we may
be subject
to significant civil,
criminal
and administrative
penalties,
damages,
fines,
disgorgement,
imprisonment,
exclusion
from government
funded
healthcare
programs,
such
as
Medicare
and
Medicaid
and other
federal
healthcare
programs, contractual
damages,
reputational
harm,
diminished
profits
and future
earnings,
additional
integrity
reporting
and oversight
obligations,
and
the
curtailment
or restructuring
of our operations,
any of which could
adversely
affect our
ability
to
operate
our
business
and
our
results
of
operations.
If
any of the
physicians
or other
healthcare providers
or
entities
with
whom
we
expect
to do business
is
found to be not in compliance
with applicable
laws, they
may
be
subject
to significant
criminal,
civil
and administrative
sanctions,
including
exclusions
from government
funded
healthcare
programs,
which could
have a material
adverse
effect
on our business,
results
of operations,
financial
condition
and prospects.
Recently
enacted
and future
legislation
may
increase
the difficulty
and cost
for
us to obtain
marketing approval
of and commercialize
our product
candidates
and decrease
the prices
we may
obtain.
In
the
United
States
and
some
foreign
jurisdictions,
there
have
been
a
number
of legislative
and regulatory changes
and
proposed
changes
regarding
the
healthcare
system
that
could
prevent
or delay
marketing
approval
of our
product
candidates,
restrict
or
regulate
post-approval
activities
and
affect
our
ability
to
profitably
sell
any product
candidates
for
which we obtain
marketing
approval.
For
example,
he
ACA was enacted,
a
sweeping
law
intended to
broaden
access
to
health
insurance,
reduce
or constrain
the
growth of healthcare
spending,
enhance
remedies against
fraud
and
abuse,
add
new
transparency
requirements
for
the
healthcare
and health
insurance
industries, impose
new taxes
and fees
on the
health
industry
and impose
additional
health
policy
reforms.
Among the
provisions
of the
ACA
of importance
to our potential
product
candidates
are
the
following:
37
•
annual
fees
and taxes
on manufacturers
of certain
branded
prescription
drugs;
•
an
annual,
nondeductible
fee
on
any
entity
that
manufactures
or
imports
specified
branded
prescription drugs
and biologic
products;
•
a
new
Medicare
Part
D
coverage
gap
discount
program,
in
which
manufacturers
must
now
agree
to offer 70% point-of-sale discounts off negotiated prices of applicable brand drugs to eligible beneficiaries
during
their
coverage
gap
period,
as
a condition
for
the
manufacturer's
outpatient
drugs
to be covered
under
Medicare
Part
D;
•
a new methodology by which rebates owed by manufacturers under the Medicaid Drug Rebate Program
are
calculated
for
drugs
that
are
inhaled,
infused,
instilled,
implanted
or injected;
•
an
increase
in
the
statutory
minimum
rebates
a
manufacturer
must
pay
under
the
Medicaid
Drug Rebate Program
and
extended
the
rebate
program
to individuals
enrolled
in Medicaid
managed
care organizations;
•
expansion
of
healthcare
fraud
and
abuse
laws,
including
the
False
Claims
Act
and
the
federal
Anti- Kickback
Statute,
new government
investigative
powers, and enhanced
penalties
for
noncompliance;
•
extension
of manufacturers'
Medicaid
rebate
liability;
•
expansion
of eligibility
criteria
for
Medicaid
programs;
•
expansion
of
the
entities
eligible
for
discounts
under
the
Public
Health
Service
pharmaceutical
pricing program;
•
requirements
to
report
financial
arrangements
with
physicians,
as
defined
by
such
law,
and
teaching hospitals;
•
a requirement to annually report drug samples that manufacturers and distributors provide to physicians;
and
•
a Patient-Centered Outcomes Research Institute to oversee, identify priorities in, and conduct comparative
clinical
effectiveness
research,
along
with funding
for
such research.
There have been legislative and judicial efforts
to
repeal
or
replace
certain
aspects
of
the
ACA, including measures taken during the Trump administration. While
Congress
has not passed
comprehensive
repeal
legislation,
it
has enacted
laws that
modify certain provisions
of
the
ACA
such
as
removing
penalties, starting
January
1,
2019,
for
not
complying
with
the
ACA's individual
mandate
to
carry
health
insurance,
eliminating
the
implementation
of certain
ACA-mandated
fees,
and increasing
the
point-of-sale
discount
that
is
owed
by
pharmaceutical
manufacturers
who participate
in Medicare Part
D.
In November 2020, the United States Supreme Court
held oral arguments on the U.S. Court of Appeals for the Fifth Circuit's decision that held that the individual mandate is unconstitutional.
It
is
unclear how such litigation
and other
efforts
to repeal
and replace
the
ACA
will
impact
the
ACA
and our business.
In
addition,
other
legislative
changes
have
been
proposed
and
adopted
since
the
ACA was
enacted.
On August
2,
2011,
the
Budget
Control
Act
of
2011
was
signed
into
law,
which,
among
other
things,
created
the Joint
Select
Committee
on
Deficit
Reduction
to recommend
to Congress
proposals
for
spending
reductions.
The Joint Select Committee did not achieve a targeted deficit reduction, triggering the legislation's automatic reduction
to
several
government
programs.
These
changes
include
aggregate
reductions
to Medicare
payments
to providers
of
up
to
2%
per
fiscal
year,
which began in 2013, and due to subsequent
legislative
amendments
to the statute,
will
remain
in
effect
through
2030
unless
additional
Congressional
action
is
taken.
The Coronavirus
Aid, Relief,
and
Economic
Security
Act,
or
the
CARES
Act,
which
was
signed
into
law
in
March
2020
and
is designed
to provide
financial
support
and resources
to individuals
and businesses
affected
by the COVID-19 pandemic,
suspended
the
2%
Medicare
sequester
from
May
1,
2020
through
December
31,
2020,
and
extended the
sequester
by
one
year,
through
2030.
The Consolidated Appropriations Act, 2021 extended the suspension of the 2% Medicare sequester through March 31, 2021. In January
2013, the
American
Taxpayer
Relief
Act of 2012 was signed into
law,
which,
among
other
things,
reduced
Medicare
payments
to
several
providers,
and
increased
the
statute of
limitations
period
for
the
government
to
recover
overpayments
to
providers
from
three
to
five
years.
These laws may
result
in additional
reductions
in Medicare
and other
healthcare
funding.
Further,
there
has been heightened
governmental
scrutiny
recently
over
the
manner
in which drug manufacturers
set
prices
for
their
marketed
products,
which has resulted
in several
Congressional
inquiries
and proposed
and enacted
federal
and state
legislation
designed
to, among
other
things,
bring
more
transparency
to product
pricing,
review
the
relationship
between
pricing
and manufacturer
patient
programs,
and reform government
program
reimbursement
methodologies
for
drug
products.
At the
federal
level,
the
Trump
administration
issued
budget
proposals
for
fiscal
year
2021 includes
a $135 billion
allowance
to support
legislative
proposals
seeking
to
reduce
drug
prices,
increase
competition,
lower
out-of-pocket
drug costs for
patients,
and
increase
patient
access
to
lower-cost
generic
and
biosimilar
drugs.
38
In particular, on
July
24,
2020
and
September
13,
2020,
the
Trump administration
announced
several
executive
orders related
to prescription
drug pricing
that
seek
to implement
several
of the
administration's
proposals.
As a result, the
FDA also
released
a
final
rule
on
September
24,
2020
providing
guidance
for
states
to build
and submit importation
plans
for
drugs
from
Canada.
The Trump and Biden administrations both issued executive orders intended to favor government procurement from domestic manufacturers. In addition, the Trump administration issued an executive order specifically aimed at the procurement of pharmaceutical products, which instructed the federal government to develop a list of "essential" medicines and then buy those and other medical supplies that are manufactured, including the manufacture of the API, in the United States.
On July 9, 2021, President Biden issued an executive order supporting the importation of drugs from Canada as an effort to reduce prescription drug costs, requesting that the Department of Health and Human Services develop a plan to address drug pricing by the end of the summer of 2021 and encouraging the Federal Trade Commission to use its rulemaking authority to combat unfair anticompetitive conduct related to the introduction of generic drugs and biosimilars to the market.
It is unclear whether this executive order or something similar will be implemented by the Biden Administration.
Further,
on
November
20,
2020,
HHS finalized
a
regulation
removing safe
harbor
protection
for
price
reductions
from
pharmaceutical
manufacturers
to plan
sponsors
under
Part
D, either
directly
or
through
pharmacy
benefit
managers,
unless
the
price
reduction
is
required
by law. The rule
also creates
a
new
safe
harbor
for
price
reductions
reflected
at
the
point-of-sale,
as well
as a safe
harbor
for
certain fixed
fee
arrangements
between
pharmacy
benefit
managers
and
manufacturers.
The
Centers for Medicare and Medicaid Services, or CMS
also
published
an
interim
final
rule
that
establishes
a
Most
Favored
Nation,
or MFN, Model for Medicare Part B drug payment. This regulation would substantially change the drug reimbursement landscape as
it bases
Medicare Part
B
payment
for
50
selected drugs
on
prices
in
foreign countries
instead
of
average
sales
price,
or
ASP,
and
establishes
a
fixed
add-on
payment
in
place
of
the
current 6
percent
(4.3
percent
after
sequestration)
of
ASP. The
MFN drug payment
amount
is
expected
to be lower
than the
current
ASP-based
payment
limit
because
U.S.
drug
prices
are
generally
the
highest
in
the
world.
On December 28, 2020, the United States District Court in Northern California issued a nationwide preliminary injunction against implementation of the interim final rule, and it
faces
uncertain
prospects
for implementation.
At
the
state
level,
individual
states
have increasingly
passed
legislation
and implemented
regulations designed
to
control
pharmaceutical
and
biological
product
pricing,
including
price
or patient
reimbursement constraints,
discounts,
restrictions
on certain
product
access
and marketing
cost
disclosure
and transparency measures,
and, in some
cases,
designed
to encourage
importation
from
other
countries
and bulk purchasing.
We
expect
that
the
ACA,
as well
as other
healthcare
reform
measures
that
may
be adopted
in the
future,
may result
in
more
rigorous
coverage
criteria
and in additional
downward pressure
on the
price
that
we receive
for
any approved
product.
The implementation
of cost
containment
measures
or other healthcare
reforms
may prevent us from
being
able
to generate
revenue,
attain
profitability,
or commercialize
our products.
Legislative
and
regulatory
proposals
have
been
made
to
expand
post-approval
requirements
and
restrict sales
and
promotional
activities
for
pharmaceutical
products.
We
cannot
be
sure
whether
additional
legislative changes
will
be
enacted,
or
whether
the
FDA
regulations,
guidance
or
interpretations
will
be
changed,
or
what the
impact
of
such
changes
on
the
marketing
approvals
of our product
candidates,
if
any, may
be. In addition, increased
scrutiny
by
the
U.S. Congress
of
the
FDA's
approval
process
may
significantly
delay
or prevent marketing
approval,
as well
as subject
us to more
stringent
product
labeling
and post-marketing
testing
and other requirements.
It
is
also
possible
that
additional
governmental
action
is
taken
to address
the
COVID-19
pandemic.
Governments
outside
of the United States
tend to impose
strict
price
controls,
which may
adversely
affect our revenues,
if
any.
In
some
countries,
particularly
the
countries
of
the
European
Union,
or
the
EU, the
pricing
of
prescription pharmaceuticals
is
subject
to
governmental
control.
In
these
countries,
pricing
negotiations
with
governmental authorities
can
take
considerable
time
after
the
receipt
of marketing
approval
for
a product.
To obtain reimbursement or pricing approval in
some countries, we
may be
required to
conduct a
clinical trial that compares
the
cost-effectiveness
of our product
candidates
to other
available
therapies.
If
reimbursement
of our products
is
unavailable
or
limited
in
scope
or
amount,
or
if
pricing
is
set
at
unsatisfactory
levels,
our business could
be harmed.
Political,
economic
and regulatory
developments
may
further
complicate
pricing negotiations, and
pricing
negotiations
may
continue
after
reimbursement
has
been
obtained.
Reference
pricing
used
by various EU member
states,
and parallel
trade,
such as arbitrage
between
low-priced
and high-priced
member
states,
can further
reduce
prices.
There
can be no assurance
that
any country
that
has price
controls
or reimbursement limitations
for
pharmaceutical
products
will
allow
favorable
reimbursement
and pricing
arrangements
for any products,
if
approved
in
those
countries.
In
addition,
the
recent
withdrawal
of
the
United
Kingdom
from
its membership
in
the
EU, often
referred
to
as
"Brexit",
could
lead
to
legal
and
regulatory
uncertainty
in
the
United Kingdom
and
may
lead
to
the
United
Kingdom
and
EU adopting
divergent
laws
and
regulations,
including
those related
to
the
pricing
of
prescription
pharmaceuticals,
as
the
United
Kingdom
determines
which
EU laws
to replicate
or replace.
If
the
United
Kingdom were to significantly
alter
its regulations
affecting
the pricing of prescription
pharmaceuticals,
we
could
face
significant
new
costs.
As
a result,
Brexit
could
impair
our ability
to transact
business
in the
EU
and the
United
Kingdom.
39
Laws and regulations
governing
any international
operations
we may
have in the future
may
preclude
us from
developing,
manufacturing
and selling
certain
product
candidates
and products
outside
of the United States
and require
us to develop
and implement
costly
compliance
programs.
If
we
expand
our
operations
outside
of
the
United
States,
we must
dedicate
additional
resources
to comply with
numerous
laws
and
regulations
in
each
jurisdiction
in which we plan
to operate.
The Foreign
Corrupt Practices
Act,
or
FCPA,
prohibits
any
U.S. individual
or
business
from
paying,
offering,
authorizing
payment
or offering
anything
of
value,
directly
or
indirectly,
to
any
foreign
official,
political
party
or
candidate
for
the purpose
of
influencing
any
act
or
decision
of
such
third
party
in order
to assist
the
individual
or business
in obtaining or retaining business. The FCPA also obligates companies whose securities are listed in the United
States
to
comply
with
certain
accounting
provisions
requiring
the
company
to
maintain
books
and records that
accurately
and
fairly
reflect
all
transactions
of
the
company,
including
international
subsidiaries,
and
to devise
and maintain
an adequate
system
of internal
accounting
controls
for
international
operations.
Compliance
with
the
FCPA is
expensive
and
difficult,
particularly
in
countries
in
which corruption
is
a recognized problem. In addition, the FCPA presents particular challenges in the pharmaceutical industry, because,
in
many
countries,
hospitals
are
operated
by
the
government,
and doctors
and other
hospital
employees are
considered
foreign
officials.
Certain
payments
to
hospitals
in connection
with clinical
trials
and other
work have been deemed
to be improper
payments
to government
officials
and have led
to FCPA
enforcement
actions.
Various laws, regulations and executive orders also restrict the use and dissemination outside of the United
States,
or the
sharing
with certain
non-U.S. nationals,
of information
classified
for
national
security purposes,
as
well
as
certain
products
and
technical
data
relating
to
those
products.
If
we
expand
our
presence outside
of
the
United
States,
it
will
require
us
to
dedicate
additional
resources
to
comply
with
these
laws,
and these
laws
may
preclude
us
from
developing,
manufacturing
or selling
certain
product
candidates
and products outside
of the
United
States,
which could
limit
our growth potential
and increase
our development
costs.
The
failure
to
comply
with
laws
governing
international
business
practices
may
result
in
substantial
civil and
criminal
penalties
and
suspension
or
debarment
from
government
contracting.
The Securities
and Exchange Commission, or the SEC, also may suspend or bar issuers from trading securities on U.S.
exchanges for violations
of the
FCPA's
accounting
provisions.
If
we fail
to comply
with environmental,
health
and safety
laws and regulations,
we could become
subject to fines
or penalties
or incur costs
that
could harm our business.
We
and
our
third-party
contractors
are
subject
to numerous
foreign,
federal,
state
and local
environmental, health
and
safety
laws and regulations,
including
those
governing
laboratory
procedures
and the
handling,
use, storage,
treatment
and disposal
of hazardous
materials
and wastes.
Our operations
involve
the
use of hazardous and flammable
materials,
including
chemicals
and biological
materials.
Our operations
also produce hazardous waste
products.
We
generally
contract
with
third
parties
for
the
disposal
of
these
materials
and
wastes.
We cannot
eliminate
the
risk
of contamination
or injury
from
these
materials.
In the
event
of contamination
or injury resulting
from
our
use
of
hazardous
materials,
we
could
be
held
liable
for
any
resulting
damages,
and
any liability
could
exceed
our resources,
including
any available
insurance.
In
addition,
our
leasing
and operation
of real
property
may
subject
us to liability
pursuant
to certain
of these laws
or
regulations.
Under
existing
U.S.
environmental
laws
and
regulations,
current
or
previous
owners
or operators
of
real
property
and
entities
that
disposed
or
arranged
for
the
disposal
of hazardous
substances
may
be held
strictly,
jointly
and
severally
liable
for
the
cost
of investigating
or remediating
contamination
caused
by hazardous
substance
releases,
even if
they
did not know of and were not responsible
for
the
releases.
We
could
incur
significant
costs
and
liabilities
which
may
adversely
affect
our financial
condition
and operating
results
for
failure
to
comply
with
such
laws
and
regulations,
including,
among
other
things,
civil
or criminal
fines
and
penalties,
property
damage
and
personal
injury
claims,
costs
associated
with
upgrades
to our facilities
or changes
to our operating
procedures,
or injunctions
limiting
or altering
our operations.
Although
we
maintain
liability
insurance
to
cover
us
for
costs
and expenses
we may
incur
due to injuries
to our employees, this insurance may not provide adequate coverage against potential liabilities. We do not maintain
insurance
for
environmental
liability
or
toxic
tort
claims
that
may
be asserted
against
us in connection with our storage
or disposal
of biological,
hazardous
or radioactive
materials.
40
In
addition,
we may
incur
substantial
costs
in order
to comply
with current
or future
environmental,
health and
safety
laws and regulations.
These current
or future
laws and regulations,
which are
becoming
increasingly more
stringent,
may
impair
our
research,
development
or
production
efforts.
Our
failure
to
comply
with
these laws and regulations
also
may
result
in substantial
fines,
penalties
or other
sanctions.
We are subject
to certain
U.S.
and certain
foreign
anti-corruption,
anti-money
laundering,
export
control,
sanctions
and other
trade
laws and regulations.
We can face
serious
consequences
for
violations.
U.S. and
foreign
anti-corruption,
anti-money
laundering,
export
control,
sanctions
and
other
trade
laws and regulations
prohibit,
among
other
things,
companies
and
their
employees,
agents,
CROs, CMOs,
legal
counsel, accountants,
consultants,
contractors
and other
partners
from
authorizing,
promising,
offering,
providing, soliciting,
or
receiving
directly
or
indirectly,
corrupt
or
improper
payments
or
anything
else
of
value
to or from recipients
in
the
public
or
private
sector.
Violations
of these
laws can result
in substantial
criminal
fines
and civil penalties,
imprisonment,
the
loss
of
trade
privileges,
debarment,
tax
reassessments,
breach
of
contract
and fraud litigation,
reputational
harm
and
other
consequences.
We
have
direct
or
indirect
interactions
with officials
and employees
of government
agencies
or government-affiliated
hospitals,
universities
and other
organizations.
We also
expect
our
non-U.S.
activities to
increase
over
time.
We
expect
to
rely
on
third
parties
for
research, preclinical
studies
and clinical
trials
and/or
to obtain
necessary
permits,
licenses,
patent
registrations
and other marketing
approvals.
We
can
be
held
liable
for
the
corrupt
or other
illegal
activities
of our personnel,
agents,
or partners,
even if
we do not explicitly
authorize
or have prior
knowledge of such activities.
Any
violations
of
the
laws
and
regulations
described
above may
result
in substantial
civil
and criminal
fines and
penalties,
imprisonment,
the
loss
of export
or import
privileges,
debarment,
tax
reassessments,
breach
of contract
and fraud
litigation,
reputational
harm
and other
consequences.
Risks Related
to Our Reliance
on Third Parties
We rely,
and intend
to continue
to rely,
on third
parties
to conduct our clinical
trials
and perform
some
of our research
and preclinical
studies.
If
these
third
parties
do not satisfactorily
carry
out their
contractual duties,
fail
to comply
with applicable
regulatory
requirements
or do not meet
expected
deadlines,
our development
programs
may
be delayed
or subject
to increased
costs
or we may
be unable to obtain regulatory
approval,
each of which may
have an adverse
effect
on our business,
financial
condition, results
of operations
and prospects.
We
do
not
have
the
ability
to
independently
conduct
all
aspects
of
our
preclinical
testing
or clinical
trials ourselves.
As a result,
we are
dependent
on third
parties
to conduct
our ongoing and planned
clinical
trials
of PRT543,
PRT811
and
PRT1419, and
any
preclinical
studies
and
clinical
trials
of
any
other
product
candidates. The
timing
of
the
initiation
and
completion
of
these
trials
will
therefore
be
partially
controlled
by
such
third parties and may result in delays to our development programs. Specifically, we expect CROs, clinical investigators
and
consultants
to
play
a
significant
role
in the
conduct
of these
trials
and the
subsequent
collection and
analysis
of
data.
However,
these
CROs and
other
third
parties
are
not our employees,
and we will
not be able to control
all
aspects
of their
activities.
Nevertheless,
we are
responsible
for
ensuring
that
each
clinical
trial
is conducted
in
accordance
with the
applicable
protocol
and legal,
regulatory
and scientific
standards,
and our reliance
on
the
CROs and
other
third
parties
does
not relieve
us of our regulatory
responsibilities.
We and our CROs
are
required
to
comply
with
good
clinical
practices,
or
GCP, requirements,
which
are
regulations
and guidelines
enforced
by
the
FDA for
product
candidates
in clinical
development.
Regulatory
authorities
enforce these
GCP requirements
through
periodic
inspections
of trial
sponsors,
clinical
trial
investigators
and clinical
trial sites.
If
we
or
any
of
our
CROs or
clinical
trial
sites
fail
to
comply
with
applicable
GCP requirements,
the
data generated
in
our
clinical
trials
may
be
deemed
unreliable,
and
the
FDA may
require
us to perform
additional clinical
trials
before
approving
our
marketing
applications.
We
cannot
assure
you
that,
upon inspection,
the
FDA will
determine
that
our
clinical
trials
comply
with
GCPs. In addition,
our clinical
trials
must
be conducted
with product
produced
under
cGMP regulations.
Our failure
or the
failure
of third
parties
on whom we rely
to comply with
these
regulations
may
require
us
to
stop
and/or
repeat
clinical
trials,
which would delay
the
marketing approval
process.
There
is
no
guarantee
that
any
such
CROs, clinical
trial
investigators
or
other
third
parties
on
which
we
rely will
devote
adequate
time
and
resources
to
our
development
activities
or perform
as contractually
required.
If
any of
these
third
parties
fail
to meet
expected
deadlines,
adhere
to our clinical
protocols
or meet
regulatory requirements,
otherwise
perform
in a substandard
manner,
or terminate
their
engagements
with us, the
timelines for
our
development
programs
may
be
extended
or
delayed
or
our
development
activities
may
be suspended
or terminated. If our clinical trial site terminates for any reason, we may experience the loss of follow-up information
on
subjects
enrolled
in
such
clinical
trial
unless
we
are
able
to
transfer
those
subjects
to another qualified
clinical
trial
site,
which may
be difficult
or impossible.
41
Furthermore,
these
third
parties
may
also
have relationships
with other
entities,
some
of which may
be our competitors
for
whom
they
may
also
be
conducting
clinical
trials
or other
pharmaceutical
product
development activities
that
could
harm
our competitive
position.
If
these
third
parties
do not successfully
carry
out their contractual
duties,
meet
expected
deadlines
or
conduct
our
clinical
trials
in accordance
with regulatory requirements
or
our stated
protocols,
we will
not be able
to obtain,
or may
be delayed
in obtaining,
marketing approvals
for
PRT543, PRT811, PRT1419 or
any
other
product
candidates
and
will
not
be
able
to,
or
may
be delayed
in our efforts
to, successfully
commercialize
our products.
Manufacturing
pharmaceutical
products
is
complex
and subject
to product
loss
for
a variety
of reasons. We rely
on third-party
suppliers,
including
single
source
suppliers,
to manufacture
preclinical
and clinical
supplies
of our product
candidates
and we intend
to rely
on third
parties
to produce commercial supplies
of any approved
product
candidate.
This reliance
on third
parties
increases
the risk
that
we will not have sufficient
quantities
of our product
candidates
or products
or such quantities
at an acceptable cost
or quality,
which could delay,
prevent
or impair
our development
or commercialization
efforts.
We
do
not
have
any
manufacturing
facilities.
We
rely,
and
expect
to continue
to rely,
on third
parties
for
the manufacture
of our product
candidates
for
preclinical
and clinical
testing,
product development
purposes, to support
regulatory
application
submissions,
as
well
as
for
commercial
manufacture
if
any
of our product candidates
obtain
marketing
approval.
In
addition,
we
expect
to contract
with analytical
laboratories
for
release and
stability
testing
of
our
product
candidates.
This
reliance
on
third
parties
increases
the
risk
that
we will
not have
sufficient
quantities
of
our
product
candidates
or
products
or
such
quantities
at
an
acceptable
cost
or quality, which
could
delay,
prevent
or
impair
our
development
or commercialization
efforts.
In addition,
the
ongoing COVID-19 pandemic
may
result
in disruptions
to the
operations
or an extended
shutdown of certain
businesses, which could
include
certain
of our contract
manufacturers.
We
may
be
unable
to
establish
any
agreements
with
third-party
manufacturers
or do so on favorable
terms. Even
if
we
are
able
to
establish
agreements
with
third-party
manufacturers,
reliance
on third-party
manufacturers entails
additional
risks,
including:
•
reliance
on the
third
party
for
regulatory,
compliance
and quality
assurance;
•
reliance
on
the
third
party
for
product
development,
analytical
testing,
and
data
generation
to
support regulatory
applications;
•
operations
of
our
third-party
manufacturers
or
suppliers
could
be
disrupted
by
conditions
unrelated
to our business
or operations,
including
the
bankruptcy
of the
manufacturer
or supplier,
the
issuance
of an FDA
Form
483
notice
or
warning
letter,
or
other
enforcement
action
by
FDA or
other
regulatory authority;
•
the
possible
breach
of the
manufacturing
agreement
by the
third
party;
•
the possible misappropriation of our proprietary information, including our trade secrets and know-how;
•
the
possible
termination
or
nonrenewal
of
the
agreement
by
the
third
party
at
a
time
that
is
costly
or inconvenient
for
us;
•
carrier
disruptions
or increased
costs
that
are
beyond our control;
and
•
failure
to deliver
our drugs
under
specified
storage
conditions
and in a timely
manner.
We
have
only
limited
supply
arrangements
in
place
with
respect
to our product
candidates,
and these arrangements
do
not
extend
to
commercial
supply.
We
acquire
many
key
materials
on
a
purchase
order
basis.
As a
result,
we do not have long-term
committed
arrangements
with respect
to our product
candidates
and other materials.
We
will
need
to
establish
one or more
agreements
with third
parties
to develop
and scale
up the
drug manufacturing
process,
conduct
drug
testing,
and
generate
data
to support
a regulatory
submission.
If
we obtain marketing
approval
for
any
of
our
product
candidates,
we
will
need
to
establish
an
agreement
for
commercial manufacture
with a third
party.
In
addition,
we
are
dependent
on
a
sole
supplier
for
certain
components
of
our
manufacturing
process.
Even if
we
are
able
to
replace
any
raw
materials
or
other
materials
with
an
alternative,
such
alternatives
may
cost more,
result
in
lower
yields
or
not
be
as
suitable
for
our
purposes.
In
addition,
some
of
the
materials
that
we
use to
manufacture
our
product
candidates
are
complex
materials,
which may
be more
difficult
to substitute. Therefore,
any
disruptions
arising
from
our sole
suppliers
could
result
in delays
and additional
regulatory submissions.
42
Third-party
manufacturers
may
not
be
able
to
comply
with cGMP regulations
or similar
regulatory requirements
outside
of
the
United
States.
If
the
FDA determines
that
our
CMOs
are
not in compliance
with FDA laws
and
regulations,
including
those
governing
cGMPs,
the
FDA may
deny
a
new
drug
application,
or
NDA, approval until the deficiencies are corrected or we replace the manufacturer in our application with a manufacturer
that
is
in compliance.
Moreover,
our failure,
or the
failure
of our third-party
manufacturers
and suppliers,
to comply
with applicable
regulations
could
result
in sanctions
being
imposed
on us, including
clinical holds, fines, injunctions, civil penalties, seizures or recalls of product candidates or products, operating restrictions
and
criminal
prosecutions,
any
of which could
significantly
and adversely
affect
supplies
of our products.
In
addition,
approved
products
and
the
facilities at
which
they
are
manufactured
are
required
to maintain
ongoing
compliance
with
extensive
FDA requirements
and
the
requirements
of
other
similar
agencies, including
ensuring
that
quality
control
and
manufacturing
procedures
conform
to
cGMP
requirements.
As such, our
CMOs
are
subject
to
continual
review
and
periodic
inspections
to
assess
compliance
with cGMPs. Furthermore,
although
we
do
not
have
day-to-day
control
over
the
operations
of
our
CMOs,
we
are
responsible for
ensuring
compliance
with applicable
laws and regulations,
including
cGMPs.
In
addition,
our
third-party
manufacturers
and
suppliers
are
subject
to numerous
environmental,
health
and safety
laws
and
regulations,
including
those
governing
the
handling,
use, storage,
treatment
and disposal
of waste products,
and
failure
to
comply
with
such
laws
and
regulations
could
result
in significant
costs
associated
with civil
or criminal
fines
and penalties
for
such third
parties.
Based on the
severity
of regulatory
actions
that
may
be brought
against
these
third
parties
in
the
future,
our
clinical
or
commercial
supply
of
drug
and
packaging
and other
services
could
be interrupted
or limited,
which could
harm
our business.
Our
product
candidates
and
any
products
that
we may
develop
may
compete
with other
product
candidates and
products
for
access
to manufacturing
facilities.
As a result,
we may
not obtain
access
to these
facilities
on a priority
basis
or
at
all.
There
are
a
limited
number
of manufacturers
that
operate
under
cGMP regulations
and that might
be capable
of manufacturing
for
us.
As
we
prepare
for
later-stage
clinical
trials
and
potential
commercialization,
we will
need to take
steps
to increase
the
scale
of production
of our product
candidates.
We have not yet
scaled
up the manufacturing
process for
any of our product
candidates.
Third
party
manufacturers
may
be unable
to successfully
increase
the manufacturing
capacity
for
any
of
our
product
candidates
in a timely
or cost-effective
manner,
or at
all.
In addition,
quality
issues
may
arise
during
scale-up
or
commercial
activities.
For
example,
if
microbial,
viral
or other
contaminations
are
discovered
in
our
product
candidates
or in the
manufacturing
facilities
in which our product
candidates
are
made,
such
manufacturing
facilities
may
need to be closed
for
an extended
period
of time to investigate
and remedy
the
contamination.
Any performance failure on the part of our existing or future manufacturers could delay clinical development
or
marketing
approval.
We
do
not
currently
have
arrangements
in place
for
redundant
supply
or a second
source
for
bulk
drug
substance.
If
our
current
CMOs for
preclinical
and clinical
testing
cannot
perform
as agreed, we may be required to replace such CMOs. Although we believe that there are several potential alternative
manufacturers
who
could
manufacture
our
product
candidates,
we
may
incur
added
costs
and
delays in
identifying
and
qualifying
any
such
replacement
manufacturer
or be able
to reach
agreement
with any alternative
manufacturer.
Further,
our third-party
manufacturers
may
experience
manufacturing
or shipping difficulties
due
to
resource
constraints
or
as
a
result
of natural
disasters,
labor
disputes,
unstable
political environments,
or
public
health
epidemics
such
as
the
COVID-19 pandemic.
If
our
current
third-party manufacturers
cannot
perform
as
agreed,
we
may
be
required
to
replace
such
manufacturers
and
we
may
be unable
to replace
them
on a timely
basis
or at
all.
Our
current
and
anticipated
future
dependence
upon
others
for
the
manufacture
of our product
candidates
or products
may
adversely
affect
our future
profit
margins
and our ability
to commercialize
any products
that
obtain marketing
approval
on a timely
and competitive
basis.
We may
enter
into
collaborations
with third
parties
for
the development
and commercialization
of our product
candidates.
If
those
collaborations
are not successful,
we may
not be able
to capitalize
on the market
potential
of these
product
candidates.
We
may
seek
third-party
collaborators
for
the
development
and commercialization
of some
of our product candidates
on
a
select
basis.
We
have not entered
into
any collaborations
to date.
Our likely
collaborators
for
any future
collaboration
arrangements
include
large
and
mid-size
pharmaceutical
companies,
regional
and
national pharmaceutical
companies
and
biotechnology
companies.
We face
significant
competition
in seeking
appropriate collaborators.
Our
ability
to
reach
a definitive
agreement
for
a future
collaboration
will
depend, among
other things,
upon
our
assessment
of
the
future
collaborator's
resources
and
expertise,
the
terms
and conditions
of the proposed
collaboration
and the
proposed
collaborator's
evaluation
of a number
of factors.
43
If
we
do
enter
into
any
such
arrangements
with any third
parties,
we will
likely
have limited
control
over
the amount
and
timing
of
resources
that
our
future
collaborators
dedicate
to the
development
or commercialization
of our
product
candidates.
Our
ability
to
generate
revenues
from
these
arrangements
will
depend
on
our
future collaborators'
abilities
and efforts
to successfully
perform
the
functions
assigned
to them
in these arrangements. Collaborations
with future
collaborators
involving
our product
candidates
would pose numerous
risks
to us, including
the
following:
•
collaborators
have
significant
discretion
in
determining
the
efforts
and
resources
that
they
will
apply
to these
collaborations
and may
not perform
their
obligations
as expected;
•
collaborators
may
de-emphasize
or
not
pursue
development
and
commercialization
of
our
product candidates
or
may
elect
not to continue
or renew development
or commercialization
programs
based
on clinical
trial
results,
changes
in the
collaborators'
strategic
focus,
including
as a result
of a sale
or disposition
of
a
business
unit
or
development
function,
or
available
funding
or external
factors
such as an acquisition
that
diverts
resources
or creates
competing
priorities;
•
collaborators
may
delay
clinical
trials,
provide
insufficient
funding
for
a
clinical
trial
program,
stop
a clinical
trial
or
abandon a product
candidate,
repeat
or conduct
new clinical
trials
or require
a new formulation
of a product
candidate
for
clinical
testing;
•
collaborators
could
independently
develop,
or
develop
with third
parties,
products
that
compete
directly or indirectly
with our products
or product
candidates
if the collaborators
believe that competitive products
are
more
likely
to be successfully
developed
or can be commercialized
under
terms
that
are more
economically
attractive
than
ours;
•
a
collaborator
with
marketing
and
distribution
rights
to
multiple
products
may
not
commit
sufficient resources
to the
marketing
and distribution
of our product
relative
to other
products;
•
collaborators
may
not
properly
obtain,
maintain,
defend
or
enforce
our
intellectual
property
rights
or may
use
our
proprietary
information
and
intellectual
property
in such a way as to invite
litigation
or other
intellectual
property
related
proceedings
that
could
jeopardize
or invalidate
our proprietary information
and
intellectual
property
or
expose
us
to
potential
litigation
or other
intellectual
property related
proceedings;
•
disputes
may
arise
between
the
collaborators
and
us
that
result
in
the
delay
or
termination
of
the research,
development
or
commercialization
of
our
products
or
product
candidates
or
that
result
in costly
litigation
or arbitration
that
diverts
management
attention
and resources;
•
collaborations
may
be
terminated
and,
if
terminated,
may
result
in
a
need
for
additional
capital
to pursue
further
development
or commercialization
of the
applicable
product
candidates;
•
collaboration
agreements
may
not
lead
to
development
or
commercialization
of
product
candidates
in the
most
efficient
manner
or at
all;
and
•
if
a
future
collaborator
of
ours
were to be involved
in a business
combination,
the
continued
pursuit
and emphasis
on our product
development
or commercialization
program
could
be delayed,
diminished
or terminated.
If
we
establish
one
or
more
collaborations,
all
of
the
risks
relating
to product
development,
regulatory approval
and
commercialization
described
herein
would
also
apply
to the
activities
of any such future collaborators.
Risks Related
to Commercialization
of our Product Candidates
The incidence
and prevalence
for
target
patient
populations
of our product
candidates
have not been established
with precision.
If
the market
opportunities
for
our product
candidates
are smaller
than we estimate
or if
any approval
that
we obtain
is
based on a narrower definition
of the patient
population,
our revenue
potential
and ability
to achieve
profitability
will
be adversely
affected.
The
total
addressable
market
opportunity
for
PRT543, PRT811, PRT1419 and
any
other
product
candidates we
may
develop
will
ultimately
depend
upon,
among
other
things,
the
diagnosis
criteria
included
in
the
final labeling
for
each
such
product
candidate
if
our
product
candidates
are
approved
for
sale
for
these
indications, acceptance
by
the
medical
community,
patient
access,
drug
and
any
related
companion
diagnostic
pricing
and their
reimbursement.
We
may
initially
seek
regulatory
approval
of
some
of
our
product
candidates
as
therapies for
relapsed
or
refractory
patients.
The
number
of
patients
in
our
targeted
commercial
markets
and
elsewhere may
turn
out
to
be
lower
than
expected,
patients
may
not be otherwise
amenable
to treatment
with our drugs,
or new
patients
may
become
increasingly
difficult
to
identify
or gain
access
to, all
of which would adversely
affect our results
of operations
and our business.
44
Even if
any of our product
candidates
receives
marketing
approval,
it
may
fail
to achieve
the degree
of market
acceptance
by physicians,
patients,
third-party
payors
and others
in the medical
community necessary
for
commercial
success.
If
any
of
our
product
candidates
receives
marketing
approval,
it
may
nonetheless
fail
to
gain
sufficient market
acceptance
by
physicians,
patients,
third-party
payors
and
others
in the
medical
community.
For example, current
cancer
treatments,
such
as
existing
targeted
therapies,
chemotherapy,
and radiation
therapy,
are
well established
in
the
medical
community,
and
doctors
may
continue
to rely
on these
treatments.
If
our product candidates
do not achieve
an adequate
level
of acceptance,
we may
not generate
significant
product revenues and we may
not become
profitable.
The degree
of market
acceptance
of our product
candidates,
if approved for commercial
sale,
will
depend on a number
of factors,
including:
•
the
efficacy
and potential
advantages
compared
to alternative
treatments;
•
the
acceptance
of our product
candidates
as front-line
treatment
for
various
indications;
•
the
prevalence
and severity
of any side
effects,
in particular
compared
to alternative
treatments;
•
limitations
or warnings
contained
in the
labeling
approved
for
our product
candidates
by the
FDA;
•
the
size
of the
target
patient
population;
•
the
willingness
of
the
target
patient
population
to
try
new
therapies
and
of
physicians
to
prescribe
these therapies;
•
our ability
to offer
our products
for
sale
at
competitive
prices;
•
the
convenience
and ease
of administration
compared
to alternative
treatments;
•
the
strength
of marketing
and distribution
support;
•
publicity
for
our product
candidates
and competing
products
and treatments;
•
the
existence
of distribution
and/or
use restrictions,
such as through
a REMS;
•
the
availability
of third-party
payor
coverage
and adequate
reimbursement;
•
the
timing
of any marketing
approval
in relation
to other
product
approvals;
•
support
from
patient
advocacy
groups;
and
•
any restrictions
on the
use of our products
together
with other
medications.
We currently
have no marketing
and sales
organization
and have no experience
as a company
in commercializing
products
and we may
have to invest
significant
resources
to develop
these
capabilities.
If we are unable to establish
sales
and marketing
capabilities
or enter
into
agreements
with third
parties
to market
and sell
our products,
we may
not be able
to generate
revenue.
We
currently
have
no
sales
or
marketing
infrastructure
and
have
no
experience
in the
sale,
marketing
or distribution
of
pharmaceutical
products.
To
achieve
commercial
success
for
any
product
for
which we obtain marketing
approval,
we will
need to establish
sales,
marketing
and distribution
capabilities,
either
ourselves
or through
collaboration
or other
arrangements
with third
parties.
There
are
risks
involved
with establishing
our own sales
and marketing
capabilities.
For example,
recruiting and training a sales force is expensive and time-consuming and could delay any product launch. If the commercial
launch
of
a
product
candidate
for
which
we
recruit
a
sales
force
and
establish
marketing
capabilities is
delayed
or does not occur
for
any reason,
we would have prematurely
or unnecessarily
incurred
these commercialization
expenses.
These efforts
are
expected
to be costly,
and our investment
would be lost
if
we cannot
retain
or reposition
our sales
and marketing
personnel.
Factors
that
may
inhibit
our efforts
to commercialize
our products
on our own include:
•
our inability
to recruit,
train
and retain
adequate
numbers
of effective
sales
and marketing
personnel;
•
our inability
to raise
financing
necessary
to build
our commercialization
infrastructure;
•
the
inability
of
sales
personnel
to
obtain
access
to
physicians
or
educate
an
adequate
number
of physicians
as to the
benefits
of our products;
•
unfavorable
third-party
payor
coverage
and reimbursement
in any geography;
45
•
the lack of complementary products to be offered by sales personnel, which may put us at a competitive
disadvantage
relative
to companies
with more
extensive
product
lines;
and
•
unforeseen costs and expenses associated with creating an independent sales and marketing organization.
If
we
enter
into
arrangements
with
third
parties
to
perform
sales
and
marketing
services,
our
product revenues
and
our
profitability,
if
any,
are
likely
to
be lower
than
if
we were to market
and sell
any products
that we
develop
ourselves.
In
addition,
we
may
not be successful
in entering
into
arrangements
with third
parties
to market
and
sell
our
product
candidates
or
may
be
unable
to
do
so
on
terms
that
are
acceptable
to
us.
We
likely will
have
little
control
over
such
third
parties,
and
any
of
these
third
parties
may
fail
to
devote
the
necessary resources
and
attention
to sell
and market
our products
effectively.
If
we do not establish
sales
and marketing capabilities
successfully,
either
on
our
own
or
in
collaboration
with
third
parties,
we
will
not
be
successful
in commercializing
any of our product
candidates
for
which we receive
marketing
approval.
We face
substantial
competition,
which may
result
in others
discovering,
developing
or commercializing products
before
or more
successfully
than we do.
The
development
and commercialization
of pharmaceutical
products
is
highly
competitive.
We face competition
with
respect
to our current
product
candidates
and will
face
competition
with respect
to any product candidates
that
we
may
seek
to
develop
or commercialize
in the
future,
from
major
pharmaceutical
companies, specialty
pharmaceutical
companies
and existing
or emerging
biotechnology
companies,
academic
research institutions
and
governmental
agencies
and
public
and
private
research
institutions
worldwide.
There
are
a number
of
pharmaceutical
and
biotechnology
companies
that
currently
are
pursuing
the
development
of precision oncology
therapies
optimized
to effectively
target
the
key driver
mechanisms
in cancers
with high unmet
need, including
Black
Diamond
Therapeutics,
Inc.,
Constellation
Pharmaceuticals,
Inc.,
Kronos Bio, Inc.,
Repare Therapeutics
Inc.,
Revolution
Medicines,
Inc.,
Relay
Therapeutics,
Inc.,
and
Zentalis
Pharmaceuticals,
LLC. In addition,
we
may
face
competition
from
companies
pursuing
the
development
of
product
candidates
that
are based
on targeting
pathways
of adaptive
resistance,
including
Amgen Inc.,
or Amgen, AbbVie Inc.,
or AbbVie, AstraZeneca
PLC,
or
AstraZeneca,
GlaxoSmithKline
plc,
or
GlaxoSmithKline,
Johnson
&
Johnson,
Pfizer
Inc., or Pfizer,
Vincerx Pharma ,
or Vincerx, and Novartis
International
AG,
or Novartis.
Specifically,
with
respect
to
our
lead
product
candidates,
we
expect
that
our current
product
candidates PRT543 and
PRT811 will
compete
against
other
PRMT5 inhibitors
which
are
currently
in
clinical
development, including those of GlaxoSmithKline (GSK3326595), Johnson & Johnson (JNJ-64619178) and Pfizer (PF-06939999).
Development
efforts
and clinical
results
of these
other
product
candidates
may
be unsuccessful, which
could result in
a
negative perception of
PRMT5
inhibitors, for instance, and
negatively impact the regulatory
approval
process
of
our
product
candidates,
which
would
have a material
and adverse
effect
on our business.
For
our
product
candidate
PRT1419, other
companies
are
developing
MCL1
inhibitors
with monotherapy
and/or
combination
trials
ongoing, including
Amgen (AMG176), AstraZeneca
(AZD5991) and Novartis
(MIK665).
For
our
preclinical
CDK9 program,
AstraZeneca,
Vincerx
and Kronos Bio have CDK9 programs
in Phase 1 clinical
trials.
Many
of
the
companies
against
which we are
competing
or against
which we may
compete
in the
future, either
alone
or through
collaborations,
have significantly
greater
financial
resources
and expertise
in research
and development,
manufacturing,
preclinical
testing,
conducting clinical
trials,
obtaining regulatory
approvals and marketing
approved
products
than
we do. Mergers
and acquisitions
in the
pharmaceutical
and biotechnology industries
may
result
in
even
more
resources
being
concentrated
among
a
smaller
number
of
our
competitors. Smaller
and other
early-stage
companies
may
also
prove
to be significant
competitors,
particularly
through collaborative arrangements with large and established companies. These third parties compete with us in recruiting
and
retaining
qualified
scientific,
management
and
sales
and marketing
personnel,
establishing
clinical trial
sites
and
patient
registration
for
clinical
trials,
as
well
as
in
acquiring
technologies
complementary
to,
or necessary
for,
our programs.
Furthermore,
we also face competition
more broadly across the oncology market
for cost-effective
and reimbursable
cancer
treatments.
There
are
a variety
of available
drug therapies
marketed
for
cancer.
In many cases,
these
drugs
are
administered
in
combination
to
enhance
efficacy.
While
our product
candidates,
if
any are approved,
may
compete
with
these
existing
drugs
and other
therapies,
to the
extent
they
are
ultimately
used in combination
with or as an adjunct
to these
therapies,
our product
candidates
may
not be competitive
with them. Some
of
these
drugs
are
branded
and
subject
to
patent
protection,
and others
are
available
on a generic
basis. Insurers and other third-party payors may also encourage the use of
generic products or
specific branded products.
As a result,
obtaining
market
acceptance
of, and gaining
significant
share
of the
market
for,
any of our product candidates that we successfully introduce to the market may pose challenges. In addition, many companies
are
developing
new oncology
therapeutics,
and we cannot
predict
what the
standard
of care
will
be as our product
candidates
progress
through
clinical
development.
46
Our
commercial
opportunity
could
be
reduced
or
eliminated
if
our
competitors
develop
and commercialize products
that
are
safer,
more
effective,
have fewer
or less
severe
side
effects,
are
more
convenient
to administer, are less expensive or with a more favorable labeling than our current or future product candidates. Our competitors
also
may
obtain
FDA,
foreign
regulatory
authority,
or
other
marketing
or
regulatory
approval
for their
products
more
rapidly
than
any
approval
we
may
obtain
for
ours,
which
could
result
in our competitors establishing
a
strong
market
position
before
we
are
able
to
enter
the
market.
The
key
competitive
factors affecting
the
success
of
all
of
our
product
candidates,
if
approved,
are
likely
to be their
efficacy,
safety, convenience,
price,
the
level
of generic
competition
and the
availability
of reimbursement
from
government
and other
third-party
payors.
Even if
we are able
to commercialize
any product
candidates,
the products
may
become
subject
to unfavorable
pricing
regulations,
third-party
reimbursement
practices
or healthcare
reform
initiatives, which would harm our business.
The regulations that govern marketing approvals, pricing, coverage and reimbursement for new drug products
vary
widely
from
country
to country.
Current
and future
legislation
may
significantly
change
the approval
requirements
in ways that
could
involve
additional
costs
and cause
delays
in obtaining
approvals.
Some countries
require
approval
of the
sale
price
of a drug before
it
can be marketed.
In many
countries,
the pricing review
period
begins
after
marketing
or
product
licensing
approval
is
granted.
To
obtain
reimbursement
or pricing
approval
in
some
countries,
we
may
be required
to conduct
a clinical
trial
that
compares
the
cost- effectiveness
of
our
product
candidate
to other
available
therapies.
In some
foreign
markets,
prescription pharmaceutical
pricing
remains
subject
to continuing
governmental
control
even after
initial
approval
is granted. As
a
result,
we
might
obtain
marketing
approval
for
a
product
candidate
in
a
particular
country,
but
then
be subject
to
price
regulations
that
delay
our
commercial
launch
of
the
product,
possibly
for
lengthy
time
periods, and
negatively
impact
the
revenues,
if
any, we are
able
to generate
from
the
sale
of the
product
in that
country. Adverse
pricing
limitations
may
hinder
our ability
to recoup
our investment
in one or more
product
candidates, even if
such product
candidates
obtain
marketing
approval.
Our
ability
to
commercialize
any product
candidates
successfully
also
will
depend in part
on the
extent
to which
coverage
and
adequate
reimbursement
for
these
products
and related
treatments
will
be available
from third-party
payors,
including
government
healthcare
programs,
private
health
insurers
and
other
organizations. Third-party
payors
decide
which
medications
they
will
pay for
and establish
reimbursement
levels.
In the
United States,
the
principal
decisions
about
reimbursement
for
new
medicines
are
typically
made
by
the
CMS,
which decides
whether
and
to
what extent
a new medicine
will
be covered
and reimbursed
under
Medicare.
Private payors
often,
but not always,
follow
CMS's decisions
regarding
coverage
and reimbursement.
A
primary
trend
in
the
U.S. healthcare
industry
and
elsewhere
is
cost
containment.
Third-party
payors
have attempted
to control
costs
by limiting
coverage
and the
amount
of reimbursement
for particular
medications. Increasingly,
third-party
payors
are
requiring
that
drug
companies
provide
them
with
predetermined
discounts from
list
prices
and
are
challenging
the
prices
charged
for
medical
products.
Coverage
and
reimbursement
may not be available for any product that we commercialize and, even if these are available, the level of reimbursement
may
not
be
satisfactory.
Reimbursement
may
affect
the
demand
for,
or the
price
of, any product candidate
for
which
we
obtain
marketing
approval.
Obtaining
and
maintaining
coverage
and adequate reimbursement
for
our products
may
be difficult.
We may
be required
to conduct
expensive
pharmacoeconomic studies
to
justify
coverage
and
reimbursement
or
the
level
of
reimbursement
relative
to
other
therapies.
If coverage
and
adequate
reimbursement
are
not
available
or
reimbursement
is
available
only to limited
levels,
we may
not be able
to successfully
commercialize
any product
candidate
for
which we obtain
marketing
approval.
Additionally,
we
may
develop,
either
by ourselves
or with collaborators,
companion
diagnostic
tests
for
our product
candidates
for
certain
indications.
We,
or
our
collaborators,
if
any,
will
be
required
to
obtain
coverage and
reimbursement
for
these
tests
separate
and
apart
from
the
coverage
and reimbursement
we seek
for
our product
candidates,
once approved.
While
we have not yet
developed
any companion
diagnostic
test
for
our product candidates, if we do, there is significant uncertainty regarding our ability to obtain coverage and adequate
reimbursement
for
the
same
reasons
applicable
to our product
candidates.
There
may
also
be
significant
delays
in
obtaining
coverage
and
reimbursement
for
newly
approved
drugs, and
coverage
may
be
more
limited
than
the
purposes
for
which
the
drug
is
approved
by
the
FDA or
similar regulatory
authorities
outside
of
the
United
States.
Moreover,
eligibility
for
coverage
and
reimbursement
does not
imply
that
a drug will
be paid
for
in all
cases
or at
a rate
that
covers
our costs,
including
research, development,
intellectual
property,
manufacture,
sale
and distribution
expenses. Interim
reimbursement
levels for new drugs,
if
applicable,
may
also
not be sufficient
to cover
our costs
and may
not be made
permanent. Reimbursement
rates
may
vary
according
to
the
use
of
the
drug
and
the
clinical
setting
in
which
it
is
used,
may be
based
on
reimbursement levels
already
set
for
lower
cost
drugs
and
may
be
incorporated
into
existing payments
for
other
services.
Net
prices
for
drugs
may
be reduced
by mandatory
discounts
or rebates
required
by government
healthcare
programs
or
private
payors
and
by
any
future
relaxation
of
laws that
presently
restrict imports
of
drugs
from
countries
where they
may
be sold
at
lower
prices
than
in
47
the
United
States.
Third-party payors
often
rely
upon
Medicare
coverage
policy
and
payment
limitations
in
setting
their
own
reimbursement policies,
but
also
have
their
own
methods
and
approval
process
apart
from
Medicare
determinations.
Our inability
to
promptly
obtain
coverage
and adequate
reimbursement
rates
from
third-party
payors
for
any approved products
that
we
develop
could
have a material
adverse
effect
on our operating
results,
our ability
to raise
capital needed
to commercialize
products
and our overall
financial
condition.
Product liability
lawsuits
against
us could cause us to incur substantial
liabilities
and to limit commercialization
of any products
that
we may
develop.
We
face
an
inherent
risk
of
product
liability
exposure
related
to
the
testing
of our product
candidates
in human
clinical
trials
and will
face
an even greater
risk
if
we commercialize
any products
that
we may
develop.
If we
cannot
successfully
defend
ourselves
against
any claims
that
our product
candidates
or products
caused injuries,
we
will
incur
substantial
liabilities.
Regardless
of merit
or eventual
outcome,
liability
claims
may
result in:
•
decreased
demand
for
any product
candidates
or products
that
we may
develop;
•
injury
to our reputation
and significant
negative
media
attention;
•
initiation
of investigations
by regulators;
•
withdrawal
of clinical
trial
participants;
•
significant
time
and costs
to defend
the
related
litigation;
•
diversion
of management
and scientific
resources
from
our business
operations;
•
substantial
monetary
awards
to trial
participants
or patients;
•
loss
of revenue;
•
reduced
resources
of our management
to pursue
our business
strategy;
and
•
the
inability
to commercialize
any products
that
we may
develop.
Our
current
product
liability
insurance
coverage
for
the
United
States
and certain
other
jurisdictions
may
not be
adequate
to
cover
all
liabilities
that
we
may
incur.
We
likely
will
need
to
increase
our
insurance
coverage
as we expand our clinical trials or if we commence commercialization of our product candidates. Insurance coverage
is
increasingly
expensive.
We
may
not
be
able
to maintain
insurance
coverage
at
a reasonable
cost
or in an
amount
adequate
to
satisfy
any
liability
that
may
arise.
A
successful
product
liability
claim
or series
of claims brought
against
us could
decrease
our cash
and adversely
affect
our business
and financial
condition.
Risks Related
to Employee
Matters
and Our Operations
Our future
success
depends on our ability
to retain
key employees
and to attract,
retain
and motivate qualified
personnel
and manage our human capital.
Our
ability
to
compete
in the
highly
competitive
biotechnology
and pharmaceutical
industries
depends
upon our
ability
to attract,
motivate
and retain
highly
qualified
managerial,
scientific
and medical
personnel.
We are highly
dependent
on
the
development
and
management
expertise
of
Kris
Vaddi,
Ph.D.,
our
founder
and
Chief Executive
Officer,
as
well
as
the
other
principal
members
of our management,
scientific
and clinical
team.
We currently
do not maintain
key person
insurance
on these
individuals.
Although we have entered into employment agreements
with our executive
officers,
each
of them
may
terminate
their
employment
with us at
any time.
Our
industry
has
experienced
a
high
rate
of
turnover
in
recent
years.
Our ability
to compete
in the
highly competitive
pharmaceuticals
industry
depends
upon our ability
to attract,
retain
and motivate
highly
skilled
and experienced
personnel
with
scientific,
clinical,
regulatory,
manufacturing
and
management
skills
and experience. We conduct
our operations
in the
greater
Delaware
area,
a region
that
is
home
to other
pharmaceutical
companies as
well
as
many
academic
and
research
institutions,
resulting
in fierce
competition
for
qualified
personnel.
We may
not
be
able
to
attract
or
retain
qualified
personnel
in
the
future
due
to the
intense
competition
for
a limited number
of
qualified
personnel
among
pharmaceutical
companies.
Many of the
other
pharmaceutical
companies against
which
we
compete
have
greater
financial
and
other
resources,
different
risk
profiles
and
a
longer
history in
the
industry
than
we do. Our competitors
may
provide
higher
compensation,
more
diverse
opportunities
and/or better
opportunities
for
career
advancement.
Any
or
all
of
these
competing
factors
may
limit
our
ability
to continue
to
attract
and retain
high quality
personnel,
which could
negatively
affect
our ability
to successfully develop
and
commercialize
our
product
candidates
and to grow our business
and operations
as currently contemplated.
48
We expect
to expand our development
and regulatory
capabilities
and potentially
implement
sales, marketing
and distribution
capabilities,
and as a result,
we may
encounter
difficulties
in managing our growth, which could disrupt
our operations.
As
of
June 30,
2021,
we
had
100 full-time
employees.
We
expect
significant
growth
in
the
number
of our employees
and the
scope
of our operations,
particularly
in the
areas
of clinical
development,
clinical operations,
manufacturing,
regulatory
affairs
and, if
any of our product candidates
receives
marketing
approval, sales,
marketing
and distribution.
To manage
our anticipated
future
growth, we must
continue
to implement
and improve
our
managerial,
operational
and financial
systems,
expand our facilities
and continue
to recruit
and train additional
qualified
personnel.
Due
to
our limited
financial
resources
and the
limited
experience
of our management
team
in
managing
a
company
with
such
anticipated
growth
and
with
developing
sales,
marketing and
distribution
infrastructure,
we
may
not
be
able
to
effectively
manage
the
expansion
of
our
operations
or recruit
and train
additional
qualified
personnel.
The expansion
of our operations
may
lead
to significant
costs and may
divert
our management
and business
development
resources.
Further,
we
currently
rely,
and
for
the
foreseeable
future
will
continue
to rely,
in substantial
part
on certain third-party
contract
organizations,
advisors
and consultants
to provide
certain
services,
including
assuming substantial
responsibilities
for
the
conduct
of
our
clinical
trials
and
the
manufacture
of
PRT543,
PRT811
and PRT1419, or
any
future
product
candidates.
We
cannot
assure
you
that
the
services
of such third-party
contract organizations,
advisors
and
consultants
will
continue
to
be
available
to
us
on
a
timely
basis
when needed,
or that we
can
find
qualified
replacements.
In
addition,
if
we
are
unable
to
effectively
manage
our
outsourced
activities or
if
the
quality
or
accuracy
of
the
services
provided
by
our
vendors
or
consultants
is
compromised
for
any reason,
our
clinical
trials
may
be
extended,
delayed
or
terminated,
and
we
may
not
be able
to obtain
marketing approval
of
PRT543, PRT811, PRT1419 or any future
product
candidates
or otherwise
advance
our business.
We cannot
assure
you
that
we
will
be
able
to
properly
manage
our existing
vendors
or consultants
or find
other competent
outside
vendors
and consultants
on economically
reasonable
terms,
or at
all.
If
we
are
not
able
to
effectively
manage
growth
and
expand
our
organization,
we may
not be able
to successfully
implement
the
tasks
necessary
to
further
develop
and
commercialize
PRT543, PRT811 or
PRT1419, our
other
pipeline
product
candidates
or any future
product
candidates
and, accordingly,
may
not achieve
our research,
development
and commercialization
goals.
Our employees,
clinical
trial
investigators,
CROs,
CMOs, consultants,
vendors
and any potential commercial
partners
may
engage in misconduct
or other
improper
activities,
including
non-compliance with regulatory
standards
and requirements
and insider
trading.
We
are
exposed
to
the
risk
of
fraud
or
other
misconduct
by
our
employees,
clinical
trial
investigators, CROs,
CMOs,
consultants,
vendors
and
any
potential
commercial
partners.
Misconduct
by
these
parties
could include
intentional,
reckless
and/or
negligent
conduct
or
disclosure
of
unauthorized
activities
to
us
that
violates: (i)
FDA regulations
or
those
of
comparable
foreign
regulatory
authorities,
including
those
laws that
require
the reporting
of
true,
complete
and
accurate
information,
(ii)
manufacturing
standards,
(iii)
federal
and
state
health and
data
privacy,
security,
fraud
and abuse,
government
price
reporting,
transparency
reporting
requirements,
and other healthcare laws and regulations in the United States and abroad, (iv) sexual harassment and other workplace
misconduct,
or (v)
laws that
require
the
true,
complete
and accurate
reporting
of financial
information or
data.
Such
misconduct
could
also
involve
the
improper
use of information
obtained
in the
course
of clinical trials,
which could
result
in regulatory
sanctions
and cause
serious
harm
to our reputation.
We
have
adopted
a
code
of
conduct
applicable
to all
of our employees,
as well
as a disclosure
program
and other
applicable
policies
and
procedures,
but
it
is
not
always
possible
to
identify
and
deter
employee
misconduct, and
the
precautions
we
take
to
detect
and
prevent
this
activity
may
not
be
effective
in controlling
unknown or unmanaged
risks
or
losses
or
in
protecting
us from
governmental
investigations
or other
actions
or lawsuits stemming
from
a
failure
to
comply
with
these
laws
or
regulations.
If
any
such
actions
are
instituted
against
us, and
we
are
not
successful
in
defending
ourselves
or
asserting
our
rights,
those
actions
could
have
a significant impact
on
our
business,
including
the
imposition
of significant
civil,
criminal
and administrative
penalties, damages,
fines,
disgorgement,
imprisonment,
exclusion
from
government
funded
healthcare
programs,
such
as Medicare,
Medicaid
and other
federal
healthcare
programs,
contractual
damages,
reputational
harm, diminished profits
and
future
earnings,
additional
integrity
reporting
and oversight
obligations,
and the
curtailment
or restructuring
of
our
operations,
any
of
which
could
adversely
affect
our
ability
to operate
our business
and our results
of operations.
49
Our internal
information
technology
systems,
or those
of our third-party
CROs,
CMOs, or other
vendors, contractors
or consultants,
may
fail
or suffer
security
breaches,
cyber-attacks,
loss
or leakage
of data and other
disruptions,
which could result
in a material
disruption
of our development
programs,
compromise sensitive
information
related
to our business
or prevent
us from
accessing
critical
information,
potentially exposing
us to liability
or otherwise
adversely
affecting
our business.
We
are
increasingly
dependent
upon information
technology
systems,
infrastructure
and data
to operate
our business.
In
the
ordinary
course
of
business,
we
collect,
store
and
transmit
confidential
information
(including but
not
limited
to intellectual
property,
proprietary
business
information
and personal
information).
It
is
critical that
we
do
so
in
a
secure
manner
to
maintain
the
confidentiality
and
integrity
of
such
confidential
information. We
also
have
outsourced
elements
of
our
operations
to
third
parties,
and
as
a
result
we
manage
a
number
of third-party
CROs, CMOs,
vendors,
and
other
contractors
and
consultants
who have access
to our confidential information.
Our
internal
information
technology
systems
and
infrastructure
are
also
vulnerable
to damage
from natural
disasters,
terrorism,
war,
telecommunication
and
electrical
failures.
System
failures
or outages,
including any potential
disruptions
due to significantly
increased
global
demand
on certain
cloud-based
systems
during the COVID-19 pandemic,
could
compromise
our ability
to perform
these
functions
in a timely
manner,
which could harm
our
ability
to
conduct
business
or
delay
our
financial
reporting.
Such failures
could
materially
adversely affect
our operating
results
and financial
condition.
Despite the implementation of security measures, given their size and complexity and the increasing amounts
of
confidential
information
that
they
maintain,
our
internal
information
technology
systems
and those
of our
third-party
CROs, CMOs,
vendors
and
other
contractors
and
consultants
are
potentially
vulnerable
to breakdown
or other
damage
or interruption
from
service
interruptions,
system
malfunction,
accidents
by our employees
or
third
party
service
providers,
natural
disasters,
terrorism,
war and telecommunication
and electrical failures,
as
well
as security
breaches
from
inadvertent
or intentional
actions
by our employees,
third-party
CROs, CMOs, vendors,
contractors,
consultants,
business
partners
and/or
other
third
parties,
or from cyber-attacks
by malicious
third
parties
(including
the
deployment
of harmful
malware,
ransomware,
denial-of-service
attacks, social
engineering
and other
means
to affect
service
reliability
and threaten
the
confidentiality,
integrity
and availability
of
information),
which
may
compromise
our
system
infrastructure,
or
that
of
our third-party
CROs, CMOs,
vendors
and
other
contractors
and
consultants,
or lead
to data
leakage.
The risk
of a security
breach
or disruption,
particularly
through
cyber-attacks
or cyber
intrusion,
including
by computer
hackers,
foreign governments, and cyber terrorists, has generally increased as the number, intensity and sophistication of attempted
attacks
and
intrusions
from
around
the
world
have
increased.
The
COVID-19 pandemic
is
generally increasing
the
attack
surface
available
for
exploitation,
as more
companies
and individuals
work online
and work remotely,
and
as
such,
the
risk
of
a
cybersecurity
incident
potentially
occurring,
and our investment
in risk mitigations
against
such
an
incident,
is
increasing.
For
example,
there
has
been
an
increase
in phishing
and spam emails
as
well
as
social
engineering
attempts
from
"hackers"
hoping
to
use
the
recent
COVID-19 pandemic
to their
advantage.
We
may
not
be
able
to
anticipate
all
types
of
security
threats,
nor
may
we
be
able
to implement preventive
measures
effective
against
all
such
security
threats.
The
techniques
used by cyber
criminals
change frequently,
may
not
be
recognized
until
launched
and can originate
from
a wide variety
of sources,
including outside
groups
such
as
external
service
providers,
organized
crime
affiliates,
terrorist
organizations
or
hostile foreign
governments
or
agencies.
To
the
extent
that
any
disruption
or
security
breach
were
to
result
in
a
loss
of, or
damage
to,
our
data
or
applications,
or
those
of
our
third-party
CROs,
CMOs,
vendors
and
other
contractors and
consultants,
or
inappropriate
disclosure
of
confidential
or
proprietary
information,
we
could
incur
liability and
reputational
damage
and
the
further
development
and
commercialization
of
PRT543, PRT811, PRT1419 or any
future
product
candidates
could
be delayed.
Any breach,
loss
or compromise
of clinical
trial
participant personal
data
may
also
subject
us
to
civil
fines
and
penalties,
including
under
HIPAA,
and
other
relevant
state and
federal
privacy
laws
in
the
United
States.
The
costs
related
to
significant
security
breaches
or
disruptions could
be material
and exceed
the
limits
of the
cybersecurity
insurance
we maintain
against
such risks.
If the information
technology
systems
of
our
third-party
CROs, CMOs,
vendors
and
other
contractors
and consultants become
subject
to disruptions
or security
breaches,
we may
have insufficient
recourse
against
such third
parties and
we
may
have
to
expend
significant
resources
to
mitigate
the
impact
of
such
an
event,
and
to
develop
and implement
protections
to prevent
future
events
of this
nature
from
occurring.
While
we
have
not
experienced
any
such
system
failure,
accident
or
security
breach
to date,
and believe
that our
data
protection
efforts
and
our
investment
in
information
technology
reduce
the
likelihood
of
such
incidents in
the
future,
we cannot
assure
you that
our data
protection
efforts
and our investment
in information
technology will
prevent
significant
breakdowns,
data
leakages,
breaches
in our systems,
or those
of our third-party
CROs, CMOs,
vendors
and
other
contractors
and
consultants,
or other
cyber
incidents
that
could
have a material
adverse effect
upon
our
reputation,
business,
operations
or
financial
condition.
For
example,
if
such
an
event
were
to occur
and
cause
interruptions
in
our
operations,
or
those
of
our
third-party
CROs, CMOs,
vendors
and
other contractors
and
consultants,
it
could
result
in a material
disruption
of our programs
and the
development
of our product
candidates
could
be
delayed.
In
addition,
the
loss
of
clinical
trial
data
for
PRT543, PRT811, PRT1419 or any
other
product
candidates
could
result
in
delays
in
our
marketing
approval
efforts
and
significantly
increase our
costs
to
recover
or
reproduce
the
data.
Furthermore,
significant
disruptions
of
our internal
information technology
systems
or
those
of
our
third-party
CROs, CMOs,
vendors
and
other
50
contractors
and consultants,
or security
breaches
could
result
in
the
loss,
misappropriation
and/or
unauthorized
access,
use,
or
disclosure
of,
or the
prevention
of
access
to,
confidential
information
(including
trade
secrets
or other
intellectual
property, proprietary
business
information
and
personal
information),
which could
result
in financial,
legal,
business
and reputational
harm
to us. For example,
any such event
that
leads
to unauthorized
access,
use, or disclosure
of personal
information,
including
personal
information
regarding
our
clinical
trial
subjects
or employees,
could harm
our
reputation
directly,
compel
us
to
comply
with
federal
and/or
state
breach
notification
laws and foreign law
equivalents,
subject
us
to mandatory
corrective
action,
and otherwise
subject
us to liability
under
laws and regulations
that
protect
the
privacy
and
security
of
personal
information,
which
could
result
in
significant
legal and financial
exposure
and reputational
damages
that
could
potentially
have an adverse
effect
on our business.
Failure
to comply
with health
and data protection
laws and regulations
could lead
to government enforcement
actions
(which could include
civil
or criminal
penalties),
private
litigation
and/or adverse publicity
and could negatively
affect
our operating
results
and business.
We
and
any
potential
collaborators
may
be
subject
to
federal,
state
and foreign
data
protection
laws and regulations
(i.e.,
laws
and
regulations
that
address
privacy
and
data
security).
In the
United
States,
numerous federal
and
state
laws and regulations,
including
federal
health
information
privacy
laws, state
data
breach notification
laws,
state
health
information
privacy
laws and federal
and state
consumer
protection
laws (e.g., Section
5
of
the
Federal
Trade
Commission
Act),
that
govern
the
collection,
use,
disclosure
and
protection
of health-related
and
other
personal
information
could
apply
to
our
operations
or
the
operations
of
our collaborators. In addition,
we may
obtain
health
information
from
third
parties
(including
research
institutions
from
which we obtain
clinical
trial
data)
that
are
subject
to
privacy
and
security
requirements
under
HIPAA, as
amended
by HITECH. Depending
on
the
facts
and
circumstances,
we
could
be
subject
to
criminal
penalties
if
we
knowingly obtain,
use,
or disclose
individually
identifiable
health
information
maintained
by a HIPAA-covered entity
in a manner
that
is
not authorized
or permitted
by HIPAA.
International
data
protection
laws,
including
Regulation
2016/679,
known
as
the
General
Data
Protection Regulation,
or
GDPR,
may
also
apply
to
health-related
and
other
personal
information
obtained
outside
of
the United
States.
The
GDPR went
into
effect
on
May
25,
2018.
The
GDPR introduced
new data
protection requirements
in
the
EU, as
well
as
potential
fines
for
noncompliant
companies
of
up to the
greater
of €20 million or
4%
of
annual
global
revenue.
The
regulation
imposes
numerous
new
requirements
for
the
collection,
use and disclosure
of
personal
information,
including
more
stringent
requirements
relating
to consent
and the
information that
must
be
shared
with
data
subjects
about
how
their
personal
information
is
used, the
obligation
to notify regulators
and
affected
individuals
of personal
data
breaches,
extensive
new internal
privacy
governance obligations
and
obligations
to
honor
expanded
rights
of
individuals
in relation
to their
personal
information
(e.g., the
right
to
access,
correct
and
delete
their
data).
In
addition,
the
GDPR includes
restrictions
on
cross-border
data transfer.
The
GDPR will
increase
our
responsibility
and
liability
in relation
to personal
data
that
we process,
and we
may
be
required
to
put
in
place
additional
mechanisms
to
ensure
compliance
with
the
new
EU data
protection rules. In addition, the GDPR prohibits the transfer of personal data to countries outside of the European Economic
Area,
or
EEA, such
as
the
United
States,
which
are
not
considered
by
the
European
Commission
to provide
an
adequate
level
of
data
protection.
Switzerland
has
adopted
similar
restrictions.
Although
there
are legal
mechanisms
to
allow
for
the
transfer
of
personal
data
from
the
EEA and
Switzerland
to
the
United
States, they
are
subject
to pending
legal
challenges
that,
if
successful,
could
invalidate
these
mechanisms,
restrict
our ability
to
process
personal
data
of
Europeans
outside
of
Europe
and
adversely
impact
our
business.
For example, in
July
2020,
the
European
Courts
of
Justice
invalidated
the
EU-U.S.
Privacy
Shield,
which
enabled
the
transfer of
personal
data
from
EU
to
the
U.S.
for
companies
that
had
self-certified
to
the
Privacy
Shield.
On
August
10, 2020,
the
U.S. Department
of
Commerce
and
the
European
Commission
announced
new
discussions
to
evaluate the
potential
for
an
enhanced
EU-U.S.
Privacy
Shield
framework
to
comply
with
the
July
16
judgment
of
the Court
of
Justice.
While
the
Court
of
Justice
upheld
the
use
of
other
data
transfer
mechanisms,
such
as
the Binding
Corporate
Rules,
the
decision
has led
to some
uncertainty
regarding
the
use of such mechanisms
for
data transfers
to
the
United
States,
and
the
court
made
clear
that
reliance
on
Binding Corporate
Rules alone
may
not necessarily
be
sufficient
in
all
circumstances.
Use
of
the
data
transfer
mechanisms
must
now
be assessed
on a case-by-case
basis
taking
into
account
the
legal
regime
applicable
in the
destination
country,
in particular applicable
surveillance
laws
and
rights
of
individuals.
The European
Data Protection
Board issued
additional guidance
regarding
the
Court
of
Justice's
decision
on
November
11,
2020 which imposes
higher
burdens
on the use
of data
transfer
mechanisms,
such as the
Binding Corporate
Rules, for
cross-border
data
transfers.
To comply with
this
guidance,
we
may
need to implement
additional
safeguards
to further
enhance
the
security
of data transferred
out of the
European
Economic
Area, which could
increase
our compliance
costs,
expose
us to further regulatory
scrutiny
and
liability,
and
adversely
affect
our
business.
To the
extent
that
we were to rely
on Privacy Shield,
we
will
not
be
able
to
do
so
in
the
future,
which could
increase
our costs
and our ability
to efficiently process
personal
data
from
the
EU.
Further,
Brexit
has
created
uncertainty
with
regard
to
data
protection
regulation
in
the
United
Kingdom. In particular,
while
the
Data
Protection
Act
of
2018,
that
"implements"
and
complements
the
GDPR
achieved
Royal Assent
on May 23, 2018 and is
now effective
in the
United
Kingdom, it
is
still
unclear
whether
transfer
of data from
the
EEA
to
the
United
Kingdom
will
remain
lawful
under
GDPR.
During
the
period
of
"transition"
(i.e., until
December
31,
2020),
EU
law
will
continue
to
apply
in
the
United
Kingdom,
including
the
GDPR,
after which
the
GDPR will
be
converted
into
United
Kingdom
law. Beginning
in 2021, the
United
Kingdom became a "third
country"
under
the
GDPR.
We
may,
however,
incur
liabilities,
expenses,
costs,
and
other
operational losses
under
GDPR and
applicable
EU Member
States
and
the
United
Kingdom privacy
laws in connection
with any measures
we take
to comply
with them.
51
In
addition,
the
state
of
California
recently
enacted
the
California
Consumer
Privacy
Act,
or
CCPA, which creates
new
individual
privacy
rights
for
California
consumers
(as
defined
in
the
CCPA)
and
places
increased privacy
and
security
obligations
on
entities
handling
certain
personal
data
of
consumers
or
households.
The CCPA requires covered companies to provide new disclosure to consumers about such companies' data collection,
use
and
sharing
practices,
provide
such
consumers
new
ways to opt-out
of certain
sales
or transfers
of personal
information,
and
provide
consumers
with
additional
causes
of
action.
The
CCPA
went
into
effect
on January
1,
2020
and
became
enforceable
by the
California
Attorney
General
on July
1, 2020, along
with related regulations
which
came
into
force
on
August
14,
2020
and
may
impact
our
business
activities
and
exemplifies the
vulnerability
of
our
business
to
the
evolving
regulatory
environment
related
to
personal
data
and protected health
information.
Additionally,
although
not effective
until
January
1, 2023, the
California
Privacy Rights Act (the
"CPRA"), which
expands
upon
the
CCPA, was
passed
in
the
recent
election
on November
3, 2020. The CCPA gives
(and
the
CPRA will
give)
California
residents
expanded
privacy
rights,
including
the
right
to request correction,
access,
and
deletion
of
their
personal
information,
the
right
to opt out of certain
personal
information sharing,
and the
right
to receive
detailed
information
about
how their
personal
information
is processed. The CCPA and
CPRA provide
for
unlimited
civil
penalties
for
violations,
as
well
as
a
private
right
of
action
for
data breaches
that
is
expected
to
increase
data
breach
litigation.
The
CCPA and
CPRA may
increase
our
compliance costs
and
potential
liability,
particularly
in
the
event
of
a
data
breach.
Additionally,
the
CCPA has
prompted
a number
of
proposals
in
the
U.S. for
new
federal
and
state-level
privacy
legislation
that,
if
passed,
could
increase our potential
liability,
increase
our compliance
costs,
and adversely
affect
our business.
Compliance
with
U.S.
and
international
data
protection
laws
and
regulations
could
require
us
to
take
on more
onerous
obligations
in
our contracts,
restrict
our ability
to collect,
use and disclose
data,
or in some
cases, impact
our
ability
to
operate
in
certain
jurisdictions.
Failure
to
comply
with
U.S. and
international
data
protection laws and regulations
could
result
in government
enforcement
actions
(which
could
include
civil,
criminal,
and administrative
penalties),
private
litigation
and/or
adverse
publicity
and could
negatively
affect
our operating results
and business.
Moreover,
clinical
trial
subjects
about
whom we or our potential
collaborators
obtain information,
as
well
as
the
providers
who
share
this
information
with
us,
may
contractually
limit
our
ability
to use
and
disclose
the
information.
Claims
that
we have violated
individuals'
privacy
rights,
failed
to comply
with data
protection
laws,
or
breached
our
contractual
obligations,
even
if
we
are
not
found
liable,
could
be expensive and time
consuming
to defend
and could
result
in adverse
publicity
that
could
harm
our business.
We or the third
parties
upon whom we depend may
be adversely
affected
by natural
disasters
and our business
continuity
and disaster
recovery
plans may
not adequately
protect
us from
a serious
disaster.
Our
company
is
located
in Delaware.
Any unplanned
event,
such as flood,
fire,
explosion,
earthquake, extreme
weather
condition,
medical
epidemic,
including
the
COVID-19 pandemic,
power
shortage, telecommunication
failure
or
other
natural
or
manmade
accidents
or
incidents
that
result
in
us
being
unable
to fully
utilize
our
facilities,
or
the
manufacturing
facilities
of
our
third-party
CMOs, may
have a material
and adverse
effect
on our ability
to operate
our business,
particularly
on a daily
basis,
and have significant
negative consequences
on our financial
and operating
conditions.
For example,
our operations
are
concentrated
primarily on
the
east
coast
of
the
United
States,
and
any
adverse
weather
event
or natural
disaster,
such as a hurricane
or heavy
snowstorm,
could
have
a
material
adverse
effect
on
a
substantial
portion
of
our
operations.
Extreme weather
conditions
or
other
natural
disasters
could
further
disrupt
our operations,
and have a material
and adverse effect
on
our
business,
financial
condition,
results
of
operations
and
prospects.
If
a natural
disaster,
power outage or
other
event
occurred
that
prevented
us
from
using
all
or
a
significant
portion
of
our
headquarters,
that damaged
critical
infrastructure,
such as our research
facilities
or the
manufacturing
facilities
of our third-party CMOs,
or
that
otherwise
disrupted
operations,
it
may
be
difficult
or,
in
certain
cases,
impossible,
for
us
to continue
our
business
for
a
substantial
period
of
time.
The
disaster
recovery
and
business
continuity
plans
we have in place
may
prove
inadequate
in the
event
of a serious
disaster
or similar
event.
We may
incur substantial expenses
as
a
result
of
the
limited
nature
of
our
disaster
recovery
and
business
continuity
plans,
which
could have
a
material
adverse
effect
on
our
business.
As
part
of our risk
management
policy,
we maintain
insurance coverage
at
levels
that
we
believe
are
appropriate
for
our
business.
However,
in
the
event
of
an accident
or incident
at
these
facilities,
we
cannot
assure
you
that
the
amounts
of
insurance
will
be sufficient
to satisfy
any damages
and
losses.
If
our
facilities,
or
the
manufacturing
facilities
of
our
third-party
CMOs,
are
unable
to operate
because
of
an
accident
or
incident
or
for
any
other
reason,
even
for
a
short
period
of
time,
any
or
all
of our
research
and
development
programs
may
be
harmed.
Any
business
interruption
could
have
a
material
and adverse
effect
on our business,
financial
condition,
results
of operations
and prospects.
52
Changes in tax laws or regulations
that
are applied
adversely
to us may
have a material
adverse
effect
on our business,
cash flow, financial
condition
or results
of operations.
New income,
sales,
use or other
tax
laws, statutes,
rules,
regulations
or ordinances
could
be enacted
at
any time,
which could
adversely
affect
our business
operations
and financial
performance.
Further,
existing
tax laws, statutes,
rules,
regulations
or
ordinances
could
be interpreted,
changed,
modified
or applied
adversely
to us. For example,
the
Tax
Cuts
and
Jobs
Act,
enacted
many
significant
changes
to
the
U.S.
tax
laws.
Future
guidance from
the
Internal
Revenue Service
and other
tax
authorities
with respect
to the
Tax Cuts and Jobs Act may
affect us,
and
certain
aspects
of
the
Tax
Cuts and Jobs Act could
be repealed
or modified
in future
legislation.
For example,
the
CARES Act
modified
certain
provisions
of
the
Tax
Cuts
and
Jobs
Act.
In
addition,
it
is
uncertain
if and
to
what
extent
various
states
will
conform
to
the
Tax
Cuts
and
Jobs
Act,
the
CARES
Act,
or
any
newly enacted
federal
tax
legislation.
Changes
in
corporate
tax
rates,
the
realization
of net
deferred
tax
assets
relating
to our
operations,
the
taxation
of
foreign
earnings,
and
the
deductibility
of
expenses
under
the
Tax
Cuts
and
Jobs Act,
the
CARES Act
or
future
reform
legislation
could
have
a
material
impact
on
the
value
of
our
deferred
tax assets,
could
result
in significant
one-time
charges,
and could
increase
our future
U.S.
tax
expense.
Our ability
to use our net operating
loss
carryforwards
and certain
other
tax attributes
may
be limited.
We have incurred substantial losses during our history and do not expect to become profitable in the near future, and we may never achieve profitability. Unused losses incurred in taxable years beginning on or prior to December 31, 2017, will carry forward to offset future taxable income, if any, until such unused losses expire. Under the Tax Cuts and Jobs Act, as modified by the CARES Act, unused U.S. federal net operating losses generated in tax years beginning after December 31, 2017, will not expire and may be carried forward indefinitely but the deductibility of such federal net operating losses (particularly those generated in taxable years beginning after December 31, 2020) in taxable years beginning after December 31, 2020, is limited to 80% of current year taxable income. It is uncertain if and to what extent various states will conform to the Tax Cuts and Jobs Act or the CARES Act. In addition, both our current and our future unused losses and other tax attributes may be subject to limitation under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended (the Code) if we undergo, or have undergone, an "ownership change," generally defined as a greater than 50 percentage point change (by value) in our equity ownership by certain stockholders over a three-year period. We have not completed a Section 382 study to assess whether an ownership change has occurred or whether there have been multiple ownership changes since our formation due to the complexity and cost associated with such a study and the fact that there may be additional ownership changes in the future. As a result, our net operating loss carryforwards generated in taxable years beginning on or before December 31, 2017, may expire prior to being used, and the deductibility of our net operating loss carryforwards generated in taxable years beginning after December 31, 2017 in taxable years beginning after December 31, 2020, may be limited, and, if we undergo an ownership change (or if we previously underwent such an ownership change), our ability to use all of our pre-change net operating loss carryforwards and other pre-change tax attributes (such as research tax credits) to offset our post-change income or taxes may be limited. Similar provisions of state tax law may also apply to limit our use of accumulated state tax attributes. In addition, at the state level, there may be periods during which the use of net operating losses is suspended or otherwise limited, which could accelerate or permanently increase state taxes owed. As a result, even if we attain profitability, we may be unable to use all or a material portion of our net operating losses and other tax attributes, which could adversely affect our future cash flows.
We may
engage in strategic
transactions
that
could impact
our liquidity,
increase
our expenses
and present
significant
distractions
to our management.
From
time
to time,
we may
consider
strategic
transactions,
such as acquisitions
of companies,
businesses
or assets
and
out-licensing
or
in-licensing
of products,
product
candidates
or technologies.
Additional
potential transactions
that
we may
consider
include
a variety
of different
business
arrangements,
including spin-offs, strategic
partnerships,
joint
ventures,
restructurings,
divestitures,
business
combinations
and investments.
Any such
transaction
may
require
us
to
incur
non-recurring
or
other
charges,
may
increase
our
near
term
or
long-term expenditures
and
may
pose
significant
integration
challenges
or
disrupt
our
management
or
business,
which could
adversely
affect
our operations
and financial
results.
For example,
these
transactions
may
entail
numerous operational
and financial
risks,
including:
•
exposure
to unknown liabilities;
•
disruption
of
our
business
and
diversion
of
our
management's
time
and
attention
in
order
to
develop acquired
products,
product
candidates
or technologies;
•
incurrence
of substantial
debt
or dilutive
issuances
of equity
securities
to pay for
acquisitions;
•
higher
than
expected
acquisition
and integration
costs;
•
write-downs
of assets
or goodwill
or impairment
charges;
53
•
increased
amortization
expenses;
•
difficulty
and
cost
in
combining
the
operations,
systems
and
personnel
of
any
acquired
businesses
with our operations,
systems
and personnel;
•
impairment
of
relationships
with
key
suppliers
or
customers
of
any
acquired
businesses
due
to
changes in management
and ownership;
and
•
inability
to retain
key employees
of any acquired
businesses.
Our portfolio
of investments
may
be subject
to market,
interest
and credit
risk
that
may
reduce
its
value.
The
value
of our investments
may
decline
due to increases
in interest
rates,
downgrades
of the
bonds and other
securities
included
in our commercial
money
market
account
portfolio
and instability
in the
global
financial markets
that
reduces
the
liquidity
of
securities
included
in
our
portfolio.
In
addition,
the
COVID-19
pandemic has
and
may
continue
to
adversely
affect
the
financial
markets
in some
or all
countries
worldwide.
Each of these events
may
cause
us to record
charges
to reduce
the
carrying
value
of our investment
portfolio
or sell
investments for
less
than
our
acquisition
cost.
Although
we
attempt
to
mitigate
these
risks
through
diversification
of our investments
and
continuous
monitoring
of our portfolio's
overall
risk
profile,
the
value
of our investments
may nevertheless
decline.
Risks Related
to Intellectual
Property
If
we are unable to obtain
and maintain
sufficient
patent
protection
for
our product
candidates,
or if
the scope
of the patent
protection
is
not sufficiently
broad, third
parties,
including
our competitors,
could develop
and commercialize
products
similar
or identical
to ours, and our ability
to commercialize
our product
candidates
successfully
may
be adversely
affected.
Our
success
depends
in
large
part
on
our ability
to protect
our proprietary
technologies
that
we believe
are important
to
our
business,
including
pursuing,
obtaining
and
maintaining
patent
protection
in
the
United
States and other countries intended to cover the compositions of matter of
our
product candidates, for example, PRT543, PRT811 and PRT1419, their methods of use, related technologies and other inventions that are important
to
our
business.
In
addition
to
patent
protection,
we
also
rely
on trade
secrets
to protect
aspects
of our business
that
are
not
amenable
to,
or
that
we
do
not
consider
appropriate
for,
patent
protection.
If
we do not adequately
pursue,
obtain,
maintain,
protect
or
enforce
our intellectual
property,
third
parties,
including
our competitors,
may
be
able
to
erode
or negate
any competitive
advantage
we may
have, which could
harm
our business
and ability
to achieve
profitability.
To
protect
our
proprietary
position,
we
have
currently
filed
patent
applications
in
the
United
States
related to
our
product
candidates
that
we
consider
important
to
our
business,
including
patent
applications
relating
to compositions
of
matter
covering
our
compounds,
the
processes
for
manufacturing
such compounds
and use of such
compounds
in
therapies.
We
have
also
filed
patent
applications
abroad
relating
to
PRT543
and
PRT811.
The
patent
application
and approval
process
is
expensive,
time-consuming
and complex.
We may
not be able
to file,
prosecute
and
maintain
all
necessary
or
desirable
patent
applications
at
a
reasonable
cost
or in a timely manner
or in all
jurisdictions.
We also
cannot
predict
whether
the
patent
applications
we are
currently
pursuing will
issue
as
patents
in
any
particular
jurisdictions.
It
is
also
possible
that
we
will
fail
to
identify
patentable aspects
of
our
research
and
development
output
before
it
is
too late
to obtain
patent
protection.
Moreover, depending
on
the
terms
of
any
future
license
agreements
to
which
we
may
become
a
party,
we may
not have the right
to
control
the
preparation,
filing,
and prosecution
of patent
applications,
or to maintain
the
patents,
covering technology
licensed
from
third
parties.
Therefore,
these
patents
and
patent
applications
may
not
be
prosecuted and enforced
in a manner
consistent
with the
best
interests
of our business.
Furthermore,
the
patent
position
of biotechnology
and pharmaceutical
companies
generally
is
highly uncertain.
No
consistent
policy
regarding
the
breadth
of
claims
allowed
in biotechnology
and pharmaceutical patents
has emerged
to date
in the
United
States
or in many
foreign
jurisdictions.
The standards
applied
by the United
States
Patent
and
Trademark
Office,
or
the
USPTO, and
foreign
patent
offices
in
granting
patents
are
not always
applied
uniformly
or
predictably.
In
addition,
the
determination
of
patent
rights
with
respect
to biological and
pharmaceutical
products
commonly
involves
complex
legal
and
factual
questions,
which have in recent
years been
the
subject
of
much
litigation.
As
a
result,
the
issuance,
scope,
validity,
enforceability
and commercial
value of
our
patent
rights
are
highly
uncertain.
Thus,
we
cannot
offer
any assurances
about
which, if
any, patents
will issue,
the
breadth
of
any
such
patents,
whether
any
issued
patents
will
be
found
invalid
and unenforceable
or will be
threatened
by
third
parties
or whether
any issued
patents
will
effectively
prevent
others
from
commercializing competing
technologies
and
product
candidates.
While
we
have
filed
patent
applications
covering
aspects
of our current
product
candidates,
we
currently
have
only
one
issued
U.S. patent
covering
PRT543 that
is
expected
to expire
no
earlier
than
August
9,
2038,
and
one
issued
U.S. patent
covering
PRT811 that
is
expected
to
expire
no earlier
than
March
14, 2039. We do not yet
have issued
patents
on all
of our product
candidates.
54
Our
pending
patent
applications
cannot
be
enforced
against
third
parties
practicing
the
technology
claimed in such applications
unless
and until
at
least
one patent
issues
from
such applications.
Assuming the other requirements
for
patentability
are
met,
currently,
the
first
to
file
a
patent
application
is
generally
entitled
to the patent.
However,
prior
to
March
16,
2013,
in
the
United
States,
the
first
to invent
was entitled
to the
patent. Publications
of discoveries
in the
scientific
literature
often
lag
behind
the
actual
discoveries,
and patent applications
in
the
United
States
and
other
jurisdictions
are
typically
not published
until
18 months
after
filing,
or in
some
cases
not
at
all.
Since
patent
applications
in
the
United
States
and
most
other
countries
are
confidential for
a
period
of
time
after
filing,
and
some
remain
so
until
issued,
we
cannot
be
certain
that
we
were
the
first
to file
or
invent
(prior
to
March
16,
2013)
any
patent
application
related
to
our
product
candidates.
In addition,
we enter into non-disclosure and confidentiality agreements with parties who have access to confidential or patentable
aspects
of
our
research
and
development
output,
such
as
our
employees,
collaborators,
CROs, CMOs, hospitals,
independent
treatment
centers,
consultants,
independent
contractors,
suppliers,
advisors
and other
third parties;
however,
any
of
these
parties
may
breach
the
agreements
and disclose
such output
before
a patent application
is
filed,
thereby
jeopardizing
our ability
to seek
patent
protection.
Furthermore,
if
third
parties
have filed
patent
applications
related
to our product
candidates
or technology,
we may
not be able
to obtain
our own patent
rights
to those
product
candidates
or technology.
Moreover,
because
the
issuance
of
a
patent
is
not conclusive
as to its
inventorship,
scope,
validity
or enforceability,
our patents
or pending
patent
applications
may
be challenged
in the
courts
or patent
offices
in the United
States
and abroad.
For example,
we may
be subject
to a third-party
pre-issuance
submission
of prior
art
to the
USPTO or become
involved
in post-grant
review
procedures,
oppositions,
derivations,
revocation, reexaminations,
inter
partes
review
or
interference
proceedings,
in
the
United
States
or
elsewhere,
challenging our
patent
rights
or
the
patent
rights
of
others.
An
adverse
determination
in any such submission,
proceeding
or litigation
could
reduce
the
scope
of, or invalidate,
our patent
rights,
allow
third
parties
to commercialize
our technology
or
products
and
compete
directly
with
us,
without
payment
to
us,
or result
in our inability
to manufacture
or
commercialize
products
without
infringing
third-party
rights.
Moreover,
we may
have to participate
in
interference
proceedings
declared
by
the
USPTO
to
determine
priority
of
invention
or
in
post-grant challenge
proceedings,
such
as
oppositions
in
a foreign
patent
office,
that
challenge
priority
of invention
or other features
of
patentability.
Such
challenges
may
result
in
loss
of exclusivity
or in our patent
claims
being
narrowed, invalidated
or held
unenforceable,
in whole or in part,
which could
limit
our ability
to stop
others from using or commercializing
similar
or
identical
technology
and
products
or
limit
the
duration
of
the
patent
protection
of our technology
and
products.
Such
challenges
also
may
result
in
substantial
cost
and
require
significant
time
from our
scientists
and
management,
even
if
the
eventual
outcome
is
favorable
to
us.
Any
of
the
foregoing
could
have a material
adverse
effect
on our business,
financial
condition,
results
of operations,
and prospects.
In
addition,
given
the
amount
of time
required
for
the
development,
testing
and regulatory
review
of new product
candidates,
our
patents
protecting
such
product
candidates
might
expire
before
or shortly
after
such product
candidates
are
commercialized.
As
a
result,
our intellectual
property
may
not provide
us with sufficient rights
to
exclude
others
from
commercializing
products
similar
or
identical
to
ours.
Moreover,
some
of
our patents
and
patent
applications
may
in
the
future
be
co-owned
with
third
parties.
If
we
are
unable
to obtain
an exclusive license to any such third-party co-owners' interest in such patents or patent applications, such co-owners may be able to license their rights to other third parties, including our competitors, and our competitors
could
market
competing
products
and
technology.
In
addition,
we
may
need
the
cooperation
of any such
co-owners
of
our
patents
in
order
to
enforce
such
patents
against
third
parties,
and such cooperation
may
not be
provided
to
us.
Any
of
the
foregoing
could
have
a
material
adverse
effect
on
our
competitive
position, business,
financial
conditions,
results
of operations,
and prospects.
Our
pending
and
future
patent
applications
may
not
result
in
patents
being
issued
that
protect
our product candidates,
in whole or in part,
or which effectively
prevent
others from commercializing
competitive
products. Changes
in
either
the
patent
laws or interpretation
of the
patent
laws in the
United
States
and other
countries
may diminish
the
value
of
our
patents
or
narrow
the
scope
of our patent
protection.
In addition,
the
laws of foreign countries
may
not
protect
our
rights
to
the
same
extent
or
in
the
same
manner
as
the
laws
of
the
United
States. For
example,
European
patent
law
restricts
the
patentability
of
methods
of
treatment
of
the
human
body
more than
United
States
law does.
Even
if
our
patent
applications
issue
as patents,
they
may
not issue
in a form
that
will
provide
us with any meaningful
protection,
prevent
competitors
or other
third
parties
from
competing
with us or otherwise
provide
us with
any
competitive
advantage.
Moreover,
the
coverage
claimed
in a patent
application
can be significantly reduced
before
the
patent
is
issued
and
its
scope
can
be
reinterpreted
after
issuance.
Consequently,
we
do
not know
whether
any
of
our
product
candidates
will
be
protectable
or
remain
protected
by
valid
and
enforceable patents.
Our competitors
and other
third
parties
may
be able
to circumvent
our patents
by developing
similar
or alternative
technologies
or products
in a non-infringing
manner.
Our competitors
and other
third
parties
may
also seek
approval
to market
their
own products
similar
to or otherwise
competitive
with our products.
Alternatively, our
competitors
or
other
third
parties
may
seek
to
market
generic
versions
or "follow-on"
versions
of any approved
products
by
submitting
abbreviated
new
drug
applications,
or
ANDAs, or
new
drug applications
under Section
505(b)(2)
of
the
FDCA, respectively,
to
the
FDA during
which
they
may
claim
that
patents
owned
by
us are
invalid,
unenforceable
or
not
infringed.
In
these
circumstances,
we
55
may
need
to
defend
or
assert
our
patents, or
both,
including
by
filing
lawsuits
alleging
patent
infringement.
In
any
of these
types
of proceedings,
a court
or other
agency
with jurisdiction
may
find
our patents
invalid
or unenforceable,
or that
our competitors
are competing
in
a
non-infringing
manner.
Thus,
even
if
we
have
valid
and
enforceable
patents,
these
patents
still may
not
provide
protection
against
competing
products
or processes
sufficient
to achieve
our business
objectives. Any
of
the
foregoing
could
have
a
material
adverse
effect
on our competitive
position,
business,
financial conditions,
results
of operations,
and prospects.
Furthermore,
future
patents
may
be subject
to a reservation
of rights
by one or more
third
parties.
For example,
to
the
extent
the
research
resulting
in future
patent
rights
or technologies
is
funded
in the
future
in part by
the
U.S. government,
the
government
could
have certain
rights
in any resulting
patents
and technology, including
a
non-exclusive
license
authorizing
the
government
to use the
invention
or to have others
use the invention
on
its
behalf
for
non-commercial
purposes.
If
the
U.S.
government
then
decides
to
exercise
these rights,
it
is
not
required
to
engage
us
as
its
contractor
in connection
with doing so. These rights
may
also
permit the
government
to
disclose
our
confidential
information
to
third
parties
and
to
exercise
march-in
rights
to use or allow
third
parties
to use our licensed
technology.
The government
may
also
exercise
its
march-in
rights
if
it determines
that
action
is
necessary
because
we failed
to achieve
practical
application
of the
government-funded technology,
because
action
is
necessary
to
alleviate
health
or
safety
needs,
to
meet
requirements
of federal regulations,
or
to
give
preference
to
U.S. industry.
In
addition,
our
rights
in such government-funded
inventions may
be
subject
to certain
requirements
to manufacture
products
embodying
such inventions
in the
United
States. Any
exercise
by
the
government
of
aforementioned
proprietary
rights
could
harm
our competitive
position, business,
financial
condition,
results
of operations,
and prospects.
Changes to the patent
law in the United States
and other
jurisdictions
could diminish
the value
of patents in general,
thereby
impairing
our ability
to protect
our products.
As
is
the
case
with
other
pharmaceutical
companies,
our
success
is
heavily
dependent
on intellectual property,
particularly
patents.
Obtaining
and enforcing
patents
in the
pharmaceutical
industry
involves
both technological
and
legal
complexity
and
is
therefore
costly,
time
consuming
and inherently
uncertain.
Changes in either
the
patent
laws
or interpretation
of the
patent
laws in the
United
States
could
increase
the
uncertainties
and costs
surrounding
the
prosecution
of
patent
applications
and
the
enforcement
or defense
of issued
patents.
Recent patent
reform
legislation
in
the
United
States
and
other
countries,
including
the
Leahy-Smith
America
Invents Act,
or
the
Leahy-Smith
Act,
signed
into
law
in
September
2011,
could
increase
those
uncertainties
and
costs. The
Leahy-Smith
Act
includes
a
number
of
significant
changes
to
U.S. patent
law.
These
include
provisions
that affect
the
way patent
applications
are
prosecuted,
redefine
prior
art
and provide
more
efficient
and cost-effective avenues
for
competitors
to
challenge
the
validity
of
patents.
For example,
the
Leahy-Smith
Act allows
third-party submission
of
prior
art
to
the
USPTO
during
patent
prosecution
and
additional
procedures
to
attack
the
validity of
a
patent
by
USPTO administered
post-grant
proceedings,
including
post-grant
review,
inter
partes
review,
and derivation proceedings. In addition, the Leahy-Smith Act has transformed the U.S. patent system from a "first-to-invent"
system
to a "first-to-file"
system
in which, assuming
that
other
requirements
for
patentability
are met,
the
first
inventor
to file
a patent
application
will
be entitled
to the
patent
on an invention regardless
of whether
a
third
party
was
the
first
to
invent
the
claimed
invention.
The
first-to-file
provisions,
however,
only became
effective
on March
16, 2013. It
is
not yet
clear
what, if
any, impact
the
Leahy-Smith
Act will
have on the operation
of our business.
However, the
Leahy-Smith
Act and its
implementation
could
make
it more difficult
to obtain
patent
protection
for
our
inventions
and
increase
the
uncertainties
and costs
surrounding
the
prosecution
of our
or
our
future
collaboration
partners'
patent
applications
and
the
enforcement
or defense
of our or our future collaboration
partners'
issued
patents,
all
of
which
could
harm
our
business,
results
of operations,
financial condition
and prospects.
In
addition,
the
patent
positions
of companies
in the
development
and commercialization
of biologics
and pharmaceuticals
are
particularly
uncertain.
The
U.S. Supreme
Court has ruled
on several
patent
cases
in recent years,
either
narrowing
the
scope
of
patent
protection
available
in
certain
circumstances
or
weakening
the
rights of
patent
owners
in
certain
situations.
This combination
of events
has created
uncertainty
with respect
to the validity and enforceability of patents, once obtained. Additionally, there have been recent proposals for additional
changes
to the
patent
laws of the
United
States
and other countries
that, if adopted, could impact
our ability
to
enforce
our
proprietary
technology.
Depending
on
future
actions
by
the
U.S. Congress,
the
U.S. courts, the
USPTO and
the
relevant
law-making
bodies
in
other
countries,
the
laws and regulations
governing
patents could
change
in
unpredictable
ways
that
could
have
a
material
adverse
effect
on our existing
patent
portfolio
and weaken
our
ability
to
obtain
new
patents
or
to
enforce
our
existing
patents
and
patents
that
we might
obtain
in the future.
We may
become
involved
in lawsuits
or administrative
disputes
to protect
or enforce
our patents
or other intellectual
property,
which could be expensive,
time
consuming
and unsuccessful.
Competitors and other third parties may infringe, misappropriate or otherwise violate our patents, trademarks,
copyrights,
trade
secrets
or
other
intellectual
property.
To
counter
infringement,
misappropriation
or other
violations,
we
may
be
required
to
file
infringement,
misappropriation
or
other
violation
claims,
which
can be
expensive
and
time
consuming
and
divert
the
time
and
attention
of
our
management
and
business
and scientific
personnel.
In
addition,
many
of our adversaries
in these
proceedings
may
have the
ability
to dedicate substantially
greater
resources
to prosecuting
these
legal
actions
than
we can.
56
Any
claims
we
assert
against
perceived
infringers
could
provoke
these
parties
to
assert
counterclaims against
us
alleging
that
we infringe,
misappropriate
or otherwise
violate
their
patents
or their
other
intellectual property,
in
addition
to
counterclaims
asserting
that
our
patents
are
invalid
or unenforceable,
or both. In patent litigation
in
the
United
States,
counterclaims
challenging
the
validity,
enforceability
or scope
of asserted
patents are
commonplace.
Similarly,
third
parties
may
initiate
legal
proceedings
against
us
seeking
a declaration
that certain of our intellectual property is non-infringed, invalid or unenforceable. The outcome of any such proceeding
is
generally
unpredictable.
In
any
patent
infringement
proceeding,
there
is
a
risk
that
a
court
will
decide
that
a
patent
of
ours
is
invalid or
unenforceable,
in
whole
or
in
part,
and
that
we
do
not have the
right
to stop
the
other
party
from
using
the invention
at
issue.
There
is
also
a
risk
that,
even
if
the
validity
of
such
patents
is
upheld,
the
court
will
construe the
patent's
claims
narrowly
or decide
that
we do not have the
right
to stop
the
other
party
from
using
the invention
at
issue
on
the
grounds
that
our
patent
claims
do
not
cover
the
invention.
An
adverse
outcome
in
a litigation
or
proceeding
involving
our patents
could
limit
our ability
to assert
our patents
against
those
parties
or other
competitors,
and
may
curtail
or
preclude
our
ability
to
exclude
third
parties
from
making
and selling
similar or
competitive
products.
If
a
defendant
were
to
prevail
on a legal
assertion
of invalidity
or unenforceability
of our patents
covering
one
of
our
product
candidates,
we
could
lose
at
least
a
part,
and perhaps
all,
of the
patent protection
covering
such
a
product
candidate.
Competing
drugs
may
also
be sold
in other
countries
in which our patent
coverage
might
not
exist
or
be
as
strong.
If
we lose
a foreign
patent
lawsuit,
alleging
our infringement
of a competitor's
patents,
we
could
be
prevented
from
marketing
our
drugs
in
one
or
more
foreign
countries.
Any of these
occurrences
could
adversely
affect
our
competitive
business
position,
business
prospects
and financial condition.
Similarly,
if
we
assert
trademark
infringement
claims,
a
court
may
determine
that
the
marks
we have asserted
are
invalid
or
unenforceable,
or
that
the
party
against
whom
we
have
asserted
trademark
infringement has
superior
rights
to
the
marks
in
question.
In this
case,
we could
ultimately
be forced
to cease
use of such trademarks.
Even
if
we establish
infringement,
the
court
may
decide
not to grant
an injunction
against
further
infringing activity
and instead
award only monetary
damages,
which may
or may
not be an adequate
remedy.
Furthermore, because
of
the
substantial
amount
of
discovery
required
in
connection
with
intellectual
property
litigation,
there is
a
risk
that
some
of
our confidential
information
could
be compromised
by disclosure
during
litigation.
There could
also
be
public
announcements
of
the
results
of
hearings,
motions
or other
interim
proceedings
or developments.
If
securities
analysts
or
investors
perceive
these
results
to
be
negative,
it
could
have
a
material adverse
effect
on
the
price
of
shares
of
our
common
stock.
Moreover,
there
can
be
no
assurance
that
we will
have sufficient
financial
or other
resources
to file
and pursue
such infringement
claims,
which typically
last for years before
they
are
concluded.
Even
if
we
ultimately
prevail
in
such
claims,
the
monetary
cost
of such litigation
and the
diversion
of
the
attention
of
our
management
and
scientific
personnel
could
outweigh
any benefit
we receive as a result
of the
proceedings.
Furthermore,
third
parties
may
also
raise
invalidity
or
unenforceability
claims
before
administrative
bodies in
the
United
States
or
foreign
authorities,
even
outside
the
context
of
litigation.
Such
mechanisms
include re-examination,
inter partes review, post-grant
review, interference
proceedings,
derivation
proceedings
and equivalent
proceedings
in foreign
jurisdictions
(e.g.,
opposition
proceedings).
Such proceedings
could result
in revocation,
cancellation
or
amendment
to
our
patents
in
such
a
way
that
they
no
longer
cover
and
protect
our product
candidates.
The
outcome
following
legal
assertions
of
invalidity
and unenforceability
is
unpredictable. Grounds
for
a
validity
challenge
could
be
an
alleged
failure
to meet
any of several
statutory
requirements, including
lack
of
novelty,
obviousness,
non-enablement
or
written
description.
Grounds for
an unenforceability assertion
could
be
an
allegation
that
someone
connected
with
the
prosecution
of
the
patent
withheld
relevant information
from
the
USPTO, or made
a misleading
statement,
during
prosecution
of the
patent.
With
respect
to the
validity
of
our
patents,
for
example,
we
cannot
be
certain
that
there
is
no invalidating
prior
art
of which we, our licensors,
our patent
counsel
and the
patent
examiner
were unaware
during
prosecution.
Moreover,
it
is possible
that
prior
art
may
exist
that
we
are
aware
of
but
do
not
believe
is
relevant
to
our
current
or
future patents,
but
that
could
nevertheless
be
determined
to
render
our
patents
invalid.
If
a
third
party
were
to
prevail
on a
legal
assertion
of
invalidity
or
unenforceability,
we
could
lose
at
least
part,
and perhaps
all,
of the
patent protection
on
one
or
more
of
our
product
candidates.
Any
such loss
of patent
protection
could
have a material adverse
impact
on our business,
financial
condition,
results
of operations
and prospects.
We may
not be able
to effectively
protect
or enforce
our intellectual
property
and proprietary
rights throughout the world.
Filing,
prosecuting
and
defending
patents
with
respect
to
our
product
candidates
in all
countries
throughout the
world
would
be
prohibitively
expensive,
and
the
laws
of
foreign
countries
may
not
protect
our rights
to the same
extent
as
the
laws
of
the
United
States.
The requirements
for
patentability
may
differ
in certain
countries, particularly
in developing
countries.
In addition,
any future
intellectual
property
license
agreements
may
not always
include
worldwide
rights.
Consequently,
competitors
and
other
third
parties
may
use our technologies
in jurisdictions
where
we
have
not
obtained
patent
protection
to
develop
their
own
products
and,
further,
may export
otherwise
infringing
products
to
territories
where
we
may
obtain
patent
protection,
but where patent enforcement
is
not
as
strong
as
that
in the
United
States
and where our ability
to enforce
our patents
to stop infringing
activities
may
be
inadequate.
These
products
may
compete
with our products
in such territories
and in jurisdictions
where we do not have any patent
rights
or where any future
patent
claims
or other intellectual property
or
proprietary
rights
may
not be effective
or sufficient
to prevent
them
from
competing
with us, which could
have a material
adverse
effect
on our business,
financial
condition,
results
of operations
and prospects.
57
Moreover, our ability to protect and enforce our intellectual property and proprietary rights may be adversely
affected
by unforeseen
changes
in foreign
intellectual
property
laws. Additionally,
the
laws of some countries
outside
of
the
United
States
and Europe do not afford
intellectual
property
protection
to the
same
extent as the laws of the United States and Europe. Many companies have encountered significant problems in protecting
and
defending
intellectual
property
and
proprietary
rights
in
certain
foreign
jurisdictions.
The legal systems
of
some
countries,
including,
for
example,
India,
China
and other
developing
countries,
do not view favorably
the
enforcement
of patents
and other
intellectual
property
or proprietary
rights,
particularly
those relating to biotechnology products, which could make it difficult for us to stop the infringement, misappropriation or other violation of our patents or other intellectual property or proprietary rights. For example,
many
foreign
countries
have
compulsory
licensing
laws under
which a patent
owner must
grant
licenses to
third
parties.
Consequently,
we
may
not
be
able
to
prevent
third
parties
from
practicing
our
inventions
in certain
countries
outside
the
United
States
and
Europe.
In
addition,
many
countries
limit
the
enforceability
of patents
against
government
agencies
or
government
contractors.
In
these
countries,
the
patent
owner may
have limited
remedies,
which
could
materially
diminish
the
value
of
such
patent.
If
we
are
forced
to
grant
a license
to third
parties
with
respect
to
any patents
relevant
to our business,
our competitive
position
may
be impaired,
and our
business,
financial
condition,
results
of
operations,
and prospects
may
be adversely
affected.
Proceedings
to enforce
our
intellectual
property
and
proprietary
rights
in
foreign
jurisdictions,
whether
or
not successful,
could result
in substantial
costs
and divert
our efforts
and resources
from
other
aspects
of our business,
could
put our patents,
trademarks
or
other
intellectual
property
and
proprietary
rights
at
risk
of
being
invalidated
or interpreted narrowly,
could
put our patent
applications
at
risk
of not issuing,
and could
provoke
third
parties
to assert
claims against
us.
We
may
not
prevail
in
any
lawsuits
that
we
initiate,
and
the
damages
or
other
remedies
awarded,
if any, may
not be commercially
meaningful.
Furthermore,
while
we intend
to protect
our intellectual
property and proprietary
rights
in
major
markets
for
our products,
we cannot
ensure
that
we will
be able
to initiate
or maintain similar
efforts
in
all
jurisdictions
in
which
we
may
wish
to
market
our
products.
Accordingly,
our
efforts
to protect
our intellectual
property
and proprietary
rights
in such countries
may
be inadequate.
If
we are sued for
infringing,
misappropriating
or otherwise
violating
intellectual
property
or proprietary rights
of third
parties,
such litigation
or disputes
could be costly
and time
consuming
and could prevent or delay
us from
developing
or commercializing
our product
candidates.
Our
commercial
success
depends,
in
part,
on
our
ability
to
develop,
manufacture,
market
and
sell
our product
candidates
and use our proprietary
technologies
without
infringing,
misappropriating
or otherwise violating
the
intellectual
property
and other
proprietary
rights
of third
parties.
If
any third-party
patents,
patent applications
or
other
proprietary
rights
are
found to cover
our product
candidates
or any related
companion diagnostics
or their
compositions,
methods
of use or manufacturing,
we may
be required
to pay damages,
which could
be
substantial,
and
we
would
not
be
free
to manufacture
or market
our product
candidates
or to do so without
obtaining
a license,
which may
not be available
on commercially
reasonable
terms,
or at
all.
We
may
in
the
future
become
party
to,
or
threatened
with, adversarial
proceedings
or litigation
regarding intellectual
property
or
proprietary
rights
with
respect
to
our
product
candidates
and
technologies
we use in our business.
Our
competitors
or
other
third
parties
may
assert
infringement
claims
against
us, alleging
that
our product
candidates
are
covered
by
their
patents.
We
cannot
be
certain
that
we do not infringe
existing
patents
or that
we
will
not
infringe
patents
that
may
be granted
in the
future.
Furthermore,
because
patent
applications
can take
many
years
to
issue
and
may
be
confidential
for
18
months
or
more
after
filing,
and
because
patent
claims can
be
revised
before
issuance,
there
may
be applications
now pending
which may
later
result
in issued
patents that
may
be infringed
by the
manufacture,
use or sale
of our product
candidates.
If
a patent
holder
believes
our product
candidate
infringes
its
patent
rights,
the
patent
holder
may
sue us even if
we have received
patent protection
for
our
technology.
Moreover,
we
may
face
patent
infringement
claims
from
non-practicing
entities that
have no relevant
drug revenue
and against
whom our own patent
portfolio
may
thus
have no deterrent
effect.
There
is
a
substantial
amount
of
intellectual
property
litigation
in the
biotechnology
and pharmaceutical industries,
and we may
become
party
to, or threatened
with, litigation
or other
adversarial
proceedings
regarding intellectual
property
or proprietary
rights
with respect
to our product
candidates,
including
interference proceedings
before
the
USPTO.
Third
parties
may
assert
infringement,
misappropriation
or
other
claims
against us
based
on
existing
or
future
intellectual
property
or proprietary
rights.
The outcome
of intellectual
property litigation
and other
disputes
is
subject
to uncertainties
that
cannot
be adequately
quantified
in advance.
The pharmaceutical
and
biotechnology
industries
have
produced
a
significant
number
of
patents,
and
it
may
not always
be
clear
to
industry
participants,
including
us,
which
patents
cover
various
types
of
products
or
methods of
using
or
manufacturing
products.
The
coverage
of
patents
is
subject
to
interpretation
by
the
courts,
and
the interpretation
is
not
always
uniform.
If
we
were
sued
for
patent
infringement,
we
would
need
to demonstrate
that our
product
candidates,
products
or
methods
of
use,
manufacturing
or
other
applicable
activities
either
do
not infringe
the
patent
claims
of
the
relevant
patent
or
that
the
patent
claims
are
invalid
or
unenforceable,
and
we may
not
be
successful
in
doing
so.
However,
proving
invalidity
or
unenforceability
is
difficult.
For
example,
in the
United
States,
proving
invalidity
requires
a
showing of clear
and convincing
evidence
to overcome
the presumption
of validity
58
enjoyed
by issued
patents.
Even if
we believe
third-party
intellectual
property
claims
are without
merit,
there
is
no assurance
that
a court
would find
in our favor
on questions
of infringement,
validity,
or enforceability.
Even if
we are
successful
in these
proceedings,
we may
incur
substantial
costs
and the
time
and attention
of
our
management
and business
and scientific
personnel
could
be diverted
in pursuing
these proceedings,
which
could
significantly
harm
our
business
and
operating
results.
In
addition,
we
may
not
have sufficient
resources
to bring
these
actions
to a successful
conclusion.
If
we
are
found
to
infringe,
misappropriate
or otherwise
violate
a third
party's
intellectual
property
or proprietary
rights
and
we
are
unsuccessful
in
demonstrating
that
such
intellectual
property
or
proprietary
rights are
invalid
or unenforceable,
we could
be forced,
including
by court
order,
to cease developing, manufacturing
or commercializing
the
infringing
product
candidate
or
product.
Alternatively,
we
may
be
required
to
obtain
a license
from
such
third
party
in order
to use the
infringing
technology
and continue
developing,
manufacturing
or marketing
the
infringing
product
candidate.
However,
we
may
not be able
to obtain
any required
license
on commercially
reasonable
terms
or
at
all.
Even
if
we
were
able
to
obtain
such
a
license,
it
could
be
granted
on non-exclusive
terms,
thereby
giving
our competitors
and other
third
parties
access
to the
same
technologies licensed
to us. In addition,
we could
be found liable
for significant
monetary
damages, including treble
damages and
attorneys'
fees
if
we are
found to have willfully
infringed
such third-party
patent
rights.
A finding
of infringement
could
prevent
us
from
commercializing
our
product
candidates
or
force
us
to
cease
some
of
our business
operations,
which
could
materially
harm
our
business.
Claims
that
we have misappropriated
the confidential
information
or
trade
secrets
of
third
parties
could
have a similar
negative
impact
on our business, financial
condition,
results
of operations
and prospects.
We may
be subject
to claims
by third
parties
asserting
that
our employees
or consultants
or we have misappropriated
their
intellectual
property,
or claiming
ownership of what we regard
as our own intellectual
property.
Some
of
our
employees
and
consultants
are
currently
or have been previously
employed
at
universities
or at other
biotechnology
or pharmaceutical
companies,
including
our competitors
or potential
competitors.
These employees and consultants may have executed proprietary rights, non-disclosure and non-competition agreements,
or
similar
agreements,
in
connection
with
such other
current
or previous
employment.
Although we try
to
ensure
that
our
employees
and
consultants
do not use the
proprietary
information
or know-how of others
in their
work for
us, we may
be subject
to claims
that
we or these
individuals
have used or disclosed
intellectual property,
including
trade
secrets
or other
proprietary
information,
of third
parties.
Litigation
may
be necessary
to defend
against
such claims.
If
we fail
in defending
any such claims,
in addition
to paying
monetary
damages, we may
lose
valuable
intellectual
property
or personnel
or sustain
damages.
Such intellectual
property
could
be awarded
to
a
third
party,
and
we
could
be
required
to
obtain
a
license
from
such
third
party
to commercialize
our technology
or
products.
Such
a
license
may
not
be
available
on
commercially
reasonable
terms
or
at
all.
Even if we
are
successful
in
defending
against
such claims,
litigation
could
result
in substantial
costs
and be a distraction to
our
management.
Any
of
the
foregoing
would
have a material
adverse
effect
on our business,
financial condition,
results
of operations
and prospects.
In
addition,
while
it
is
our
policy
to
require
our
employees,
consultants
and
contractors
who
may
be involved
in
the
conception
or development
of intellectual
property
to execute
agreements
assigning
such intellectual
property
to
us,
we may
be unsuccessful
in executing
such an agreement
with each
party
who, in fact, conceives
or
develops
intellectual
property
that
we
regard
as
our
own,
which
may
result
in
claims
by
or
against us
related
to
the
ownership
of
such
intellectual
property.
In
addition,
such
agreements
may
not be self-executing such
that
the
intellectual
property
subject
to
such
agreements
may
not
be
assigned
to us without
additional assignments
being
executed,
and we may
fail
to obtain
such assignments.
In addition,
such agreements
may
be breached.
In
addition,
we
have
multiple
sponsored
research
agreements
relating
to our lead
product
candidates with
various
academic
institutions.
Some
of
these
academic
institutions
may
not have intellectual
property assignments
or
similar
agreements
with
their
employees
and
consultants,
which
may
result
in
claims
by
or against
us
related
to
ownership
of
any
intellectual
property.
Accordingly,
we
may
be
forced
to
bring
claims against
third
parties,
or
defend
claims
that
they
may
bring
against
us
to
determine
the
ownership
of
what
we regard
as
our
intellectual
property.
If
we
fail
in
prosecuting
or
defending
any
such
claims,
in
addition
to paying monetary
damages,
we
may
lose
valuable
intellectual
property.
Even
if
we
are
successful
in prosecuting
or defending
against
such
claims,
litigation
could
result
in
substantial
costs
and
be
a distraction
to our senior management
and scientific
personnel,
which would have a material
adverse
effect
on our business, financial condition,
results
of operations
and prospects.
Rights to improvements
to our product
candidates
may
be held by third
parties.
In
the
course
of
testing
our
product
candidates,
we
have
entered
into
agreements
with
third
parties
to conduct
clinical
testing,
which
provide
that
improvements
to our product
candidates
may
be owned solely
by a party
or jointly
between
the
parties.
If
we determine
that
rights
to such improvements
owned solely
by a third party
are
necessary
to
commercialize
our
product
candidates
or
maintain
our
competitive
advantage,
we
may need
to
obtain
a
license
from
such
third
party
in
order
to
use
the
improvements
and
continue
developing, manufacturing
or
marketing
the
product
candidates.
However,
we
may
not
be
able
to obtain
59
any required
license on
commercially
reasonable
terms
or
at
all.
Even
if
we
were
able
to
obtain
such
a
license,
it
could
be granted
on non-exclusive
terms,
thereby
giving
our competitors
and other
third
parties
access
to the
same
technologies licensed
to
us.
Failure
to
obtain
a
license
on
commercially
reasonable
terms
or
at
all,
or to obtain
an exclusive license,
could
prevent
us
from
commercializing
our
product
candidates
or force
us to cease
some
of our business operations,
which
could
materially
harm
our
business.
If
we
determine
that
rights
to improvements
jointly
owned between
us
and
a
third
party
are
necessary
to
commercialize
our product
candidates
or maintain
our competitive advantage,
we
may
need
to
obtain
an
exclusive
license
from
such
third
party.
If
we are
unable
to obtain
an exclusive
license
to
any
such
third-party
co-owners'
interest
in
such
improvements,
such
co-owners
may
be
able to
license
their
rights
to
other
third
parties,
including
our competitors,
and our competitors
could
market competing
products
and
technology.
In
addition,
we
may
need
the
cooperation
of any such co-owners
of our intellectual
property
in order
to enforce
such intellectual
property
against
third
parties,
and such cooperation
may not
be
provided
to
us.
Any
of
the
foregoing
could
have
a
material
adverse
effect
on
our
competitive
position, business,
financial
conditions,
results
of operations,
and prospects.
The term
of our patents
may
be inadequate
to protect
our competitive
position
on our products.
Given
the
amount
of
time
required
for
the
development,
testing
and regulatory
review
of new product candidates,
patents
protecting
such candidates
might
expire
before
or shortly
after
such candidates
are commercialized.
Depending
upon
the
timing,
duration
and
other
factors
relating
to
any
FDA marketing
approval we
receive
for
any
of
our
product
candidates,
one
or
more
of
our
U.S. patents
may
be
eligible
for
limited
patent term
extension
under
the
Drug
Price
Competition
and
Patent
Term
Restoration
Action
of
1984,
or
the
Hatch- Waxman
Amendments.
We
expect
to
seek
extensions
of
patent
terms
in the
United
States
and, if
available,
in other
countries
where we are
prosecuting
patents.
In the United States, the Hatch-Waxman
Amendments permit
a patent
term
extension
of
up to five
years
beyond the
normal
expiration
of the
patent,
limited
to the
approved indication
(or
any
additional
indications
approved
during
the
period
of
extension),
as
compensation
for
patent term
lost
to
the
regulatory
review
process
during
which the
sponsor
was unable
to commercially
market
its
new product.
A
patent
term
extension
cannot
extend
the
remaining
term
of
a
patent
beyond
a
total
of
14
years
from the
date
of
product
approval,
only
one
patent
applicable
to
an
approved
drug
is
eligible
for
the
extension
and only those
claims
covering
the
approved
drug,
a
method
for
using
it,
or
a
method
for
manufacturing
it
may
be extended,
and
the
application
for
the
extension
must
be
submitted
prior
to
the
expiration
of the
patent.
However, the
applicable
authorities,
including
the
FDA and
the
USPTO in
the
United
States,
and any equivalent
regulatory authority
in other
countries,
may
not agree
with our assessment
of whether
such extensions
are available
for our patents,
may
refuse
to
grant
extensions
to our patents,
or may
grant
more
limited
extensions
than
we request.
We may
not
be
granted
an
extension
because
of,
for
example,
failing
to
exercise
due
diligence
during
the
testing phase or regulatory review process, failing to apply within applicable deadlines, failing to apply prior to expiration
of
relevant
patents,
or
otherwise
failing
to
satisfy
applicable
requirements.
If
we are
unable
to obtain patent
term
extension
or
the
term
of
any
such
extension
is
less
than
we request,
our competitors
and other
third parties
may
be
able
to
obtain
approval
of
competing
products
following
our patent
expiration
and take
advantage of
our
investment
in
development
and
clinical
trials
by
referencing
our
clinical
and
preclinical
data
and launch their
product
earlier
than
might
otherwise
be the
case.
Any of the
foregoing
would have a material
adverse
effect on our business,
financial
condition,
results
of operations
and prospects.
Obtaining and maintaining
our patent
protection
depends on compliance
with various
procedural, documentary,
fee
payment
and other
requirements
imposed
by governmental
patent
offices,
and our patent
protection
could be reduced
or eliminated
for
noncompliance
with these
requirements.
Periodic
maintenance
fees,
renewal
fees,
annuity
fees
and
various
other
government
fees
on
any
issued patent
are
due
to
be
paid
to
the
USPTO
and
patent
offices
in
foreign
countries
in
several
stages
over
the
lifetime of the patent. The USPTO and patent offices in foreign countries require compliance with a number of procedural,
documentary,
fee
payment
and
other
requirements
during
the
patent
application
process.
In
the future,
we
may
rely
on
licensing
partners
to
pay
these
fees
due
to
U.S.
and
non-U.S.
patent
agencies
and
to comply
with
these
other
requirements
with
respect
to
any
future
licensed
patents
and
patent
applications.
While an
inadvertent
lapse
can
be
cured
by
payment
of
a
late
fee
or by other
means
in accordance
with the
applicable rules,
there
are
situations
in
which
noncompliance
can result
in abandonment
or lapse
of the
patent
or patent application, resulting in partial or complete loss of a patent or patent rights in the relevant jurisdiction. Non-compliance
events
that
could
result
in
abandonment
or
lapse
of
a
patent
or
patent
application
include,
but are
not
limited
to,
failure
to respond
to official
actions
within
prescribed
time
limits,
non-payment
of fees
and failure
to
properly
legalize
and
submit
formal
documents.
In
such
an
event,
our
competitors
and
other
third parties
might
be
able
to enter
the
market
with similar
or identical
products
of technology,
which would have a material
adverse
effect
on our business,
financial
condition,
results
of operations
and prospects.
60
If
we are unable to protect
the confidentiality
of our trade
secrets,
the value
of our technology
could be materially
adversely
affected
and our business
would be harmed.
We
rely
on
proprietary
know-how
and
trade
secret
protection
and
confidentiality
agreements
to protect proprietary
know-how
or
trade
secrets
that
are
not
patentable
or
that
we
elect
not
to
patent.
We
seek
to
protect our trade secrets and proprietary know-how in part by entering into non-disclosure and confidentiality agreements
with parties
who have access
to such knowledge, such as our employees,
consultants,
independent contractors,
advisors,
CMOs,
CROs, hospitals,
independent
treatment
centers,
suppliers,
collaborators
and other third
parties.
We
also
enter
into
confidentiality
and
invention
or
patent
assignment
agreements
with
employees and
certain
consultants.
However,
we
cannot
guarantee
that
we
have
entered
into
such
agreements
with
each party
that
may
have
or
have
had
access
to
our
trade
secrets
or proprietary
know-how. Additionally,
our confidentiality
agreements
and
other
contractual
protections
may
not
be
adequate
to protect
our intellectual property
from
unauthorized
disclosure,
third-party
infringement
or misappropriation.
Any party
with whom we have
executed
such
an
agreement
may
breach
that
agreement
and disclose
our proprietary
information,
including our trade
secrets,
and we may
not be able
to obtain
adequate
remedies
for
such breaches.
Enforcing
a claim
that a party
illegally
disclosed
or
misappropriated
a trade
secret
is
difficult,
expensive
and time-consuming,
and the outcome
is
unpredictable.
In addition,
some
courts
in the
United
States
and certain
foreign
jurisdictions
are less willing
or
unwilling
to
protect
trade
secrets.
If
any of our trade
secrets
were to be lawfully
obtained
or independently
developed
by
a
competitor
or
other
third
party,
we
would
have no right
to prevent
such third
party, or
those
to
whom
they
communicate
such
technology
or
information,
from
using
that
technology
or
information to
compete
with
us.
If
any
of
our
trade
secrets
were
to
be
disclosed
to
or
independently
developed
by
a competitor
or
other
third
party,
our
business,
financial
condition,
results
of
operations
and
prospects
our business and competitive
position
could
be materially
harmed.
Intellectual
property
rights
do not necessarily
address
all
potential
threats.
The degree
of future
protection
afforded
by our intellectual
property
rights is uncertain
because intellectual property
rights
have
limitations
and may
not adequately
protect
our business
or permit
us to maintain
our competitive
advantage.
For example:
•
others
may
be
able
to
make
products
similar
to
any
product
candidates
we
may
develop
or
utilize similarly
related
technologies
that
are
not covered
by the
claims
of the
patents
that
we may
license
or may
own in the
future;
•
we,
or
any
future
license
partners
or
current
or
future
collaborators,
might
not
have
been
the
first
to make
the
inventions
covered
by
the
issued
patent
or
pending
patent
application
that
we license
or may own in the
future;
•
we,
or
any
future
license
partners
or
current
or
future
collaborators,
might
not
have
been
the
first
to
file patent
applications
covering
certain
of our or their
inventions;
•
others may independently develop similar or alternative technologies or duplicate any of our technologies
without
infringing,
misappropriating
or otherwise
violating
any of our owned or licensed intellectual
property
rights;
•
it
is
possible
that
our
pending
patent
applications
or
those
that
we
may
own
in
the
future
will
not
lead to issued
patents;
•
issued
patents
that
we
hold
rights
to
may
be
held
invalid
or
unenforceable,
including
as
a
result
of
legal challenges
by our competitors
or other
third
parties;
•
our
competitors
or
other
third
parties
might
conduct
research
and
development
activities
in
countries where
we
do
not
have
patent
rights
and
then
use
the
information
learned
from
such activities
to develop competitive
products
for
sale
in our major
commercial
markets;
•
we may
not develop
additional
proprietary
technologies
that
are
patentable;
•
the
patents
of others
may
harm
our business;
and
•
we
may
choose
not
to
file
a
patent
in
order
to
maintain
certain
trade
secrets
or
know
how,
and
a
third party
may
subsequently
file
a patent
covering
such intellectual
property.
Should
any
of
these
events
occur,
they
could
have a material
adverse
effect
on our business,
financial condition,
results
of operations
and prospects.
61
Risks Related
to Our Common Stock
An
active
and liquid
trading
market
for
our common
stock
may
never
be sustained.
As a result,
you may not be able
to resell
your shares
of common
stock
at or above the purchase price.
An
active
trading
market
for
our
common
stock
may
never
be sustained.
The market value
of
our
common
stock
may
decrease
from
the
purchase
price.
As
a
result
of
these
and
other
factors, you
may
be unable
to resell
your shares
of our common
stock
at
or above the
purchase
price.
The lack
of an active
market
may
impair
your
ability
to
sell
your
shares
at
the
time
you wish to sell
them
or at
a price
that
you consider
reasonable.
The
lack
of
an
active
market
may
also
reduce
the
fair
market
value
of your shares. Furthermore,
an
inactive
market
may
also
impair
our
ability
to
raise
capital
by
selling
shares
of
our
common stock
and may
impair
our ability
to enter
into
strategic
collaborations
or acquire
companies
or products
by using our shares
of common
stock
as consideration.
Our quarterly
operating
results
may
fluctuate
significantly
or may
fall
below the expectations
of investors or securities
analysts,
each of which may
cause our stock
price
to fluctuate
or decline.
We
expect
our
operating
results
to
be
subject
to quarterly
fluctuations.
Our net
loss
and other
operating results
will
be affected
by numerous
factors,
including:
•
variations
in
the
level
of
expense
related
to
the
planned
and
ongoing
development
of
our
product candidates
or future
development
programs,
including
scale-up
CMC
expenses;
•
results
of
clinical
trials,
or
the
addition
or
termination
of
future
preclinical
or
clinical
trials
or
funding support
by us, or future
collaborators
or licensing
partners;
•
our
execution
of
any
collaboration,
licensing
or
similar
arrangements,
and
the
timing
of
payments
we may
make
or
receive
under
existing
or future
arrangements
or the
termination
or modification
of any such existing
or future
arrangements;
•
any
intellectual
property
infringement
lawsuit
or
opposition,
interference
or
cancellation
proceeding
in which we may
become
involved;
•
additions
and departures
of key personnel;
•
strategic
decisions
by
us
or
our
competitors,
such
as
acquisitions,
divestitures,
spin-offs,
joint
ventures, strategic
investments
or changes
in business
strategy;
•
if
any
of
our
product
candidates
receives
regulatory
approval,
the
terms
of
such
approval
and
market acceptance
and demand
for
such product
candidates;
•
regulatory
developments
affecting
our product
candidates
or those
of our competitors;
and
•
changes
in general
market
and economic
conditions,
such as due to the
recent
COVID-19
pandemic.
If
our
quarterly
operating
results
fall
below
the
expectations
of investors
or securities
analysts,
the
price
of our
common
stock
could
decline
substantially.
Furthermore,
any quarterly
fluctuations
in our operating
results may,
in turn,
cause
the
price
of our common
stock
to fluctuate
substantially.
We believe
that quarterly comparisons
of
our
financial
results
are
not
necessarily
meaningful
and should
not be relied
upon as an indication of our future
performance.
62
The market
price
of our common
stock
is
likely
to be highly
volatile,
which could result
in substantial losses
for
purchasers
of our common
stock.
The
market
price
of
our
common
stock
has
been
highly
volatile
since
our initial public offering, or
IPO,
and
has
ranged
from
$23.69 to
$95.38
per
share.
The
market
price
of our common
stock
is
likely
to continue
to be highly
volatile
and subject to
wide
fluctuations
in
response
to
various
factors,
some
of which we cannot
control.
As a result
of this
volatility, investors
may
not
be
able
to
sell
their
common
stock
at
or
above
the
price
paid.
The market
price for
our
common
stock
may
be
influenced
by
many
factors,
including
the
other
risks
described
in
this
section
of this Quarterly Report on Form 10-Q
and the
following:
•
enrollment
or
results
of
clinical
trials
of
our
product
candidates,
or
those
of
our
competitors
or
our future
collaborators,
or changes
in the
development
status
of our product
candidates;
•
regulatory
or
legal
developments
in
the
United
States
and
other
countries,
especially
changes
in
laws
or regulations
applicable
to our product
candidates;
•
the
success
of competitive
products
or technologies;
•
introductions
and
announcements
of
new
products
by
us,
our
future
commercialization
partners,
or
our competitors,
and the
timing
of these
introductions
or announcements;
•
actions
taken
by
regulatory
agencies
with
respect
to
our
products,
clinical
studies,
manufacturing process
or sales
and marketing
terms;
•
actual
or
anticipated
variations
in
our
financial
results
or
those
of
companies
that
are
perceived
to
be similar
to us;
•
the success of our efforts to acquire or in-license additional technologies, products or product candidates;
•
developments concerning any future collaborations, including but not limited to those with development
and commercialization
partners;
•
market
conditions
in the
pharmaceutical
and biotechnology
sectors;
•
announcements
by
us
or
our
competitors
of
significant
acquisitions,
strategic
collaborations,
joint ventures
or capital
commitments;
•
developments
or
disputes
concerning
patents
or
other
proprietary
rights,
including
patents,
litigation matters
and our ability
to obtain
patent
protection
for
our product
candidates
and products;
•
our ability
or inability
to raise
additional
capital
and the
terms
on which we raise
it;
•
the
recruitment
or departure
of key personnel;
•
changes
in the
structure
of healthcare
payment
systems;
•
actual or anticipated changes in earnings estimates or changes in stock market analyst recommendations
regarding
our common
stock,
other
comparable
companies
or our industry
generally;
•
our
failure
or
the
failure
of
our
competitors
to
meet
analysts'
projections
or
guidance
that
we
or
our competitors
may
give
to the
market;
•
fluctuations
in the
valuation
of companies
perceived
by investors
to be comparable
to us;
•
announcement
and expectation
of additional
financing
efforts;
•
speculation
in the
press
or investment
community;
•
share
price
and fluctuations
of trading
volume
of our common
stock;
•
sales
of our common
stock
by us, insiders
or our stockholders;
•
the
concentrated
ownership
of our common
stock;
•
changes
in accounting
principles;
•
terrorist
acts,
acts
of war or periods
of widespread
civil
unrest;
•
natural
disasters
and other
calamities;
and
•
general
economic,
industry
and
market
conditions,
or
other
events
or
factors,
many
of
which
are beyond our control,
such as the
recent
COVID-19
pandemic.
63
In addition,
the
stock
market
in general,
and the
markets
for
pharmaceutical,
biopharmaceutical
and biotechnology
stocks
in particular,
have experienced
extreme
price
and volume
fluctuations
that
have been often unrelated
or disproportionate
to the
operating
performance
of the
issuer.
These broad
market
and industry factors may
seriously
harm
the
market
price
of
our
common
stock,
regardless
of our actual
operating
performance.
The realization
of
any
of
the
above
risks
or any of a broad
range
of other
risks,
including
those
described
in this
"Risk Factors"
section,
could
have a dramatic
and adverse
impact
on the
market
price
of our common
stock.
Our principal
stockholders
and management
own
a significant
percentage
of our stock
and are able
to exert
significant
control
over
matters
subject
to stockholder
approval.
As
of
June 30,
2021,
our
executive
officers,
directors,
beneficial
owners
of
5% or
more
of
our
capital
stock
and
their
respective
affiliates
beneficially
owned a substantial portion of our common
stock.
The voting
power of this group may
increase
to the
extent
they
convert
shares
of non-voting
common
stock
they
hold into
common
stock.
This
group
of
stockholders
have
the
ability
to
control
us
through
this
ownership
position
and
are
able
to determine all matters requiring stockholder approval.
For example, these stockholders are able
to control elections
of
directors,
amendments
of
our
organizational
documents
or
approval
of any merger,
sale
of assets
or other
major
corporate
transaction.
This
may
prevent
or discourage
unsolicited
acquisition
proposals
or offers
for our
common
stock
that
you
may
feel
are
in
your
best
interest
as
one
of
our
stockholders.
The
interests
of
this group
of
stockholders
may
not always
coincide
with your interests
or the
interests
of other
stockholders
and they may
act
in
a
manner
that
advances
their
best
interests
and not necessarily
those
of other
stockholders,
including seeking
a
premium
value
for
their
common
stock,
and
might
affect
the
prevailing
market
price
for
our common stock.
The dual class
structure
of our common
stock
may
limit
your ability
to influence
corporate
matters
and may
limit
your visibility
with respect
to certain
transactions.
The
dual
class
structure
of
our
common
stock
may
limit
your
ability
to influence
corporate
matters.
Holders of
our
common
stock
are
entitled
to
one vote
per
share,
while
holders
of our non-voting
common
stock
are
not entitled
to any votes.
Nonetheless,
each
share
of our non-voting
common
stock
may
be converted
at
any time into one
share
of
our
common
stock
at
the
option
of its
holder
by providing
written
notice
to us, subject
to the limitations
provided
for
in
our
restated
certificate
of
incorporation.
Consequently,
if
holders
of our non-voting common
stock
exercise
their
option
to
make
this
conversion,
this
will
have the
effect
of increasing
the
relative voting
power
of
those
prior
holders
of our non-voting
common
stock,
and correspondingly
decreasing
the
voting power
of
the
holders
of
our
common
stock,
which
may
limit
your
ability
to influence
corporate
matters.
For example,
at
June 30,
2021,
the
common
stock
will
have
100%
of
the
voting
power,
but
if
the
holders
of non-voting
common
stock
were to convert
all
of their
shares
into
common
stock,
the
prior
common
stock
would have
75.8%
of
the
voting
power,
and the
former
non-voting
common
stock
would represent
24.2% of the
voting power. Additionally, stockholders who hold, in the aggregate, more than 10% of our common stock and non-voting
common
stock,
but
10%
or
less
of
our
common
stock,
and
are
not
otherwise
an
insider
of
the company,
may
not
be
required
to
report
changes
in
their
ownership
due
to
transactions
in
our
non-voting common
stock
pursuant
to Section
16(a)
of the
Securities
Exchange Act of 1934, as amended,
or the Exchange Act, and may
not be subject
to the
short-swing
profit
provisions
of Section
16(b)
of the
Exchange Act.
We are an "emerging
growth company"
and a "smaller
reporting
company"
and we cannot be certain
if the reduced
reporting
requirements
applicable
to emerging
growth companies
or smaller
reporting companies
will
make
our common
stock
less
attractive
to investors.
We
are
an
"emerging
growth
company"
as
defined
in
the
Jumpstart
Our
Business
Startups
Act
of
2012,
or the
JOBS
Act.
For
as
long
as
we
continue
to
be
an
emerging
growth
company,
we
may
take
advantage
of exemptions
from
various
reporting
requirements
that
are
applicable
to other
public
companies
that
are
not emerging
growth
companies,
including
(i)
not being
required
to comply
with the
auditor
attestation
requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended, or the Sarbanes-Oxley Act, (ii) reduced disclosure
obligations
regarding
executive
compensation
in
this
Quarterly Report on
Form 10-Q
as
well
as
our
periodic
reports
and proxy
statements
and
(iii)
exemptions
from
the
requirements
of
holding
nonbinding
advisory
stockholder
votes on
executive
compensation
and
stockholder
approval
of any golden
parachute
payments
not approved
previously. In
addition,
as
an
emerging
growth company,
we are
only required
to provide
two years
of audited
financial statements
and two years
of selected
financial
data
in this Quarterly Report on
Form 10-Q.
64
We could
be an emerging
growth company
until
December
31, 2025, although
circumstances
could
cause
us to lose
that
status
earlier,
including
if
we are
deemed
to be a "large
accelerated
filer,"
which occurs
when the market
value
of
our
common
stock
that
is
held
by non-affiliates
equals
or exceeds
$700 million
as of the
prior June
30,
or
if
we
have
total
annual
gross
revenue
of $1.07 billion
or more
during
any fiscal
year
before
that
time, in
which
cases
we
would
no
longer
be
an
emerging
growth
company
as
of
the
following
December
31, or if
we issue
more
than
$1.0 billion
in non-convertible
debt
during
any three-year
period
before
that
time,
in which case we
would
no
longer
be
an
emerging
growth
company
immediately.
Even after
we no longer
qualify
as an emerging
growth company,
we may
still
qualify
as a "smaller
reporting
company,"
which would allow
us to take advantage
of many
of the
same
exemptions
from
disclosure
requirements,
including
not being
required
to comply with
the
auditor
attestation
requirements
of
Section
404
of
the
Sarbanes-Oxley
Act,
if
our revenues
remain
less than
$100.0
million,
and
reduced
disclosure
obligations
regarding
executive
compensation
in this
Quarterly Report on Form 10-Q
as well
as
our
periodic
reports
and
proxy
statements.
We
cannot
predict
if
investors
will
find
our common
stock
less attractive
because
we
may
rely
on
these
exemptions.
If
some
investors
find
our common
stock
less
attractive
as a result,
there
may
be a less
active
trading
market
for
our common
stock
and our share
price
may
be more
volatile.
Under
the
JOBS Act,
emerging
growth
companies
can also
delay
adopting
new or revised
accounting standards
until
such
time
as those
standards
apply
to private
companies.
We have elected
to take
advantage
of the benefits
of
this
extended
transition
period.
Our financial
statements
may
therefore
not be comparable
to those
of companies
that
comply
with
such
new
or
revised
accounting
standards.
Until
the
date
that
we are
no longer
an "emerging growth company" or affirmatively and irrevocably opt out of the exemption provided by Section
7(a)(2)(B)
of
the
Securities
Act,
upon
issuance
of
a
new
or
revised
accounting
standard
that
applies
to our financial
statements
and that
has a different
effective
date
for
public
and private
companies,
we will
disclose the
date
on
which
adoption
is
required
for
non-emerging
growth
companies
and
the
date
on which we will
adopt the
recently
issued
accounting
standard.
We are also a "smaller reporting company," meaning that the market value of our stock held by non-affiliates
is
less
than
$700.0
million as of the prior June 30
and our annual
revenue
is
less
than
$100.0 million
during
the
most recently
completed
fiscal
year.
We
may
continue
to be a smaller
reporting
company
if
either
(i)
the
market
value of our stock held by non-affiliates is less than $250.0 million or (ii) our annual revenue is less than $100.0
million
during
the
most
recently
completed
fiscal
year
and
the
market
value
of
our
stock
held
by non-affiliates
is
less
than
$700.0 million as of the prior June 30.
If
we are
a smaller
reporting
company
at
the
time
we cease
to be an emerging
growth company,
we may
continue
to rely
on exemptions
from
certain
disclosure
requirements
that
are available
to
smaller
reporting
companies.
Specifically,
as a smaller
reporting
company
we may
choose
to present only
the
two
most
recent
fiscal
years
of
audited
financial
statements
in our Annual Report
on Form
10-K and, similar to emerging growth companies, smaller reporting companies have reduced disclosure obligations regarding
executive
compensation.
Anti-takeover
provisions
in our charter
documents
and under Delaware law could prevent
or delay
an acquisition
of us, which may
be beneficial
to our stockholders,
and may
prevent
attempts
by our stockholders
to replace
or remove
our current
management.
Our restated
certificate
of incorporation
and our restated
bylaws contain
provisions
that
could delay or prevent
a
change
in
control
of
our
company.
These
provisions
could
also
make
it
difficult
for
stockholders
to elect
directors
who
are
not
nominated
by
current
members
of
our
board
of
directors
or
take
other
corporate actions,
including
effecting
changes
in our management.
These provisions:
•
establish
a classified
board
of directors
so that
not all
members
of our board
are
elected
at
one time;
•
permit
only the
board
of directors
to establish
the
number
of directors
and fill
vacancies
on the
board;
•
provide
that
directors
may
only
be
removed
"for
cause"
and
only
with
the
approval
of
two-thirds
of
our stockholders;
•
require
super-majority
voting
to
amend
some
provisions
in
our
restated
certificate
of
incorporation
and restated
bylaws;
•
authorize
the
issuance
of
"blank
check"
preferred
stock
that
our
board
could
use
to
implement
a stockholder
rights
plan;
•
eliminate
the
ability
of our stockholders
to call
special
meetings
of stockholders;
•
prohibit
stockholder
action
by
written
consent,
which
requires
all
stockholder
actions
to
be
taken
at
a meeting
of our stockholders;
•
prohibit
cumulative
voting;
and
•
establish
advance
notice
requirements
for
nominations
for
election
to
our
board
or
for
proposing matters
that
can be acted
upon by stockholders
at
annual
stockholder
meetings.
65
In
addition,
Section
203
of
the
Delaware
General
Corporation
Law,
or
DGCL,
may
discourage,
delay
or prevent
a change
in control
of our company.
Section
203 imposes
certain
restrictions
on mergers,
business combinations
and other
transactions
between
us and holders
of 15% or more
of our common
stock.
The exclusive
forum
provision
in our organizational
documents
may
limit
a stockholder's
ability
to bring a claim
in a judicial
forum
that
it
finds
favorable
for
disputes
with us or any of our directors,
officers,
or other
employees,
which may
discourage
lawsuits
with respect
to such claims.
Our
restated
certificate
of
incorporation
provides
that
the
Court
of
Chancery
of
the
State
of Delaware
is
the exclusive
forum
for:
any
derivative
action
or
proceeding
brought
on
our
behalf;
any
action
asserting
a breach
of fiduciary
duty;
any
action
asserting
a
claim
against
us
arising
pursuant
to
the
DGCL, our
restated
certificate
of incorporation,
or
our
restated
bylaws;
or
any
action
asserting
a
claim
against
us
that
is
governed
by the
internal affairs
doctrine.
This
exclusive
forum
provision
does not apply
to suits
brought
to enforce
a duty or liability created
by the
Exchange Act. It
could
apply,
however, to a suit
that
falls
within
one or more
of the categories enumerated
in the
exclusive
forum
provision.
This choice
of forum
provision
may
limit
a stockholder's
ability
to bring
a claim
in a judicial
forum that it finds
favorable
for
disputes
with
us
or
any of our directors,
officers,
or other
employees,
which may
discourage lawsuits
with
respect
to
such
claims.
Alternatively,
if
a
court
were
to
find
the
choice
of
forum
provisions contained
in
our
restated
certificate
of
incorporation
to
be
inapplicable
or
unenforceable
in
an
action,
we
may incur
additional
costs
associated
with
resolving
such action
in other
jurisdictions,
which could
harm
our business, results
of operations
and financial
condition.
Section
22
of
the
Securities
Act
creates
concurrent
jurisdiction
for
federal
and state
courts
over
all
claims brought
to
enforce
any
duty
or
liability
created
by
the
Securities
Act or the
rules
and regulations
thereunder.
Our restated
bylaws provide
that
the
federal
district
courts
of the
United
States
of America
will,
to the
fullest extent
permitted
by
law,
be
the
exclusive
forum
for
resolving
any
complaint
asserting
a
cause
of action
arising under
the
Securities
Act,
or
a
Federal
Forum
Provision.
Our
decision
to
adopt
a
Federal
Forum
Provision followed
a
decision
by
the
Supreme
Court
of
the
State
of Delaware
holding
that
such provisions
are
facially
valid under
Delaware
law.
While
there
can
be
no
assurance
that
federal
or
state
courts
will
follow
the
holding
of the Delaware
Supreme
Court
or
determine
that
the
Federal
Forum
Provision
should
be
enforced
in
a
particular
case, application
of
the
Federal
Forum
Provision
means
that
suits
brought
by
our
stockholders
to
enforce
any
duty
or liability
created
by the
Securities
Act must
be brought
in federal
court
and cannot
be brought
in state
court.
Section
27
of
the
Exchange
Act
creates
exclusive
federal
jurisdiction
over
all
claims
brought
to enforce
any duty
or
liability
created
by
the
Exchange
Act
or
the
rules
and
regulations
thereunder.
In addition,
neither
the exclusive
forum
provision
nor
the
Federal
Forum
Provision
applies
to
suits
brought
to
enforce
any
duty
or liability
created
by
the
Exchange
Act.
Accordingly,
actions
by
our
stockholders
to enforce
any duty or liability created
by the
Exchange Act or the
rules
and regulations
thereunder
must
be brought
in federal
court.
Our
stockholders
will
not
be
deemed
to
have
waived
our
compliance
with
the
federal
securities
laws and the regulations
promulgated
thereunder.
Any
person
or
entity
purchasing
or
otherwise
acquiring
or
holding
any interest
in any of our securities
shall be
deemed
to
have
notice
of
and
consented
to our exclusive
forum
provisions,
including
the
Federal
Forum Provision.
These
provisions
may
limit
a
stockholders'
ability
to
bring
a
claim
in
a
judicial
forum
of
their choosing
for
disputes
with
us
or
our
directors,
officers,
or
other
employees,
which
may
discourage
lawsuits against
us and our directors,
officers,
and other
employees.
We will
continue
to incur increased
costs
as a result
of operating
as a public
company,
and our management
will
be required
to devote
substantial
time
to new compliance
initiatives
and corporate governance
practices.
As
a
public
company,
and
particularly
after
we
are
no
longer
an
emerging
growth
company,
we
will continue
to
incur
significant
legal,
accounting
and other
expenses
that
we did not incur
as a private
company.
The Sarbanes-Oxley
Act, the
Dodd-Frank Wall
Street
Reform
and Consumer
Protection
Act, the
listing
requirements of
the
Nasdaq Global
Select
Market
and other
applicable
securities
rules
and regulations
impose
various requirements
on
public
companies,
including
establishment
and maintenance
of effective
disclosure
and financial controls
and
corporate
governance
practices.
Our management
and other
personnel
will
need to devote
a substantial
amount
of
time
to these
compliance
initiatives.
Moreover,
we expect
these
rules
and regulations
to substantially
increase
our
legal
and
financial
compliance
costs
and to make
some
activities
more
time
consuming and
costly.
For
example,
we
expect
that
these
rules
and
regulations
may
make
it
more
difficult
and
more expensive
for
us
to
obtain
director
and
officer
liability
insurance
and
we
may
be
required
to
incur
substantial costs
to maintain
sufficient
coverage.
We cannot
predict
or estimate
66
the
amount
or timing
of additional
costs we may
incur
to
respond
to
these
requirements.
The
impact
of
these
requirements
could
also
make
it
more
difficult for
us
to
attract
and
retain
qualified
persons
to
serve
on
our
board
of
directors,
our
board
committees
or as executive
officers.
The
increased
costs
may
require
us
to
reduce
costs
in
other
areas
of
our
business
or
increase the
prices
of
our
products
once
commercialized.
Moreover,
these
rules
and
regulations
are
often
subject
to varying
interpretations,
in
many
cases
due
to
their
lack
of
specificity,
and,
as
a
result,
their
application
in practice may
evolve
over
time
as new guidance
is
provided
by regulatory
and governing
bodies.
This could result
in continuing
uncertainty
regarding
compliance
matters
and
higher
costs
necessitated
by ongoing revisions
to disclosure
and governance
practices.
We
are
not
currently
required
to
comply
with
the
SEC's rules
that
implement
Section
404 of the
Sarbanes- Oxley
Act,
and
are
therefore
not
required
to
make
a
formal
assessment
of
the
effectiveness
of our internal
control over
financial
reporting
for
that
purpose.
Pursuant
to
Section
404,
we
will
be
required
to
furnish
a
report
by our management
on
our
internal
control
over
financial
reporting.
However,
while
we remain
an emerging
growth company,
we
will
not
be
required
to
include
an
attestation
report
on
internal
control
over
financial
reporting issued
by
our
independent
registered
public
accounting
firm.
In
addition,
for
as
long
as
we
are
a smaller
reporting company
with
less
than
$100
million
in annual
revenue,
we would be exempt
from
the
requirement
to obtain
an external
audit
on the
effectiveness
of internal
control
over
financial
reporting
provided
in Section
404(b)
of the Sarbanes-Oxley
Act.
To
achieve
compliance
with
Section
404
within
the
prescribed
period,
we
will
be
engaged in
a
process
to
document
and
evaluate
our internal
control
over
financial
reporting,
which is
both costly
and challenging.
In
this
regard,
we
will
need
to
continue
to
dedicate
internal
resources,
potentially
engage
outside consultants
and
adopt
a
detailed
work plan
to assess
and document
the
adequacy
of internal
control
over
financial reporting,
continue
steps
to improve
control
processes
as appropriate,
validate
through
testing
that
controls
are functioning
as
documented
and
implement
a
continuous
reporting
and improvement
process
for
internal
control over
financial
reporting.
This
process
will
be
time-consuming,
costly
and
complicated.
Despite
our
efforts,
there is
a
risk
that
we
will
not
be
able
to
conclude,
within
the
prescribed
timeframe
or at
all,
that
our internal
control over
financial
reporting
is
effective
as
required
by
Section
404.
If
we
identify
one
or
more
material
weaknesses, it
could
result
in
an
adverse
reaction
in
the
financial
markets
due to a loss
of confidence
in the
reliability
of our financial
statements.
In addition,
if
we are
not able
to continue
to meet
these
requirements,
we may
not be able
to remain
listed
on the
Nasdaq Global
Select
Market.
Because we do not anticipate
paying any cash dividends
on our capital
stock
in the foreseeable
future, capital
appreciation,
if
any, will
be your sole
source
of gain.
We
have
never
declared
or paid
cash
dividends
on our capital
stock.
We currently
intend
to retain
all
of our future
earnings,
if
any,
to
finance
the
growth
and
development,
operation
and
expansion
of
our
business
and
do not
anticipate
declaring
or
paying
any
cash
dividends
for
the
foreseeable
future.
As
a
result,
capital
appreciation, if
any, of our common
stock
will
be your sole
source
of gain
for
the
foreseeable
future.
General
Risk Factors
If
securities
or industry
analysts
do not publish
research
or reports
about our business,
or if
they
issue
an adverse
or misleading
opinion regarding
our stock,
our stock
price
and trading
volume
could decline.
The
trading
market
for
our
common
stock
will
be
influenced
by
the
research
and
reports
that
industry
or securities
analysts
publish
about
us or our business.
If
no or few securities
or industry
analysts
commence coverage
of
us,
the
trading
price
for
our
common
stock
could
be
impacted
negatively.
In
the
event
we
obtain securities
or
industry
analyst
coverage,
if
any
of
the
analysts
who
cover
us
issue
an
adverse
or
misleading opinion
regarding
us,
our
business
model,
our intellectual
property
or our stock
performance,
or if
our preclinical studies
and
clinical
trials
and
operating
results
fail
to meet
the
expectations
of analysts,
our stock
price
would likely
decline.
If
one
or
more
of
such
analysts
cease
coverage
of us or fail
to publish
reports
on us regularly,
we could
lose
visibility
in
the
financial
markets,
which
in
turn
could
cause
a decline
in our stock
price
or trading volume.
Our disclosure
controls
and procedures
may
not prevent
or detect
all
errors
or acts
of fraud.
We
are
subject
to
the
periodic
reporting
requirements
of
the
Exchange Act. We designed
our disclosure controls
and
procedures
to
reasonably
assure
that
information
we
must
disclose
in
reports
we
file
or submit
under the
Exchange
Act
is
accumulated
and
communicated
to
management,
and recorded,
processed,
summarized
and reported
within
the
time
periods
specified
in
the
rules
and
forms
of
the
SEC. We
believe
that
any
disclosure controls
and
procedures
or
internal
controls
and
procedures,
no
matter
how well-conceived
and operated,
can provide
only reasonable,
not absolute,
assurance
that
the
objectives
of the
control
system
are
met.
67
These
inherent
limitations
include
the
realities
that
judgments
in decision-making
can be faulty,
and that breakdowns
can occur
because
of simple
error
or mistake.
For example,
our directors
or executive
officers
could inadvertently
fail
to
disclose
a
new
relationship
or
arrangement
causing
us to fail
to make
any related
party transaction
disclosures.
Additionally,
controls
can
be
circumvented
by
the
individual
acts
of
some
persons,
by collusion
of
two
or
more
people
or by an unauthorized
override
of the
controls.
Accordingly,
because
of the inherent
limitations
in
our
control
system,
misstatements
due
to
error
or fraud
may
occur
and not be detected.
In addition,
we
do
not
have a risk
management
program
or processes
or procedures
for
identifying
and addressing risks
to our business
in other
areas.
We may
be subject
to securities
litigation,
which is
expensive
and could divert
management
attention.
The
market
price
of
our
common
stock
may
be
volatile.
The
stock
market
in
general,
and Nasdaq and biopharmaceutical
companies
in particular,
have experienced
extreme
price
and volume
fluctuations
that have often
been
unrelated
or
disproportionate
to
the
operating
performance
of these
companies.
In the
past,
companies that
have
experienced
volatility
in the
market
price
of their
stock
have been subject
to securities
class
action litigation.
We
may
be
the
target
of
this
type
of
litigation
in
the
future.
Securities
litigation
against
us
could
result in substantial
costs
and divert
our management's
attention
from
other
business
concerns,
which could seriously harm
our business.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Unregistered Sales of Equity Securities
None.
Use of Proceeds
In the third quarter of 2020, we completed our IPO and sold 9,573,750 shares of common stock at an IPO price of $19.00 per share. The offer and sale of all of the shares in the IPO were registered under the Securities Act pursuant to registration statements on Form S-1 (File No. 333-248628), which was declared effective by the SEC on September 24, 2020, as supplemented by a registration statement on Form S-1 filed pursuant to Rule 462(b) (File No. 333-248628). We received net proceeds from the IPO of approximately $166.6 million, after deducting underwriting discounts and commissions of approximately $12.7 million and offering expenses of approximately $2.5 million. Morgan Stanley, Goldman Sachs & Co. LLC and BofA Securities acted as joint book-running managers of the offering and as representatives of the underwriters. None of the expenses associated with the IPO were paid to directors, officers, persons owning 10% or more of any class of equity securities, or to their associates, or to our affiliates.
There has been no material change in the planned use of proceeds from our IPO as described in the prospectus filed with the SEC pursuant to Rule 424(b)(4) under the Securities Act on September 25, 2020.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Mine Safety Disclosures.
Not applicable.
Item 5. Other Information.
None.
68
Item 6. Exhibits.
Furnish the exhibits required by Item 601 of Regulation S-K (§ 229.601 of this chapter).
Exhibit
Number
Description
Form
File No.
Exhibit No.
Exhibit Filing Date
Filed/Furnished Herewith
31.1
Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
X
31.2
Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
X
32.1*
Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
X
32.2*
Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
X
101.INS
Inline XBRL Instance Document
X
101.SCH
Inline XBRL Taxonomy Extension Schema Document.
X
101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
X
101.DEF
Inline XBRL Taxonomy Extension Definition Linkbase Document.
X
101.LAB
Inline XBRL Taxonomy Extension Label Linkbase Document.
X
101.PRE
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
X
104
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
X
*
The certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Form 10-Q and are not deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall they be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act
.
69
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Prelude Therapeutics Incorporated
Date: August 12, 2021
By:
/s/ Krishna Vaddi
Krishna Vaddi, PhD
Chief Executive Officer
(Principal Executive Officer)
Date: August 12, 2021
By:
/s/ Brian Piper
Brian Piper, M.B.A.
Chief Financial Officer
(Principal Accounting Officer)
70