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<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 12pt">
<b>3. Stockholders’ Equity</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
The Company is authorized to issue 151 shares of common stock at
$0.001 par value per share none of which are issued and outstanding
as of inception on April 1, 2020.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial">
<b>2. Summary of Significant Accounting Policies</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 4pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Basis of Preparation</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 2pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial">
The balance sheet is presented in accordance with accounting
principles generally accepted in the United States of America, or
U.S. GAAP. The statements of operations and comprehensive loss,
stockholders’ equity, and cash flows have not been presented
because there have been no activities at inception of this
entity.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 4pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Underwriting Commissions and Offering Costs</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 2pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial">
Underwriting commissions and offering costs to be incurred in
connection with the Company’s common stock offerings will be
reflected as a reduction in
additional <font style="WHITE-SPACE: nowrap">paid-in</font> capital upon
consummation of the equity financing.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 4pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Organizational Costs</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 2pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial">
Organizational costs for costs incurred to organize the Company
will be expensed as incurred.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 12pt">
<b>4. Subsequent Events</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Authorized Share Increase</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
On April 1, 2020 (subsequent to inception), the Company
increased its authorized shares from 151 to 1,519,618,271 shares of
common stock and 9,297,100 Series A convertible preferred stock,
1,108,675 of Series B convertible preferred stock and 11,055,981 of
Series C convertible preferred stock.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Equity Incentive Plan</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
On April 1, 2020 (subsequent to inception), the board of
directors approved a new equity incentive plan, or the 2020 Equity
Incentive Plan or the Plan, that replaced the 2015 Share Award
Scheme. The Plan is for employees, <font style="WHITE-SPACE: nowrap">non-employee</font> directors and consultants
covering 4,379,139 shares of the Company’s common stock and
authorizes the award of stock options, restricted stock awards,
stock appreciation rights and restricted stock units.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Reorganization</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
On April 1, 2020 (subsequent to inception), the Company
consummated the internal reorganization whereby the Company issued
and sold to the existing shareholders of ALX Oncology Limited an
aggregate of 3,166,946 shares of our common stock at purchase
prices per share ranging from $0.007 to $1.91, an aggregate of
9,297,081 shares of our Series A convertible preferred stock at a
purchase price per share of $6.58, an aggregate of 1,016,727 shares
of our Series B convertible preferred stock at a purchase price per
share of $9.4972 and an aggregate of 11,055,966 shares of our
Series C convertible preferred stock at a purchase price per share
of $9.4972, in exchange for promissory notes with an aggregate
principal amount of $176.3 million. The Company also acquired
525,000,000 ordinary shares of ALX Oncology Limited in exchange for
the promissory notes that were acquired in connection with such
issuance and sale of the Company’s capital stock.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Reverse Stock Split</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
On July 8, 2020, the Company’s board of directors
approved an amendment to the Company’s certificate of
incorporation to effect a <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">1-for-6.5806</font></font> reverse split of
its common stock and convertible preferred stock. The par values of
the common stock and convertible preferred stock were not adjusted
as a result of the reverse stock split. All authorized, issued and
outstanding common stock and convertible preferred stock and
related per share amounts contained in the financial statements
have been retroactively adjusted to reflect this reverse stock
split for all periods presented. The reverse stock split was
effected on July 9, 2020.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 4pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial">
<b><i>Basis of Preparation</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: 400; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 2pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial">
The balance sheet is presented in accordance with accounting
principles generally accepted in the United States of America, or
U.S. GAAP. The statements of operations and comprehensive loss,
stockholders’ equity, and cash flows have not been presented
because there have been no activities at inception of this
entity.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 12pt">
<b>1. Organization</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
ALX Oncology Holdings Inc., or the Company, was formed as a
Delaware corporation on April 1, 2020, or Inception. The
Company was formed for the purpose of completing the initial public
offering and related transactions in order to carry on the business
of ALX Oncology Limited. After Inception, ALX Oncology Limited
became a wholly-owned subsidiary of the Corporation as result of
the internal reorganization. As part of the transaction, all of the
equity, option and warrant holders of ALX Oncology Limited became
equity, option and warrant holders of the Company, holding the same
number of corresponding shares, options and/or warrants in the
Company as they did in ALX Oncology Limited immediately prior to
the reorganization.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Organizational Costs</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
Organizational costs for costs incurred to organize the Company
will be expensed as incurred.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Underwriting Commissions and Offering Costs</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
Underwriting commissions and offering costs to be incurred in
connection with the Company’s common stock offerings will be
reflected as a reduction in additional <font style="WHITE-SPACE: nowrap">paid-in</font> capital upon consummation of
the equity financing.</p>
</div>
176300000
525000000
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3583000
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
As of December 31, 2019, the Company’s convertible
preferred stock consisted of the following (in thousands, except
share amounts):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
<tr>
<td width="54%"></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="14" align="center"><b>DECEMBER 31, 2019</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>AUTHORIZED<br />
SHARES</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>SHARES<br />
ISSUED AND<br />
OUTSTANDING</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>NET<br />
PROCEEDS<sup style="FONT-SIZE: 85%; VERTICAL-ALIGN: top">(1)</sup></b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>AGGREGATE<br />
LIQUIDATION<br />
PREFERENCE</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<b>Shares designated as:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Series A convertible preferred stock</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,421,633</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,297,081</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">60,933</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">73,571</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Series B convertible preferred stock</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">2,145,370</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,016,727</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,430</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">10,014</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">11,567,003</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">10,313,808</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">70,363</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">83,585</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td valign="top" width="4%" align="left">(1)</td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt" align="left">Net proceeds are gross proceeds from the offerings net
of issuance costs</p>
</td>
</tr>
</table>
</div>
-660000
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Net Loss Per Share Attributable to Common
Stockholders</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
Basic net loss per share is calculated by dividing the net loss
attributable to common stockholders by the weighted-average number
of shares of common stock outstanding during the period, without
consideration for common stock equivalents. Diluted net loss per
share is the same as basic net loss per share, since the effects of
potentially dilutive securities are antidilutive given the net loss
for each period presented.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The Company applies the <font style="WHITE-SPACE: nowrap">two-class</font> method to compute basic and
diluted net loss per share when it has issued shares that meet the
definition of participating securities. The <font style="WHITE-SPACE: nowrap">two-class</font> method determines net loss
per share for each class of common stock and participating
securities according to dividends declared or accumulated and
participation rights in undistributed earnings. The <font style="WHITE-SPACE: nowrap">two-class</font> method requires net loss
available to common stockholders for the period to be allocated
between common and participating securities based upon their
respective rights to share in the earnings as if all net loss for
the period had been distributed. The Company’s convertible
preferred stock participate in any dividends declared by the
Company and are therefore considered to be participating
securities. The participating securities are not required to
participate in the losses of the Company, and therefore during
periods of loss there is no allocation required under the
<font style="WHITE-SPACE: nowrap">two-class</font> method.</p>
</div>
16819000
200000
0
9126000
3693000
500000
295000
47000
621000
274520000
339000
3693000
S-1
false
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 12pt">
<b>(6) CAPITAL STRUCTURE</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Common Stock</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
Common stock reserved for future issuance, on an as if converted
basis, as of December 31, 2019 and September 30, 2020,
consists of the following:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
<tr>
<td width="75%"></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>DECEMBER 31,<br />
2019</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>SEPTEMBER 30,<br />
2020</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Convertible preferred stock issued and outstanding</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">10,313,808</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Stock options issued and outstanding</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,183,745</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">4,751,589</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Stock options authorized for future issuance</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">566,900</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">2,941,162</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Warrants issued and outstanding</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">61,292</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Warrants authorized for future issuance</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">30,646</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">12,156,391</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">7,692,751</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; MARGIN-TOP: 9px">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Convertible Preferred Stock</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
On July 21, 2020, the Company completed its initial public
offering and issued 9,775,000 shares of common stock for net
proceeds of approximately $169.5 million, after deducting
underwriting discounts and commissions of $13.0 million and
offering-related expenses of $3.2 million. Upon the closing of
the initial public offering, all shares of convertible preferred
stock outstanding and accrued cumulative dividends were
automatically converted into 23,934,533 shares of common stock.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
As of December 31, 2019, the Company’s convertible
preferred stock consisted of the following (in thousands, except
share amounts):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
<tr>
<td width="54%"></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="14" align="center"><b>DECEMBER 31, 2019</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>AUTHORIZED<br />
SHARES</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>SHARES<br />
ISSUED AND<br />
OUTSTANDING</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>NET<br />
PROCEEDS<sup style="FONT-SIZE: 85%; VERTICAL-ALIGN: top">(1)</sup></b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>AGGREGATE<br />
LIQUIDATION<br />
PREFERENCE</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<b>Shares designated as:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Series A convertible preferred stock</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,421,633</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,297,081</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">60,933</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">73,571</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Series B convertible preferred stock</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">2,145,370</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,016,727</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,430</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">10,014</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">11,567,003</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">10,313,808</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">70,363</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">83,585</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td valign="top" width="4%" align="left">(1)</td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt" align="left">Net proceeds are gross proceeds from the offerings net
of issuance costs</p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Preferred Stock Warrant Liability</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
On July 21, 2020, the warrants to purchase 61,292 Series B
convertible preferred stock issued to SVB and WestRiver with an
exercise price of $9.4972 per share were automatically converted to
warrants to purchase 61,292 shares of common stock at an exercise
price of $9.4972 per share. The Company revalued the Series B
convertible preferred stock warrants as of the completion of the
initial public offering and reclassified the outstanding preferred
stock warrant liability balance to additional <font style="WHITE-SPACE: nowrap">paid-in</font> capital with no further
<font style="WHITE-SPACE: nowrap">re-measurement</font> required as
the common stock warrants are considered permanent equity.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
On August 17, 2020, SVB and WestRiver delivered the Notice of
Exercise to net exercise 61,292 warrants at an exercise price of
$9.4972 per share. Accordingly, the Company issued 48,932 shares of
the Company’s common stock.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Dividends</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
Cumulative dividends of 6.0% per annum of the original issue price
for each preferred stock series are payable when and as declared by
the Company’s Board of Directors, or Board of Directors, upon
the occurrence of a liquidation event or upon a contingent
mandatory conversion of the preferred stock in connection with a
qualified initial public offering as described below. The Series A
original issue price is $6.58, and the Series B and Series C
original issue price is $9.4972. The original issue price is
subject to adjustment in the event of any share dividend, share
split, combination, consolidation or other recapitalization. The
dividends shall accrue from day to day from the issue date of such
preferred stock whether or not declared and shall be cumulative. In
addition, the preferred stockholders participate on an <font style="WHITE-SPACE: nowrap">as-converted</font> basis in any dividends
payable to ordinary shareholders. As of July 20, 2020, there
were approximately $18.0 million of accrued cumulative
dividends on the Series A, Series B and Series C convertible
preferred stock, which became payable upon the consummation of the
Company’s initial public offering and automatically converted
into 2,564,759 shares of the Company’s common stock.</p>
</div>
ALX ONCOLOGY HOLDINGS INC
0001810182
Non-accelerated Filer
false
true
false
-32168000
-26966000
-2.67
-2.67
-25838000
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 12pt">
<b>(8) LICENSE AGREEMENT</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<i>Exclusive (Equity) Agreement with The Board of Trustees of the
Leland Stanford Junior University</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
In March 2015, the Company entered into a license agreement, or the
Stanford Agreement, with the Board of Trustees of the Leland
Stanford Junior University, or Stanford, under which the Company
obtained a worldwide, royalty-bearing, sublicensable license under
certain patents relating to the Company’s current product
candidates, to develop, manufacture and commercialize products for
use in certain licensed fields, the scope of which would include
the application of the licensed intellectual property in oncology.
The license granted to the Company in the Stanford Agreement
includes an exclusive grant, subject to certain <font style="WHITE-SPACE: nowrap">pre-existing</font> <font style="WHITE-SPACE: nowrap">non-exclusive</font> or exclusive rights that
Stanford retained for grant to third parties with respect to
certain categories of the licensed patents in certain fields of use
and retained rights by Stanford and all other nonprofit
institutions to use and practice the licensed patents and
technology for internal research and other nonprofit purposes. The
license granted to the Company in the Stanford Agreement also
includes <font style="WHITE-SPACE: nowrap">non-exclusive</font>
grants to certain Stanford patents.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
In consideration for the rights granted to the Company under the
Stanford Agreement, the Company paid Stanford a nonrefundable
license royalty and reimbursed Stanford for past patent expenses,
together totaling less than $0.1 million, and granted Stanford
a specified number of shares of common stock of the Company. In
addition, the Company is obligated to pay Stanford ongoing patent
expenses and an annual license maintenance fee, which are nominal
and will be creditable against any royalties payable to Stanford in
the applicable year. The Company is required to make milestone
payments up to an aggregate of $5.0 million in respect of a
specified number of licensed products that successfully satisfy
certain clinical and regulatory milestones. No milestone payments
have been made through September 30, 2020. The Company also
agreed to pay Stanford tiered royalties on a specified percentage
of net sales made by the Company, its affiliates and its
sublicensees of licensed products at rates ranging within low
single-digit percentages, subject to certain reductions and
offsets. The license, on a licensed <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">product-by-licensed</font></font> product and
<font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">country-by-country</font></font> basis, shall
become royalty-free and fully <font style="WHITE-SPACE: nowrap">paid-up</font> upon the later of the date on
which the last valid claim included in the exclusively or
<font style="WHITE-SPACE: nowrap">non-exclusively</font> licensed
patents expires and ten years after the first commercial sale of
the licensed product in such country.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The Company may terminate the Stanford Agreement, on a licensed
<font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">product-by-licensed</font></font> product
basis, at any time for any reason by providing at least 60
days’ written notice to Stanford. Stanford may terminate the
Stanford Agreement, if the Company is in breach of any provision of
the Stanford Agreement and fails to remedy such breach within 60
days after written notice of such breach by Stanford. In addition,
Stanford has the right to terminate the Stanford Agreement, on a
licensed <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">product-by-licensed</font></font> product
basis, if the Company is not diligently developing and
commercializing such licensed product under certain conditions or
if the Company fails to achieve specified development milestones
for such licensed product by certain dates, subject to the
Company’s extension rights.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<i>Commercial License Agreement with Selexis SA</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
In June 2016, the Company entered into a license agreement with
Selexis SA, or Selexis, under which the Company obtained a
worldwide, royalty-bearing, sublicensable license under certain
patents, <font style="WHITE-SPACE: nowrap">know-how</font> and
other intellectual property, to use Selexis generated cell lines to
manufacture ALX148 and to make, use and sell licensed product
containing such compound in all fields of use. The rights granted
under this agreement include the rights to grant sublicenses to
contractors or other collaboration partners, in each case to
develop production processes or manufacture licensed product
containing ALX148.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
In consideration for the rights granted to the Company under the
agreement, the Company paid Selexis a nominal <font style="WHITE-SPACE: nowrap">one-time</font> fee and will pay Selexis an
annual maintenance fee. The Company also agreed to pay Selexis
milestone payments up to an aggregate of 1.2 million Swiss
Francs in respect of all licensed products developed and/or
commercialized under the grant that successfully satisfies certain
milestone events. The Company also agreed to pay Selexis a flat
royalty of a very low single-digit percentage on net sales made by
the Company, its affiliates and sublicensees of products. This
royalty obligation, on a <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">product-by-product</font></font> and
<font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">country-by-country</font></font> basis, shall
terminate and become fully <font style="WHITE-SPACE: nowrap">paid-up</font> upon the passing of ten years
after the first commercial sale of the product in such country, or
the Company’s exercise of the royalty buyout option
exercisable at any time prior to the first commercial sale of a
licensed product.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The Company may terminate the license agreement at any time for any
reason with at least 60 days’ written notice to Selexis.
Either party may terminate the license agreement if the other party
enters into a bankruptcy event or in the event of a material breach
of the agreement (that cannot be cured or remains uncured for 60
days after the date that the defaulting party is provided with
written notice of such breach). The Company’s obligations to
pay royalties that are accrued or accruable will survive any
termination of the agreement, and in certain circumstances the
licenses granted under the agreement will terminate unless they
have become fully paid up as described in the previous
paragraph.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<i>Commercial Antibody Agreement with Crystal Bioscience Inc. (Now
a Subsidiary of Ligand Pharmaceuticals Incorporated)</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
In March 2017, the Company entered into an agreement with Crystal
Bioscience Inc. (now a subsidiary of Ligand Pharmaceuticals
Incorporated), or Crystal, under which the Company obtained an
assignment of certain patents, covering certain SIRP<font style="FONT-FAMILY: Times New Roman"><font style="FONT-FAMILY: SYMBOL">a</font></font> antibodies. Under this
agreement, the Company also received a worldwide, royalty-bearing
<font style="WHITE-SPACE: nowrap">non-exclusive</font> license,
with the right to grant sublicenses through multiple tiers of
sublicenses, under certain of Crystal’s background patents
and <font style="WHITE-SPACE: nowrap">know-how</font> necessary to
commercialize the rights under the assigned patents.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
In consideration for the rights granted to the Company under the
agreement, it agreed to pay Crystal milestone payments up to
$11.1 million in respect of all licensed products developed
under the assigned patents, that successfully satisfy certain
clinical and regulatory milestones, each milestone being paid only
once for all products. The Company also agreed to pay Crystal
tiered royalties on net sales made by the Company, its affiliates
and sublicensees of products at rates ranging within low
single-digit percentages, subject to certain potential reductions.
This royalty obligation, on a <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">product-by-product</font></font> and
<font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">country-by-country</font></font> basis, shall
terminate and become fully <font style="WHITE-SPACE: nowrap">paid-up</font> upon the later of the date on
which the last valid claim included in the licensed patents expires
and ten years after the first commercial sale of the product in
such country.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The Company agreed to use commercially reasonable efforts to
develop and commercialize licensed products, including meeting
defined development milestones by certain specified dates.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The Company may terminate the agreement at any time for any reason
with at least 60 days’ written notice to Crystal. Either
party may terminate the agreement if the other party enters into a
bankruptcy event or in the event of material breach of the
agreement (that remains uncured for 60 days after the date that it
is provided with written notice of such breach). The
Company’s obligations to pay royalties and milestone payments
which accrued <font style="WHITE-SPACE: nowrap">pre-termination</font> or accrue
post-termination will survive any termination.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 12pt">
<b>(11) COMMITMENTS AND CONTINGENCIES</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<i>Guarantees and Indemnifications</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
In the normal course of business, the Company enters into contracts
and agreements that contain a variety of representations and
warranties and provide for general indemnifications. The
Company’s exposure under these agreements is unknown because
it involves claims that may be made against the Company in the
future but have not yet been made. To date, the Company has not
paid any claims or been required to defend any action related to
its indemnification obligations. However, the Company may record
charges in the future as a result of these indemnification
obligations. The Company also has indemnification obligations to
its officers and directors for specified events or occurrences,
subject to some limits, while they are serving at the
Company’s request in such capacities. There have been no
claims to date and the Company has director and officer insurance
that may enable the Company to recover a portion of any amounts
paid for future potential claims. The Company believes the fair
value of these indemnification agreements is minimal. Accordingly,
the Company has not recorded any liabilities for these agreements
as of September 30, 2020.</p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; MARGIN-TOP: 4px">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt">
<i>Contingencies</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
From time to time, the Company may be a party to various claims in
the normal course of business. Legal fees and other costs
associated with such actions will be expensed as incurred. The
Company will assess, in conjunction with its legal counsel, the
need to record a liability for litigation and contingencies.
Reserve estimates will be recorded when and if it is determined
that a loss related matter is both probable and reasonably
estimable. For the nine months ended September 30, 2020 the
Company had no pending or threatened litigation.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<i>Contractual Obligations and Other Commitments</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company has contractual obligations from its operating lease,
manufacturing and service contracts, Term Loan, and other research
and development activities. The following table aggregates the
Company’s material expected contractual obligations and
commitments as of September 30, 2020 (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
<tr>
<td width="55%"></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="18" align="center"><b>SEPTEMBER 30, 2020</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>TOTAL</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2020<sup style="FONT-SIZE: 85%; VERTICAL-ALIGN: top">(4)</sup></b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b><font style="WHITE-SPACE: nowrap">2021 - 2022</font></b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b><font style="WHITE-SPACE: nowrap">2023 - 2024</font></b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>THEREAFTER</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Operating lease obligations<sup style="FONT-SIZE: 85%; VERTICAL-ALIGN: top">(1)</sup></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">380</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">34</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">284</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">62</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Manufacturing and service contracts<sup style="FONT-SIZE: 85%; VERTICAL-ALIGN: top">(2)</sup></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">7,622</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">6,238</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,384</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Term loan<sup style="FONT-SIZE: 85%; VERTICAL-ALIGN: top">(3)</sup></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">6,856</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">106</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">6,750</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">14,858</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">6,378</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">8,418</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">62</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td valign="top" width="4%" align="left"><i>(1)</i></td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt" align="left"><i>Payments due for the office space in Burlingame,
California under a single operating <font style="WHITE-SPACE: nowrap">sub-lease</font> agreement that expires in
2023.</i></p>
</td>
</tr>
</table>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td valign="top" width="4%" align="left"><i>(2)</i></td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt" align="left"><i>In November 2015, the Company entered into a Master
Service Agreement, or the MSA, with KBI Biopharma, Inc. relating to
formulation development, process development and cGMP manufacturing
of ALX148 for use in clinical trials on a project basis. The MSA
had an initial term of three years with successive <font style="WHITE-SPACE: nowrap">one-year</font> renewal periods, is
cancellable upon notice and is <font style="WHITE-SPACE: nowrap">non-exclusive.</font> Statements of work
under the MSA commit the Company to certain purchase obligations of
approximately $7.5 million. In addition, the Company has
commitments with a second drug product manufacturer that commits
the Company to certain purchase obligations of approximately
$0.1 million. These amounts are based on <font style="WHITE-SPACE: nowrap">non-cancellable</font> commitments and
forecasts that include estimates of future market demand, quantity
discounts and manufacturing efficiencies that may impact timing of
purchases.</i></p>
</td>
</tr>
</table>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td valign="top" width="4%" align="left"><i>(3)</i></td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt" align="left"><i>On December 20, 2019, the Company borrowed a
loan pursuant to the Loan Agreement. See Note 5 to these condensed
consolidated financial statements for additional details.</i></p>
</td>
</tr>
</table>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td valign="top" width="4%" align="left"><i>(4)</i></td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt" align="left"><i>Remaining three months.</i></p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The Company enters into contracts in the normal course of business
with various third parties for clinical trials, preclinical
research studies and testing, manufacturing and other services and
products for operating purposes. These contracts generally provide
for termination upon notice. Payments due upon cancellation consist
only of payments for services provided or expenses incurred,
including <font style="WHITE-SPACE: nowrap">non-cancellable</font>
obligations of our service providers, up to the date of
cancellation. These payments are not included in the table of
contractual obligations above.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<i>Facilities</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
In 2017, the Company entered into a lease agreement for office
space for a period of five years and four months, commencing
February 1, 2018 and ending May 31, 2023.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
In July 2020, the Company (i) assigned to Tallac Therapeutics
(Note 9) the Company’s lease with respect to the premises
located at 866 Malcolm Road, Burlingame, California, and
(ii) received a <font style="WHITE-SPACE: nowrap">sub-lease</font> for premises from Tallac
Therapeutics.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
Minimum rent payments under operating leases are recognized on a
straight-line basis over the term of the lease including any
periods of free rent. Rent expense was $0.2 million and
$0.1 million for the three months ended September 30,
2019 and 2020, respectively, and $0.6 million and
$0.5 million for the nine months ended September 30, 2019
and 2020, respectively. <font style="WHITE-SPACE: nowrap">Sub-lease</font> expenses are recorded within
rent expense.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt">
<b>(5) TERM LOAN</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
The Company’s wholly-owned subsidiaries Alexo Therapeutics
International and Sirpant Therapeutics, as borrowers, entered into
a Loan and Security Agreement, or the Loan Agreement, dated as of
December 20, 2019, with SVB and WestRiver, collectively as
lenders, and SVB, as administrative agent and collateral agent.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
As a result of the internal reorganization, in May 2020 the Company
entered into a Joinder and First Amendment to the Loan and Security
Agreement, or the Joinder Amendment, and Amended and Restated
Warrants to Purchase Stock, or the Amended Warrants. The purpose
for entering into the Joinder Amendment was to add the newly
established ALX Oncology Holdings Inc. as additional borrower to
the Term Loan. Concurrently, the Company modified the Amended
Warrants to change the issuer from ALX Oncology Limited to ALX
Oncology Holdings Inc. The Company accounted for the First
Amendment to the Loan and Security Agreement as a modification.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The Loan Agreement provides for term loans in an aggregate
principal amount of up to $10.0 million funded in two
tranches, subject to the satisfaction of a certain milestone. The
first tranche, in the amount of $6.0 million, was funded on
the closing date of the Loan Agreement in December 2019. A second
tranche of $4.0 million was available on or before
March 31, 2020, upon the Company’s achievement of an
equity financing resulting in net cash proceeds in an amount of at
least $30.0 million to the Company. The Company elected not to
draw down on the second tranche, which is no longer available.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The loans under the Loan Agreement bear interest at a floating per
annum interest rate equal to the greater of 7.0% or 2.0% plus the
prime rate as reported in The Wall Street Journal. The Wall Street
Journal prime rate was 3.25% as of September 30, 2020.
Therefore, the rate applicable to the Company as of
September 30, 2020 was 7.0%.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The Company is required to make interest-only payments for the
first 12 months after the closing of the Loan Agreement, followed
by consecutive equal monthly payments of principal and interest
commencing on January 1, 2021 and continuing through the
maturity date of September 1, 2022. The Loan Agreement also
provides for a final payment equal to 6.0% multiplied by the
aggregate principal amount of the term loans funded, which is due
on the maturity date, upon the acceleration of the term loans, or
upon prepayment of the term loans. If the Company elects to prepay
the term loans, there is also a prepayment fee of between 1.0% and
3.0% of the principal amount being prepaid depending on the timing
and circumstances of prepayment.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
In conjunction with the Loan Agreement, the Company has issued
warrants to purchase 61,292 Series B convertible preferred stock to
SVB and WestRiver with an exercise price of $9.4972 per share.
Following the Company’s initial public offering, these
warrants were automatically converted to warrants to purchase
61,292 shares of common stock at an exercise price of $9.4972 per
share. The estimated fair value of the warrants at the date of
issuance was approximately $0.4 million. The Company revalued
the Series B convertible preferred stock warrants as of the
completion of the initial public offering and reclassified the
outstanding preferred stock warrant liability balance of
$1.0 million to additional <font style="WHITE-SPACE: nowrap">paid-in</font> capital with no further
<font style="WHITE-SPACE: nowrap">re-measurement</font> required as
the common stock warrants are considered permanent equity effective
July 16, 2020. The fair value of the common stock warrant was
determined using a Black-Scholes option-pricing model with the
following assumptions: an expected term of 9.8 years, a volatility
of 84.2%, a dividend rate of zero and a risk-free rate of 0.6%. The
changes in fair value in warrant liability was recognized as a
component of other expense, net in the accompanying condensed
consolidated statement of operations and comprehensive loss. On
August 17, 2020, SVB and WestRiver delivered the Notice of
Exercise for net exercise of 61,292 warrants at an exercise price
of $9.4972 per share. Accordingly, the Company issued 48,932 shares
of the Company’s common stock (Note 6).</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The loans under the Loan Agreement are secured by substantially all
of the Company’s assets, except the Company’s
intellectual property, which is the subject of a negative
pledge.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The Company determined that certain loan features were embedded
derivatives requiring bifurcation and separate accounting. Those
embedded derivatives were bundled together as a single, compound
embedded derivative and then bifurcated and accounted for
separately from the host contract. The Company recorded a term loan
compound derivative liability of approximately $51,000 which will
be <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">marked-to-market</font></font> in future
periods. The Company calculated the fair value of the compound
derivative by computing the difference between the fair value of
the term loan with the compound derivative using the “with
and without” method under the income approach, and the fair
value of the term loan without the compound derivative. The Company
calculated the fair values using a probability-weighted discounted
cash flow analysis. The key valuation assumptions used consist of
the discount rate and the probability of the occurrence of a change
in control event. The term loan compound derivative liability is
being <font style="WHITE-SPACE: nowrap">re-measured</font> at each
financial reporting period with any changes in fair value being
recognized as a component of other expense, net in the condensed
consolidated statement of operations and comprehensive loss. As of
September 30, 2020, the fair value of the compound derivative
liability was approximately $43,000 and was recorded in other
<font style="WHITE-SPACE: nowrap">non-current</font> liabilities on
the condensed consolidated balance sheets.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The fair value of Series B convertible preferred stock warrant
liability at issuance, fair value of embedded derivatives which
were bifurcated and other debt issuance costs have been treated as
debt discounts on the Company’s condensed consolidated
balance sheet and together with the final payment are being
amortized to interest expense throughout the life of the term loan
using the effective interest rate method.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
As of September 30, 2020, there were unamortized issuance
costs and debt discounts of $0.2 million, which were recorded
as a direct deduction from the term loan on the condensed
consolidated balance sheet. Interest expense for the term loan was
$0.3 million and $0.7 million for the three and nine
months ended September 30, 2020, respectively.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The following table presents future payments of principal and
interest as of September 30, 2020 (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
<tr>
<td width="86%"></td>
<td valign="bottom" width="8%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>SEPTEMBER 30,<br />
2020</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
2020 (remaining three months)</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">106</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
2021</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">3,743</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
2022</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">3,007</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top"></td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">6,856</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: amount representing interest</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(496</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: amount representing final payment</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(360</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Term loan, principal amount</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">6,000</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: unamortized issuance costs and debt discounts</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(240</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: current portion</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(2,571</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<font style="WHITE-SPACE: nowrap">Non-current</font> portion of
term loan</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">3,189</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
-24674000
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
The following table sets forth the computation of the basic and
diluted net loss per share attributable to common stockholders (in
thousands, except share and per share data):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
<tr>
<td width="53%"></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>THREE MONTHS ENDED<br />
SEPTEMBER 30,</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>NINE MONTHS ENDED<br />
SEPTEMBER 30,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2019</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2020</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2019</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2020</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Numerator:</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Net loss</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(3,044</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(10,181</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(11,479</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(26,966</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: cumulative preferred dividends allocated to preferred
stockholders</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(1,071</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(578</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(2,957</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(5,202</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Net loss attributable to common stockholders</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(4,115</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(10,759</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(14,436</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(32,168</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Denominator:</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Weighted-average shares of common stock outstanding</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">3,100,544</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">29,664,122</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">3,061,082</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">12,052,876</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Net loss per share attributable to common stockholders, basic and
diluted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(1.33</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(0.36</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(4.72</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(2.67</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The following table sets forth the Company’s financial
liabilities that are measured at fair value on a recurring basis by
level within the fair value hierarchy (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
<tr>
<td width="66%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="14" align="center"><b>AS OF DECEMBER 31,
2019</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>LEVEL 1</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>LEVEL 2</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>LEVEL 3</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>FAIR VALUE</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<b>Financial liabilities</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<u><font style="WHITE-SPACE: nowrap">Non-current</font>
liabilities</u></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Compound derivative liability</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">51</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">51</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Warrant liability</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">361</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">361</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="12"></td>
<td height="12" colspan="16"></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="14" align="center"><b>AS OF SEPTEMBER 30,
2020</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>LEVEL 1</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>LEVEL 2</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>LEVEL 3</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>FAIR VALUE</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<b>Financial assets</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<u>Cash equivalents</u></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Money market funds</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">90,114</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">90,114</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<b>Financial liabilities</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<u><font style="WHITE-SPACE: nowrap">Non-current</font>
liabilities</u></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Compound derivative liability</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">43</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">43</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
</table>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The following table presents future payments of principal and
interest as of September 30, 2020 (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
<tr>
<td width="86%"></td>
<td valign="bottom" width="8%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>SEPTEMBER 30,<br />
2020</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
2020 (remaining three months)</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">106</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
2021</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">3,743</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
2022</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">3,007</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top"></td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">6,856</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: amount representing interest</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(496</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: amount representing final payment</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(360</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Term loan, principal amount</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">6,000</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: unamortized issuance costs and debt discounts</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(240</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: current portion</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(2,571</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<font style="WHITE-SPACE: nowrap">Non-current</font> portion of
term loan</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">3,189</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
Total stock-based compensation expense recognized in the condensed
consolidated statements of operations and comprehensive loss was as
follows (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
<tr>
<td width="66%"></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>THREE MONTHS ENDED<br />
SEPTEMBER 30,</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>NINE MONTHS ENDED<br />
SEPTEMBER 30,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>    2019    </b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>    2020    </b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>    2019    </b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>    2020    </b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Research and development</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">25</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(359</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">79</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">2,008</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
General and administrative</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">10</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,048</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">24</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,685</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Cost of services for related-party revenue</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">
     51</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">   119</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top"></td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">86</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">689</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">222</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">3,693</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
172724000
36228000
299000
250467000
0
0
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>New Accounting Pronouncements Recently Adopted</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
In June 2016, the FASB issued ASU <font style="WHITE-SPACE: nowrap">No. 2016-13,</font> Financial
Instruments-Credit Losses (Topic 326), which requires entities to
measure all expected credit losses for financial assets held at the
reporting date based on historical experience, current conditions,
and reasonable and supportable forecasts. This replaces the
existing incurred loss model and is applicable to the measurement
of credit losses on financial assets measured at amortized cost.
The Company early adopted this guidance on January 1, 2020.
The adoption of this guidance did not have a material impact on the
Company’s condensed consolidated financial statements.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
In September 2018, the FASB issued ASU <font style="WHITE-SPACE: nowrap">No. 2018-13,</font> Fair Value
Measurement (Topic 820): Disclosure Framework—Changes to the
Disclosure Requirements for Fair Value Measurement. The FASB issued
final guidance that eliminates, adds and modifies certain
disclosure requirements for fair value measurements as part of its
disclosure framework project. Under the ASU, entities will no
longer be required to disclose the amount of transfers between
Level 1 and Level 2 of the fair value hierarchy. Public
companies will be required to disclose changes in unrealized gains
and losses for the period included in other comprehensive income
for recurring Level 3 fair value measurements held at the end
of the reporting period and the range and weighted average used to
develop significant unobservable inputs for Level 3 fair value
measurements. ASU <font style="WHITE-SPACE: nowrap">2018-13</font>
is effective for public business entities for annual reporting
periods, and interim periods within those annual periods, beginning
after December 15, 2019, with early adoption permitted. The
Company adopted this guidance on January 1, 2020. The adoption
of ASU <font style="WHITE-SPACE: nowrap">2018-13</font> did not
have a material impact on its condensed consolidated financial
statements.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Property and Equipment</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
Property and equipment are stated at cost less accumulated
depreciation. Depreciation of property and equipment is provided
using the straight-line method over the estimated useful lives of
the assets. Upon sale or retirement of assets, the cost and related
accumulated depreciation or amortization are removed from the
condensed consolidated balance sheet and the resulting gain or loss
is reflected in the condensed consolidated statement of operations
and comprehensive loss. Maintenance and repairs are charged to the
condensed consolidated statement of operations and comprehensive
loss as incurred.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Research and Development Costs</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
Research and development costs are expensed as incurred and consist
primarily of salaries and benefits, stock-based compensation
expense, lab supplies and facility costs, as well as fees paid to
nonemployees and entities that conduct certain research and
development activities on behalf of the Company and expenses
incurred in connection with license agreements (Note 8).
Nonrefundable advance payments for goods or services to be received
in the future for use in research and development activities are
capitalized and recorded in prepaid expenses and other current
assets, and then expensed as the related goods are delivered or the
services are performed.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Revenue Recognition</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
To date, the Company has derived revenue from providing research
and development services on a time and materials basis to a
related-party.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The Company recognizes such revenues over time as services are
delivered, and invoices the customer as the work is incurred in
arrears.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The Company recognizes revenue when its customer obtains control of
promised goods or services, in an amount that reflects the
consideration which the Company expects to receive in exchange for
those goods or services.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
To determine revenue recognition for arrangements that the Company
determines are within the scope of Topic 606, the Company performs
the following five steps: (i) identify the contract(s) with a
customer; (ii) identify the performance obligations in the
contract; (iii) determine the transaction price;
(iv) allocate the transaction price to the performance
obligations in the contract; and (v) recognize revenue when
(or as) the Company satisfies a performance obligation.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
As part of the Company’s consideration as to whether the
Company has entered into a contract with a customer, it considers
whether it is probable that it will collect the consideration it is
entitled to in exchange for the goods and services it transfers to
the customer. At contract inception, the Company assesses the goods
or services promised within each contract that falls under the
scope of Topic 606, determines those that are performance
obligations, and assesses whether each promised good or service is
distinct. The Company then recognizes as revenue the amount of the
transaction price that is allocated to the respective performance
obligation when (or as) the performance obligation is
satisfied.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt">
<b><i>Segment Reporting</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company manages its operations as a single operating segment
for the purposes of assessing performance and making operating
decisions.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Stock-based Compensation Expense</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company accounts for stock-based compensation by measuring and
recognizing compensation expense for all stock-based payments made
to employees, directors and <font style="WHITE-SPACE: nowrap">non-employees</font> based on estimated
grant-date fair values. The Company uses the straight-line method
to allocate compensation expense to reporting periods over each
optionee’s requisite service period, which is generally the
vesting period, and estimates the fair value of stock-based awards
to employees and directors using the Black-Scholes option-pricing
model. The Black-Scholes model requires the input of subjective
assumptions, including expected volatility, expected dividend
yield, expected term, risk-free rate of return and the estimated
fair value of the underlying common stock on the date of grant. The
Company accounts for the effect of forfeitures as they occur.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Convertible Preferred Stock</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company records convertible preferred stock net of issuance
costs on the dates of issuance, which represents the carrying
value. In the event of a change of control of the Company, proceeds
will be distributed in accordance with the liquidation preferences
set forth in its organization documents unless the holders of
convertible preferred stock have converted their convertible
preferred stock into common stock. Convertible preferred stock are
classified outside of stockholders’ equity (deficit) on the
accompanying condensed consolidated balance sheets as events
triggering the liquidation preferences are not solely within the
Company’s control. The Company has elected not to adjust the
carrying values of the convertible preferred stock to the
liquidation preferences of such shares because of the uncertainty
of whether or when such an event would occur. Upon the consummation
of the Company’s initial public offering in July 2020, all
shares of convertible preferred stock outstanding and accrued
cumulative dividends automatically converted into 23,934,533 shares
of common stock.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Use of Estimates</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The preparation of the condensed consolidated financial statements
in conformity with U.S. GAAP requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at
the date of the condensed consolidated financial statements and the
reported amounts of revenues and expenses during the reporting
periods. On an ongoing basis, management evaluates its estimates,
including those related to the estimated useful lives of long-lived
assets, clinical trial accruals, fair value of assets and
liabilities, Series B convertible preferred stock warrant
liability, term loan compound derivative liability, term loan,
valuation of the Company’s common stock, income taxes and
stock-based compensation. Management bases its estimates on
historical experience and on various other market-specific and
relevant assumptions that management believes to be reasonable
under the circumstances. Actual results could differ from those
estimates.</p>
</div>
-5202000
5202000
12052876
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The following table is a reconciliation of all financial
liabilities measured at fair value using Level 3 unobservable
inputs (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
<tr>
<td width="81%"></td>
<td valign="bottom" width="6%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="6%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>WARRANT<br />
LIABILITY</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>COMPOUND<br />
DERIVATIVE<br />
LIABILITY</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Fair value at December 31, 2019</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">361</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">51</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Change in fair value</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">658</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(8</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Reclassification to equity</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(1,019</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">
        —</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Fair value at September 30, 2020</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">43</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The following table presents the components of property and
equipment, net as of December 31, 2019 and September 30, 2020
(in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
<tr>
<td width="75%"></td>
<td valign="bottom" width="9%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="9%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>DECEMBER 31,<br />
2019</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>SEPTEMBER 30,<br />
2020</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Computer hardware and software</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">146</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">74</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Machinery and equipment</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,698</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">40</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Furniture and fixtures</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">36</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Leasehold improvements</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">429</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">19</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top"></td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">2,309</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">
      142</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: accumulated depreciation and amortization</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(1,449</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(97</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total property and equipment, net</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">860</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">45</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company has contractual obligations from its operating lease,
manufacturing and service contracts, Term Loan, and other research
and development activities. The following table aggregates the
Company’s material expected contractual obligations and
commitments as of September 30, 2020 (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
<tr>
<td width="55%"></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="18" align="center"><b>SEPTEMBER 30, 2020</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>TOTAL</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2020<sup style="FONT-SIZE: 85%; VERTICAL-ALIGN: top">(4)</sup></b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b><font style="WHITE-SPACE: nowrap">2021 - 2022</font></b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b><font style="WHITE-SPACE: nowrap">2023 - 2024</font></b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>THEREAFTER</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Operating lease obligations<sup style="FONT-SIZE: 85%; VERTICAL-ALIGN: top">(1)</sup></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">380</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">34</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">284</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">62</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Manufacturing and service contracts<sup style="FONT-SIZE: 85%; VERTICAL-ALIGN: top">(2)</sup></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">7,622</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">6,238</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,384</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Term loan<sup style="FONT-SIZE: 85%; VERTICAL-ALIGN: top">(3)</sup></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">6,856</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">106</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">6,750</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">14,858</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">6,378</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">8,418</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">62</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td valign="top" width="4%" align="left"><i>(1)</i></td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt" align="left"><i>Payments due for the office space in Burlingame,
California under a single operating <font style="WHITE-SPACE: nowrap">sub-lease</font> agreement that expires in
2023.</i></p>
</td>
</tr>
</table>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td valign="top" width="4%" align="left"><i>(2)</i></td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt" align="left"><i>In November 2015, the Company entered into a Master
Service Agreement, or the MSA, with KBI Biopharma, Inc. relating to
formulation development, process development and cGMP manufacturing
of ALX148 for use in clinical trials on a project basis. The MSA
had an initial term of three years with successive <font style="WHITE-SPACE: nowrap">one-year</font> renewal periods, is
cancellable upon notice and is <font style="WHITE-SPACE: nowrap">non-exclusive.</font> Statements of work
under the MSA commit the Company to certain purchase obligations of
approximately $7.5 million. In addition, the Company has
commitments with a second drug product manufacturer that commits
the Company to certain purchase obligations of approximately
$0.1 million. These amounts are based on <font style="WHITE-SPACE: nowrap">non-cancellable</font> commitments and
forecasts that include estimates of future market demand, quantity
discounts and manufacturing efficiencies that may impact timing of
purchases.</i></p>
</td>
</tr>
</table>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td valign="top" width="4%" align="left"><i>(3)</i></td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt" align="left"><i>On December 20, 2019, the Company borrowed a
loan pursuant to the Loan Agreement. See Note 5 to these condensed
consolidated financial statements for additional details.</i></p>
</td>
</tr>
</table>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td valign="top" width="4%" align="left"><i>(4)</i></td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt" align="left"><i>Remaining three months.</i></p>
</td>
</tr>
</table>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The following outstanding potentially dilutive securities were
excluded from the computation of diluted net loss per share for the
three and nine months ended September 30, 2019 and 2020,
because including them would have been anti-dilutive:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
<tr>
<td width="77%"></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>SEPTEMBER 30,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2019</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2020</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Convertible preferred stock</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">10,313,808</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Common stock subject to repurchase</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">53,070</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">253</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Options issued and outstanding</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,206,690</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">4,751,589</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">11,573,568</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">4,751,842</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
409000
700000
On July 8, 2020, the Company's board of directors approved an amendment to the Company's certificate of incorporation to effect a 1-for-6.5806 reverse split of its common stock and convertible preferred stock.
27020000
-26907000
59000
12052876
4751842
197000
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Foreign Currency Transactions</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The functional currency of the Company’s operation and each
of its subsidiaries is U.S. dollars. All assets and liabilities
denominated in a foreign currency are translated into U.S. dollars
at the exchange rate prevailing on the balance sheet date. Expenses
are translated at the average exchange rates prevailing during the
applicable period. Foreign currency transaction gains and losses
are included in the consolidated statement of operations and
comprehensive loss and recorded in other expense, net, and were
immaterial for the three and nine months ended September 30,
2019 and 2020, respectively.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Impairment of Long-Lived Assets</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company reviews property and equipment for impairment whenever
events or changes in circumstances indicate that the carrying
amount of an asset may not be recoverable. Recoverability is
measured by comparison of the carrying amount to the future
undiscounted net cash flows which the asset or asset group are
expected to generate. If such assets are considered to be impaired,
the impairment to be recognized is measured as the amount by which
the carrying amount of the assets exceeds its fair value. Fair
value is determined using various valuation techniques including
discounted cash flow models, quoted market values and third-party
independent appraisals, as considered necessary. There were no
impairment charges recognized in the three and nine months ended
September 30, 2019 and 2020.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Income Taxes</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company accounts for income taxes under the asset and liability
method, which requires the recognition of deferred tax assets and
liabilities for the expected future tax consequences of events that
have been included in the condensed consolidated financial
statements. Under this method, deferred tax assets and liabilities
are determined on the basis of the differences between the
condensed consolidated financial statement carrying amounts and tax
bases of assets and liabilities using enacted tax rates in effect
for the period in which the temporary differences are expected to
reverse. The effect of a change in tax rates on deferred tax assets
and liabilities is recognized in the condensed consolidated
statements of operations and comprehensive loss in the period that
includes the enactment date. The Company recognizes deferred tax
assets to the extent that it believes these assets are more likely
than not to be realized. In making such a determination, the
Company considers all available positive and negative evidence,
including future reversals of existing taxable temporary
differences, projected future taxable income, <font style="WHITE-SPACE: nowrap">tax-planning</font> strategies and results of
recent operations. If the Company determines that it would be able
to realize its deferred tax assets in the future in excess of their
net recorded amount, it would make an adjustment to the deferred
tax asset valuation allowance, which would reduce the provision for
income taxes. The Company recognizes benefits of uncertain tax
positions if it is more likely than not that such positions will be
sustained upon examination based solely on their technical merits,
as the largest amount of benefit that is more likely than not to be
realized upon the ultimate settlement. The Company’s policy
is to recognize interest and penalties related to the underpayment
of income taxes as a component of income tax expense or
benefit.</p>
</div>
0
0
-26966000
1075000
-9000
3000
175043000
1995000
-5000
20000
641000
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 12pt">
<b>(7) STOCK-BASED COMPENSATION</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>2020 Amended and Restated Equity Incentive Plan</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
On April 1, 2020, the board of directors approved a new equity
incentive plan, or the 2020 Equity Incentive Plan, that replaced
the 2015 Share Award Scheme.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
In July 2020, the Company adopted the Amended and Restated 2020
Equity Incentive Plan, or the 2020 Plan. The 2020 Plan replaced the
Company’s 2020 Equity Incentive Plan and a total of 7,874,862
shares were reserved under the 2020 Plan.</p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; MARGIN-TOP: 4px">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt">
<b><i>Stock Option Modification</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
In connection with the transfer of employees to Tallac
Therapeutics, Dr. Hong Wan, the Company’s former Chief
Scientific Officer, and eight of the Company’s employees, or
Transferred Employees, terminated their employment with the Company
effective as of June 30, 2020 and became employees of Tallac
Therapeutics effective as of July 1, 2020. The options to
purchase shares of the Company’s common stock that were
previously granted to the Transferred Employees will continue to
vest and be exercisable subject to the Transferred Employees
remaining service providers under the original terms of the award.
The Company evaluated the change in status from an employee to a
consultant in accordance with ASC 718. While the Company concluded
that the change in status did not affect the vesting condition or
the classification of the initial awards, the significant reduction
in the level of services that the grantees were expected to provide
under the original awards as compared to the level of services
expected under the Tallac Services Agreement will no longer meet
the substantive service condition requirements and therefore the
compensation cost for the unvested awards was recognized
immediately with no future service requirement. The Company
recorded $2.3 million in stock-based compensation expenses
related to the modification for the three months ended
June 30, 2020.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
In September 2020, in connection with the resignation of the
Company’s former Chief Business Officer and the entry into a
consulting agreement with him, the Company evaluated the change in
status from an employee to a consultant in accordance with ASC 718.
While the Company concluded that the change in status did not
affect the vesting condition or the classification of the initial
awards, the significant reduction in the level of services that the
grantee was expected to provide under the original awards as
compared to the level of services expected under the consulting
agreement will no longer meet the substantive service condition
requirements and therefore the compensation expense for the
unvested awards expected to vest during the consultancy was
recognized immediately with no future service requirement. The
Company recorded $0.2 million in stock-based compensation
expenses related to the modification for the three months ended
September 30, 2020.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Stock-based Compensation Expense</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
Total stock-based compensation expense recognized in the condensed
consolidated statements of operations and comprehensive loss was as
follows (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
<tr>
<td width="66%"></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>THREE MONTHS ENDED<br />
SEPTEMBER 30,</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>NINE MONTHS ENDED<br />
SEPTEMBER 30,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>    2019    </b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>    2020    </b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>    2019    </b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>    2020    </b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Research and development</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">25</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(359</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">79</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">2,008</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
General and administrative</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">10</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,048</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">24</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,685</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Cost of services for related-party revenue</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">
     51</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">   119</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top"></td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">86</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">689</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">222</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">3,693</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt">
<b>(2) SIGNIFICANT ACCOUNTING POLICIES</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Basis of Preparation</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
These condensed consolidated financial statements have been
prepared in accordance with accounting principles generally
accepted in the United States of America, or U.S. GAAP, and the
applicable rules and regulations of the U.S. Securities and
Exchange Commission, or SEC, for interim reporting.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Principles of Consolidation</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
All intercompany balances and transactions have been eliminated in
consolidation.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Unaudited Condensed Consolidated Financial
Statements</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The condensed consolidated balance sheet as of September 30,
2020, the condensed consolidated statements of operations and
comprehensive loss for the three and nine months ended
September 30, 2019 and 2020, the condensed consolidated
statements of convertible preferred stock and stockholders’
equity (deficit) for the three and nine months ended
September 30, 2019 and 2020, and the condensed consolidated
statements of cash flows for the nine months ended
September 30, 2019 and 2020, are unaudited. These unaudited
condensed consolidated financial statements have been prepared on
the same basis as the annual consolidated financial statements and,
in the opinion of management, reflect all adjustments, which
include only normal recurring adjustments, necessary to present
fairly the Company’s financial position as of
September 30, 2020, and its results of operations for the
periods presented. The results of operations for the three and nine
months ended September 30, 2020, are not necessarily
indicative of the results to be expected for any subsequent
periods, including the year ended December 31, 2020, and
therefore should not be relied upon as an indicator of future
results. The condensed consolidated balance sheet as of
December 31, 2019 included herein was derived from the audited
consolidated financial statements as of that date. The accompanying
condensed consolidated financial statements and related notes
should be read in conjunction with the audited consolidated
financial statements for the year ended December 31, 2019 and
the notes thereto, which are included in the Company’s final
prospectus for the Company’s initial public offering filed
pursuant to Rule 424(b)(4) under the Securities Act of 1933, as
amended, with the SEC on July 17, 2020.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Reverse Stock Split</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
On July 8, 2020, the Company’s board of directors
approved an amendment to the Company’s certificate of
incorporation to effect a <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">1-for-6.5806</font></font> reverse split of
its common stock and convertible preferred stock. The par values of
the common and convertible preferred stock were not adjusted as a
result of the reverse stock split. All authorized, issued and
outstanding common stock, convertible preferred stock, stock
options, warrants, and related per share amounts contained in the
condensed consolidated financial statements have been retroactively
adjusted to reflect this reverse stock split for all periods
presented. The reverse stock split was effected on July 9,
2020.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Use of Estimates</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The preparation of the condensed consolidated financial statements
in conformity with U.S. GAAP requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at
the date of the condensed consolidated financial statements and the
reported amounts of revenues and expenses during the reporting
periods. On an ongoing basis, management evaluates its estimates,
including those related to the estimated useful lives of long-lived
assets, clinical trial accruals, fair value of assets and
liabilities, Series B convertible preferred stock warrant
liability, term loan compound derivative liability, term loan,
valuation of the Company’s common stock, income taxes and
stock-based compensation. Management bases its estimates on
historical experience and on various other market-specific and
relevant assumptions that management believes to be reasonable
under the circumstances. Actual results could differ from those
estimates.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Cash and Cash Equivalents</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company holds its cash and cash equivalents in checking and
money market accounts. The Company considers all highly liquid
investments with original maturities of three months or less from
the date of purchase to be cash equivalents. Cash equivalents
consist primarily of amounts invested in money market accounts and
are stated at fair value.</p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; MARGIN-TOP: 4px">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt">
<b><i>Concentration of Credit Risk and Other Risks and
Uncertainties</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
Financial instruments that potentially subject the Company to a
concentration of credit risk consist primarily of cash and cash
equivalents. The Company maintains deposits in federally insured
financial institutions in excess of federally insured limits, and
invests in money market funds. The Company is exposed to credit
risk in the event of default by the financial institutions holding
its cash and cash equivalents. The Company has not experienced any
losses on its deposits of cash and cash equivalents.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The Company’s future results of operations involve a number
of other risks and uncertainties. Factors that could affect the
Company’s future operating results and cause actual results
to vary materially from expectations include, but are not limited
to, uncertainty of results of clinical trials and reaching
milestones, uncertainty of regulatory approval of the
Company’s potential product candidates, uncertainty of market
acceptance of the Company’s product candidates, competition
from substitute products and larger companies, securing and
protecting proprietary technology, strategic relationships and
dependence on key individuals or sole-source suppliers.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The Company’s product candidates require approvals from the
U.S. Food and Drug Administration, or FDA, and comparable foreign
regulatory agencies prior to commercial sales in their respective
jurisdictions. There can be no assurance that any product
candidates will receive the necessary approvals. If the Company was
denied approval, approval was delayed or the Company was unable to
maintain approval for any product candidate, it could have a
materially adverse impact on the Company.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Property and Equipment</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
Property and equipment are stated at cost less accumulated
depreciation. Depreciation of property and equipment is provided
using the straight-line method over the estimated useful lives of
the assets. Upon sale or retirement of assets, the cost and related
accumulated depreciation or amortization are removed from the
condensed consolidated balance sheet and the resulting gain or loss
is reflected in the condensed consolidated statement of operations
and comprehensive loss. Maintenance and repairs are charged to the
condensed consolidated statement of operations and comprehensive
loss as incurred.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Deferred Offering Costs</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company capitalizes certain legal, professional accounting and
other third-party fees that are directly associated with
<font style="WHITE-SPACE: nowrap">in-process</font> equity
financings as deferred offering costs until such financings are
consummated. After consummation of the equity financing, these
costs are recorded in stockholders’ equity (deficit) as a
reduction of additional <font style="WHITE-SPACE: nowrap">paid-in</font> capital generated as a result
of the equity financing.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Impairment of Long-Lived Assets</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company reviews property and equipment for impairment whenever
events or changes in circumstances indicate that the carrying
amount of an asset may not be recoverable. Recoverability is
measured by comparison of the carrying amount to the future
undiscounted net cash flows which the asset or asset group are
expected to generate. If such assets are considered to be impaired,
the impairment to be recognized is measured as the amount by which
the carrying amount of the assets exceeds its fair value. Fair
value is determined using various valuation techniques including
discounted cash flow models, quoted market values and third-party
independent appraisals, as considered necessary. There were no
impairment charges recognized in the three and nine months ended
September 30, 2019 and 2020.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Fair Value of Financial Instruments</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company applies fair value accounting for all financial assets
and liabilities and nonfinancial assets and liabilities that are
required to be recognized or disclosed at fair value in the
condensed consolidated financial statements. The Company defines
fair value as the price that would be received from selling an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. Where
observable prices or inputs are not available valuation models are
applied. These valuation techniques involve some level of
management estimation and judgment, the degree of which is
dependent on the price transparency for the instruments or market
and the instruments’ complexity.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The Company’s financial instruments consist of cash and cash
equivalents, receivables due from related-party, accounts payable,
the term loan compound derivative liability and the Series B
convertible preferred stock warrant liability. The term loan
compound derivative liability and the Series B convertible
preferred stock warrant liability are <font style="WHITE-SPACE: nowrap">re-measured</font> at the end of every period
and carried at fair value (Note 3). The recorded value of the
Company’s receivables due from related-party and accounts
payable approximates its current fair value due to the relatively
short-term nature of these items.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Term Loan</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company accounts for the Loan and Security Agreement, dated as
of December 20, 2019, as amended, with Silicon Valley Bank, or
SVB, and WestRiver Innovation Lending Fund VIII, LP, or WestRiver,
collectively as lenders, and SVB, as administrative agent and
collateral agent, as a liability measured at net proceeds less debt
discount and is accreted to the face value of the term loan over
its expected term using the effective interest method. The Company
considers whether there are any embedded features in its debt
instruments that require bifurcation and separate accounting as
derivative financial instruments pursuant to Accounting Standards
Codification, or ASC, Topic 815, <i>Derivatives and
Hedging</i>.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Convertible Preferred Stock</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company records convertible preferred stock net of issuance
costs on the dates of issuance, which represents the carrying
value. In the event of a change of control of the Company, proceeds
will be distributed in accordance with the liquidation preferences
set forth in its organization documents unless the holders of
convertible preferred stock have converted their convertible
preferred stock into common stock. Convertible preferred stock are
classified outside of stockholders’ equity (deficit) on the
accompanying condensed consolidated balance sheets as events
triggering the liquidation preferences are not solely within the
Company’s control. The Company has elected not to adjust the
carrying values of the convertible preferred stock to the
liquidation preferences of such shares because of the uncertainty
of whether or when such an event would occur. Upon the consummation
of the Company’s initial public offering in July 2020, all
shares of convertible preferred stock outstanding and accrued
cumulative dividends automatically converted into 23,934,533 shares
of common stock.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Series B Convertible Preferred Stock Warrant
Liability</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company has issued freestanding warrants to purchase its Series
B convertible preferred stock. Freestanding warrants for the
Company’s convertible preferred stock that are classified
outside of permanent equity are recorded at fair value, and are
subject to <font style="WHITE-SPACE: nowrap">re-measurement</font>
at the end of every period until the earlier of the exercise of the
warrants or the completion of a liquidation event, including the
completion of an initial public offering. Upon exercise, the Series
B convertible preferred stock warrant liability would be
reclassified to additional <font style="WHITE-SPACE: nowrap">paid-in</font> capital, with any change in
fair value recognized as a component of other expense, net.
Following the Company’s initial public offering, the warrants
were automatically converted to warrants to purchase shares of
common stock (Note 5). The Company revalued the Series B
convertible preferred stock warrants as of the completion of the
initial public offering and reclassified the outstanding preferred
stock warrant liability balance to additional <font style="WHITE-SPACE: nowrap">paid-in</font> capital with no further
<font style="WHITE-SPACE: nowrap">re-measurement</font> required as
common stock warrants are considered permanent equity.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Revenue Recognition</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
To date, the Company has derived revenue from providing research
and development services on a time and materials basis to a
related-party.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The Company recognizes such revenues over time as services are
delivered, and invoices the customer as the work is incurred in
arrears.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The Company recognizes revenue when its customer obtains control of
promised goods or services, in an amount that reflects the
consideration which the Company expects to receive in exchange for
those goods or services.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
To determine revenue recognition for arrangements that the Company
determines are within the scope of Topic 606, the Company performs
the following five steps: (i) identify the contract(s) with a
customer; (ii) identify the performance obligations in the
contract; (iii) determine the transaction price;
(iv) allocate the transaction price to the performance
obligations in the contract; and (v) recognize revenue when
(or as) the Company satisfies a performance obligation.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
As part of the Company’s consideration as to whether the
Company has entered into a contract with a customer, it considers
whether it is probable that it will collect the consideration it is
entitled to in exchange for the goods and services it transfers to
the customer. At contract inception, the Company assesses the goods
or services promised within each contract that falls under the
scope of Topic 606, determines those that are performance
obligations, and assesses whether each promised good or service is
distinct. The Company then recognizes as revenue the amount of the
transaction price that is allocated to the respective performance
obligation when (or as) the performance obligation is
satisfied.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Cost of Services for Related-Party Revenue</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company incurs costs associated with related-party services
including direct labor and associated employee benefits, laboratory
supplies, and other expenses. These costs are recorded in cost of
services for related-party revenue as a component of total
operating expenses in the accompanying condensed consolidated
statements of operations and comprehensive loss.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Research and Development Costs</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
Research and development costs are expensed as incurred and consist
primarily of salaries and benefits, stock-based compensation
expense, lab supplies and facility costs, as well as fees paid to
nonemployees and entities that conduct certain research and
development activities on behalf of the Company and expenses
incurred in connection with license agreements (Note 8).
Nonrefundable advance payments for goods or services to be received
in the future for use in research and development activities are
capitalized and recorded in prepaid expenses and other current
assets, and then expensed as the related goods are delivered or the
services are performed.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Clinical and Manufacturing Accruals</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company records accruals for estimated costs of research,
preclinical studies and clinical trials, and manufacturing
development, which are a significant component of research and
development expenses. A substantial portion of the Company’s
ongoing research and development activities are conducted by
third-party service providers, including contract research
organizations, or CROs, and contract manufacturing organizations,
or CMOs. The Company’s contracts with CROs generally include
pass-through fees such as regulatory expenses, investigator fees,
travel costs and other miscellaneous costs, including shipping and
printing fees. The financial terms of these contracts are subject
to negotiations, which vary from contract to contract and may
result in payment flows that do not match the periods over which
materials or services are provided to the Company under such
contracts. The Company accrues the costs incurred under agreements
with these third parties based on estimates of actual work
completed in accordance with the respective agreements. The Company
determines the estimated costs through discussions with internal
personnel and external service providers as to the progress or
stage of completion of the services and the agreed-upon fees to be
paid for such services.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The Company makes significant judgments and estimates in
determining the accrual balance at the end of each reporting
period. As actual costs become known, the Company adjusts its
accruals. Although the Company does not expect its estimates to be
materially different from amounts actually incurred, the
Company’s understanding of the status and timing of services
performed relative to the actual status and timing of services
performed may vary and could result in the Company reporting
amounts that are too high or too low in any particular period. To
assist in its estimates the Company relies upon the receipt of
timely and accurate reporting from its clinical and <font style="WHITE-SPACE: nowrap">non-clinical</font> studies and other
third-party vendors. Through September 30, 2020, there have
been no material differences from the Company’s accrued
estimated expenses to the actual clinical trial expenses. However,
variations in the assumptions used to estimate accruals, including,
but not limited to, the number of patients enrolled, the rate of
patient enrollment, and the actual services performed, and related
costs may vary from the Company’s estimates, resulting in
adjustments to clinical trial expense in future periods. Changes in
these estimates that result in material changes to the
Company’s accruals could materially affect its financial
position and results of operations.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Stock-based Compensation Expense</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company accounts for stock-based compensation by measuring and
recognizing compensation expense for all stock-based payments made
to employees, directors and <font style="WHITE-SPACE: nowrap">non-employees</font> based on estimated
grant-date fair values. The Company uses the straight-line method
to allocate compensation expense to reporting periods over each
optionee’s requisite service period, which is generally the
vesting period, and estimates the fair value of stock-based awards
to employees and directors using the Black-Scholes option-pricing
model. The Black-Scholes model requires the input of subjective
assumptions, including expected volatility, expected dividend
yield, expected term, risk-free rate of return and the estimated
fair value of the underlying common stock on the date of grant. The
Company accounts for the effect of forfeitures as they occur.</p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; MARGIN-TOP: 4px">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt">
<b><i>Segment Reporting</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company manages its operations as a single operating segment
for the purposes of assessing performance and making operating
decisions.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Foreign Currency Transactions</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The functional currency of the Company’s operation and each
of its subsidiaries is U.S. dollars. All assets and liabilities
denominated in a foreign currency are translated into U.S. dollars
at the exchange rate prevailing on the balance sheet date. Expenses
are translated at the average exchange rates prevailing during the
applicable period. Foreign currency transaction gains and losses
are included in the consolidated statement of operations and
comprehensive loss and recorded in other expense, net, and were
immaterial for the three and nine months ended September 30,
2019 and 2020, respectively.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Income Taxes</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company accounts for income taxes under the asset and liability
method, which requires the recognition of deferred tax assets and
liabilities for the expected future tax consequences of events that
have been included in the condensed consolidated financial
statements. Under this method, deferred tax assets and liabilities
are determined on the basis of the differences between the
condensed consolidated financial statement carrying amounts and tax
bases of assets and liabilities using enacted tax rates in effect
for the period in which the temporary differences are expected to
reverse. The effect of a change in tax rates on deferred tax assets
and liabilities is recognized in the condensed consolidated
statements of operations and comprehensive loss in the period that
includes the enactment date. The Company recognizes deferred tax
assets to the extent that it believes these assets are more likely
than not to be realized. In making such a determination, the
Company considers all available positive and negative evidence,
including future reversals of existing taxable temporary
differences, projected future taxable income, <font style="WHITE-SPACE: nowrap">tax-planning</font> strategies and results of
recent operations. If the Company determines that it would be able
to realize its deferred tax assets in the future in excess of their
net recorded amount, it would make an adjustment to the deferred
tax asset valuation allowance, which would reduce the provision for
income taxes. The Company recognizes benefits of uncertain tax
positions if it is more likely than not that such positions will be
sustained upon examination based solely on their technical merits,
as the largest amount of benefit that is more likely than not to be
realized upon the ultimate settlement. The Company’s policy
is to recognize interest and penalties related to the underpayment
of income taxes as a component of income tax expense or
benefit.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Comprehensive Loss</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
Comprehensive loss is equal to net loss for all periods
presented.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Net Loss Per Share Attributable to Common
Stockholders</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
Basic net loss per share is calculated by dividing the net loss
attributable to common stockholders by the weighted-average number
of shares of common stock outstanding during the period, without
consideration for common stock equivalents. Diluted net loss per
share is the same as basic net loss per share, since the effects of
potentially dilutive securities are antidilutive given the net loss
for each period presented.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The Company applies the <font style="WHITE-SPACE: nowrap">two-class</font> method to compute basic and
diluted net loss per share when it has issued shares that meet the
definition of participating securities. The <font style="WHITE-SPACE: nowrap">two-class</font> method determines net loss
per share for each class of common stock and participating
securities according to dividends declared or accumulated and
participation rights in undistributed earnings. The <font style="WHITE-SPACE: nowrap">two-class</font> method requires net loss
available to common stockholders for the period to be allocated
between common and participating securities based upon their
respective rights to share in the earnings as if all net loss for
the period had been distributed. The Company’s convertible
preferred stock participate in any dividends declared by the
Company and are therefore considered to be participating
securities. The participating securities are not required to
participate in the losses of the Company, and therefore during
periods of loss there is no allocation required under the
<font style="WHITE-SPACE: nowrap">two-class</font> method.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Recent Accounting Pronouncements</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
In February 2016, the FASB issued ASU <font style="WHITE-SPACE: nowrap">No. 2016-02</font> (Topic 842),
<i>Leases</i> (ASU <font style="WHITE-SPACE: nowrap">2016-02).</font> ASU <font style="WHITE-SPACE: nowrap">2016-02</font> requires an entity to
recognize assets and liabilities arising from a lease for both
financing and operating leases. ASU <font style="WHITE-SPACE: nowrap">No. 2016-02</font> will also require new
qualitative and quantitative disclosures to help investors and
other financial statement users better understand the amount,
timing, and uncertainty of cash flows arising from leases. In June
2020, the FASB issued ASU <font style="WHITE-SPACE: nowrap">No. 2020-05,</font> which extends the
effective date of ASU <font style="WHITE-SPACE: nowrap">No. 2016-02</font> for <font style="WHITE-SPACE: nowrap">non-public</font> business entities,
including smaller reporting companies, to fiscal years beginning
after December 15, 2021. The new standard is effective for the
Company beginning January 1, 2022 (or earlier if the Company
ceases to be an emerging growth company). Early adoption is
permitted. The Company is currently evaluating the effects of the
adoption of this guidance on its condensed consolidated financial
statements and related disclosures.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
In December 2019, the FASB issued ASU <font style="WHITE-SPACE: nowrap">No. 2019-12,</font> Income Taxes (Topic
740): Simplifying the Accounting for Income Taxes, which is
intended to simplify various aspects related to accounting for
income taxes. The pronouncement is effective for fiscal years, and
for interim periods within those fiscal years, beginning after
December 15, 2021. ASU <font style="WHITE-SPACE: nowrap">2019-12</font> is effective for the Company
beginning January 1, 2022. Early adoption is permitted. The
Company is currently in the process of evaluating the effects of
the adoption of this guidance on the Company’s financial
statements and does not expect it to have a material impact on its
condensed consolidated financial statements.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>New Accounting Pronouncements Recently Adopted</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
In June 2016, the FASB issued ASU <font style="WHITE-SPACE: nowrap">No. 2016-13,</font> Financial
Instruments-Credit Losses (Topic 326), which requires entities to
measure all expected credit losses for financial assets held at the
reporting date based on historical experience, current conditions,
and reasonable and supportable forecasts. This replaces the
existing incurred loss model and is applicable to the measurement
of credit losses on financial assets measured at amortized cost.
The Company early adopted this guidance on January 1, 2020.
The adoption of this guidance did not have a material impact on the
Company’s condensed consolidated financial statements.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
In September 2018, the FASB issued ASU <font style="WHITE-SPACE: nowrap">No. 2018-13,</font> Fair Value
Measurement (Topic 820): Disclosure Framework—Changes to the
Disclosure Requirements for Fair Value Measurement. The FASB issued
final guidance that eliminates, adds and modifies certain
disclosure requirements for fair value measurements as part of its
disclosure framework project. Under the ASU, entities will no
longer be required to disclose the amount of transfers between
Level 1 and Level 2 of the fair value hierarchy. Public
companies will be required to disclose changes in unrealized gains
and losses for the period included in other comprehensive income
for recurring Level 3 fair value measurements held at the end
of the reporting period and the range and weighted average used to
develop significant unobservable inputs for Level 3 fair value
measurements. ASU <font style="WHITE-SPACE: nowrap">2018-13</font>
is effective for public business entities for annual reporting
periods, and interim periods within those annual periods, beginning
after December 15, 2019, with early adoption permitted. The
Company adopted this guidance on January 1, 2020. The adoption
of ASU <font style="WHITE-SPACE: nowrap">2018-13</font> did not
have a material impact on its condensed consolidated financial
statements.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 12pt">
<b>(4) BALANCE SHEET COMPONENTS</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Property and Equipment, Net</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The following table presents the components of property and
equipment, net as of December 31, 2019 and September 30, 2020
(in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
<tr>
<td width="75%"></td>
<td valign="bottom" width="9%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="9%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>DECEMBER 31,<br />
2019</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>SEPTEMBER 30,<br />
2020</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Computer hardware and software</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">146</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">74</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Machinery and equipment</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,698</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">40</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Furniture and fixtures</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">36</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Leasehold improvements</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">429</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">19</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top"></td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">2,309</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">
      142</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: accumulated depreciation and amortization</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(1,449</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(97</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total property and equipment, net</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">860</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">45</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
Depreciation and amortization expense was $0.1 million for the
three months ended September 30, 2019, and $0.3 million
and $0.2 million for the nine months ended September 30,
2019 and 2020, respectively. Depreciation and amortization expense
for the three months ended September 30, 2020 was nominal.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
At June 30, 2020, certain lab equipment and other assets for
an aggregated net book value of $0.6 million relating to the
asset transfer with Tallac Therapeutics, Inc. (formerly known as
Tollnine, Inc., or Tollnine), or Tallac Therapeutics, a related
party (Note 9), met the criteria as assets held for sale. Those
assets were reported at the lower of carrying value or fair value
less costs to sell. In July 2020, the Company received
$0.6 million cash in exchange for the transfer of such
assets.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Accrued Expenses and Other Current Liabilities</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The following table presents the components of accrued expenses and
other current liabilities as of December 31, 2019 and
September 30, 2020 (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
<tr>
<td width="74%"></td>
<td valign="bottom" width="8%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="8%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>DECEMBER 31,<br />
2019</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>SEPTEMBER 30,<br />
2020</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Accrued professional fees</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">122</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">345</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Accrued compensation</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">924</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,124</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Accrued clinical and nonclinical study costs</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">629</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Accrued contract manufacturing</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">53</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">867</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Other</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">137</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">240</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total accrued expenses and other current liabilities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">1,236</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">3,205</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Basis of Preparation</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
These condensed consolidated financial statements have been
prepared in accordance with accounting principles generally
accepted in the United States of America, or U.S. GAAP, and the
applicable rules and regulations of the U.S. Securities and
Exchange Commission, or SEC, for interim reporting.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Cash and Cash Equivalents</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company holds its cash and cash equivalents in checking and
money market accounts. The Company considers all highly liquid
investments with original maturities of three months or less from
the date of purchase to be cash equivalents. Cash equivalents
consist primarily of amounts invested in money market accounts and
are stated at fair value.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Comprehensive Loss</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
Comprehensive loss is equal to net loss for all periods
presented.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Principles of Consolidation</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
All intercompany balances and transactions have been eliminated in
consolidation.</p>
</div>
3183000
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Term Loan</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company accounts for the Loan and Security Agreement, dated as
of December 20, 2019, as amended, with Silicon Valley Bank, or
SVB, and WestRiver Innovation Lending Fund VIII, LP, or WestRiver,
collectively as lenders, and SVB, as administrative agent and
collateral agent, as a liability measured at net proceeds less debt
discount and is accreted to the face value of the term loan over
its expected term using the effective interest method. The Company
considers whether there are any embedded features in its debt
instruments that require bifurcation and separate accounting as
derivative financial instruments pursuant to Accounting Standards
Codification, or ASC, Topic 815, <i>Derivatives and
Hedging</i>.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Fair Value of Financial Instruments</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company applies fair value accounting for all financial assets
and liabilities and nonfinancial assets and liabilities that are
required to be recognized or disclosed at fair value in the
condensed consolidated financial statements. The Company defines
fair value as the price that would be received from selling an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. Where
observable prices or inputs are not available valuation models are
applied. These valuation techniques involve some level of
management estimation and judgment, the degree of which is
dependent on the price transparency for the instruments or market
and the instruments’ complexity.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The Company’s financial instruments consist of cash and cash
equivalents, receivables due from related-party, accounts payable,
the term loan compound derivative liability and the Series B
convertible preferred stock warrant liability. The term loan
compound derivative liability and the Series B convertible
preferred stock warrant liability are <font style="WHITE-SPACE: nowrap">re-measured</font> at the end of every period
and carried at fair value (Note 3). The recorded value of the
Company’s receivables due from related-party and accounts
payable approximates its current fair value due to the relatively
short-term nature of these items.</p>
</div>
2137000
-2323000
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt">
<b>(10) NET LOSS PER SHARE ATTRIBUTABLE TO COMMON
STOCKHOLDERS</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
The following table sets forth the computation of the basic and
diluted net loss per share attributable to common stockholders (in
thousands, except share and per share data):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
<tr>
<td width="53%"></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>THREE MONTHS ENDED<br />
SEPTEMBER 30,</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>NINE MONTHS ENDED<br />
SEPTEMBER 30,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2019</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2020</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2019</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2020</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Numerator:</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Net loss</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(3,044</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(10,181</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(11,479</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(26,966</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: cumulative preferred dividends allocated to preferred
stockholders</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(1,071</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(578</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(2,957</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(5,202</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Net loss attributable to common stockholders</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(4,115</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(10,759</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(14,436</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(32,168</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Denominator:</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Weighted-average shares of common stock outstanding</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">3,100,544</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">29,664,122</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">3,061,082</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">12,052,876</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Net loss per share attributable to common stockholders, basic and
diluted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(1.33</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(0.36</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(4.72</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(2.67</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
Since the Company was in a loss position for all periods presented,
basic net loss per share is the same as diluted net loss per share
for all periods presented as the inclusion of all potential common
stock outstanding would have been anti-dilutive.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The following outstanding potentially dilutive securities were
excluded from the computation of diluted net loss per share for the
three and nine months ended September 30, 2019 and 2020,
because including them would have been anti-dilutive:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
<tr>
<td width="77%"></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>SEPTEMBER 30,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2019</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2020</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Convertible preferred stock</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">10,313,808</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Common stock subject to repurchase</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">53,070</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">253</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Options issued and outstanding</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,206,690</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">4,751,589</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">11,573,568</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">4,751,842</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 12pt">
<b>(3) FAIR VALUE OF FINANCIAL INSTRUMENTS</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
The fair value of the Company’s financial assets and
liabilities are determined in accordance with the fair value
hierarchy established in ASC Topic 820, Fair Value Measurements and
Disclosures. ASC Topic 820 defines fair value as the exchange price
that would be received for an asset or paid to transfer a liability
(an exit price) in the principal or most advantageous market for
the asset or liability in an orderly transaction between market
participants on the measurement date. The fair value hierarchy of
ASC Topic 820 requires an entity to maximize the use of observable
inputs when measuring fair value and classifies those inputs into
three levels:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
Level 1—Observable inputs, such as quoted prices in active
markets</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
Level 2—Inputs, other than the quoted prices in active
markets, which are observable either directly or indirectly such as
quoted prices for similar assets or liabilities; quoted prices in
markets that are not active; or other inputs that are observable or
can be corroborated by observable market data for substantially the
full term of the instrument’s anticipated life</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
Level 3—Unobservable inputs in which there is little or no
market data, which require the reporting entity to develop its own
assumptions</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The Company’s financial instruments consist of cash and cash
equivalents, receivables due from related-party, accounts payable,
the term loan compound derivative liability and the Series B
convertible preferred stock warrant liability.</p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; MARGIN-TOP: 9px">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt">
Cash and cash equivalents are reported at their respective fair
values on the Company’s condensed consolidated balance
sheets. Where quoted prices are available in an active market,
securities are classified as Level 1. The Company classifies
money market funds as Level 1. When quoted market prices are
not available for the specific security, then the Company estimates
fair value by using quoted prices for identical or similar
instruments in markets that are not active and model-based
valuation techniques for which all significant inputs are
observable in the market or can be corroborated by observable
market data for substantially the full term of the assets. Where
applicable, these models project future cash flows and discount the
future amounts to a present value using market-based observable
inputs obtained from various third-party data providers, including
but not limited to benchmark yields, reported trades and
broker/dealer quotes. Where applicable the market approach utilizes
prices and information from market transactions for similar or
identical assets.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The Company measures its Series B convertible preferred stock
warrant liability and term loan compound derivative liability at
fair value on a recurring basis and these are classified as
Level 3 liabilities. The fair value of the Series B
convertible preferred stock warrant liability was determined using
an option-pricing model. The Company revalued the Series B
convertible preferred stock warrants as of the completion of the
initial public offering and reclassified the outstanding preferred
stock warrant liability balance to additional <font style="WHITE-SPACE: nowrap">paid-in</font> capital with no further
<font style="WHITE-SPACE: nowrap">re-measurement</font> required as
the common stock warrants are considered permanent equity effective
with the completion of the initial public offering. The Company
calculated the fair value of the term loan compound derivative
liability by computing the difference between the fair value of the
term loan with the compound derivative using the “with and
without” method under the income approach, and the fair value
of the term loan without the compound derivative. The valuation
methodology and underlying assumptions are discussed further in
Note 5.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The following table sets forth the Company’s financial
liabilities that are measured at fair value on a recurring basis by
level within the fair value hierarchy (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
<tr>
<td width="66%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="14" align="center"><b>AS OF DECEMBER 31,
2019</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>LEVEL 1</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>LEVEL 2</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>LEVEL 3</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>FAIR VALUE</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<b>Financial liabilities</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<u><font style="WHITE-SPACE: nowrap">Non-current</font>
liabilities</u></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Compound derivative liability</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">51</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">51</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Warrant liability</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">361</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">361</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="12"></td>
<td height="12" colspan="16"></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="14" align="center"><b>AS OF SEPTEMBER 30,
2020</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>LEVEL 1</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>LEVEL 2</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>LEVEL 3</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>FAIR VALUE</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<b>Financial assets</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<u>Cash equivalents</u></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Money market funds</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">90,114</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">90,114</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<b>Financial liabilities</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<u><font style="WHITE-SPACE: nowrap">Non-current</font>
liabilities</u></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Compound derivative liability</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">43</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">43</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The following table is a reconciliation of all financial
liabilities measured at fair value using Level 3 unobservable
inputs (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
<tr>
<td width="81%"></td>
<td valign="bottom" width="6%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="6%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>WARRANT<br />
LIABILITY</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>COMPOUND<br />
DERIVATIVE<br />
LIABILITY</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Fair value at December 31, 2019</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">361</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">51</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Change in fair value</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">658</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(8</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Reclassification to equity</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(1,019</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">
        —</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Fair value at September 30, 2020</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">43</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; MARGIN-TOP: 9px">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt">
The Company did not have any outstanding financial assets or
liabilities to be <font style="WHITE-SPACE: nowrap">re-measured</font> on a recurring basis as of
September 30, 2019.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
There were no transfers of assets or liabilities between the fair
value measurement levels during the year ended December 31,
2019 and the nine months ended September 30, 2020.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The carrying values of the Company’s financial instruments,
such as accounts payable and accrued expenses and other current
liabilities, approximate fair value due to the short-term nature of
these items.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Term Loan</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The estimated fair value of the Term Loan was $6.1 million as
of September 30, 2020, which approximates the carrying value
and is classified as Level 3. The Company utilized a market
yield analysis and income approach to estimate a value for the Term
Loan. The key valuation assumptions used consist of the discount
rate of 12.0% and the probability of the occurrence of a change in
control event of 20.0%.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 12pt">
<b>(1) ORGANIZATION</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Organization</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
ALX Oncology Holdings Inc., or the Company, was formed as a
Delaware corporation on April 1, 2020, or Inception. The
Company was formed for the purpose of completing the
Company’s initial public offering of its common stock and
related transactions in order to carry on the business of ALX
Oncology Limited. After Inception, ALX Oncology Limited became a
wholly-owned subsidiary of the Company as a result of the internal
reorganization. As part of the internal reorganization, all of the
equity, option and warrant holders of ALX Oncology Limited became
equity, option and warrant holders of the Company, holding the same
number of corresponding shares, options and/or warrants in the
Company as they did in ALX Oncology Limited immediately prior to
the internal reorganization. The information included herein is
presented as that of ALX Oncology Holdings Inc. unless such
information refers to a date prior to April 1, 2020, in which
case it will reflect that of ALX Oncology Limited, the predecessor
company. The Company is a clinical-stage immuno-oncology company
focused on helping patients fight cancer by developing therapies
that block the CD47 checkpoint pathway and bridge the innate and
adaptive immune system.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The Company owns subsidiaries, consisting of ALX Oncology Limited,
incorporated in Ireland; ALX Oncology Inc., incorporated in the
United States, and Alexo International Holdings Ltd, incorporated
in Malta; Alexo Therapeutics International, incorporated in the
Cayman Islands, which is a wholly-owned subsidiary of Alexo
International Holdings Ltd. and Sirpant Therapeutics, incorporated
in the Cayman Islands, which is a wholly-owned subsidiary of Alexo
Therapeutics International, or collectively, the Subsidiaries.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
As of September 30, 2020, the Company has devoted
substantially all of its efforts to the formation and financing of
the Company, as well as product development, and has not realized
product revenues from its planned principal operations. The Company
has no manufacturing facilities and all manufacturing related
activities are contracted out to third-party service providers.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
In July 2020, the Company consummated its initial public offering
and issued 9,775,000 shares of common stock for net proceeds of
approximately $169.5 million, after deducting underwriting
discounts and commissions of $13.0 million and
offering-related expenses of $3.2 million. Upon the closing of
the initial public offering, all shares of convertible preferred
stock outstanding and accrued cumulative dividends were
automatically converted into 23,934,533 shares of common stock.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
On July 21, 2020, the Company’s amended and restated
certificate of incorporation became effective, authorizing
1,000,000,000 shares of common stock and 100,000,000 shares of
undesignated preferred stock.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Liquidity and Capital Resources</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
As of September 30, 2020, the Company had cash and cash
equivalents of $259.5 million, which will be sufficient to
fund its planned operations for a period of at least twelve months
following the issuance of these condensed consolidated financial
statements.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
Management expects to incur additional losses in the future to
conduct product candidate research and development and to conduct
<font style="WHITE-SPACE: nowrap">pre-commercialization</font>
activities and recognizes the need to raise additional capital to
fully implement its business plan. The Company intends to raise
such capital through the sale of additional equity, debt financings
or strategic alliances with third parties. However, there can be no
assurance that the Company will be successful in acquiring
additional funding at levels sufficient to fund its operations or
on terms acceptable to the Company. If the Company is unsuccessful
in its efforts to raise additional financing, the Company could be
required to significantly reduce operating expenses and delay,
reduce the scope of or eliminate some of its development programs
or its future commercialization efforts, <font style="WHITE-SPACE: nowrap">out-license</font> intellectual property
rights to its product candidates and sell unsecured assets, or a
combination of the above, any of which may have a material adverse
effect on the Company’s business, results of operations,
financial condition and/or its ability to fund its scheduled
obligations on a timely basis or at all.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 12pt">
<b>(9) RELATED-PARTY TRANSACTIONS</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<i>Related-party revenue</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
In June 2018, the Company entered into a Research and Development
Services Agreement, or Tollnine Agreement, with Tollnine, a
related-party of the Company, to provide research and development
services to Tollnine. The Company’s Chief Executive Officer
was also the Chief Executive Officer of Tollnine until April 2020
and two of the Company’s investors are also investors in
Tollnine. As such, Tollnine was deemed to be a related-party. The
Tollnine Agreement has an initial term of 3 years, to be
automatically renewed for additional <font style="WHITE-SPACE: nowrap">one-year</font> terms unless terminated by
either party. The services are to be provided at a price based on
the costs incurred by the Company plus a <font style="WHITE-SPACE: nowrap">mark-up</font> equal to 10% of such costs.
The Company recognizes revenue when Tollnine, as the
Company’s customer, obtains control of promised goods or
services, in an amount that reflects the consideration which the
Company expects to receive in exchange for those goods or services.
The Company recognized related-party revenues of $1.3 million
and zero for the three months ended September 30, 2019 and
2020, respectively, and $3.6 million and $1.2 million for
the nine months ended September 30, 2019 and 2020,
respectively, under the Tollnine Agreement. Effective as of
July 1, 2020, the Company terminated the Tollnine Agreement
and entered into the Tallac Services Agreement with Tallac
Therapeutics.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<i>Receivables due from related-party</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
As of December 31, 2019 and September 30, 2020, the
Company had outstanding related-party receivables from Tollnine of
$0.5 million.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<i>Tallac Service Agreement</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company entered into a research and development services
agreement, or the Tallac Services Agreement, with Tallac
Therapeutics effective as of July 1, 2020. The Tallac Services
Agreement provides that Tallac Therapeutics will provide certain
preclinical research services to the Company for a service fee
based on the costs incurred by Tallac Therapeutics plus a
<font style="WHITE-SPACE: nowrap">mark-up</font> equal to 10.0% of
such costs. The Tallac Services Agreement has an initial term of
four years and is renewed automatically for additional one year
terms thereafter. The Company records the payments for the research
and development services as research and development costs within
the condensed consolidated statement of operations and
comprehensive loss. The Company has recorded $0.4 million as
research and development costs for the three months ended
September 30, 2020.</p>
</div>
26000
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt">
<b><i>Concentration of Credit Risk and Other Risks and
Uncertainties</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
Financial instruments that potentially subject the Company to a
concentration of credit risk consist primarily of cash and cash
equivalents. The Company maintains deposits in federally insured
financial institutions in excess of federally insured limits, and
invests in money market funds. The Company is exposed to credit
risk in the event of default by the financial institutions holding
its cash and cash equivalents. The Company has not experienced any
losses on its deposits of cash and cash equivalents.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The Company’s future results of operations involve a number
of other risks and uncertainties. Factors that could affect the
Company’s future operating results and cause actual results
to vary materially from expectations include, but are not limited
to, uncertainty of results of clinical trials and reaching
milestones, uncertainty of regulatory approval of the
Company’s potential product candidates, uncertainty of market
acceptance of the Company’s product candidates, competition
from substitute products and larger companies, securing and
protecting proprietary technology, strategic relationships and
dependence on key individuals or sole-source suppliers.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The Company’s product candidates require approvals from the
U.S. Food and Drug Administration, or FDA, and comparable foreign
regulatory agencies prior to commercial sales in their respective
jurisdictions. There can be no assurance that any product
candidates will receive the necessary approvals. If the Company was
denied approval, approval was delayed or the Company was unable to
maintain approval for any product candidate, it could have a
materially adverse impact on the Company.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Deferred Offering Costs</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company capitalizes certain legal, professional accounting and
other third-party fees that are directly associated with
<font style="WHITE-SPACE: nowrap">in-process</font> equity
financings as deferred offering costs until such financings are
consummated. After consummation of the equity financing, these
costs are recorded in stockholders’ equity (deficit) as a
reduction of additional <font style="WHITE-SPACE: nowrap">paid-in</font> capital generated as a result
of the equity financing.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The following table presents the components of accrued expenses and
other current liabilities as of December 31, 2019 and
September 30, 2020 (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
<tr>
<td width="74%"></td>
<td valign="bottom" width="8%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="8%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>DECEMBER 31,<br />
2019</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>SEPTEMBER 30,<br />
2020</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Accrued professional fees</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">122</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">345</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Accrued compensation</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">924</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,124</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Accrued clinical and nonclinical study costs</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">629</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Accrued contract manufacturing</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">53</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">867</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Other</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">137</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">240</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total accrued expenses and other current liabilities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">1,236</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">3,205</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Reverse Stock Split</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
On July 8, 2020, the Company’s board of directors
approved an amendment to the Company’s certificate of
incorporation to effect a <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">1-for-6.5806</font></font> reverse split of
its common stock and convertible preferred stock. The par values of
the common and convertible preferred stock were not adjusted as a
result of the reverse stock split. All authorized, issued and
outstanding common stock, convertible preferred stock, stock
options, warrants, and related per share amounts contained in the
condensed consolidated financial statements have been retroactively
adjusted to reflect this reverse stock split for all periods
presented. The reverse stock split was effected on July 9,
2020.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
Common stock reserved for future issuance, on an as if converted
basis, as of December 31, 2019 and September 30, 2020,
consists of the following:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
<tr>
<td width="75%"></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>DECEMBER 31,<br />
2019</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>SEPTEMBER 30,<br />
2020</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Convertible preferred stock issued and outstanding</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">10,313,808</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Stock options issued and outstanding</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,183,745</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">4,751,589</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Stock options authorized for future issuance</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">566,900</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">2,941,162</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Warrants issued and outstanding</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">61,292</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Warrants authorized for future issuance</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">30,646</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">12,156,391</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">7,692,751</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
650000
126000
68452000
3000
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Recent Accounting Pronouncements</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
In February 2016, the FASB issued ASU <font style="WHITE-SPACE: nowrap">No. 2016-02</font> (Topic 842),
<i>Leases</i> (ASU <font style="WHITE-SPACE: nowrap">2016-02).</font> ASU <font style="WHITE-SPACE: nowrap">2016-02</font> requires an entity to
recognize assets and liabilities arising from a lease for both
financing and operating leases. ASU <font style="WHITE-SPACE: nowrap">No. 2016-02</font> will also require new
qualitative and quantitative disclosures to help investors and
other financial statement users better understand the amount,
timing, and uncertainty of cash flows arising from leases. In June
2020, the FASB issued ASU <font style="WHITE-SPACE: nowrap">No. 2020-05,</font> which extends the
effective date of ASU <font style="WHITE-SPACE: nowrap">No. 2016-02</font> for <font style="WHITE-SPACE: nowrap">non-public</font> business entities,
including smaller reporting companies, to fiscal years beginning
after December 15, 2021. The new standard is effective for the
Company beginning January 1, 2022 (or earlier if the Company
ceases to be an emerging growth company). Early adoption is
permitted. The Company is currently evaluating the effects of the
adoption of this guidance on its condensed consolidated financial
statements and related disclosures.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
In December 2019, the FASB issued ASU <font style="WHITE-SPACE: nowrap">No. 2019-12,</font> Income Taxes (Topic
740): Simplifying the Accounting for Income Taxes, which is
intended to simplify various aspects related to accounting for
income taxes. The pronouncement is effective for fiscal years, and
for interim periods within those fiscal years, beginning after
December 15, 2021. ASU <font style="WHITE-SPACE: nowrap">2019-12</font> is effective for the Company
beginning January 1, 2022. Early adoption is permitted. The
Company is currently in the process of evaluating the effects of
the adoption of this guidance on the Company’s financial
statements and does not expect it to have a material impact on its
condensed consolidated financial statements.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Unaudited Condensed Consolidated Financial
Statements</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The condensed consolidated balance sheet as of September 30,
2020, the condensed consolidated statements of operations and
comprehensive loss for the three and nine months ended
September 30, 2019 and 2020, the condensed consolidated
statements of convertible preferred stock and stockholders’
equity (deficit) for the three and nine months ended
September 30, 2019 and 2020, and the condensed consolidated
statements of cash flows for the nine months ended
September 30, 2019 and 2020, are unaudited. These unaudited
condensed consolidated financial statements have been prepared on
the same basis as the annual consolidated financial statements and,
in the opinion of management, reflect all adjustments, which
include only normal recurring adjustments, necessary to present
fairly the Company’s financial position as of
September 30, 2020, and its results of operations for the
periods presented. The results of operations for the three and nine
months ended September 30, 2020, are not necessarily
indicative of the results to be expected for any subsequent
periods, including the year ended December 31, 2020, and
therefore should not be relied upon as an indicator of future
results. The condensed consolidated balance sheet as of
December 31, 2019 included herein was derived from the audited
consolidated financial statements as of that date. The accompanying
condensed consolidated financial statements and related notes
should be read in conjunction with the audited consolidated
financial statements for the year ended December 31, 2019 and
the notes thereto, which are included in the Company’s final
prospectus for the Company’s initial public offering filed
pursuant to Rule 424(b)(4) under the Securities Act of 1933, as
amended, with the SEC on July 17, 2020.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Cost of Services for Related-Party Revenue</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company incurs costs associated with related-party services
including direct labor and associated employee benefits, laboratory
supplies, and other expenses. These costs are recorded in cost of
services for related-party revenue as a component of total
operating expenses in the accompanying condensed consolidated
statements of operations and comprehensive loss.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Clinical and Manufacturing Accruals</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company records accruals for estimated costs of research,
preclinical studies and clinical trials, and manufacturing
development, which are a significant component of research and
development expenses. A substantial portion of the Company’s
ongoing research and development activities are conducted by
third-party service providers, including contract research
organizations, or CROs, and contract manufacturing organizations,
or CMOs. The Company’s contracts with CROs generally include
pass-through fees such as regulatory expenses, investigator fees,
travel costs and other miscellaneous costs, including shipping and
printing fees. The financial terms of these contracts are subject
to negotiations, which vary from contract to contract and may
result in payment flows that do not match the periods over which
materials or services are provided to the Company under such
contracts. The Company accrues the costs incurred under agreements
with these third parties based on estimates of actual work
completed in accordance with the respective agreements. The Company
determines the estimated costs through discussions with internal
personnel and external service providers as to the progress or
stage of completion of the services and the agreed-upon fees to be
paid for such services.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt">
The Company makes significant judgments and estimates in
determining the accrual balance at the end of each reporting
period. As actual costs become known, the Company adjusts its
accruals. Although the Company does not expect its estimates to be
materially different from amounts actually incurred, the
Company’s understanding of the status and timing of services
performed relative to the actual status and timing of services
performed may vary and could result in the Company reporting
amounts that are too high or too low in any particular period. To
assist in its estimates the Company relies upon the receipt of
timely and accurate reporting from its clinical and <font style="WHITE-SPACE: nowrap">non-clinical</font> studies and other
third-party vendors. Through September 30, 2020, there have
been no material differences from the Company’s accrued
estimated expenses to the actual clinical trial expenses. However,
variations in the assumptions used to estimate accruals, including,
but not limited to, the number of patients enrolled, the rate of
patient enrollment, and the actual services performed, and related
costs may vary from the Company’s estimates, resulting in
adjustments to clinical trial expense in future periods. Changes in
these estimates that result in material changes to the
Company’s accruals could materially affect its financial
position and results of operations.</p>
</div>
0.060
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 4pt">
<b><i>Series B Convertible Preferred Stock Warrant
Liability</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 2pt">
The Company has issued freestanding warrants to purchase its Series
B convertible preferred stock. Freestanding warrants for the
Company’s convertible preferred stock that are classified
outside of permanent equity are recorded at fair value, and are
subject to <font style="WHITE-SPACE: nowrap">re-measurement</font>
at the end of every period until the earlier of the exercise of the
warrants or the completion of a liquidation event, including the
completion of an initial public offering. Upon exercise, the Series
B convertible preferred stock warrant liability would be
reclassified to additional <font style="WHITE-SPACE: nowrap">paid-in</font> capital, with any change in
fair value recognized as a component of other expense, net.
Following the Company’s initial public offering, the warrants
were automatically converted to warrants to purchase shares of
common stock (Note 5). The Company revalued the Series B
convertible preferred stock warrants as of the completion of the
initial public offering and reclassified the outstanding preferred
stock warrant liability balance to additional <font style="WHITE-SPACE: nowrap">paid-in</font> capital with no further
<font style="WHITE-SPACE: nowrap">re-measurement</font> required as
common stock warrants are considered permanent equity.</p>
</div>
658000
1019000
-8000
100000
5000000
licensed patents expires and ten years after the first commercial sale of the licensed product in such country
P60D
P60D
1200000
shall terminate and become fully paid-up upon the passing of ten years after the first commercial sale of the product in such country, or the Company's exercise of the royalty buyout option exercisable at any time prior to the first commercial sale of a licensed product.
P60D
P60D
11100000
licensed patents expires and ten years after the first commercial sale of the product in such country
P60D
P60D
1200
2023
0.070
Interest-only payments for the first 12 months after the closing of the Loan Agreement
0.0325
2008000
1685000
253
4751589
1182000
105000000
P3Y
P3Y
P1Y
P3Y
1200000
200000
3826469
37200000
169500000
9775000
13000000
3200000
2018-05-31
P9Y2M4D
2023-05-31
8700000
9297081000
11270000
400000
0
2601000
269000
1000000
-653000
1000
269000
800000
44000
0
1000
0
-17402000
-13731000
-6.33
-6.33
-13684000
341613
34980
-13190000
7000
-13842000
0
0
0.125
-1110000
-12576000
1711000
1404000
-499000
38000
732000
57000
100000
11000
160000
187186
6914
269000
-3671000
3671000
2750838
2000
45000
0
0
15751000
-13686000
45000
0
0
2750838
10391812000
431000
0
0
7000
-13731000
0.35
0.665
0.687
0.026
0.030
0.00
1880000
932000
20000
9000
136000
653000
-897000
-269000
P8Y6M14D
100000
0.99
1.14
1.85
0.99
92000
34980
116048
6899
-187186
92000
-6000
6914
-6899
-43689
269000
7000
92000
-13731000
P6Y
P5Y2M12D
0
100000
2100000
195000
58000
16000
229912000
864819000
2067000
0
0
0
0
9430000
0.06
12700000
1016727
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Series B Convertible Preferred Shares Warrant Liability</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The Company has issued freestanding warrants to purchase its Series
B convertible preferred shares. Freestanding warrants for the
Company’s convertible preferred shares that are classified
outside of permanent equity are recorded at fair value, and are
subject to <font style="WHITE-SPACE: nowrap">re-measurement</font>
at each balance sheet date until the earlier of the exercise of the
warrants or the completion of a liquidation event. Upon exercise,
the Series B convertible preferred shares warrant liability would
be reclassified to additional <font style="WHITE-SPACE: nowrap">paid-in</font> capital, with any change in
fair value recognized as a component of other income (expense),
net.</p>
</div>
1016727000
9297081000
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The following table provides a summary of Founder Stock
activity:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="72%"></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>NUMBER OF<br />
SHARES</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center"><b><font style="WHITE-SPACE: nowrap">WEIGHTED-AVERAGE</font><br />
GRANT DATE<br />
FAIR VALUE</b></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Unvested at December 31, 2017</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">455,477</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="center">$0.35</td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Vested</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(341,613</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom" align="center">   0.35</td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Unvested at December 31, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">113,864</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="center">   0.35</td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Vested</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(113,864</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom" align="center">   0.35</td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Unvested at December 31, 2019</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom" nowrap="nowrap" align="center">
$      —</td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
</tr>
</table>
</div>
</div>
105000000
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
As of December 31, 2018 and December 31, 2019, the
Company’s convertible preferred shares consisted of the
following (in thousands, except share amounts):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="52%"></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="14" align="center"><b>DECEMBER 31, 2018</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>AUTHORIZED<br />
SHARES</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>SHARES<br />
ISSUED AND<br />
OUTSTANDING</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>NET<br />
PROCEEDS<sup style="FONT-SIZE: 85%; VERTICAL-ALIGN: top">(1)</sup></b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>AGGREGATE<br />
LIQUIDATION<br />
PREFERENCE</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<b>Shares designated as:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Series A convertible preferred shares</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,421,633</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,297,081</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">60,933</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">69,863</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,421,633</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,297,081</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">60,933</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">69,863</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="12"></td>
<td height="12" colspan="16"></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="14" align="center"><b>DECEMBER 31, 2019</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>AUTHORIZED<br />
SHARES</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>SHARES<br />
ISSUED AND<br />
OUTSTANDING</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>NET<br />
PROCEEDS<sup style="FONT-SIZE: 85%; VERTICAL-ALIGN: top">(1)</sup></b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>AGGREGATE<br />
LIQUIDATION<br />
PREFERENCE</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<b>Shares designated as:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Series A convertible preferred shares</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,421,633</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,297,081</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">60,933</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">73,571</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Series B convertible preferred shares</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">2,145,370</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,016,727</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,430</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">10,014</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">11,567,003</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">10,313,808</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">70,363</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">83,585</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td width="4%"> </td>
<td valign="top" width="4%" align="left">(1)</td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt" align="left">Net proceeds are gross proceeds from the offerings net
of issuance costs.</p>
</td>
</tr>
</table>
</div>
-21000
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Net Loss Per Share Attributable to Ordinary Shareholders</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
Basic net loss per share is calculated by dividing the net loss
attributable to ordinary shareholders by the weighted-average
number of ordinary shares outstanding during the period, without
consideration for ordinary share equivalents. Net loss attributable
to ordinary shareholders is calculated by adjusting net loss of the
Company for cumulative preferred share dividends. Diluted net loss
per share is the same as basic net loss per share, since the
effects of potentially dilutive securities are antidilutive given
the net loss for each period presented.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The Company applies the <font style="WHITE-SPACE: nowrap">two-class</font> method to compute basic and
diluted net loss per share when it has issued shares that meet the
definition of participating securities. The <font style="WHITE-SPACE: nowrap">two-class</font> method determines net loss
per share for each class of ordinary and participating securities
according to dividends declared or accumulated and participation
rights in undistributed earnings. The <font style="WHITE-SPACE: nowrap">two-class</font> method requires net loss
available to ordinary shareholders for the period to be allocated
between ordinary and participating securities based upon their
respective rights to share in the earnings as if all net loss for
the period had been distributed. The Company’s convertible
preferred shares participate in any dividends declared by the
Company and are therefore considered to be participating
securities. The participating securities are not required to
participate in the losses of the Company, and therefore during
periods of loss there is no allocation required under the
<font style="WHITE-SPACE: nowrap">two-class</font> method.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Unaudited Pro Forma Net Loss Per Share Attributable to Ordinary
Shareholders</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
In contemplation of an initial public offering, or IPO, the Company
has presented unaudited pro forma basic and diluted net loss per
share attributable to ordinary shareholders for the year ended
December 31, 2019. Unaudited pro forma basic net loss per
share attributable to ordinary shareholders as of December 31,
2019 is computed to give effect to adjustments to the denominator
in the pro forma basic and diluted net loss per share calculation
to reflect the conversion of all of the Company’s outstanding
convertible preferred shares and cumulative dividends into
11,253,839 ordinary shares, as if the conversion had occurred as of
the beginning of the period or the original date of issuance, if
later.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
Unaudited pro forma diluted net loss attributable to ordinary
shareholders is the same as unaudited pro forma basic net loss per
share attributable to ordinary shareholders for the period as the
impact of any potentially dilutive securities was anti-dilutive,
which has been computed to give effect to the adjustment noted
above. The pro forma net loss per share attributable to ordinary
shareholders does not include proceeds to be received from nor does
it include shares expected to be sold in the assumed IPO.</p>
</div>
16306000
400000
0
3313000
297000
800000
-353000
15357000
11000
297000
4500000
<div>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td valign="top" width="4%" align="left"><b>(5)</b></td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt" align="left"><b>CAPITAL STRUCTURE</b></p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Ordinary Shares</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
In 2015, in conjunction with the founding of the Company, 2,127,460
ordinary shares were issued to the founders, or Founder Stock, at a
price of $0.033 per share. These shares are subject to repurchase
at the option of the Company at a price that is the lower of
(i) the original issuance price or (ii) the fair market
value as of the date of repurchase, in the event that the
founders’ employment is terminated either voluntarily or
involuntarily. Such repurchase rights generally lapse over a period
of four years from the date the Founder Stock was issued. As of
December 31, 2018, and December 31, 2019, there were
113,864 and no founder shares subject to repurchase, respectively.
See Note 6 for Founder Stock activity for the years ended
December 31, 2018 and December 31, 2019.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
Ordinary shares reserved for future issuance, on an as if converted
basis, as of December 31, 2018 and December 31, 2019,
consists of the following:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="76%"></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>DECEMBER 31,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2018</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2019</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Convertible preferred shares, issued and outstanding</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,297,081</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">10,313,808</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Share options, issued and outstanding</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">864,819</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,183,745</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Share options, authorized for future issuance</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">73,015</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">566,900</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Warrants, issued and outstanding</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">61,292</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Warrants, authorized for future issuance</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">30,646</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4.42em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">10,234,915</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">12,156,391</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Convertible Preferred Shares</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
As of December 31, 2018 and December 31, 2019, the
Company’s convertible preferred shares consisted of the
following (in thousands, except share amounts):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="52%"></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="14" align="center"><b>DECEMBER 31, 2018</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>AUTHORIZED<br />
SHARES</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>SHARES<br />
ISSUED AND<br />
OUTSTANDING</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>NET<br />
PROCEEDS<sup style="FONT-SIZE: 85%; VERTICAL-ALIGN: top">(1)</sup></b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>AGGREGATE<br />
LIQUIDATION<br />
PREFERENCE</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<b>Shares designated as:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Series A convertible preferred shares</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,421,633</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,297,081</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">60,933</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">69,863</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,421,633</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,297,081</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">60,933</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">69,863</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="12"></td>
<td height="12" colspan="16"></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="14" align="center"><b>DECEMBER 31, 2019</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>AUTHORIZED<br />
SHARES</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>SHARES<br />
ISSUED AND<br />
OUTSTANDING</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>NET<br />
PROCEEDS<sup style="FONT-SIZE: 85%; VERTICAL-ALIGN: top">(1)</sup></b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>AGGREGATE<br />
LIQUIDATION<br />
PREFERENCE</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<b>Shares designated as:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Series A convertible preferred shares</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,421,633</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,297,081</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">60,933</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">73,571</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Series B convertible preferred shares</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">2,145,370</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,016,727</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,430</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">10,014</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">11,567,003</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">10,313,808</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">70,363</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">83,585</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td width="4%"> </td>
<td valign="top" width="4%" align="left">(1)</td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt" align="left">Net proceeds are gross proceeds from the offerings net
of issuance costs.</p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
In May 2015, the Company entered into a Series A Preferred Share
Purchase Agreement, or Series A Agreement, with certain existing
investors, employees, and new investors, or collectively, the
Series A Investors. Under the terms of the Series A Agreement, the
Company authorized the sale and issuance of up to 5,470,625 of the
Company’s Series A convertible preferred shares. The purchase
and sale of the Series A convertible preferred shares could be sold
in one or more closings in accordance with the Series A Agreement.
In March 2017, the Company entered into a convertible promissory
note purchase agreement, or the Note Purchase Agreement, with
certain existing investors, employees and new investors, or
collectively, the Promissory Note Investors. Under the terms of the
Note Purchase Agreement, the Company issued promissory notes in the
aggregate principal amount of $25.0 million that are
convertible into Series A convertible preferred shares to the
Promissory Note Investors.</p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; MARGIN-TOP: 9px">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 0pt">
In 2015 and 2016, the Company issued a total of 5,470,612 Series A
convertible preferred shares to investors at $6.58 per share for
cash proceeds of $34.8 million. In September 2017, the Company
issued a total of 3,826,469 Series A convertible preferred shares
for cash proceeds of $1.2 million pursuant to the conversion
of outstanding convertible promissory notes. The gross proceeds of
$37.2 million were reduced by total issuance costs incurred of
$0.2 million.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
In May 2019, the Company entered into a Series B Preferred Share
Purchase Agreement or the Series B Agreement, with certain existing
investors, employees and new investors, or collectively, the Series
B Investors. Under the terms of the Series B Agreement, the Company
authorized the sale and issuance of up to 2,145,370 of the
Company’s Series B convertible preferred shares at a purchase
price of $9.4972 per share. The purchase and sale of the Series B
convertible preferred shares could be sold in one or more closings
in accordance with the Series B Agreement. As of December 31,
2019, a total of 1,016,727 shares had been purchased with gross
proceeds of $9.6 million. The gross proceeds of
$9.6 million were reduced by total issuance costs incurred of
$0.2 million.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The rights, preferences and privileges of the Series A and Series B
convertible preferred shares, or Preferred Shares, as of
December 31, 2019 are as follows:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<i>Dividend Provisions</i> – Cumulative dividends of 6.0% per
annum of the original issue price for each Preferred Shares series
are payable when and as declared by the Company’s Board of
Directors, or Board of Directors, upon the occurrence of a
liquidation event or upon a contingent mandatory conversion of the
Preferred Shares in connection with a qualified initial public
offering as described below. The Series A original issue price is
$6.58, and the Series B original issue price is $9.4972. The
original issue price is subject to adjustment in the event of any
share dividend, share split, combination, consolidation or other
recapitalization. The dividends shall accrue from day to day from
the issue date of such Preferred Shares whether or not declared and
shall be cumulative. In addition, the Preferred Shares participate
on an <font style="WHITE-SPACE: nowrap">as-converted</font> basis
in any dividends payable to ordinary shareholders. Cumulative
dividends for the years ended December 31, 2018 and
December 31, 2019 was $8.7 million and
$12.7 million, respectively. No dividends have been declared
or paid since the issuance of convertible preferred shares through
December 31, 2019.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<i>Liquidation</i> – In the event of liquidation, dissolution
or winding up of the Company, merger or a reduction of capital
through the sale or lease of all or substantial part of the
business of the Company, before any distribution or payment shall
be made to the holders of ordinary shares, the holders of Preferred
Shares shall be entitled to be paid an amount in cash equal to the
original issue price (subject to adjustment in the event of any
share dividend, share split, combination, or other
recapitalization) plus all dividends accumulated and unpaid
thereon. First, the holders of the Preferred Shares are paid in
full the amounts specified in the immediately preceding sentence on
a <font style="WHITE-SPACE: nowrap">pro-rata</font> basis; then,
after holders of the Preferred Shares are satisfied, any remaining
amounts shall be distributed on a <font style="WHITE-SPACE: nowrap">pro-rata</font> basis to the holders of the
Preferred Shares (calculated on an as converted basis) and the
ordinary shares.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<i>Voting Rights</i> – On any matter presented to the
shareholders of the Company, each holder of outstanding Preferred
Shares shall be entitledto cast the number of votes equal to the
number of whole ordinary shares into which the Preferred Shares
held by such holder are convertible. The holders of Preferred
Shares shall vote together with the holders of ordinary shares as a
single class. Additionally, as long as at least 1,367,656 Preferred
Shares are outstanding (subject to adjustment in the event of any
recapitalizations), the Company must receive approval of holders of
at least <font style="WHITE-SPACE: nowrap">two-third</font> of the
voting rights then held in aggregate by the holders of the
Preferred Shares in issue on an <font style="WHITE-SPACE: nowrap">as-converted</font> basis in order to effect
certain corporate actions. Two investors have contractual rights to
elect three out of five board members.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<i>Optional Conversion at Holders’ Option</i> – Each
share of Preferred Shares shall be convertible, at the option of
the holder, at any time and from time to time, into such number of
fully paid and <font style="WHITE-SPACE: nowrap">non-assessable</font> ordinary shares as is
determined by dividing the original issue price by the Applicable
Conversion Price. The Applicable Conversion Price for each series
of Preferred Shares is currently equal to the original issue price
for such series. Upon conversion, the holders shall also receive
only declared but as yet unpaid dividends. Note only holders of
Preferred Shares receive declared and unpaid dividends; preferred
shareholders who chose to convert prior to the declaration of such
dividends are not entitled to receive accumulated dividends.</p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; MARGIN-TOP: 9px">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 0pt">
<i>Contingent Mandatory Conversion</i> – Upon the closing of
the first underwritten public offering pursuant to an effective
registration statement under the Securities Act of 1933, as
amended, or pursuant to a corresponding securities issuance
application process in any <font style="WHITE-SPACE: nowrap">non-U.S.</font> jurisdiction, covering the
offer and sale of the Company’s ordinary shares in which
(i) the per share price is not less than $15.19540 (as
adjusted for any share dividends, combinations, splits,
recapitalizations and the like with respect to such shares after
the filing date hereof) and (ii) the gross cash proceeds to
the Company (before underwriting discounts, commissions and fees)
are at least $50.0 million then all outstanding Preferred
Shares shall automatically be converted into a number of ordinary
shares, at a conversion rate determined by dividing the applicable
original price of such Preferred Shares by the applicable
conversion price of such Preferred Shares. Upon conversion, the
holders shall also receive any cumulative and unpaid dividends,
whether or not declared as conversion ordinary shares at the same
conversion rate for the applicable Preferred Shares.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<i>Down-Round Antidilution Protection</i> – In the event the
Company issues its ordinary shares without consideration or for
consideration pershare that is less than the conversion price in
effect for each series of the Preferred Shares, then the conversion
price for that series shall be reduced in order to increase the
number of ordinary shares into which such series of Preferred
Shares is convertible to.</p>
</div>
<div>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td valign="top" width="4%" align="left"><b>(1)</b></td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt" align="left"><b>ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES</b></p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Organization</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
Alexo Therapeutics Limited, or the Company, was initially
incorporated in Ireland on March 13, 2015 and changed its name
to ALX Oncology Limited on October 11, 2018. The Company is a
clinical-stage immuno-oncology company focused on helping patients
fight cancer by developing therapies that block the CD47 checkpoint
pathway and bridge the innate and adaptive immune system.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The Company owns a direct subsidiary, ALX Oncology Inc.,
incorporated in the United States, as well as a direct subsidiary
incorporated in Malta, Alexo International Holdings Ltd. The
Company also has two indirect subsidiaries, Alexo Therapeutics
International, incorporated in the Cayman Islands, which is a
wholly-owned subsidiary of Alexo International Holdings Ltd. and
Sirpant Therapeutics, incorporated in the Cayman Islands, which is
a wholly-owned subsidiary of Alexo Therapeutics International,
collectively, the Subsidiaries.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The Company completed an internal reorganization transaction in
April 2020, pursuant to which ALX Oncology Limited became a
wholly-owned subsidiary of ALX Oncology Holdings Inc., a newly
formed Delaware corporation. As part of the transaction, all of the
equity, option and warrant holders of ALX Oncology Limited became
equity, option and warrant holders of ALX Oncology Holdings Inc.,
holding the same number of corresponding shares, options and/or
warrants in ALX Oncology Holdings Inc., as they did in the Company
immediately prior to the reorganization (Note 13).</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Basis of Preparation</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
These consolidated financial statements have been prepared in
accordance with accounting principles generally accepted in the
United States of America, or U.S. GAAP.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Principles of Consolidation</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
All intercompany balances and transactions have been eliminated in
consolidation.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Unaudited Pro Forma Information</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
Immediately prior to the completion of this offering, all
outstanding convertible preferred shares will automatically convert
into ordinary shares. Unaudited pro forma basic and diluted net
loss per share has been computed to give effect to the conversion
of all outstanding convertible preferred shares and cumulative
dividends on the convertible preferred shares into ordinary shares.
The unaudited pro forma net loss per share does not include the
shares expected to be sold and related proceeds to be received from
the initial public offering.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Need for Additional Capital</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
Since commencing operations, none of the Company’s product
candidates have received marketing approval from the U.S. Food and
Drug Administration, or FDA, or any other federal, state, local or
foreign governmental or regulatory authority and therefore the
Company has not generated any revenue from drug product sales. The
Company had an accumulated deficit of $72.8 million as of
December 31, 2019 and management does not expect to experience
positive cash flows in the foreseeable future. Based on
management’s current plans, management believes cash of
$9.0 million as of December 31, 2019, along with the
$105.0 million of gross proceeds from the issuance of Series C
convertible preferred shares in February 2020 (Note 13), are
sufficient to fund operations through at least one year from the
date of the issuance of these consolidated financial
statements.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
Management expects to incur additional losses in the future to
conduct product candidate research and development and to conduct
<font style="WHITE-SPACE: nowrap">pre-commercialization</font>
activities and recognizes the need to raise additional capital to
fully implement its business plan. The Company intends to raise
such capital through the sale of additional equity, debt financings
or strategic alliances with third parties. However, there can be no
assurance that the Company will be successful in acquiring
additional funding at levels sufficient to fund its operations or
on terms acceptable to the Company. If the Company is unsuccessful
in its efforts to raise additional financing, the Company could be
required to significantly reduce operating expenses and delay,
reduce the scope of or eliminate some of its development programs
or its future commercialization efforts, <font style="WHITE-SPACE: nowrap">out-license</font> intellectual property
rights to its product candidates and sell unsecured assets, or a
combination of the above, any of which may have a material adverse
effect on the Company’s business, results of operations,
financial condition and/or its ability to fund its scheduled
obligations on a timely basis or at all.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Use of Estimates</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The preparation of consolidated financial statements in conformity
with U.S. GAAP requires management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at
the date of the consolidated financial statements and the reported
amounts of revenues and expenses during the reporting periods. On
an ongoing basis, management evaluates its estimates, including
those related to the estimated useful lives of long-lived assets,
clinical trial accruals, fair value of assets and liabilities,
Series B convertible preferred shares warrant liability, term loan
compound derivative liability, term loan, valuation of ordinary
shares, income taxes and share-based compensation. Management bases
its estimates on historical experience and on various other
market-specific and relevant assumptions that management believes
to be reasonable under the circumstances. Actual results could
differ from those estimates.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Cash</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The Company holds its cash in checking and interest-bearing
accounts.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Concentration of Credit Risk and Other Risks and
Uncertainties</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
Financial instruments that potentially subject the Company to a
concentration of credit risk consist primarily of cash. The Company
maintains deposits in federally insured financial institutions in
excess of federally insured limits. The Company is exposed to
credit risk in the event of default by the financial institutions
holding its cash. The Company has not experienced any losses on its
deposits of cash.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The Company’s future results of operations involve a number
of other risks and uncertainties. Factors that could affect the
Company’s future operating results and cause actual results
to vary materially from expectations include, but are not limited
to, uncertainty of results of clinical trials and reaching
milestones, uncertainty of regulatory approval of the
Company’s potential product candidates, uncertainty of market
acceptance of the Company’s product candidates, competition
from substitute products and larger companies, securing and
protecting proprietary technology, strategic relationships and
dependence on key individuals or sole-source suppliers.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The Company’s product candidates require approvals from the
FDA and comparable foreign regulatory agencies prior to commercial
sales in their respective jurisdictions. There can be no assurance
that any product candidates will receive the necessary approvals.
If the Company was denied approval, approval was delayed or the
Company was unable to maintain approval for any product candidate,
it could have a materially adverse impact on the Company.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Property and Equipment</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
Property and equipment are stated at cost less accumulated
depreciation. Depreciation of property and equipment is provided
using the straight-line method over the estimated useful lives of
the assets (Note 3). Upon sale or retirement of assets, the cost
and related accumulated depreciation or amortization are removed
from the consolidated balance sheet and the resulting gain or loss
is reflected in the consolidated statement of operations and
comprehensive loss. Maintenance and repairs are charged to the
consolidated statement of operations and comprehensive loss as
incurred.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The useful lives of the property and equipment are as follows:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="51%"></td>
<td valign="bottom" width="2%"></td>
<td width="47%"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom">Research and development equipment</td>
<td valign="bottom">  </td>
<td valign="bottom">5 years</td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom">Furniture and office equipment</td>
<td valign="bottom">  </td>
<td valign="bottom">5 years</td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom">Computer equipment</td>
<td valign="bottom">  </td>
<td valign="bottom">3 years</td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom">Software</td>
<td valign="bottom">  </td>
<td valign="bottom">3 years</td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom">Leasehold improvements</td>
<td valign="bottom">  </td>
<td valign="bottom">Shorter of 7 years or remaining of lease
term</td>
</tr>
</table>
</div>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; MARGIN-TOP: 9px">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 0pt">
<b>Impairment of Long-Lived Assets</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The Company reviews property and equipment for impairment whenever
events or changes in circumstances indicate that the carrying
amount of an asset may not be recoverable. Recoverability is
measured by comparison of the carrying amount to the future
undiscounted net cash flows which the asset or asset group are
expected to generate. If such assets are considered to be impaired,
the impairment to be recognized is measured as the amount by which
the carrying amount of the assets exceeds its fair value. Fair
value is determined using various valuation techniques including
discounted cash flow models, quoted market values and third-party
independent appraisals, as considered necessary. There were no
impairment charges recognized in the years ended December 31,
2018 and December 31, 2019.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Fair Value of Financial Instruments</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The Company applies fair value accounting for all financial assets
and liabilities and nonfinancial assets and liabilities that are
required to be recognized or disclosed at fair value in the
consolidated financial statements. The Company defines fair value
as the price that would be received from selling an asset or paid
to transfer a liability in an orderly transaction between market
participants at the measurement date. Where observable prices or
inputs are not available valuation models are applied. These
valuation techniques involve some level of management estimation
and judgment, the degree of which is dependent on the price
transparency for the instruments or market and the
instruments’ complexity.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The Company’s financial instruments consist of cash, accounts
receivable, accounts payable, the term loan compound derivative
liability and the Series B convertible preferred shares warrant
liability. The term loan compound derivative liability and the
Series B convertible preferred shares warrant liability are
<font style="WHITE-SPACE: nowrap">re-measured</font> at the end of
every period and carried at fair value (Note 2). The recorded value
of the Company’s accounts receivable and accounts payable
approximates its current fair value due to the relatively
short-term nature of these items.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Term Loan</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The Company accounts for the Loan and Security Agreement, dated as
of December 20, 2019, with Silicon Valley Bank, and WestRiver
Innovation Lending Fund VIII, LP, collectively as lenders, and
Silicon Valley Bank, as administrative agent and collateral agent,
as a liability measured at net proceeds less debt discount and is
accreted to the face value of the term loan over its expected term
using the effective interest method. The Company considers whether
there are any embedded features in its debt instruments that
require bifurcation and separate accounting as derivative financial
instruments pursuant to Accounting Standards Codification, or ASC,
Topic 815, <i>Derivatives and</i> <i>Hedging</i>.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Convertible Preferred Shares</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The Company records convertible preferred shares net of issuance
costs on the dates of issuance, which represents the carrying
value. In the event of a change of control of the Company, proceeds
will be distributed in accordance with the liquidation preferences
set forth in its Constitution unless the holders of convertible
preferred shares have converted their convertible preferred shares
into ordinary shares. Convertible preferred shares are classified
outside of shareholders’ deficit on the accompanying
consolidated balance sheets as events triggering the liquidation
preferences are not solely within the Company’s control. The
Company has elected not to adjust the carrying values of the
convertible preferred shares to the liquidation preferences of such
shares because of the uncertainty of whether or when such an event
would occur.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Series B Convertible Preferred Shares Warrant Liability</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The Company has issued freestanding warrants to purchase its Series
B convertible preferred shares. Freestanding warrants for the
Company’s convertible preferred shares that are classified
outside of permanent equity are recorded at fair value, and are
subject to <font style="WHITE-SPACE: nowrap">re-measurement</font>
at each balance sheet date until the earlier of the exercise of the
warrants or the completion of a liquidation event. Upon exercise,
the Series B convertible preferred shares warrant liability would
be reclassified to additional <font style="WHITE-SPACE: nowrap">paid-in</font> capital, with any change in
fair value recognized as a component of other income (expense),
net.</p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; MARGIN-TOP: 9px">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 0pt">
<b>Revenue Recognition</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
To date, the Company has derived revenue from providing research
and development services on a time and materials basis to a
related-party. The Company recognizes such revenues over time as
services are delivered, and invoices the customer as the work is
incurred in arrears.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
Effective January 1, 2018, the Company adopted ASC Topic 606,
<i>Revenue from Contracts with Customers</i> (Topic 606) on a full
retrospective basis. This standard applies to all contracts with
customers, except for contracts that are within the scope of other
standards, such as leases, insurance, collaboration arrangements
and financial instruments. In accordance with Topic 606, the
Company recognizes revenue when its customer obtains control of
promised goods or services, in an amount that reflects the
consideration which the Company expects to receive in exchange for
those goods or services.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
To determine revenue recognition for arrangements that the Company
determines are within the scope of Topic 606, the Company performs
the following five steps: (i) identify the contract(s) with a
customer; (ii) identify the performance obligations in the
contract; (iii) determine the transaction price;
(iv) allocate the transaction price to the performance
obligations in the contract; and (v) recognize revenue when
(or as) the Company satisfies a performance obligation.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
As part of the Company’s consideration as to whether the
Company has entered into a contract with a customer, it considers
whether it is probable that it will collect the consideration it is
entitled to in exchange for the goods and services it transfers to
the customer. At contract inception, the Company assesses the goods
or services promised within each contract that falls under the
scope of Topic 606, determines those that are performance
obligations, and assesses whether each promised good or service is
distinct. The Company then recognizes as revenue the amount of the
transaction price that is allocated based on their standalone
selling price to the respective performance obligation when (or as)
the performance obligation is satisfied.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Cost of Services for Related-Party Revenue</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The Company incurs costs associated with related-party services
including direct labor and associated employee benefits, laboratory
supplies, and other expenses. These costs are recorded in cost of
services for related-party revenue as a component of total
operating expenses in the accompanying consolidated statements of
operations and comprehensive loss.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Research and Development Costs</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
Research and development costs are expensed as incurred and consist
primarily of salaries and benefits, share-based compensation
expense, lab supplies and facility costs, as well as fees paid to
nonemployees and entities that conduct certain research and
development activities on behalf of the Company and expenses
incurred in connection with license agreements (Note 9).
Nonrefundable advance payments for goods or services to be received
in the future for use in research and development activities are
capitalized and recorded in prepaid expenses and other current
assets, and then expensed as the related goods are delivered or the
services are performed.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Clinical and Manufacturing Accruals</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The Company records accruals for estimated costs of research,
preclinical studies and clinical trials, and manufacturing
development, which are a significant component of research and
development expenses. A substantial portion of the Company’s
ongoing research and development activities are conducted by
third-party service providers, including contract research
organizations, or CROs, and contract manufacturing organizations,
or CMOs. The Company’s contracts with CROs generally include
pass-through fees such as regulatory expenses, investigator fees,
travel costs and other miscellaneous costs, including shipping and
printing fees. The financial terms of these contracts are subject
to negotiations, which vary from contract to contract and may
result in payment flows that do not match the periods over which
materials or services are provided to the Company under such
contracts. The Company accrues the costs incurred under agreements
with these third parties based on estimates of actual work
completed in accordance with the respective agreements. The Company
determines the estimated costs through discussions with internal
personnel and external service providers as to the progress or
stage of completion of the services and the agreed-upon fees to be
paid for such services.</p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; MARGIN-TOP: 6px">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 0pt">
The Company makes significant judgments and estimates in
determining the accrual balance at the end of each reporting
period. As actual costs become known, the Company adjusts its
accruals. Although the Company does not expect its estimates to be
materially different from amounts actually incurred, the
Company’s understanding of the status and timing of services
performed relative to the actual status and timing of services
performed may vary and could result in the Company reporting
amounts that are too high or too low in any particular period. To
assist in its estimates the Company relies upon the receipt of
timely and accurate reporting from information provided as part of
its clinical and <font style="WHITE-SPACE: nowrap">non-clinical</font> studies and other
third-party vendors. Through December 31, 2019, there have
been no material differences from the Company’s accrued
estimated expenses to the actual clinical trial expenses. However,
variations in the assumptions used to estimate accruals, including,
but not limited to, the number of patients enrolled, the rate of
patient enrollment, and the actual services performed, and related
costs may vary from the Company’s estimates, resulting in
adjustments to clinical trial expense in future periods. Changes in
these estimates that result in material changes to the
Company’s accruals could materially affect its financial
position and results of operations.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Share-Based Compensation Expense</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The Company accounts for share-based compensation by measuring and
recognizing compensation expense for all share-based payments made
to employees, directors and <font style="WHITE-SPACE: nowrap">non-employees</font> based on estimated
grant-date fair values. The Company uses the straight-line method
to allocate compensation expense to reporting periods over each
optionee’s requisite service period, which is generally the
vesting period, and estimates the fair value of share-based awards
to employees and directors using the Black-Scholes option-pricing
model. The Black-Scholes model requires the input of subjective
assumptions, including expected volatility, expected dividend
yield, expected term, risk-free rate of return and the estimated
fair value of the underlying ordinary shares on the date of grant.
The Company accounts for the effect of forfeitures as they
occur.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Segment Reporting</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The Company manages its operations as a single operating segment
for the purposes of assessing performance and making operating
decisions. All of the Company’s assets are maintained in the
United States and Ireland.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Foreign Currency Transactions</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The functional currency of the Company’s operation and each
of its subsidiaries is U.S. dollars. All assets and liabilities
denominated in a foreign currency are translated into U.S. dollars
at the exchange rate prevailing on the balance sheet date. Expenses
are translated at the average exchange rates prevailing during the
applicable period. Foreign currency transaction gains and losses
are included in the consolidated statement of operations and
comprehensive loss and recorded in other income (expense), net, and
was immaterial for the years ended December 31, 2018 and
December 31, 2019, respectively.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Income Taxes</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The Company accounts for income taxes under the asset and liability
method, which requires the recognition of deferred tax assets and
liabilities for the expected future tax consequences of events that
have been included in the consolidated financial statements. Under
this method, deferred tax assets and liabilities are determined on
the basis of the differences between the consolidated financial
statement carrying amounts and tax bases of assets and liabilities
using enacted tax rates in effect for the period in which the
temporary differences are expected to reverse. The effect of a
change in tax rates on deferred tax assets and liabilities is
recognized in the consolidated statements of operations and
comprehensive loss in the period that includes the enactment
date.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The Company recognizes deferred tax assets to the extent that it
believes these assets are more likely than not to be realized. In
making such a determination, the Company considers all available
positive and negative evidence, including future reversals of
existing taxable temporary differences, projected future taxable
income, <font style="WHITE-SPACE: nowrap">tax-planning</font>
strategies and results of recent operations. If the Company
determines that it would be able to realize its deferred tax assets
in the future in excess of their net recorded amount, it would make
an adjustment to the deferred tax asset valuation allowance, which
would reduce the provision for income taxes.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The Company recognizes benefits of uncertain tax positions if it is
more likely than not that such positions will be sustained upon
examination based solely on their technical merits, as the largest
amount of benefit that is more likely than not to be realized upon
the ultimate settlement. The Company’s policy is to recognize
interest and penalties related to the underpayment of income taxes
as a component of income tax expense or benefit.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Net Loss Per Share Attributable to Ordinary Shareholders</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
Basic net loss per share is calculated by dividing the net loss
attributable to ordinary shareholders by the weighted-average
number of ordinary shares outstanding during the period, without
consideration for ordinary share equivalents. Net loss attributable
to ordinary shareholders is calculated by adjusting net loss of the
Company for cumulative preferred share dividends. Diluted net loss
per share is the same as basic net loss per share, since the
effects of potentially dilutive securities are antidilutive given
the net loss for each period presented.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The Company applies the <font style="WHITE-SPACE: nowrap">two-class</font> method to compute basic and
diluted net loss per share when it has issued shares that meet the
definition of participating securities. The <font style="WHITE-SPACE: nowrap">two-class</font> method determines net loss
per share for each class of ordinary and participating securities
according to dividends declared or accumulated and participation
rights in undistributed earnings. The <font style="WHITE-SPACE: nowrap">two-class</font> method requires net loss
available to ordinary shareholders for the period to be allocated
between ordinary and participating securities based upon their
respective rights to share in the earnings as if all net loss for
the period had been distributed. The Company’s convertible
preferred shares participate in any dividends declared by the
Company and are therefore considered to be participating
securities. The participating securities are not required to
participate in the losses of the Company, and therefore during
periods of loss there is no allocation required under the
<font style="WHITE-SPACE: nowrap">two-class</font> method.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Unaudited Pro Forma Net Loss Per Share Attributable to Ordinary
Shareholders</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
In contemplation of an initial public offering, or IPO, the Company
has presented unaudited pro forma basic and diluted net loss per
share attributable to ordinary shareholders for the year ended
December 31, 2019. Unaudited pro forma basic net loss per
share attributable to ordinary shareholders as of December 31,
2019 is computed to give effect to adjustments to the denominator
in the pro forma basic and diluted net loss per share calculation
to reflect the conversion of all of the Company’s outstanding
convertible preferred shares and cumulative dividends into
11,253,839 ordinary shares, as if the conversion had occurred as of
the beginning of the period or the original date of issuance, if
later.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
Unaudited pro forma diluted net loss attributable to ordinary
shareholders is the same as unaudited pro forma basic net loss per
share attributable to ordinary shareholders for the period as the
impact of any potentially dilutive securities was anti-dilutive,
which has been computed to give effect to the adjustment noted
above. The pro forma net loss per share attributable to ordinary
shareholders does not include proceeds to be received from nor does
it include shares expected to be sold in the assumed IPO.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Recent Accounting Pronouncements</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
From time to time, new accounting pronouncements are issued by the
Financial Accounting Standards Board, or FASB, or other standard
setting bodies and adopted by the Company as of the specified
effective date. Unless otherwise discussed, the impact of recently
issued standards that are not yet effective will not have a
material impact on the Company’s financial position or
results of operations upon adoption.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
In February 2016, the FASB issued ASU <font style="WHITE-SPACE: nowrap">No. 2016-02</font> (Topic 842),
<i>Leases</i> (ASU <font style="WHITE-SPACE: nowrap">2016-02).</font> ASU <font style="WHITE-SPACE: nowrap">2016-02</font> requires an entity to
recognize assets and liabilities arising from a lease for both
financing and operating leases. ASU <font style="WHITE-SPACE: nowrap">No. 2016-02</font> will also require new
qualitative and quantitative disclosures to help investors and
other financial statement users better understand the amount,
timing, and uncertainty of cash flows arising from leases. In
November 2019, the FASB issued ASU <font style="WHITE-SPACE: nowrap">No. 2019-10,</font> which extends the
effective date of ASU <font style="WHITE-SPACE: nowrap">No. 2016-02</font> for <font style="WHITE-SPACE: nowrap">non-public</font> business entities,
including smaller reporting companies, to fiscal years beginning
after December 15, 2020. The new standard is effective for the
Company beginning January 1, 2021. Early adoption is
permitted. The Company is currently evaluating the effects of the
adoption of this guidance on its consolidated financial statements
and related disclosures.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
In June 2016, the FASB issued ASU <font style="WHITE-SPACE: nowrap">No. 2016-13,</font> <i>Financial
Instruments-Credit Losses</i> (Topic 326), which requires entities
to measure all expected credit losses for financial assets held at
the reporting date based on historical experience, current
conditions, and reasonable and supportable forecasts. This replaces
the existing incurred loss model and is applicable to the
measurement of credit losses on financial assets measured at
amortized cost. In February 2020, the FASB issued ASU <font style="WHITE-SPACE: nowrap">No. 2020-02</font> and delayed the
effective date of Topic 326 until fiscal year beginning after
December 15, 2022. The new standard is effective for the
Company beginning January 1, 2023. Early adoption is
permitted. The Company is currently evaluating the effects of the
adoption of this guidance on its consolidated financial statements
and related disclosures.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
In December 2019, the FASB issued ASU <font style="WHITE-SPACE: nowrap">No. 2019-12,</font> <i>Income Taxes</i>
(Topic 740): Simplifying the Accounting for Income Taxes, which is
intended to simplify various aspects related to accounting for
income taxes. The pronouncement is effective for fiscal years, and
for interim periods within those fiscal years, beginning after
December 15, 2021. ASU <font style="WHITE-SPACE: nowrap">2019-12</font> is effective for the Company
beginning January 1, 2022. Early adoption is permitted. The
Company is currently in the process of evaluating the effects of
the adoption of this guidance on the Company’s financial
statements and does not expect it to have a material impact on its
consolidated financial statements.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>New Accounting Pronouncements Recently Adopted</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
In November 2016, the FASB issued ASU <font style="WHITE-SPACE: nowrap">No. 2016-18,</font> <i>Statement of Cash
Flows</i> (Topic 230): Restricted Cash, which requires that
restricted cash and cash equivalents be included as components of
total cash and cash equivalents as presented on the statement of
cash flows. ASU <font style="WHITE-SPACE: nowrap">2016-18</font>
was effective for fiscal years beginning after December 15,
2018, and a retrospective transition method is required. The
Company adopted this guidance on January 1, 2019. The adoption
of this guidance did not have a material impact on the
Company’s consolidated financial statements.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
In July 2017, the FASB issued ASU <font style="WHITE-SPACE: nowrap">No. 2017-11,</font> <i>Earnings Per
Share</i> (Topic 260); <i>Distinguishing Liabilities from
Equity</i> (Topic 480): Accounting for Certain Financial
Instruments with Down Round Features. ASU <font style="WHITE-SPACE: nowrap">No. 2017-11</font> provides guidance
that eliminates the requirement to consider “down
round” features when determining whether certain financial
instruments or embedded features are indexed to an entity’s
stock and need to be classified as liabilities. ASU <font style="WHITE-SPACE: nowrap">2017-11</font> provides for entities to
recognize the effect of a down round feature only when it is
triggered and then as a dividend and a reduction to income
available to common stockholders in basic earnings per share. The
Company adopted this guidance on January 1, 2019. The adoption
of this guidance did not have a material impact on the
Company’s consolidated financial statements.</p>
</div>
33000
0
1000
0
-23271000
-19243000
-7.56
-7.56
-19183000
<div>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td valign="top" width="4%" align="left"><b>(9)</b></td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt" align="left"><b>LICENSE AGREEMENT</b></p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<i>Exclusive (Equity) Agreement with The Board of Trustees of the
Leland Stanford Junior University</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
In March 2015, the Company entered into a license agreement, or the
Stanford Agreement, with the Board of Trustees of the Leland
Stanford Junior University, or Stanford, under which the Company
obtained a worldwide, royalty-bearing, sublicensable license under
certain patents relating to the Company’s current product
candidates, to develop, manufacture and commercialize products for
use in certain licensed fields, the scope of which would include
the application of the licensed intellectual property in oncology.
The license granted to the Company in the Stanford Agreement
includes an exclusive grant, subject to certain <font style="WHITE-SPACE: nowrap">pre-existing</font> <font style="WHITE-SPACE: nowrap">non-exclusive</font> or exclusive rights that
Stanford retained for grant to third parties with respect to
certain categories of the licensed patents in certain fields of use
and retained rights by Stanford and all other nonprofit
institutions to use and practice the licensed patents and
technology for internal research and other nonprofit purposes. The
license granted to the Company in the Stanford Agreement also
includes <font style="WHITE-SPACE: nowrap">non-exclusive</font>
grants to certain Stanford patents.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
In consideration for the rights granted to the Company under the
Stanford Agreement, the Company paid Stanford a nonrefundable
license royalty and reimbursed Stanford for past patent expenses,
together totaling less than $0.1 million, and granted Stanford
a specified number of ordinary shares of the Company. In addition,
the Company is obligated to pay Stanford ongoing patent expenses
and an annual license maintenance fee, which are nominal and will
be creditable against any royalties payable to Stanford in the
applicable year. The Company is required to make milestone payments
up to an aggregate of $5.0 million in respect of a specified
number of licensed products that successfully satisfy certain
clinical and regulatory milestones. No milestone payments have been
made through December 31, 2019. The Company also agreed to pay
Stanford tiered royalties on a specified percentage of net sales
made by the Company, its affiliates and its sublicensees of
licensed products at rates ranging within low single-digit
percentages, subject to certain reductions and offsets. The
license, on a licensed <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">product-by-licensed</font></font> product and
<font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">country-by-country</font></font> basis, shall
become royalty-free and fully <font style="WHITE-SPACE: nowrap">paid-up</font> upon the later of the date on
which the last valid claim included in the exclusively or
<font style="WHITE-SPACE: nowrap">non-exclusively</font> licensed
patents expires and ten years after the first commercial sale of
the licensed product in such country.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The Company may terminate the Stanford Agreement, on a licensed
<font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">product-by-licensed</font></font> product
basis, at any time for any reason by providing at least 60
days’ written notice to Stanford. Stanford may terminate the
Stanford Agreement, if the Company is in breach of any provision of
the Stanford Agreement and fail to remedy such breach within 60
days after written notice of such breach by Stanford. In addition,
Stanford has the right to terminate the Stanford Agreement, on a
licensed <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">product-by-licensed</font></font> product
basis, if the Company is not diligently developing and
commercializing such licensed product under certain conditions or
if the Company fails to achieve specified development milestones
for such licensed product by certain dates, subject to the
Company’s extension rights.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<i>Commercial License Agreement with Selexis SA</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
In June 2016, the Company entered into a license agreement with
Selexis SA, or Selexis, under which the Company obtained a
worldwide, royalty-bearing, sublicensable license under certain
patents, <font style="WHITE-SPACE: nowrap">know-how</font> and
other intellectual property, to use Selexis generated cell lines to
manufacture ALX148 and to make, use and sell licensed products
containing such compound in all fields of use. The rights granted
under this agreement include the rights to grant sublicenses to
contractors or other collaboration partners, in each case to
develop production processes or manufacture licensed products
containing ALX148.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
In consideration for the rights granted to the Company under the
agreement, the Company paid Selexis a nominal <font style="WHITE-SPACE: nowrap">one-time</font> fee and will pay Selexis an
annual maintenance fee. The Company also agreed to pay Selexis
milestone payments up to an aggregate of 1.2 million Swiss
Francs in respect of all licensed products developed and/or
commercialized under the grant that successfully satisfies certain
milestone events. The Company also agreed to pay Selexis a flat
royalty of a very low single-digit percentage on net sales made by
the Company, its affiliates and sublicensees of products. This
royalty obligation, on a <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">product-by-product</font></font> and
<font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">country-by-country</font></font> basis, shall
terminate and become fully <font style="WHITE-SPACE: nowrap">paid-up</font> upon the passing of ten years
after the first commercial sale of the product in such country, or
the Company’s exercise of the royalty buyout option
exercisable at any time prior to the first commercial sale of a
licensed product.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The Company may terminate the license agreement at any time for any
reason with at least 60 days’ written notice to Selexis.
Either party may terminate the license agreement if the other party
enters into a bankruptcy event or in the event of a material breach
of the agreement (that cannot be cured or remains uncured for 60
days after the date that the defaulting party is provided with
written notice of such breach). The Company’s obligations to
pay royalties that are accrued or accruable will survive any
termination of the agreement, and in certain circumstances the
licenses granted under the agreement will terminate unless they
have become fully paid up as described in the previous
paragraph.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<i>Commercial Antibody Agreement with Crystal Bioscience, Inc. (Now
a Subsidiary of Ligand Pharmaceuticals Incorporated)</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
In March 2017, the Company entered into an agreement with Crystal
Bioscience, Inc. (now a subsidiary of Ligand Pharmaceuticals
Incorporated), or Crystal, under which the Company obtained an
assignment of certain patents, covering certain SIRP<font style="FONT-FAMILY: Times New Roman"><font style="FONT-FAMILY: SYMBOL">a</font></font> antibodies. Under this
agreement, the Company also received a worldwide, royalty-bearing
<font style="WHITE-SPACE: nowrap">non-exclusive</font> license,
with the right to grant sublicenses through multiple tiers of
sublicenses, under certain of Crystal’s background patents
and <font style="WHITE-SPACE: nowrap">know-how</font> necessary to
commercialize the rights under the assigned patents.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
In consideration for the rights granted to the Company under the
agreement, it agreed to pay Crystal milestone payments up to
$11.1 million in respect of all licensed products developed
under the assigned patents, that successfully satisfy certain
clinical and regulatory milestones, each milestone being paid only
once for all products. The Company also agreed to pay Crystal
tiered royalties on net sales made by the Company, its affiliates
and sublicensees of products at rates ranging within low
single-digit percentages, subject to certain potential reductions.
This royalty obligation, on a <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">product-by-product</font></font> and
<font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">country-by-country</font></font> basis, shall
terminate and become fully <font style="WHITE-SPACE: nowrap">paid-up</font> upon the later of the date on
which the last valid claim included in the licensed patents expires
and ten years after the first commercial sale of the product in
such country.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The Company agreed to use commercially reasonable efforts to
develop and commercialize licensed products, including meeting
defined development milestones by certain specified dates.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The Company may terminate the agreement at any time for any reason
with at least 60 days’ written notice to Crystal. Either
party may terminate the agreement if the other party enters into a
bankruptcy event or in the event of material breach of the
agreement (that remains uncured for 60 days after the date that it
is provided with written notice of such breach). The
Company’s obligations to pay royalties and milestone payments
which accrued <font style="WHITE-SPACE: nowrap">pre-termination</font> or accrue
post-termination will survive any termination.</p>
</div>
<div>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td valign="top" width="4%" align="left"><b>(8)</b></td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt" align="left"><b>COMMITMENTS & CONTINGENCIES</b></p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
In the normal course of business, the Company enters into contracts
and agreements that contain a variety of representations and
warranties and provide for general indemnifications. The
Company’s exposure under these agreements is unknown because
it involves claims that may be made against the Company in the
future but have not yet been made. To date, the Company has not
paid any claims or been required to defend any action related to
its indemnification obligations. However, the Company may record
charges in the future as a result of these indemnification
obligations. The Company also has indemnification obligations to
its officers and directors for specified events or occurrences,
subject to some limits, while they are serving at the
Company’s request in such capacities. There have been no
claims to date and the Company has director and officer insurance
that may enable the Company to recover a portion of any amounts
paid for future potential claims. The Company believes the fair
value of these indemnification agreements is minimal. Accordingly,
the Company has not recorded any liabilities for these agreements
as of December 31, 2018 and December 31, 2019.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<i>Legal Proceedings</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
From time to time, the Company may be a party to various claims in
the normal course of business. Legal fees and other costs
associated with such actions will be expensed as incurred. The
Company will assess, in conjunction with its legal counsel, the
need to record a liability for litigation and contingencies.
Reserve estimates will be recorded when and if it is determined
that a loss related matter is both probable and reasonably
estimable. For the years ended December 31, 2018 and
December 31, 2019, the Company had no pending or threatened
litigation.</p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; MARGIN-TOP: 9px">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 0pt">
<i>Contractual Obligations and Other Commitments</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The following table summarizes the Company’s commitments and
contractual obligations as of December 31, 2019 (in
thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="64%"></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom" nowrap="nowrap">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; DISPLAY: table-cell">
<b>YEAR ENDED DECEMBER 31:</b></p>
</td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>OPERATING<br />
LEASE<br />
OBLIGATIONS<br />
(1)</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>MANUFACTURING<br />
AND SERVICE<br />
CONTRACTS</b><br />
<b>(2)</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>TERM LOAN<br />
(3)</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
2020</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">544</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">926</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">401</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
2021</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">560</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">5,805</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">3,743</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
2022</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">577</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">3,007</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
2023</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">247</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">1,928</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">6,731</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">7,151</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<table style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td width="3%"> </td>
<td valign="top" width="3%" align="right"><i>(1)</i></td>
<td valign="top" width="1%"> </td>
<td valign="top" align="left"><i>Payments due for the office and
laboratory space in Burlingame, California under a single operating
lease agreement that expires in 2023.</i></td>
</tr>
</table>
<table style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td width="3%"> </td>
<td valign="top" width="3%" align="right"><i>(2)</i></td>
<td valign="top" width="1%"> </td>
<td valign="top" align="left"><i>These amounts are based on
<font style="WHITE-SPACE: nowrap">non-cancellable</font>
commitments and forecasts that include estimates of future market
demand, quantity discounts and manufacturing efficiencies that may
impact timing of purchases.</i></td>
</tr>
</table>
<table style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td width="3%"> </td>
<td valign="top" width="3%" align="right"><i>(3)</i></td>
<td valign="top" width="1%"> </td>
<td valign="top" align="left"><i>In December 2019, the Company
entered into a term loan pursuant to the Loan Agreement as
described above in Note 4.</i></td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<i>Facilities</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
In 2015, the Company entered into a noncancelable lease for office
space for a period of three years and two months, commencing March
2015 and ending May 31, 2018.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 6pt">
In 2016, the Company entered into a sublease agreement for office
space for a period of four years, commencing June 2016 and ending
May 31, 2020. This sublease was terminated early in May 2018
without any fees and penalties.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 6pt">
In 2017, the Company entered into a lease agreement for office
space for a period of five years and four months, commencing
February 1, 2018 and ending May 31, 2023.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 6pt">
Minimum rent payments under operating leases are recognized on a
straight-line basis over the term of the lease including any
periods of free rent. Rent expense for years ended
December 31, 2018 and December 31, 2019 were
$1.0 million and $0.8 million, respectively.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<i>Manufacturing and Service Contracts</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
In November 2015, the Company entered into a Master Service
Agreement, or MSA, with KBI Biopharma, Inc, or KBI, relating to
formulation development, process development and cGMP manufacturing
of ALX148 for use in clinical trials on a project basis. The MSA
had an initial term of three years which the Company subsequently
extended. See table above for future committed purchases with
KBI.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The Company also enters into other contracts in the normal course
of business with CROs, contract development and manufacturing
organizations and other service providers and vendors. These
contracts generally provide for termination on short notice and are
cancelable contracts and, accordingly, are not included in the
contractual obligations and disclosures summarized above.</p>
</div>
<div>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td valign="top" width="4%" align="left"><b>(4)</b></td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt" align="left"><b>TERM LOAN</b></p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The Company and its wholly-owned subsidiaries Alexo Therapeutics
International and Sirpant Therapeutics, as borrowers, entered into
a Loan and Security Agreement, or the Loan Agreement, dated as of
December 20, 2019, with Silicon Valley Bank, or SVB, and
WestRiver Innovation Lending Fund VIII, LP, or WestRiver,
collectively as lenders, and SVB, as administrative agent and
collateral agent. The Loan Agreement provides for term loans in an
aggregate principal amount of up to $10.0 million funded in
two tranches, subject to the satisfaction of a certain milestone.
The first tranche, in the amount of $6.0 million, was funded
on the closing date of the Loan Agreement in December 2019. A
second tranche of $4.0 million was available on or before
March 31, 2020, upon the Company’s achievement of an
equity financing resulting in net cash proceeds in an amount of at
least $30.0 million to the Company. The Company elected not to
draw down on the second tranche, which is no longer available.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The loans under the Loan Agreement bear interest at a floating per
annum interest rate equal to the greater of 7.0% or 2.0% plus the
prime rate as reported in The Wall Street Journal. The Wall Street
Journal prime rate was 4.75% as of December 31, 2019.
Therefore, the rate applicable to the Company as of
December 31, 2019 was 7.0%.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The Company is required to make interest-only payments for the
first 12 months after the closing of the Loan Agreement, followed
by consecutive equal monthly payments of principal and interest
commencing on January 1, 2021 and continuing through the
maturity date of September 1, 2022. The Loan Agreement also
provides for a final payment equal to 6.0% multiplied by the
aggregate principal amount of the term loans funded, which is due
on the maturity date, upon the acceleration of the term loans, or
upon prepayment of the term loans. If the Company elects to prepay
the term loans, there is also a prepayment fee of between 1.0% and
3.0% of the principal amount being prepaid depending on the timing
and circumstances of prepayment.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
In conjunction with the Loan Agreement, the Company has issued
warrants to purchase 61,292 Series B convertible preferred shares
to SVB and WestRiver with an exercise price of $9.4972 per share.
The estimated fair value of the warrants at the date of issuance
was approximately $0.4 million. The fair value of the Series B
convertible preferred shares warrant liability was determined using
the Black-Scholes option-pricing model. As of December 20,
2019, the various assumptions used in the option-pricing model were
time to liquidity of 2.0 to 10.0 years, volatility of 85.5%,
risk-free rate of 1.7% and equity value of $345.0 million. It
was recorded at its fair value at inception and is being
<font style="WHITE-SPACE: nowrap">re-measured</font> at each
financial reporting period with any changes in fair value being
recognized as a component of other income (expense), net in the
accompanying consolidated statement of operations and comprehensive
loss. As of December 31, 2019, the fair value of the Series B
convertible preferred shares warrant liability was approximately
$0.4 million and was recorded in other long-term liabilities
on the consolidated balance sheet.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The loans under the Loan Agreement are secured by substantially all
of the Company’s assets, except the Company’s
intellectual property, which is the subject of a negative
pledge.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The Company determined that certain loan features were embedded
derivatives requiring bifurcation and separate accounting. Those
embedded derivatives were bundled together as a single, compound
embedded derivative and then bifurcated and accounted for
separately from the host contract. The Company recorded a term loan
compound derivative liability of approximately $51,000 which will
be <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">marked-to-market</font></font> in future
periods. The Company calculated the fair value of the compound
derivative by computing the difference between the fair value of
the term loan with the compound derivative using the “with
and without” method under the income approach, and the fair
value of the term loan without the compound derivative. The Company
calculated the fair values using a probability-weighted discounted
cash flow analysis. The key valuation assumptions used consist of
the discount rate and the probability of the occurrence of a change
in control event. The term loan compound derivative liability is
being <font style="WHITE-SPACE: nowrap">re-measured</font> at each
financial reporting period with any changes in fair value being
recognized as a component of other income (expense), net in the
consolidated statement of operations and comprehensive loss. As of
December 31, 2019, the fair value of the compound derivative
liability was approximately $51,000 and was recorded in other
long-term liabilities on the consolidated balance sheet.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The fair value of Series B convertible preferred shares warrant
liability at issuance, fair value of embedded derivatives which
were bifurcated and other debt issuance costs have been treated as
debt discounts on the Company’s consolidated balance sheet
and together with the final payment are being amortized to interest
expense throughout the life of the term loan using the effective
interest rate method.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
As of December 31, 2019, there were unamortized issuance costs
and debt discounts of $0.6 million which were recorded as a
direct deduction from the term loan on the consolidated balance
sheet. Interest expense for the term loan was immaterial for the
year ended December 31, 2019. For future payments of principal
and interest as of December 31, 2019 is as follows.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="92%"></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom" nowrap="nowrap">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; DISPLAY: table-cell">
<b>YEAR ENDING DECEMBER 31:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="2"> </td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
2020</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">401</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
2021</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">3,743</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
2022</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">3,007</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top"></td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">7,151</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="4"></td>
<td height="4" colspan="4"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: amount representing interest</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(791</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="4"></td>
<td height="4" colspan="4"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: amount representing final payment</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(360</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="4"></td>
<td height="4" colspan="4"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Long-term debt, gross</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">6,000</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="4"></td>
<td height="4" colspan="4"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: unamortized issuance costs and debt discounts</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(579</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="4"></td>
<td height="4" colspan="4"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: current portion</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Long-term portion of term loan</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">5,421</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
</div>
113864
17746
-14249000
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The provision for income taxes consist of the following (in
thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="82%"></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>YEAR ENDED<br />
DECEMBER 31,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>    2018    </b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>    2019    </b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<b>Current</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Domestic (Ireland)</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
State (U.S.)</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Foreign/federal</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">44</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">33</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total current</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">45</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">34</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<b>Deferred</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Domestic (Ireland)</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
State (U.S.)</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Foreign/federal</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total deferred</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Provision for income taxes</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">
        45</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">
        34</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 0pt">
Significant components of the Company’s deferred tax assets
as of December 31, 2018 and December 31, 2019 are as
follows (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="84%"></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>DECEMBER 31,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>    2018    </b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>    2019    </b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<b>Deferred tax assets:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Net operating loss carryforwards</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">363</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">3,259</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Research & other credits</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,701</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">3,260</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Other</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">208</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">333</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total gross DTA</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">2,272</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">6,852</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: Val. Allowance</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(2,181</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(6,686</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total deferred tax assets</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">91</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">166</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<b>Deferred tax liabilities:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Fixed assets</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(91</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">166</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total gross DTL</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(91</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">166</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Net deferred tax assets</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The following table sets forth the computation of the basic and
diluted net loss per share attributable to ordinary shareholders
(in thousands, except share and per share data):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="76%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" nowrap="nowrap" align="center"><b>YEAR ENDED
DECEMBER 31,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>2018</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>2019</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Numerator:</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Net loss</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(13,731</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(19,243</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: cumulative dividends allocated to preferred shareholders</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(3,671</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(4,028</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Net loss attributable to ordinary shareholders</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(17,402</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(23,271</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Denominator:</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Weighted-average ordinary shares outstanding</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">2,750,838</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">3,076,461</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Net loss per share attributable to ordinary shareholders, basic and
diluted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(6.33</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(7.56</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
A reconciliation of the Irish statutory income tax rate of 12.5% to
the actual tax rate for the years ended December 31, 2018 and
December 31, 2019 are as follows (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="84%"></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>YEAR ENDED<br />
DECEMBER 31,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>    2018    </b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>    2019    </b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
At statutory rate</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(1,711</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(2,401</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Foreign income tax at different rates</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,404</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">378</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
U.S. R&D credits</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(499</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(861</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Change in valuation allowance</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">732</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">3,733</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Share-based compensation</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">57</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">60</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Prior period true ups</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(38</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(950</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Other</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">100</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">75</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Provision for income taxes</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">45</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">34</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The following table sets forth the Company’s financial
liabilities that are measured at fair value on a recurring basis by
level within the fair value hierarchy (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="69%"></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="14" align="center"><b>AS OF DECEMBER 31,
2019</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>LEVEL 1</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>LEVEL 2</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>LEVEL 3</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>FAIR VALUE</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Financial liabilities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<u>Long term liabilities</u></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Compound derivative liability</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">
        —</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">
        —</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">
        51</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">51</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Warrant liability</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">361</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">
        361</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
</table>
</div>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The domestic (Ireland) and foreign components of <font style="WHITE-SPACE: nowrap">pre-tax</font> loss for the years ending
December 31, 2018 and December 31, 2019 are as follows
(in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="80%"></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>DECEMBER 31,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2018</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2019</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Foreign</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(12,576</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(16,803</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Domestic (Ireland)</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(1,110</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(2,406</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Loss before income taxes</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(13,686</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(19,209</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
For future payments of principal and interest as of
December 31, 2019 is as follows.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="92%"></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom" nowrap="nowrap">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; DISPLAY: table-cell">
<b>YEAR ENDING DECEMBER 31:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="2"> </td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
2020</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">401</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
2021</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">3,743</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
2022</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">3,007</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top"></td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">7,151</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="4"></td>
<td height="4" colspan="4"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: amount representing interest</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(791</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="4"></td>
<td height="4" colspan="4"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: amount representing final payment</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(360</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="4"></td>
<td height="4" colspan="4"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Long-term debt, gross</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">6,000</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="4"></td>
<td height="4" colspan="4"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: unamortized issuance costs and debt discounts</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(579</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="4"></td>
<td height="4" colspan="4"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: current portion</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Long-term portion of term loan</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">5,421</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 0pt">
The fair value of each option grant during the years ended
December 31, 2018 and December 31, 2019 was estimated on
the date of grant using the Black-Scholes option-pricing model with
the following:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="70%"></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="3" align="center"><b>YEAR ENDED DECEMBER 31,</b></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center"><b>2018</b></td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center"><b>2019</b></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Expected term (in years)</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap" align="center">
5.2 – 6.0</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap" align="center">
4.4 – 6.0</td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Risk-free interest rate</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap" align="center">
2.6% – 3.0%</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap" align="center">
1.7% – 2.1%</td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Expected dividend rate</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap" align="center">–</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap" align="center">–</td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Expected share price volatility</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap" align="center">
66.5% – 68.7%</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap" align="center">
75.2% – 80.5%</td>
</tr>
</table>
</div>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 0pt">
The Company has the following activity relating to unrecognized tax
benefits (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="84%"></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>DECEMBER 31,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>    2018    </b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>    2019    </b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<b>Beginning balance</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">247</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">418</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Gross increase—tax positions in prior periods</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">11</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Gross decreases—tax positions in prior periods</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(7</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Gross increases—tax positions in prior periods</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">160</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">272</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<b>Ending balance</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">    418</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">    692</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
Share-based compensation expense includes share options granted to
employees and nonemployees and has been reported in the
Company’s consolidated statements of operations and
comprehensive loss as follows (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="76%"></td>
<td valign="bottom" width="9%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="9%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center">
<b>YEAR ENDED DECEMBER 31,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>        2018        </b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>        2019        </b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Research and development</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">195</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">105</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
General and administrative</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">16</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">33</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Cost of services for related-party revenue</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">58</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">159</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">269</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">297</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The following table provides a summary of share option activity
under the Plan and related information:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="45%"></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="2"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="14" align="center"><b>OUTSTANDING OPTIONS</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>SHARES<br />
AVAILABLE<br />
TO GRANT</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>NUMBER<br />
OF<br />
OPTIONS</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>WEIGHTED<br />
AVERAGE<br />
EXERCISE<br />
PRICE</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>WEIGHTED<br />
AVERAGE<br />
REMAINING<br />
CONTRACTUAL<br />
LIFE (YEARS)</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>AGGREGATE<br />
INTRINSIC<br />
VALUE</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="2"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" colspan="2"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" colspan="2"> </td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="2"> </td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="2" align="center">
<b>(in thousands)</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Balance outstanding at December 31, 2017</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">218,322</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">719,527</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">0.99</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9.18</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Granted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(187,186</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">187,186</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">1.85</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Exercised</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(6,914</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">0.99</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Canceled/forfeited</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">34,980</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(34,980</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">0.99</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Shares repurchased</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">6,899</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Balance outstanding at December 31, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">73,015</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">864,819</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">1.17</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">8.54</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">582</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Authorized</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">818,010</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Granted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(341,871</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">341,871</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">1.91</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Exercised</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(5,199</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">1.86</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Canceled/forfeited</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">17,746</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(17,746</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">1.88</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Balance outstanding at December 31, 2019</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">566,900</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,183,745</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">1.37</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">8.06</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">638</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="8"></td>
<td height="8" colspan="4"></td>
<td height="8" colspan="4"></td>
<td height="8" colspan="4"></td>
<td height="8" colspan="4"></td>
<td height="8" colspan="4"></td>
</tr>
<tr style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Exercisable at December 31, 2019</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">565,975</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">1.16</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">7.56</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">424</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
</table>
</div>
</div>
6829000
5917000
10000
755000
0
0
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>New Accounting Pronouncements Recently Adopted</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
In November 2016, the FASB issued ASU <font style="WHITE-SPACE: nowrap">No. 2016-18,</font> <i>Statement of Cash
Flows</i> (Topic 230): Restricted Cash, which requires that
restricted cash and cash equivalents be included as components of
total cash and cash equivalents as presented on the statement of
cash flows. ASU <font style="WHITE-SPACE: nowrap">2016-18</font>
was effective for fiscal years beginning after December 15,
2018, and a retrospective transition method is required. The
Company adopted this guidance on January 1, 2019. The adoption
of this guidance did not have a material impact on the
Company’s consolidated financial statements.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
In July 2017, the FASB issued ASU <font style="WHITE-SPACE: nowrap">No. 2017-11,</font> <i>Earnings Per
Share</i> (Topic 260); <i>Distinguishing Liabilities from
Equity</i> (Topic 480): Accounting for Certain Financial
Instruments with Down Round Features. ASU <font style="WHITE-SPACE: nowrap">No. 2017-11</font> provides guidance
that eliminates the requirement to consider “down
round” features when determining whether certain financial
instruments or embedded features are indexed to an entity’s
stock and need to be classified as liabilities. ASU <font style="WHITE-SPACE: nowrap">2017-11</font> provides for entities to
recognize the effect of a down round feature only when it is
triggered and then as a dividend and a reduction to income
available to common stockholders in basic earnings per share. The
Company adopted this guidance on January 1, 2019. The adoption
of this guidance did not have a material impact on the
Company’s consolidated financial statements.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Property and Equipment</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
Property and equipment are stated at cost less accumulated
depreciation. Depreciation of property and equipment is provided
using the straight-line method over the estimated useful lives of
the assets (Note 3). Upon sale or retirement of assets, the cost
and related accumulated depreciation or amortization are removed
from the consolidated balance sheet and the resulting gain or loss
is reflected in the consolidated statement of operations and
comprehensive loss. Maintenance and repairs are charged to the
consolidated statement of operations and comprehensive loss as
incurred.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The useful lives of the property and equipment are as follows:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="51%"></td>
<td valign="bottom" width="2%"></td>
<td width="47%"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom">Research and development equipment</td>
<td valign="bottom">  </td>
<td valign="bottom">5 years</td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom">Furniture and office equipment</td>
<td valign="bottom">  </td>
<td valign="bottom">5 years</td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom">Computer equipment</td>
<td valign="bottom">  </td>
<td valign="bottom">3 years</td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom">Software</td>
<td valign="bottom">  </td>
<td valign="bottom">3 years</td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom">Leasehold improvements</td>
<td valign="bottom">  </td>
<td valign="bottom">Shorter of 7 years or remaining of lease
term</td>
</tr>
</table>
</div>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Research and Development Costs</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
Research and development costs are expensed as incurred and consist
primarily of salaries and benefits, share-based compensation
expense, lab supplies and facility costs, as well as fees paid to
nonemployees and entities that conduct certain research and
development activities on behalf of the Company and expenses
incurred in connection with license agreements (Note 9).
Nonrefundable advance payments for goods or services to be received
in the future for use in research and development activities are
capitalized and recorded in prepaid expenses and other current
assets, and then expensed as the related goods are delivered or the
services are performed.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 0pt">
<b>Revenue Recognition</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
To date, the Company has derived revenue from providing research
and development services on a time and materials basis to a
related-party. The Company recognizes such revenues over time as
services are delivered, and invoices the customer as the work is
incurred in arrears.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
Effective January 1, 2018, the Company adopted ASC Topic 606,
<i>Revenue from Contracts with Customers</i> (Topic 606) on a full
retrospective basis. This standard applies to all contracts with
customers, except for contracts that are within the scope of other
standards, such as leases, insurance, collaboration arrangements
and financial instruments. In accordance with Topic 606, the
Company recognizes revenue when its customer obtains control of
promised goods or services, in an amount that reflects the
consideration which the Company expects to receive in exchange for
those goods or services.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
To determine revenue recognition for arrangements that the Company
determines are within the scope of Topic 606, the Company performs
the following five steps: (i) identify the contract(s) with a
customer; (ii) identify the performance obligations in the
contract; (iii) determine the transaction price;
(iv) allocate the transaction price to the performance
obligations in the contract; and (v) recognize revenue when
(or as) the Company satisfies a performance obligation.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
As part of the Company’s consideration as to whether the
Company has entered into a contract with a customer, it considers
whether it is probable that it will collect the consideration it is
entitled to in exchange for the goods and services it transfers to
the customer. At contract inception, the Company assesses the goods
or services promised within each contract that falls under the
scope of Topic 606, determines those that are performance
obligations, and assesses whether each promised good or service is
distinct. The Company then recognizes as revenue the amount of the
transaction price that is allocated based on their standalone
selling price to the respective performance obligation when (or as)
the performance obligation is satisfied.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Segment Reporting</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The Company manages its operations as a single operating segment
for the purposes of assessing performance and making operating
decisions. All of the Company’s assets are maintained in the
United States and Ireland.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Share-Based Compensation Expense</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The Company accounts for share-based compensation by measuring and
recognizing compensation expense for all share-based payments made
to employees, directors and <font style="WHITE-SPACE: nowrap">non-employees</font> based on estimated
grant-date fair values. The Company uses the straight-line method
to allocate compensation expense to reporting periods over each
optionee’s requisite service period, which is generally the
vesting period, and estimates the fair value of share-based awards
to employees and directors using the Black-Scholes option-pricing
model. The Black-Scholes model requires the input of subjective
assumptions, including expected volatility, expected dividend
yield, expected term, risk-free rate of return and the estimated
fair value of the underlying ordinary shares on the date of grant.
The Company accounts for the effect of forfeitures as they
occur.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Convertible Preferred Shares</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The Company records convertible preferred shares net of issuance
costs on the dates of issuance, which represents the carrying
value. In the event of a change of control of the Company, proceeds
will be distributed in accordance with the liquidation preferences
set forth in its Constitution unless the holders of convertible
preferred shares have converted their convertible preferred shares
into ordinary shares. Convertible preferred shares are classified
outside of shareholders’ deficit on the accompanying
consolidated balance sheets as events triggering the liquidation
preferences are not solely within the Company’s control. The
Company has elected not to adjust the carrying values of the
convertible preferred shares to the liquidation preferences of such
shares because of the uncertainty of whether or when such an event
would occur.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Use of Estimates</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The preparation of consolidated financial statements in conformity
with U.S. GAAP requires management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at
the date of the consolidated financial statements and the reported
amounts of revenues and expenses during the reporting periods. On
an ongoing basis, management evaluates its estimates, including
those related to the estimated useful lives of long-lived assets,
clinical trial accruals, fair value of assets and liabilities,
Series B convertible preferred shares warrant liability, term loan
compound derivative liability, term loan, valuation of ordinary
shares, income taxes and share-based compensation. Management bases
its estimates on historical experience and on various other
market-specific and relevant assumptions that management believes
to be reasonable under the circumstances. Actual results could
differ from those estimates.</p>
</div>
0.125
-2406000
-16803000
2401000
378000
-861000
950000
3733000
60000
75000
9000
7000
272000
341871
5199
297000
-4028000
4028000
3076461
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The following tables are a reconciliation of all financial
liabilities measured at fair value using Level 3 unobservable
inputs (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="81%"></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>WARRANT<br />
LIABILITY</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>COMPOUND<br />
DERIVATIVE<br />
LIABILITY</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Balance as of December 31, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Additions</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">361</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">51</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Change in market value</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Balance as of December 31, 2019</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">361</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">51</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The following table presents the components of property and
equipment, net as of December 31, 2018 and December 31,
2019 (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="84%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>DECEMBER 31,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2018</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2019</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Computer hardware and software</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">117</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">146</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Machinery and equipment</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,374</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,698</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Furniture and fixtures</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">36</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">36</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Leasehold improvements</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">429</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">429</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Construction in progress</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">20</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top"></td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,976</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">2,309</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: accumulated depreciation and amortization</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(1,020</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(1,449</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total property and equipment, net</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">956</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">860</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The following table summarizes the Company’s commitments and
contractual obligations as of December 31, 2019 (in
thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="64%"></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom" nowrap="nowrap">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; DISPLAY: table-cell">
<b>YEAR ENDED DECEMBER 31:</b></p>
</td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>OPERATING<br />
LEASE<br />
OBLIGATIONS<br />
(1)</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>MANUFACTURING<br />
AND SERVICE<br />
CONTRACTS</b><br />
<b>(2)</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>TERM LOAN<br />
(3)</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
2020</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">544</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">926</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">401</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
2021</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">560</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">5,805</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">3,743</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
2022</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">577</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">3,007</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
2023</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">247</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">1,928</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">6,731</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">7,151</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<table style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td width="3%"> </td>
<td valign="top" width="3%" align="right"><i>(1)</i></td>
<td valign="top" width="1%"> </td>
<td valign="top" align="left"><i>Payments due for the office and
laboratory space in Burlingame, California under a single operating
lease agreement that expires in 2023.</i></td>
</tr>
</table>
<table style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td width="3%"> </td>
<td valign="top" width="3%" align="right"><i>(2)</i></td>
<td valign="top" width="1%"> </td>
<td valign="top" align="left"><i>These amounts are based on
<font style="WHITE-SPACE: nowrap">non-cancellable</font>
commitments and forecasts that include estimates of future market
demand, quantity discounts and manufacturing efficiencies that may
impact timing of purchases.</i></td>
</tr>
</table>
<table style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td width="3%"> </td>
<td valign="top" width="3%" align="right"><i>(3)</i></td>
<td valign="top" width="1%"> </td>
<td valign="top" align="left"><i>In December 2019, the Company
entered into a term loan pursuant to the Loan Agreement as
described above in Note 4.</i></td>
</tr>
</table>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
Potentially dilutive securities that were not included in the
diluted per share calculations as of December 31, 2018 and
December 31, 2019 because they would be anti-dilutive were as
follows:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="76%"></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" nowrap="nowrap" align="center">
<b>DECEMBER 31,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>2018</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>2019</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Series A convertible preferred shares</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,297,081</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,297,081</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Series B convertible preferred shares</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,016,727</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Warrants to purchase convertible preferred shares</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">61,292</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Ordinary shares subject to repurchase</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">229,912</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">34,024</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Options issued and outstanding</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">864,819</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,183,745</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">10,391,812</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">11,592,869</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
</div>
5000
34000
0
0
On July 8, 2020, the Company's board of directors approved an amendment to ALX Oncology Holdings Inc.'s certificate of incorporation to effect a 1-for-6.5806 reverse split of its ordinary shares and convertible preferred shares.
P2Y8M12D
23979000
-19209000
34000
0
0
3076461
11592869000
429000
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Foreign Currency Transactions</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The functional currency of the Company’s operation and each
of its subsidiaries is U.S. dollars. All assets and liabilities
denominated in a foreign currency are translated into U.S. dollars
at the exchange rate prevailing on the balance sheet date. Expenses
are translated at the average exchange rates prevailing during the
applicable period. Foreign currency transaction gains and losses
are included in the consolidated statement of operations and
comprehensive loss and recorded in other income (expense), net, and
was immaterial for the years ended December 31, 2018 and
December 31, 2019, respectively.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 0pt">
<b>Impairment of Long-Lived Assets</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The Company reviews property and equipment for impairment whenever
events or changes in circumstances indicate that the carrying
amount of an asset may not be recoverable. Recoverability is
measured by comparison of the carrying amount to the future
undiscounted net cash flows which the asset or asset group are
expected to generate. If such assets are considered to be impaired,
the impairment to be recognized is measured as the amount by which
the carrying amount of the assets exceeds its fair value. Fair
value is determined using various valuation techniques including
discounted cash flow models, quoted market values and third-party
independent appraisals, as considered necessary. There were no
impairment charges recognized in the years ended December 31,
2018 and December 31, 2019.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Income Taxes</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The Company accounts for income taxes under the asset and liability
method, which requires the recognition of deferred tax assets and
liabilities for the expected future tax consequences of events that
have been included in the consolidated financial statements. Under
this method, deferred tax assets and liabilities are determined on
the basis of the differences between the consolidated financial
statement carrying amounts and tax bases of assets and liabilities
using enacted tax rates in effect for the period in which the
temporary differences are expected to reverse. The effect of a
change in tax rates on deferred tax assets and liabilities is
recognized in the consolidated statements of operations and
comprehensive loss in the period that includes the enactment
date.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The Company recognizes deferred tax assets to the extent that it
believes these assets are more likely than not to be realized. In
making such a determination, the Company considers all available
positive and negative evidence, including future reversals of
existing taxable temporary differences, projected future taxable
income, <font style="WHITE-SPACE: nowrap">tax-planning</font>
strategies and results of recent operations. If the Company
determines that it would be able to realize its deferred tax assets
in the future in excess of their net recorded amount, it would make
an adjustment to the deferred tax asset valuation allowance, which
would reduce the provision for income taxes.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The Company recognizes benefits of uncertain tax positions if it is
more likely than not that such positions will be sustained upon
examination based solely on their technical merits, as the largest
amount of benefit that is more likely than not to be realized upon
the ultimate settlement. The Company’s policy is to recognize
interest and penalties related to the underpayment of income taxes
as a component of income tax expense or benefit.</p>
</div>
0
0
10000
-19243000
0.35
0.752
0.805
0.017
0.021
0.00
4360000
-396000
Upon the closing of the first underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended, or pursuant to a corresponding securities issuance application process in any non-U.S. jurisdiction, covering the offer and sale of the Company’s ordinary shares in which (i) the per share price is not less than $15.19540 (as adjusted for any share dividends, combinations, splits, recapitalizations and the like with respect to such shares after the filing date hereof) and (ii) the gross cash proceeds to the Company (before underwriting discounts, commissions and fees) are at least $50.0 million then all outstanding Preferred Shares shall automatically be converted into a number of ordinary shares
134000
353000
<div>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td valign="top" width="4%" align="left"><b>(6)</b></td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt" align="left"><b>SHARE-BASED COMPENSATION</b></p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
During 2015, the Company adopted an equity compensation plan, the
2015 Share Award Scheme, or the Plan, for eligible employees,
officers, directors, advisors, and consultants. The Plan provides
for the grant of incentive and <font style="WHITE-SPACE: nowrap">non-statutory</font> share options. The Plan
permits the Company to grant up to 2,143,117 ordinary share awards,
including incentive share options, <font style="WHITE-SPACE: nowrap">non-statutory</font> share options,
conditional share awards and restricted share awards.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The terms of the share option agreements, including vesting
requirements, are determined by the Board of Directors, subject to
the provisions of the Plan. The term of the options generally
expire, upon the earliest of (i) termination of continuous
service for cause (ii) three months after the termination of
continuous service for reasons other than cause, death or
disability (iii) twelve months after the termination of
continuous service due to disability (iv) eighteen months
after the employee’s death if the employee died during the
period of continuous service (v) expiration date in the grant
notice or (vi) the day before the tenth anniversary of the
date of grant. The exercise price of the incentive share options
must equal at least the fair market value of the share on the date
of grant.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
All awards that are canceled, forfeited or expired are returned to
the Plan and are available for grant in conjunction with the
issuance of new awards. Share options granted are exercisable over
a maximum term of 10 years from the date of grant and generally
vest over an agreed service period, usually four years.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
Certain share options granted under the Plan provide option holders
the right to elect to exercise unvested options in exchange for
ordinary shares. Such unvested ordinary shares are subject to a
repurchase right held by the Company at the original issuance price
in the event the optionee’s service to the Company is
terminated either voluntarily or involuntarily. The right lapses as
the underlying repurchase right expires. These repurchase terms are
considered to be a forfeiture provision. The cash received from
employees for exercise of unvested options is treated as a
refundable deposit and is classified as a liability on the
consolidated balance sheets. At December 31, 2018 and
December 31, 2019, there were 116,048 and 34,024 unvested
early exercised options and the liability related to these unvested
options was $0.1 million and approximately $27,000,
respectively.</p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; MARGIN-TOP: 9px">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 0pt">
<b><i>(a) Option Activity</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The following table provides a summary of share option activity
under the Plan and related information:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="45%"></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="5%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="2"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="14" align="center"><b>OUTSTANDING OPTIONS</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>SHARES<br />
AVAILABLE<br />
TO GRANT</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>NUMBER<br />
OF<br />
OPTIONS</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>WEIGHTED<br />
AVERAGE<br />
EXERCISE<br />
PRICE</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>WEIGHTED<br />
AVERAGE<br />
REMAINING<br />
CONTRACTUAL<br />
LIFE (YEARS)</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>AGGREGATE<br />
INTRINSIC<br />
VALUE</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="2"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" colspan="2"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" colspan="2"> </td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="2"> </td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td valign="bottom" colspan="2" align="center">
<b>(in thousands)</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Balance outstanding at December 31, 2017</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">218,322</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">719,527</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">0.99</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9.18</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Granted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(187,186</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">187,186</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">1.85</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Exercised</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(6,914</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">0.99</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Canceled/forfeited</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">34,980</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(34,980</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">0.99</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Shares repurchased</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">6,899</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Balance outstanding at December 31, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">73,015</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">864,819</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">1.17</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">8.54</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">582</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Authorized</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">818,010</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Granted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(341,871</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">341,871</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">1.91</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Exercised</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(5,199</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">1.86</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Canceled/forfeited</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">17,746</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(17,746</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">1.88</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Balance outstanding at December 31, 2019</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">566,900</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,183,745</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">1.37</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">8.06</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">638</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 1pt">
<td height="8"></td>
<td height="8" colspan="4"></td>
<td height="8" colspan="4"></td>
<td height="8" colspan="4"></td>
<td height="8" colspan="4"></td>
<td height="8" colspan="4"></td>
</tr>
<tr style="FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1em; MARGIN-TOP: 0pt; TEXT-INDENT: -1em">
Exercisable at December 31, 2019</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">565,975</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">1.16</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">7.56</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">424</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
</table>
</div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
As of December 31, 2019, there was unrecognized share-based
compensation expense of $0.6 million, related to unvested
share options which the Company expects to recognize over a
weighted-average period of 2.7 years.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The aggregate intrinsic values of options outstanding and
exercisable were calculated as the difference between the exercise
price of the options and the estimated fair value of the
Company’s ordinary shares as determined by the Board of
Directors as of December 31, 2018 and December 31, 2019.
The total intrinsic value of options exercised during the years
ended December 31, 2018 and 2019 were immaterial.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
Compensation cost for share options granted is based on the
grant-date fair value estimated and is recognized over the vesting
period of the applicable option on a straight-line basis. The
weighted-average grant-date fair value per share for share options
granted during the years ended December 31, 2018 and
December 31, 2019 was $1.14 and $1.27, respectively. The total
fair value of options that vested during the years ended
December 31, 2018 and December 31, 2019 was approximately
$0.1 million and $0.3 million, respectively.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
Share-based compensation expense includes share options granted to
employees and nonemployees and has been reported in the
Company’s consolidated statements of operations and
comprehensive loss as follows (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="76%"></td>
<td valign="bottom" width="9%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="9%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center">
<b>YEAR ENDED DECEMBER 31,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>        2018        </b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>        2019        </b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Research and development</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">195</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">105</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
General and administrative</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">16</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">33</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Cost of services for related-party revenue</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">58</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">159</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">269</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">297</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 6pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; MARGIN-TOP: 9px">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 0pt">
The Company’s computation of share-based compensation expense
for the years ended December 31, 2018 and December 31,
2019 is based on the fair value of ordinary shares of $1.85 and
$1.91, respectively, and is adjusted for actual forfeitures as they
occur. The fair value of each option grant during the years ended
December 31, 2018 and December 31, 2019 was estimated on
the date of grant using the Black-Scholes option-pricing model with
the following:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="70%"></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="3" align="center"><b>YEAR ENDED DECEMBER 31,</b></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center"><b>2018</b></td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center"><b>2019</b></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Expected term (in years)</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap" align="center">
5.2 – 6.0</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap" align="center">
4.4 – 6.0</td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Risk-free interest rate</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap" align="center">
2.6% – 3.0%</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap" align="center">
1.7% – 2.1%</td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Expected dividend rate</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap" align="center">–</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap" align="center">–</td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Expected share price volatility</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap" align="center">
66.5% – 68.7%</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap" align="center">
75.2% – 80.5%</td>
</tr>
</table>
</div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<i>Expected Term.</i> The expected term of the options represents
the average period the share options are expected to remain
outstanding. As the Company does not have sufficient historical
information to develop reasonable expectations about future
exercise patterns and post-vesting employment termination behavior,
the expected term of options granted is derived from the average
midpoint between the weighted average vesting and the contractual
term, also known as the simplified method.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<i>Risk-Free Interest Rate.</i> The risk-free interest rate is
based on the yield of U.S. Treasury notes as of the grant date with
terms commensurate with the expected term of the option.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<i>Dividend Yield.</i> The expected dividends assumption is based
on the Company’s expectation of not paying dividends in the
foreseeablefuture.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<i>Volatility.</i> Since the Company is private and does not have
any trading history for its ordinary shares, the expected
volatility is based on the historical volatilities of the common
shares of comparable publicly traded companies. The Company
selected companies with comparable characteristics, including
enterprise value, risk profiles, position within the industry, and
with historical share price information sufficient to meet the
expected life of the Company’s share-based awards.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<i>Estimated Fair Value</i>. The estimated fair value of the shares
of common stock underlying stock options was determined by the
Company’s board of directors. Because there was no public
market for the Company’s common stock, the board of directors
determined fair value of the common stock at the time of grant of
the options by considering a number of objective and subjective
factors including important developments in the Company’s
operations, valuations performed by an independent third party,
sales of convertible preferred stock, actual operating results and
financial performance, the conditions in the biotechnology industry
and the economy in general, the stock price performance and
volatility of comparable public companies, and the lack of
liquidity of the Company’s common stock, among other
factors.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 9pt; TEXT-INDENT: 4%">
<b><i>(b) Founder Stock Activity</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The following table provides a summary of Founder Stock
activity:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="72%"></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>NUMBER OF<br />
SHARES</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center"><b><font style="WHITE-SPACE: nowrap">WEIGHTED-AVERAGE</font><br />
GRANT DATE<br />
FAIR VALUE</b></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Unvested at December 31, 2017</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">455,477</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="center">$0.35</td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Vested</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(341,613</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom" align="center">   0.35</td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Unvested at December 31, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">113,864</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="center">   0.35</td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Vested</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(113,864</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom" align="center">   0.35</td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Unvested at December 31, 2019</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom" nowrap="nowrap" align="center">
$      —</td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
</tr>
</table>
</div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; MARGIN-TOP: 9px">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 0pt">
There were no Founder Stock granted during the years ended
December 31, 2018 and December 31, 2019. The total fair
value of Founder Stock that vested during the years ended
December 31, 2018 and December 31, 2019 were
$0.1 million and $40,000, respectively.</p>
</div>
<div>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td valign="top" width="4%" align="left"><b>(13)</b></td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt" align="left"><b>SUBSEQUENT EVENTS</b></p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b><i>Series C Preferred Share Issuance</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
In February 2020, the Company entered into a Series C Preferred
Share Purchase Agreement, or the Series C Agreement, with certain
existing investors, employees and new investors, or collectively,
the Series C Investors. Under the terms of the Series C Agreement,
the Company authorized the sale and issuance of up to 11,055,981
Series C convertible preferred shares at a purchase price of
$9.4972 per share. To date, all authorized Series C convertible
preferred shares have been purchased with gross proceeds of
$105.0 million.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b><i>Reorganization</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 6pt">
On April 1, 2020, the Company completed an internal
reorganization transaction pursuant to which ALX Oncology Limited
became a wholly-owned subsidiary ALX Oncology Holdings Inc., a
newly formed Delaware corporation. As part of the transaction, all
of the equity, option and warrant holders of ALX Oncology Limited
became equity, option and warrant holders of ALX Oncology Holdings
Inc., holding the same number of corresponding shares, options
and/or warrants in ALX Oncology Holdings Inc., as they did in the
Company immediately prior to the reorganization.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b><i>Reverse Stock Split</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
On July 8, 2020, the Company’s board of directors
approved an amendment to ALX Oncology Holdings Inc.’s
certificate of incorporation to effect a <font style="WHITE-SPACE: nowrap"><font style="WHITE-SPACE: nowrap">1-for-6.5806</font></font> reverse split of
its ordinary shares and convertible preferred shares. The par
values of the ordinary and convertible preferred shares were not
adjusted as a result of the reverse stock split. All authorized,
issued and outstanding ordinary shares and convertible preferred
shares and related per share amounts contained in the consolidated
financial statements have been retroactively adjusted to reflect
this reverse stock split for all periods presented. The reverse
stock split was effected on July 9, 2020.</p>
</div>
<div>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td valign="top" width="4%" align="left"><b>(3)</b></td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt" align="left"><b>BALANCE SHEET COMPONENTS</b></p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Property and Equipment, Net</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The following table presents the components of property and
equipment, net as of December 31, 2018 and December 31,
2019 (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="84%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>DECEMBER 31,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2018</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2019</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Computer hardware and software</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">117</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">146</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Machinery and equipment</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,374</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,698</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Furniture and fixtures</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">36</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">36</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Leasehold improvements</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">429</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">429</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Construction in progress</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">20</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top"></td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,976</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">2,309</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: accumulated depreciation and amortization</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(1,020</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(1,449</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total property and equipment, net</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">956</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">860</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; MARGIN-TOP: 9px">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 0pt">
Depreciation and amortization expense was approximately
$0.4 million for both years ended December 31, 2018 and
December 31, 2019.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Accrued Expenses and Other Current Liabilities</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The following table presents the components of accrued expenses and
other current liabilities as of December 31, 2018 and
December 31, 2019 (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="84%"></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>DECEMBER 31,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2018</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2019</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Payroll and related liabilities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">62</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">60</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Accrued bonus</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">745</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">864</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Accrued legal costs</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">98</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">122</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Early exercise liability</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">105</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">27</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Other</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">166</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">163</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total accrued expenses and other current liabilities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">1,176</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">1,236</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Basis of Preparation</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
These consolidated financial statements have been prepared in
accordance with accounting principles generally accepted in the
United States of America, or U.S. GAAP.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Cash</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The Company holds its cash in checking and interest-bearing
accounts.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Principles of Consolidation</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
All intercompany balances and transactions have been eliminated in
consolidation.</p>
</div>
2601000
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Term Loan</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The Company accounts for the Loan and Security Agreement, dated as
of December 20, 2019, with Silicon Valley Bank, and WestRiver
Innovation Lending Fund VIII, LP, collectively as lenders, and
Silicon Valley Bank, as administrative agent and collateral agent,
as a liability measured at net proceeds less debt discount and is
accreted to the face value of the term loan over its expected term
using the effective interest method. The Company considers whether
there are any embedded features in its debt instruments that
require bifurcation and separate accounting as derivative financial
instruments pursuant to Accounting Standards Codification, or ASC,
Topic 815, <i>Derivatives and</i> <i>Hedging</i>.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Fair Value of Financial Instruments</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The Company applies fair value accounting for all financial assets
and liabilities and nonfinancial assets and liabilities that are
required to be recognized or disclosed at fair value in the
consolidated financial statements. The Company defines fair value
as the price that would be received from selling an asset or paid
to transfer a liability in an orderly transaction between market
participants at the measurement date. Where observable prices or
inputs are not available valuation models are applied. These
valuation techniques involve some level of management estimation
and judgment, the degree of which is dependent on the price
transparency for the instruments or market and the
instruments’ complexity.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The Company’s financial instruments consist of cash, accounts
receivable, accounts payable, the term loan compound derivative
liability and the Series B convertible preferred shares warrant
liability. The term loan compound derivative liability and the
Series B convertible preferred shares warrant liability are
<font style="WHITE-SPACE: nowrap">re-measured</font> at the end of
every period and carried at fair value (Note 2). The recorded value
of the Company’s accounts receivable and accounts payable
approximates its current fair value due to the relatively
short-term nature of these items.</p>
</div>
-744000
2976000
<div>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td valign="top" width="4%" align="left"><b>(10)</b></td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt" align="left"><b>DEFINED CONTRIBUTION PLAN</b></p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The Company has a qualified 401(k) Savings and Investment Plan, or
the Plan, whereby employees may contribute up to the Federal annual
limits. The Company does not match employee contributions.</p>
</div>
<div>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td valign="top" width="4%" align="left"><b>(12)</b></td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt" align="left"><b>NET LOSS PER SHARE ATTRIBUTABLE TO ORDINARY
SHAREHOLDERS AND UNAUDITED PRO FORMA NET LOSS PER SHARE</b></p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The following table sets forth the computation of the basic and
diluted net loss per share attributable to ordinary shareholders
(in thousands, except share and per share data):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="76%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" nowrap="nowrap" align="center"><b>YEAR ENDED
DECEMBER 31,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>2018</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>2019</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Numerator:</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Net loss</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(13,731</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(19,243</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: cumulative dividends allocated to preferred shareholders</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(3,671</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(4,028</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Net loss attributable to ordinary shareholders</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(17,402</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(23,271</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Denominator:</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Weighted-average ordinary shares outstanding</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">2,750,838</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">3,076,461</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Net loss per share attributable to ordinary shareholders, basic and
diluted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(6.33</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(7.56</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
Since the Company was in a loss position for all periods presented,
basic net loss per share is the same as diluted net loss per share
for all periods as the inclusion of all potential ordinary shares
outstanding would have been anti-dilutive. Potentially dilutive
securities that were not included in the diluted per share
calculations as of December 31, 2018 and December 31,
2019 because they would be anti-dilutive were as follows:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="76%"></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" nowrap="nowrap" align="center">
<b>DECEMBER 31,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>2018</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>2019</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Series A convertible preferred shares</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,297,081</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,297,081</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Series B convertible preferred shares</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,016,727</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Warrants to purchase convertible preferred shares</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">61,292</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Ordinary shares subject to repurchase</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">229,912</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">34,024</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Options issued and outstanding</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">864,819</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,183,745</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">10,391,812</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">11,592,869</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The following table sets forth the computation of the
Company’s unaudited pro forma basic and diluted net loss per
share (in thousands, except share and per share amounts):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="86%"></td>
<td valign="bottom" width="6%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>YEAR ENDED<br />
DECEMBER 31,<br />
2019</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Net loss</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(19,243</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Weighted-average ordinary shares used in computing net loss per
share attributable to ordinary shareholders, basic and diluted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">3,076,461</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Pro forma adjustment to reflect assumed conversion of preferred
shares and accrued dividends allocable to ordinary shareholders</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">11,253,839</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Weighted-average ordinary shares used to compute pro forma net loss
per share, basic and diluted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">14,330,300</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Pro forma net loss per share, basic and diluted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(1.34</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
</div>
<div>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td valign="top" width="4%" align="left"><b>(2)</b></td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt" align="left"><b>FAIR VALUE OF FINANCIAL INSTRUMENTS</b></p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The fair value of the Company’s financial assets and
liabilities are determined in accordance with the fair value
hierarchy established in ASC Topic 820, <i>Fair Value Measurements
and Disclosures</i>. ASC Topic 820 defines fair value as the
exchange price that would be received for an asset or paid to
transfer a liability (an exit price) in the principal or most
advantageous market for the asset or liability in an orderly
transaction between market participants on the measurement date.
The fair value hierarchy of ASC Topic 820 requires an entity to
maximize the use of observable inputs when measuring fair value and
classifies those inputs into three levels:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<i>Level</i><i> 1</i>– Observable inputs, such as quoted
prices in active markets</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<i>Level</i><i> 2</i>– Inputs, other than the quoted
prices in active markets, which are observable either directly or
indirectly such as quoted prices for similar assets or liabilities;
quoted prices in markets that are not active; or other inputs that
are observable or can be corroborated by observable market data for
substantially the full term of the instrument’s anticipated
life</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<i>Level</i><i> 3</i>– Unobservable inputs in which
there is little or no market data, which require the reporting
entity to develop its own assumptions</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The Company measures its Series B convertible preferred shares
warrant liability and term loan compound derivative liability at
fair value on a recurring basis and these are classified as
Level 3 liabilities. The fair value of the Series B preferred
shares warrant liability was determined using an option-pricing
model. The Company calculated the fair value of the term loan
compound derivative liability by computing the difference between
the fair value of the term loan with the compound derivative using
the “with and without” method under the income
approach, and the fair value of the term loan without the compound
derivative. The valuation methodology and underlying assumptions
are discussed further in Note 4.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The following table sets forth the Company’s financial
liabilities that are measured at fair value on a recurring basis by
level within the fair value hierarchy (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="69%"></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="14" align="center"><b>AS OF DECEMBER 31,
2019</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>LEVEL 1</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>LEVEL 2</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>LEVEL 3</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>FAIR VALUE</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Financial liabilities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<u>Long term liabilities</u></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Compound derivative liability</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">
        —</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">
        —</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">
        51</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">51</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Warrant liability</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">361</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">
        361</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
</table>
</div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The following tables are a reconciliation of all financial
liabilities measured at fair value using Level 3 unobservable
inputs (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="81%"></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="7%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>WARRANT<br />
LIABILITY</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>COMPOUND<br />
DERIVATIVE<br />
LIABILITY</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Balance as of December 31, 2018</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Additions</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">361</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">51</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Change in market value</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Balance as of December 31, 2019</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">361</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">51</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 12pt">
The Company did not have any outstanding financial liabilities to
be <font style="WHITE-SPACE: nowrap">re-measured</font> on a
recurring basis as of December 31, 2018. There were no
transfers of assets or liabilities between the fair value
measurement levels during the years ended December 31, 2018
and December 31, 2019.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Term Loan</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The estimated fair value of the Term Loan was $5.7 million as
of December 31, 2019 which approximates the carrying value and
is classified as Level 3. The Company utilized a market yield
analysis and income approach to estimate a value for the Term Loan.
The key valuation assumptions used consist of the discount rate of
14.5% and the probability of the occurrence of a change in control
event of 10.0%.</p>
</div>
<div>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td valign="top" width="4%" align="left"><b>(7)</b></td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt" align="left"><b>INCOME TAXES</b></p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The domestic (Ireland) and foreign components of <font style="WHITE-SPACE: nowrap">pre-tax</font> loss for the years ending
December 31, 2018 and December 31, 2019 are as follows
(in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="80%"></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>DECEMBER 31,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2018</b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2019</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Foreign</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(12,576</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(16,803</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Domestic (Ireland)</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(1,110</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(2,406</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Loss before income taxes</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(13,686</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(19,209</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The provision for income taxes consist of the following (in
thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="82%"></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>YEAR ENDED<br />
DECEMBER 31,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>    2018    </b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>    2019    </b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<b>Current</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Domestic (Ireland)</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
State (U.S.)</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Foreign/federal</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">44</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">33</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total current</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">45</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">34</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<b>Deferred</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Domestic (Ireland)</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
State (U.S.)</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Foreign/federal</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total deferred</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Provision for income taxes</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">
        45</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">
        34</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
A reconciliation of the Irish statutory income tax rate of 12.5% to
the actual tax rate for the years ended December 31, 2018 and
December 31, 2019 are as follows (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="84%"></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>YEAR ENDED<br />
DECEMBER 31,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>    2018    </b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>    2019    </b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
At statutory rate</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(1,711</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(2,401</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Foreign income tax at different rates</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,404</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">378</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
U.S. R&D credits</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(499</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(861</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Change in valuation allowance</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">732</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">3,733</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Share-based compensation</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">57</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">60</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Prior period true ups</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(38</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(950</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Other</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">100</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">75</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Provision for income taxes</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">45</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">34</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; MARGIN-TOP: 9px">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 0pt">
Significant components of the Company’s deferred tax assets
as of December 31, 2018 and December 31, 2019 are as
follows (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="84%"></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>DECEMBER 31,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>    2018    </b></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>    2019    </b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<b>Deferred tax assets:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Net operating loss carryforwards</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">363</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">3,259</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Research & other credits</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,701</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">3,260</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Other</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">208</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">333</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total gross DTA</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">2,272</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">6,852</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Less: Val. Allowance</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(2,181</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(6,686</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total deferred tax assets</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">91</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">166</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<b>Deferred tax liabilities:</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"> </td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Fixed assets</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(91</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">166</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total gross DTL</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(91</td>
<td valign="bottom" nowrap="nowrap">) </td>
<td valign="bottom"> </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">166</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Net deferred tax assets</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom"> </td>
<td valign="bottom" nowrap="nowrap">$</td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
Realization of deferred tax assets is dependent upon the Company
generating future taxable income, the timing and amount of which
are uncertain. Accordingly, the deferred tax assets have been
largely offset by a valuation allowance. The valuation allowance
increased by approximately $0.8 million and $4.5 million
for the years ended December 31, 2018 and December 31,
2019, respectively.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
As of December 31, 2019, the Company had a net operating loss
carryforwards for U.S. state income tax purposes of approximately
$30.9 million, that expire in the year 2038, and for Ireland
income tax purposes of approximately $4.0 million that never
expire. As of December 31, 2019, the Company had U.S. federal
research and development credit carryforwards of approximately
$1.5 million, that expire in the year 2038, and U.S. state
research and development credit carryforwards of approximately
$2.4 million, that do not expire.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
Utilization of the Company’s U.S. net operating loss and
credit carryforwards may be subject to substantial annual
limitation due to the ownership change limitations provided by the
Internal Revenue Code and similar state provisions. Such annual
limitation could result in the expiration of the U.S. net operating
loss and credit carryforwards before utilization. To date, the
Company has not performed an analysis to determine whether there
would be a substantial annual limitation due to a change in
ownership.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b><i>Unrecognized Tax Benefits</i></b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The Company’s policy is to include interest and penalties
related to unrecognized tax benefits, if any, within the provision
for taxes in the consolidated statements of operations and
comprehensive loss. If the Company is eventually able to recognize
its uncertain tax positions, the Company’s effective tax rate
would be reduced. The Company currently has a full valuation
allowance against its net deferred tax asset which would impact the
timing of the effective tax rate benefit should any of these
uncertain tax positions be favorably settled in the future.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The Company files income tax returns in Ireland, the U.S., and
Malta. All of the Company’s tax years since 2015 remain open
to examination.</p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; MARGIN-TOP: 9px">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 0pt">
The Company has the following activity relating to unrecognized tax
benefits (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="84%"></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>DECEMBER 31,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>    2018    </b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">
<b>    2019    </b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<b>Beginning balance</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">247</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">418</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Gross increase—tax positions in prior periods</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">11</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Gross decreases—tax positions in prior periods</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">(7</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Gross increases—tax positions in prior periods</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">160</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">272</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
<b>Ending balance</b></p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">    418</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">    692</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
Although it is reasonably possible that certain unrecognized tax
benefits may increase or decrease within the next 12 months due to
tax examination changes, settlement activities, expirations of
statute of limitations or the impact on recognition and measurement
considerations related to the results of published tax cases or
other similar activities, the Company does not anticipate any
significant changes to unrecognized tax benefits over the next 12
months. During the years ended December 31, 2018 and
December 31, 2019, no interest or penalties were required to
be recognized relating to unrecognized tax benefits.</p>
</div>
<div>
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr style="PAGE-BREAK-INSIDE: avoid">
<td valign="top" width="4%" align="left"><b>(11)</b></td>
<td valign="top" align="left">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-TOP: 0pt" align="left"><b>RELATED-PARTY TRANSACTIONS</b></p>
</td>
</tr>
</table>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<i>Related-Party Revenue</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 6pt">
In June 2018, the Company entered into a Research and Development
Services Agreement, or Tollnine Agreement, with Tollnine, Inc., or
Tollnine, a related-party of the Company, to provide research and
development services to Tollnine. The Company’s Chief
Executive Officer is also the Chief Executive Officer of Tollnine
and two of the Company’s investors are also investors in
Tollnine. As such, Tollnine was deemed to be a related-party. The
Tollnine Agreement has an initial term of 3 years, to be
automatically renewed for additional <font style="WHITE-SPACE: nowrap">one-year</font> terms unless terminated by
either party. The services are to be provided at a price based on
the costs incurred by the Company plus a <font style="WHITE-SPACE: nowrap">mark-up</font> equal to 10% of such costs.
The Company recognizes revenue when Tollnine, as our customer,
obtains control of promised goods or services, in an amount that
reflects the consideration which the Company expects to receive in
exchange for those goods or services. For the years ended
December 31, 2018 and December 31, 2019, the Company
recognized related-party revenues of $2.1 million and
$4.8 million, respectively, under the Tollnine Agreement.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<i>Receivables due from Related-Party</i></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 6pt">
As of December 31, 2018, and 2019, the Company had outstanding
related-party receivables from Tollnine of $0.9 million and
$0.5 million, respectively.</p>
</div>
P8Y21D
P7Y6M21D
300000
1.88
1.27
1.91
1.86
-7000
75000
17746
14330300
34024
-341871
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Concentration of Credit Risk and Other Risks and
Uncertainties</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
Financial instruments that potentially subject the Company to a
concentration of credit risk consist primarily of cash. The Company
maintains deposits in federally insured financial institutions in
excess of federally insured limits. The Company is exposed to
credit risk in the event of default by the financial institutions
holding its cash. The Company has not experienced any losses on its
deposits of cash.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The Company’s future results of operations involve a number
of other risks and uncertainties. Factors that could affect the
Company’s future operating results and cause actual results
to vary materially from expectations include, but are not limited
to, uncertainty of results of clinical trials and reaching
milestones, uncertainty of regulatory approval of the
Company’s potential product candidates, uncertainty of market
acceptance of the Company’s product candidates, competition
from substitute products and larger companies, securing and
protecting proprietary technology, strategic relationships and
dependence on key individuals or sole-source suppliers.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The Company’s product candidates require approvals from the
FDA and comparable foreign regulatory agencies prior to commercial
sales in their respective jurisdictions. There can be no assurance
that any product candidates will receive the necessary approvals.
If the Company was denied approval, approval was delayed or the
Company was unable to maintain approval for any product candidate,
it could have a materially adverse impact on the Company.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The following table presents the components of accrued expenses and
other current liabilities as of December 31, 2018 and
December 31, 2019 (in thousands):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="84%"></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="3%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>DECEMBER 31,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2018</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2019</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Payroll and related liabilities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">62</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">60</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Accrued bonus</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">745</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">864</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Accrued legal costs</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">98</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">122</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Early exercise liability</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">105</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">27</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Other</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">166</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">163</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total accrued expenses and other current liabilities</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">1,176</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">1,236</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The following table sets forth the computation of the
Company’s unaudited pro forma basic and diluted net loss per
share (in thousands, except share and per share amounts):</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="86%"></td>
<td valign="bottom" width="6%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>YEAR ENDED<br />
DECEMBER 31,<br />
2019</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Net loss</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(19,243</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Weighted-average ordinary shares used in computing net loss per
share attributable to ordinary shareholders, basic and diluted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">3,076,461</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 2.95em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Pro forma adjustment to reflect assumed conversion of preferred
shares and accrued dividends allocable to ordinary shareholders</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">11,253,839</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Weighted-average ordinary shares used to compute pro forma net loss
per share, basic and diluted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">14,330,300</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Pro forma net loss per share, basic and diluted</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom">$</td>
<td valign="bottom" align="right">(1.34</td>
<td valign="bottom" nowrap="nowrap">) </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
The useful lives of the property and equipment are as follows:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="51%"></td>
<td valign="bottom" width="2%"></td>
<td width="47%"></td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom">Research and development equipment</td>
<td valign="bottom">  </td>
<td valign="bottom">5 years</td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom">Furniture and office equipment</td>
<td valign="bottom">  </td>
<td valign="bottom">5 years</td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom">Computer equipment</td>
<td valign="bottom">  </td>
<td valign="bottom">3 years</td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom">Software</td>
<td valign="bottom">  </td>
<td valign="bottom">3 years</td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom">Leasehold improvements</td>
<td valign="bottom">  </td>
<td valign="bottom">Shorter of 7 years or remaining of lease
term</td>
</tr>
</table>
</div>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
Ordinary shares reserved for future issuance, on an as if converted
basis, as of December 31, 2018 and December 31, 2019,
consists of the following:</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<p style="MARGIN-BOTTOM: 2pt; BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0pt; LINE-HEIGHT: 1pt">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9pt; MARGIN-TOP: 0pt">
 </p>
<div align="right">
<table style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="96%" border="0">
<tr>
<td width="76%"></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>DECEMBER 31,</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 8pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2018</b></td>
<td valign="bottom"> </td>
<td valign="bottom">  </td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><b>2019</b></td>
<td valign="bottom"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Convertible preferred shares, issued and outstanding</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">9,297,081</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">10,313,808</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Share options, issued and outstanding</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">864,819</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">1,183,745</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Share options, authorized for future issuance</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">73,015</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">566,900</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Warrants, issued and outstanding</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">61,292</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid" bgcolor="#CCEEFF">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 1.47em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Warrants, authorized for future issuance</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom" nowrap="nowrap" align="right">—</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">30,646</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
<tr style="FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; PAGE-BREAK-INSIDE: avoid">
<td valign="top">
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4.42em; MARGIN-TOP: 0pt; TEXT-INDENT: -1.47em">
Total</p>
</td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">10,234,915</td>
<td valign="bottom" nowrap="nowrap"> </td>
<td valign="bottom">  </td>
<td valign="bottom"> </td>
<td valign="bottom" align="right">12,156,391</td>
<td valign="bottom" nowrap="nowrap"> </td>
</tr>
<tr style="FONT-SIZE: 1px">
<td valign="bottom"></td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
<td valign="bottom">  </td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td valign="bottom">
<p style="MARGIN-BOTTOM: 0pt; BORDER-TOP: #000000 3px double; MARGIN-TOP: 0pt">
 </p>
</td>
<td> </td>
</tr>
</table>
</div>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Need for Additional Capital</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
Since commencing operations, none of the Company’s product
candidates have received marketing approval from the U.S. Food and
Drug Administration, or FDA, or any other federal, state, local or
foreign governmental or regulatory authority and therefore the
Company has not generated any revenue from drug product sales. The
Company had an accumulated deficit of $72.8 million as of
December 31, 2019 and management does not expect to experience
positive cash flows in the foreseeable future. Based on
management’s current plans, management believes cash of
$9.0 million as of December 31, 2019, along with the
$105.0 million of gross proceeds from the issuance of Series C
convertible preferred shares in February 2020 (Note 13), are
sufficient to fund operations through at least one year from the
date of the issuance of these consolidated financial
statements.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
Management expects to incur additional losses in the future to
conduct product candidate research and development and to conduct
<font style="WHITE-SPACE: nowrap">pre-commercialization</font>
activities and recognizes the need to raise additional capital to
fully implement its business plan. The Company intends to raise
such capital through the sale of additional equity, debt financings
or strategic alliances with third parties. However, there can be no
assurance that the Company will be successful in acquiring
additional funding at levels sufficient to fund its operations or
on terms acceptable to the Company. If the Company is unsuccessful
in its efforts to raise additional financing, the Company could be
required to significantly reduce operating expenses and delay,
reduce the scope of or eliminate some of its development programs
or its future commercialization efforts, <font style="WHITE-SPACE: nowrap">out-license</font> intellectual property
rights to its product candidates and sell unsecured assets, or a
combination of the above, any of which may have a material adverse
effect on the Company’s business, results of operations,
financial condition and/or its ability to fund its scheduled
obligations on a timely basis or at all.</p>
</div>
-1.34
75000
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Recent Accounting Pronouncements</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
From time to time, new accounting pronouncements are issued by the
Financial Accounting Standards Board, or FASB, or other standard
setting bodies and adopted by the Company as of the specified
effective date. Unless otherwise discussed, the impact of recently
issued standards that are not yet effective will not have a
material impact on the Company’s financial position or
results of operations upon adoption.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
In February 2016, the FASB issued ASU <font style="WHITE-SPACE: nowrap">No. 2016-02</font> (Topic 842),
<i>Leases</i> (ASU <font style="WHITE-SPACE: nowrap">2016-02).</font> ASU <font style="WHITE-SPACE: nowrap">2016-02</font> requires an entity to
recognize assets and liabilities arising from a lease for both
financing and operating leases. ASU <font style="WHITE-SPACE: nowrap">No. 2016-02</font> will also require new
qualitative and quantitative disclosures to help investors and
other financial statement users better understand the amount,
timing, and uncertainty of cash flows arising from leases. In
November 2019, the FASB issued ASU <font style="WHITE-SPACE: nowrap">No. 2019-10,</font> which extends the
effective date of ASU <font style="WHITE-SPACE: nowrap">No. 2016-02</font> for <font style="WHITE-SPACE: nowrap">non-public</font> business entities,
including smaller reporting companies, to fiscal years beginning
after December 15, 2020. The new standard is effective for the
Company beginning January 1, 2021. Early adoption is
permitted. The Company is currently evaluating the effects of the
adoption of this guidance on its consolidated financial statements
and related disclosures.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
In June 2016, the FASB issued ASU <font style="WHITE-SPACE: nowrap">No. 2016-13,</font> <i>Financial
Instruments-Credit Losses</i> (Topic 326), which requires entities
to measure all expected credit losses for financial assets held at
the reporting date based on historical experience, current
conditions, and reasonable and supportable forecasts. This replaces
the existing incurred loss model and is applicable to the
measurement of credit losses on financial assets measured at
amortized cost. In February 2020, the FASB issued ASU <font style="WHITE-SPACE: nowrap">No. 2020-02</font> and delayed the
effective date of Topic 326 until fiscal year beginning after
December 15, 2022. The new standard is effective for the
Company beginning January 1, 2023. Early adoption is
permitted. The Company is currently evaluating the effects of the
adoption of this guidance on its consolidated financial statements
and related disclosures.</p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
In December 2019, the FASB issued ASU <font style="WHITE-SPACE: nowrap">No. 2019-12,</font> <i>Income Taxes</i>
(Topic 740): Simplifying the Accounting for Income Taxes, which is
intended to simplify various aspects related to accounting for
income taxes. The pronouncement is effective for fiscal years, and
for interim periods within those fiscal years, beginning after
December 15, 2021. ASU <font style="WHITE-SPACE: nowrap">2019-12</font> is effective for the Company
beginning January 1, 2022. Early adoption is permitted. The
Company is currently in the process of evaluating the effects of
the adoption of this guidance on the Company’s financial
statements and does not expect it to have a material impact on its
consolidated financial statements.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Unaudited Pro Forma Information</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
Immediately prior to the completion of this offering, all
outstanding convertible preferred shares will automatically convert
into ordinary shares. Unaudited pro forma basic and diluted net
loss per share has been computed to give effect to the conversion
of all outstanding convertible preferred shares and cumulative
dividends on the convertible preferred shares into ordinary shares.
The unaudited pro forma net loss per share does not include the
shares expected to be sold and related proceeds to be received from
the initial public offering.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Cost of Services for Related-Party Revenue</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The Company incurs costs associated with related-party services
including direct labor and associated employee benefits, laboratory
supplies, and other expenses. These costs are recorded in cost of
services for related-party revenue as a component of total
operating expenses in the accompanying consolidated statements of
operations and comprehensive loss.</p>
</div>
<div>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 9pt">
<b>Clinical and Manufacturing Accruals</b></p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 4pt">
The Company records accruals for estimated costs of research,
preclinical studies and clinical trials, and manufacturing
development, which are a significant component of research and
development expenses. A substantial portion of the Company’s
ongoing research and development activities are conducted by
third-party service providers, including contract research
organizations, or CROs, and contract manufacturing organizations,
or CMOs. The Company’s contracts with CROs generally include
pass-through fees such as regulatory expenses, investigator fees,
travel costs and other miscellaneous costs, including shipping and
printing fees. The financial terms of these contracts are subject
to negotiations, which vary from contract to contract and may
result in payment flows that do not match the periods over which
materials or services are provided to the Company under such
contracts. The Company accrues the costs incurred under agreements
with these third parties based on estimates of actual work
completed in accordance with the respective agreements. The Company
determines the estimated costs through discussions with internal
personnel and external service providers as to the progress or
stage of completion of the services and the agreed-upon fees to be
paid for such services.</p>
<p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; MARGIN-TOP: 6px">
 </p>
<p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 9.5pt; FONT-FAMILY: ARIAL; MARGIN-LEFT: 4%; MARGIN-TOP: 0pt">
The Company makes significant judgments and estimates in
determining the accrual balance at the end of each reporting
period. As actual costs become known, the Company adjusts its
accruals. Although the Company does not expect its estimates to be
materially different from amounts actually incurred, the
Company’s understanding of the status and timing of services
performed relative to the actual status and timing of services
performed may vary and could result in the Company reporting
amounts that are too high or too low in any particular period. To
assist in its estimates the Company relies upon the receipt of
timely and accurate reporting from information provided as part of
its clinical and <font style="WHITE-SPACE: nowrap">non-clinical</font> studies and other
third-party vendors. Through December 31, 2019, there have
been no material differences from the Company’s accrued
estimated expenses to the actual clinical trial expenses. However,
variations in the assumptions used to estimate accruals, including,
but not limited to, the number of patients enrolled, the rate of
patient enrollment, and the actual services performed, and related
costs may vary from the Company’s estimates, resulting in
adjustments to clinical trial expense in future periods. Changes in
these estimates that result in material changes to the
Company’s accruals could materially affect its financial
position and results of operations.</p>
</div>
11253839
818010
412000
95000
2
361000
51000
100000
5000000
licensed patents expires and ten years after the first commercial sale of the licensed product in such country
P60D
P60D
1200000
shall terminate and become fully paid-up upon the passing of ten years after the first commercial sale of the product in such country, or the Company's exercise of the royalty buyout option exercisable at any time prior to the first commercial sale of a licensed product.
P60D
P60D
11100000
licensed patents expires and ten years after the first commercial sale of the product in such country
P60D
P60D
2038-12-31
2038-12-31
5199
297000
10000
75000
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P4Y4M24D
0
40000
4800000
2
P5Y
Shorter of 7 years or remaining of lease term
P3Y
P5Y
P3Y
2023
0.070
Interest-only payments for the first 12 months after the closing of the Loan Agreement
0.0475
105000
159000
33000
61292000
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2020-05-31
2018-05
2023-05-31
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-1.33
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