{\rtf1\deflang1033\deflangfe1033\margl720\margr720\margt360\margb360{\stylesheet{\fs20\lang1033\snext0 Normal;} {\s1\sb240\keepn{\*\pn \pnlvl1\pndec\pnprev1\pnstart1\pnsp144}\b\f0\fs30\lang1033 \sbasedon0\snext0 heading 1;} {\s2\sb200\keepn{\*\pn \pnlvl2\pndec\pnprev1\pnstart1\pnsp144{\pntxtb.}}\b\f0\fs26\lang1033 \sbasedon0\snext0 heading 2;} {\s3\sb180\keepn{\*\pn \pnlvl3\pndec\pnprev1\pnstart1\pnsp144{\pntxtb.}}\b\f0\fs22\lang1033 \sbasedon0\snext0 heading 3;} {\s4\sb160\keepn{\*\pn \pnlvl4\pnucltr\pnprev1\pnstart1\pnsp144{\pntxtb.}}\b\f0\fs22\lang1033 \sbasedon0\snext0 heading 4;} {\s5\sb140\keepn{\*\pn \pnlvl5\pncltr\pnprev1\pnstart1\pnsp144}\b\f0\fs20\lang1033 \sbasedon0\snext0 heading 5;} {\s6\tqc\lang1033\sbasedon0\snext6 footer;} {\*\cs16 \additive\super\sbasedon10 footnote reference;} {\*\cs18 \additive\sbasedon10 page number;}} {\fonttbl{\f0\fnil Times New Roman;}{\f1\fnil Courier New}{\f2005\fnil Courier New;}{\f2010\fnil Wingdings;}{\f2020\fnil Webdings;}{\f2\fnil Arial;}{\f3\fnil Arial;}{\f4\fnil LucidaHandwriting;}{\f5\fnil Symbol;}{\f6\fnil Symbol;}{\f7\fnil Ferdsch;}{\f30\fnil Myriad Cn Semibold;}{\f31\fnil Myriad Roman;}{\f50\fnil Courier New;}{\f51\fnil Times New Roman;}{\f52\fnil Arial;}{\f53\fnil Symbol;}{\f54\fnil Wingdings;}{\f55\fnil Wingdings 2;}{\f56\fnil Wingdings 3;}{\f57\fnil Webdings;}{\f58\fnil Arial Narrow;}{\f59\fnil Arial Unicode MS;}{\f60\fnil Cyberbit;}{\f61\fnil Morningstar 1U Light;}{\f62\fnil Calibri;}} {\colortbl;\red0\green0\blue0;\red127\green0\blue0;\red0\green0\blue255;\red127\green127\blue127;\red0\green51\blue153;\red255\green204\blue0;\red255\green255\blue255;\red246\green244\blue236;\red0\green0\blue0;\red51\green51\blue51;\red207\green240\blue252;\red141\green179\blue226;\red198\green217\blue241;} {\*\bkmkstart filing_1}{\*\bkmkend filing_1}{\*\bkmkstart doc_1_1}{\*\bkmkend doc_1_1}\par\pard\plain\sb22\cf1\f51\fs2\qc \~\par\pard\plain\sb110\cf1\f51\fs24\ql \~\par\pard\plain\sb66\cf1\f51\fs32\b\qc UNITED STATES\par\pard\plain\cf1\f51\fs32\b\qc SECURITIES AND EXCHANGE COMMISSION\par\pard\plain\cf1\f51\fs24\b\qc Washington, D.C. 20549\par\pard\plain\brdrb\brdrs\li880\ri880\sa22\cf1\f51\fs12\qc \~\par\pard\plain\sb132\cf1\f51\fs32\b\qc FORM 10-Q\par\pard\plain\brdrb\brdrs\li880\ri880\sa22\cf1\f51\fs12\qc \~ \par\pard\plain {\trowd\cellx813\cellx10800\trrh729 \pard\plain\intbl\sb132\cf1\f51\fs24\ql \u9746?\cell\pard\plain\intbl\sb132\cf1\f51\fs24\b\ql QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES\plain\intbl\cf1\f51\fs24\b\ql EXCHANGE ACT OF 1934\cell{ {\trowd\cellx813\cellx10800\trrh729\row}}}\pard\plain\sb132\cf1\f51\fs20\b\qc For the quarterly period ended June 30, 2017\par\pard\plain\sb132\cf1\f51\fs20\b\qc OR \par\pard\plain {\trowd\cellx813\cellx10800\trrh729 \pard\plain\intbl\sb132\cf1\f51\fs24\ql \u9744?\cell\pard\plain\intbl\sb132\cf1\f51\fs24\b\ql TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES\plain\intbl\cf1\f51\fs24\b\ql EXCHANGE ACT OF 1934\cell{ {\trowd\cellx813\cellx10800\trrh729\row}}}\pard\plain\sb132\cf1\f51\fs20\b\qc For the transition period from\plain\cf1\f51\fs20\b\qc \~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\~\plain\cf1\f51\fs20\b\qc to\plain\cf1\f51\fs20\b\qc \~\~\~\~\~\~\~\~\~\~\~\~ \~\~\~\~\~\~\~\~\par\pard\plain\sb132\cf1\f51\fs20\b\qc Commission File Number 001-36352\par\pard\plain\brdrb\brdrs\li880\ri880\sa22\cf1\f51\fs12\qc \~\par\pard\plain\sb132\cf1\f51\fs46\b\qc AKEBIA THERAPEUTICS, INC.\par\pard\plain\cf1\f51\fs20\b\qc (Exact Name of Registrant as Specified in Its Charter)\par\pard\plain\brdrb\brdrs\li880\ri880\sa22\cf1\f51\fs12\qc \~\par\pard\plain\cf1\f51\fs12\ql \~ \par\pard\plain {\trowd\clvertalb\cellx5400\clvertalb\cellx5507\clvertalb\cellx10800\trrh248 \pard\plain\intbl\cf1\f51\fs20\b\qc Delaware\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\b\qc 20-8756903\cell{ {\trowd\clvertalb\cellx5400\clvertalb\cellx5507\clvertalb\cellx10800\trrh248\row}}} {\trowd\clvertalb\cellx5400\clvertalb\cellx5507\clvertalb\cellx10800\trrh396 \pard\plain\intbl\cf1\f51\fs16\b\qc (State or Other Jurisdiction of\par\pard\plain\intbl\cf1\f51\fs16\b\qc Incorporation or Organization)\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc (I.R.S. Employer\par\pard\plain\intbl\cf1\f51\fs16\b\qc Identification No.)\cell{ {\trowd\clvertalb\cellx5400\clvertalb\cellx5507\clvertalb\cellx10800\trrh396\row}}} {\trowd\clvertalb\cellx5400\clvertalb\cellx5507\clvertalb\cellx10800\trrh149 \pard\plain\intbl\cf1\f51\fs12\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs12\qc \~\cell\pard\plain\intbl\cf1\f51\fs12\b\qc \~\cell{ {\trowd\clvertalb\cellx5400\clvertalb\cellx5507\clvertalb\cellx10800\trrh149\row}}} {\trowd\clvertalb\cellx5400\clvertalb\cellx5507\clvertalb\cellx10800\trrh248 \pard\plain\intbl\cf1\f51\fs20\b\qc 245 First Street, Suite 1100, Cambridge, MA\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\b\qc 02142\cell{ {\trowd\clvertalb\cellx5400\clvertalb\cellx5507\clvertalb\cellx10800\trrh248\row}}} {\trowd\clvertalb\cellx5400\clvertalb\cellx5507\clvertalb\cellx10800\trrh198 \pard\plain\intbl\cf1\f51\fs16\b\qc (Address of Principal Executive Offices)\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc (Zip Code)\cell{ {\trowd\clvertalb\cellx5400\clvertalb\cellx5507\clvertalb\cellx10800\trrh198\row}}}\pard\plain\sb132\cf1\f51\fs20\b\qc (617) 871-2098\par\pard\plain\cf1\f51\fs16\b\qc (Registrant\u8217?s Telephone Number, Including Area Code)\par\pard\plain\sb132\cf1\f51\fs16\b\qc (Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)\par\pard\plain\brdrb\brdrs\li880\ri880\sa22\cf1\f51\fs12\qc \~\par\pard\plain\sb132\cf1\f51\fs20\ql Indicate by check mark whether the registrant: (1)\~has filed all reports required to be filed by Section\~13 or 15(d) of the\plain\cf1\f51\fs20\ql Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to\plain\cf1\f51\fs20\ql file such reports), and (2)\~has been subject to such filing requirements for the past 90 days.\~\~\~\~Yes\~\~\u9746?\~\~\~\~No\~\~\u9744?\par\pard\plain\sb132\cf1\f51\fs20\ql Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site if any, every\plain\cf1\f51\fs20\ql Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (\u167?232.405 of this chapter)\plain\cf1\f51\fs20\ql during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such\plain\cf1\f51\fs20\ql files).\~\~\~\~Yes\~\~\u9746?\~\~\~\~No\~\~\u9744?\par\pard\plain\sb132\cf1\f51\fs20\ql Indicate by check mark whether registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller\plain\cf1\f51\fs20\ql reporting company or an emerging growth company. See the definitions of \u8220?large accelerated filer,\u8221?\plain\cf1\f51\fs20\ql \u8220?accelerated filer,\u8221? \u8220?smaller reporting company\u8221? and \u8220?emerging growth company\u8221? in\plain\cf1\f51\fs20\ql Rule 12b-2 of the Exchange Act.\par\pard\plain\cf1\f51\fs12\ql \~ \par\pard\plain {\trowd\clvertalb\cellx4509\clvertalb\cellx4612\clvertalb\cellx5276\clvertalb\cellx5475\clvertalb\cellx10029\clvertalb\cellx10132\clvertalb\cellx10800\trrh248 \pard\plain\intbl\cf1\f51\fs20\ql Large\~accelerated\~filer\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \u9744?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Accelerated\~filer\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \u9746?\cell{ {\trowd\clvertalb\cellx4509\clvertalb\cellx4612\clvertalb\cellx5276\clvertalb\cellx5475\clvertalb\cellx10029\clvertalb\cellx10132\clvertalb\cellx10800\trrh248\row}}} {\trowd\clvertalb\cellx4509\clvertalb\cellx4612\clvertalb\cellx5276\clvertalb\cellx5475\clvertalb\cellx10029\clvertalb\cellx10132\clvertalb\cellx10800\trrh148 \pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell{ {\trowd\clvertalb\cellx4509\clvertalb\cellx4612\clvertalb\cellx5276\clvertalb\cellx5475\clvertalb\cellx10029\clvertalb\cellx10132\clvertalb\cellx10800\trrh148\row}}} {\trowd\clvertalb\cellx4509\clvertalb\cellx4612\clvertalb\cellx5276\clvertalb\cellx5475\clvertalb\cellx10029\clvertalb\cellx10132\clvertalb\cellx10800\trrh248 \pard\plain\intbl\cf1\f51\fs20\ql Non-accelerated filer\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \u9744?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Smaller\~reporting\~company\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \u9744?\cell{ {\trowd\clvertalb\cellx4509\clvertalb\cellx4612\clvertalb\cellx5276\clvertalb\cellx5475\clvertalb\cellx10029\clvertalb\cellx10132\clvertalb\cellx10800\trrh248\row}}} {\trowd\clvertalb\cellx4509\clvertalb\cellx4612\clvertalb\cellx5276\clvertalb\cellx5475\clvertalb\cellx10029\clvertalb\cellx10132\clvertalb\cellx10800\trrh148 \pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell{ {\trowd\clvertalb\cellx4509\clvertalb\cellx4612\clvertalb\cellx5276\clvertalb\cellx5475\clvertalb\cellx10029\clvertalb\cellx10132\clvertalb\cellx10800\trrh148\row}}} {\trowd\clvertalb\cellx4509\clvertalb\cellx4612\clvertalb\cellx5276\clvertalb\cellx5475\clvertalb\cellx10029\clvertalb\cellx10132\clvertalb\cellx10800\trrh248 \pard\plain\intbl\cf1\f51\fs20\ql Emerging growth company\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \u9746?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx4509\clvertalb\cellx4612\clvertalb\cellx5276\clvertalb\cellx5475\clvertalb\cellx10029\clvertalb\cellx10132\clvertalb\cellx10800\trrh248\row}}}\pard\plain\sb132\cf1\f51\fs20\ql If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for\plain\cf1\f51\fs20\ql complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.\plain\cf1\f51\fs20\ql \u9746?\par\pard\plain\sb132\cf1\f51\fs20\ql Indicate by check mark whether registrant is a shell company (as defined in Rule 12b-2 of the Exchange\plain\cf1\f51\fs20\ql Act).\~\~\~\~Yes\~\~\u9744?\~\~\~\~No\~\~\u9746?\par\pard\plain\sb132\cf1\f51\fs20\ql Indicate the number of shares outstanding of each of the issuer\u8217?s classes of common stock, as of the latest practicable\plain\cf1\f51\fs20\ql date. \u9746?\par\pard\plain\cf1\f51\fs12\i\ql \~ \par\pard\plain {\trowd\clvertalc\cellx5436\clvertalc\cellx5580\clvertalc\cellx10800\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx5436\clvertalc\cellx5580\clvertalc\cellx10800\trrh66\row}}} {\trowd\clvertalb\cellx5436\clvertalb\cellx5580\clvertalb\cellx10800\trrh198 \pard\plain\intbl\cf1\f51\fs16\b\qc Class\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Outstanding\~at\~July 31,\~2017\cell{ {\trowd\clvertalb\cellx5436\clvertalb\cellx5580\clvertalb\cellx10800\trrh198\row}}} {\trowd\clvertalb\cellx5436\clvertalb\cellx5580\clvertalb\cellx10800\trrh248 \pard\plain\intbl\cf1\f51\fs20\b\qc Common Stock, $0.00001 par value\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\b\qc 47,151,429\cell{ {\trowd\clvertalb\cellx5436\clvertalb\cellx5580\clvertalb\cellx10800\trrh248\row}}}\pard\plain\cf1\f51\fs12\ql \~\par\pard\plain\sb22\cf1\f51\fs2\qc \~\par\pard\plain\sb22\cf1\f51\fs8\qc \~\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\cf1\f51\fs20\b\qc NOTE REGARDING FORWARD-LOOKING STATEMENTS\par\pard\plain\sb264\cf1\f51\fs20\ql This Quarterly Report on Form 10-Q contains forward-looking statements that are being made pursuant to the safe harbor\plain\cf1\f51\fs20\ql provisions of the Private Securities Litigation Reform Act of 1995, or PSLRA, with the intention of obtaining the benefits of the\plain\cf1\f51\fs20\ql \u8220?safe harbor\u8221? provisions of the PSLRA. Forward-looking statements involve risks and uncertainties. All statements\plain\cf1\f51\fs20\ql other than statements of historical facts contained in this Quarterly Report on Form 10-Q are forward-looking statements. In\plain\cf1\f51\fs20\ql some cases, you can identify forward-looking statements by words such as \u8220?anticipate,\u8221? \u8220?believe,\u8221?\plain\cf1\f51\fs20\ql \u8220?contemplate,\u8221? \u8220?continue,\u8221? \u8220?could,\u8221? \u8220?estimate,\u8221? \u8220?expect,\u8221?\plain\cf1\f51\fs20\ql \u8220?intend,\u8221? \u8220?may,\u8221? \u8220?plan,\u8221? \u8220?potential,\u8221? \u8220?predict,\u8221?\plain\cf1\f51\fs20\ql \u8220?project,\u8221? \u8220?seek,\u8221? \u8220?should,\u8221? \u8220?target,\u8221? \u8220?will,\u8221?\plain\cf1\f51\fs20\ql \u8220?would,\u8221? or the negative of these words or other comparable terminology. These forward-looking statements\plain\cf1\f51\fs20\ql include, but are not limited to, statements about: \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the projected timing of (1)\~our clinical programs for vadadustat, (2) submission of marketing applications for\plain\intbl\cf1\f51\fs20\ql vadadustat, and (3) preclinical development of AKB-5169 and other product candidates;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql enrollment in the PRO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql TECT and INNO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql VATE clinical programs;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql our development program for vadadustat, including the FO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql RWARD and TRILO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql GY clinical studies, and our\plain\intbl\cf1\f51\fs20\ql other product candidates;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql our anticipated funding from our collaborations;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the timing or likelihood of regulatory filings and approvals, including any labeling or other restrictions;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql our plans to commercialize vadadustat, if it is approved;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the implementation of our business model and strategic plans for our business, product candidates and technology;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql our commercialization, marketing and manufacturing capabilities and strategy;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql our competitive position;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql our intellectual property position;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql developments and projections relating to our competitors and our industry;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql our estimates regarding expenses (including those associated with the PRO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql TECT and INNO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql VATE clinical\plain\intbl\cf1\f51\fs20\ql programs), future revenue, capital requirements and needs for additional financing; and\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql other risks and uncertainties, including those listed under Part II, Item\~1A. Risk Factors.\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}}\pard\plain\sb264\cf1\f51\fs20\ql All forward-looking statements in this Quarterly Report on Form 10-Q involve known and unknown risks, uncertainties and\plain\cf1\f51\fs20\ql other factors that may cause our actual results, performance or achievements to be materially different from any future results,\plain\cf1\f51\fs20\ql performance or achievements expressed or implied by these forward-looking statements. Factors that may cause actual results to\plain\cf1\f51\fs20\ql differ materially from current expectations include, among other things, those listed under Part II, Item\~1A. Risk Factors and\plain\cf1\f51\fs20\ql elsewhere in this Quarterly Report on Form 10-Q. Given these uncertainties, you should not place undue reliance on these\plain\cf1\f51\fs20\ql forward-looking statements. Except as required by law, we assume no obligation to update or revise these forward-looking\plain\cf1\f51\fs20\ql statements for any reason.\par\pard\plain\sb264\cf1\f51\fs20\ql This Quarterly Report on Form 10-Q also contains estimates, projections and other information concerning our industry, our\plain\cf1\f51\fs20\ql business, and the markets for certain diseases, including data regarding the estimated size of those markets, and the incidence and\plain\cf1\f51\fs20\ql prevalence of certain medical conditions. Information that is based on estimates, forecasts, projections, market research or similar\plain\cf1\f51\fs20\ql methodologies is inherently subject to uncertainty and may prove inaccurate. Unless otherwise expressly stated, we obtained this\plain\cf1\f51\fs20\ql industry, business, market and other data from reports, research surveys, studies and similar data prepared by market research\plain\cf1\f51\fs20\ql firms and other third parties, industry, medical and general publications, government data and similar sources.\par\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\qc \~\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\cf1\f51\fs20\qc Akebia Therapeutics, Inc.\par\pard\plain\sb264\cf1\f51\fs20\b\qc Table of Contents\par\pard\plain\cf1\f51\fs20\ql \~ \par\pard\plain {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248 \pard\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "part_i_financial_information_117" }{\*\fldrslt\cf3\f51\fs20\b\ql Part I. Financial Information}}\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh148 \pard\plain\intbl\li264\fi-264\cf1\f51\fs12\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh148\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248 \pard\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "item_1_financial_statements_1173" }{\*\fldrslt\cf3\f51\fs20\b\ql Item\~1\~\u8211?\~}}\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "item_1_financial_statements_1173" }{\*\fldrslt\cf3\f51\fs20\ql Financial Statements (Unaudited)}}\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh148 \pard\plain\intbl\li264\fi-264\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh148\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248 \pard\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "balance_sheets_11737931" }{\*\fldrslt\cf3\f51\fs20\ql Condensed Consolidated Balance Sheets as of June 30, 2017 and December\~31, 2016}}\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\qr 4\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh495 \pard\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "statements_of_operations_and_com" }{\*\fldrslt\cf3\f51\fs20\ql Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months Ended}}\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "statements_of_operations_and_com" }{\*\fldrslt\cf3\f51\fs20\ql June 30, 2017 and 2016}}\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\qr 5\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh495\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248 \pard\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "statements_of_cash_flows_1173793" }{\*\fldrslt\cf3\f51\fs20\ql Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2017 and 2016}}\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\qr 6\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248 \pard\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "notes_to_financial_statements_11" }{\*\fldrslt\cf3\f51\fs20\ql Notes to Condensed Consolidated Financial Statements}}\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\qr 7\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh148 \pard\plain\intbl\li264\fi-264\cf1\f51\fs12\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh148\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248 \pard\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "item_2_mda_11737931" }{\*\fldrslt\cf3\f51\fs20\b\ql Item\~2\~\u8211?\~}}\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "item_2_mda_11737931" }{\*\fldrslt\cf3\f51\fs20\ql Management\u8217?s Discussion and Analysis of Financial Condition and Results of Operations}}\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\qr 28\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh148 \pard\plain\intbl\li264\fi-264\cf1\f51\fs12\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh148\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248 \pard\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "item_3_quantitative_and_qualitat" }{\*\fldrslt\cf3\f51\fs20\b\ql Item\~3\~\u8211?\~}}\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "item_3_quantitative_and_qualitat" }{\*\fldrslt\cf3\f51\fs20\ql Quantitative and Qualitative Disclosures about Market Risk}}\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\qr 41\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh148 \pard\plain\intbl\li264\fi-264\cf1\f51\fs12\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh148\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248 \pard\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "item_4_controls_and_procedures_1" }{\*\fldrslt\cf3\f51\fs20\b\ql Item\~4}}\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "item_4_controls_and_procedures_1" }{\*\fldrslt\cf3\f51\fs20\ql \~\u8211?\~Controls and Procedures}}\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\qr 41\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh148 \pard\plain\intbl\li264\fi-264\cf1\f51\fs12\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh148\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248 \pard\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "part_ii_other_11737931" }{\*\fldrslt\cf3\f51\fs20\b\ql Part II. Other Information}}\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh148 \pard\plain\intbl\li264\fi-264\cf1\f51\fs12\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh148\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248 \pard\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "item_1_legal_proceedings_1173793" }{\*\fldrslt\cf3\f51\fs20\b\ql Item\~1}}\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "item_1_legal_proceedings_1173793" }{\*\fldrslt\cf3\f51\fs20\ql \~\u8211?\~Legal Proceedings}}\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\qr 42\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh148 \pard\plain\intbl\li264\fi-264\cf1\f51\fs12\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh148\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248 \pard\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "item_1a_risk_factors_11737931" }{\*\fldrslt\cf3\f51\fs20\b\ql Item\~1A}}\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "item_1a_risk_factors_11737931" }{\*\fldrslt\cf3\f51\fs20\ql \~\u8211?\~Risk Factors}}\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\qr 43\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh149 \pard\plain\intbl\li264\fi-264\cf1\f51\fs12\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh149\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248 \pard\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "item_2_unregistered_sales_of_equ" }{\*\fldrslt\cf3\f51\fs20\b\ql Item\~2}}\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "item_2_unregistered_sales_of_equ" }{\*\fldrslt\cf3\f51\fs20\ql \~\u8211?\~Unregistered Sales of Equity Securities and Use of Proceeds}}\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\qr 64\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh149 \pard\plain\intbl\li264\fi-264\cf1\f51\fs12\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh149\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248 \pard\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "item_3_defaults_upon_senior_secu" }{\*\fldrslt\cf3\f51\fs20\b\ql Item\~3}}\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "item_3_defaults_upon_senior_secu" }{\*\fldrslt\cf3\f51\fs20\ql \~\u8211?\~Defaults upon Senior Securities}}\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\qr 64\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh149 \pard\plain\intbl\li264\fi-264\cf1\f51\fs12\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh149\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248 \pard\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "item_4_mine_safety_disclosures_1" }{\*\fldrslt\cf3\f51\fs20\b\ql Item\~4}}\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "item_4_mine_safety_disclosures_1" }{\*\fldrslt\cf3\f51\fs20\ql \~\u8211?\~Mine Safety Disclosures}}\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\qr 64\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh149 \pard\plain\intbl\li264\fi-264\cf1\f51\fs12\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh149\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248 \pard\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "item_5_or_information_11737931" }{\*\fldrslt\cf3\f51\fs20\b\ql Item\~5\~}}\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "item_5_or_information_11737931" }{\*\fldrslt\cf3\f51\fs20\ql \u8211?\~Other Information}}\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 64\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh149 \pard\plain\intbl\li264\fi-264\cf1\f51\fs12\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh149\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248 \pard\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "item_6_exhibits_11737931" }{\*\fldrslt\cf3\f51\fs20\b\ql Item\~6\~}}\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "item_6_exhibits_11737931" }{\*\fldrslt\cf3\f51\fs20\ql \u8211?\~Exhibits}}\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\qr 66\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh149 \pard\plain\intbl\li264\fi-264\cf1\f51\fs12\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh149\row}}} {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248 \pard\plain\intbl\li264\ul{\field{\*\fldinst HYPERLINK \\l "signatures_11737931" }{\*\fldrslt\cf3\f51\fs20\b\ql Signatures}}\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\qr 67\cell{ {\trowd\clvertalb\cellx10056\clvertalb\cellx10163\clvertalb\cellx10800\trrh248\row}}}\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\b\qc \~\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart part_1_2_1}{\*\bkmkend part_1_2_1}{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}{\*\bkmkstart part_i_financial_information_117}{\*\bkmkend part_i_financial_information_117}{\*\bkmkstart balance_sheets_11737931}{\*\bkmkend balance_sheets_11737931}\par\pard\plain\cf1\f51\fs20\b\qc P\plain\cf1\f51\fs20\b\qc ART I\u8212?FINANCIAL INFORMATION{\*\bkmkstart item_1_3_1}{\*\bkmkend item_1_3_1}{\*\bkmkstart item_1_financial_statements_1173}{\*\bkmkend item_1_financial_statements_1173}\par\pard\plain\sb132\cf1\f51\fs20\b\qc ITEM\~1.\~\~FINANCIAL STATEMENTS.\par\pard\plain\sb132\cf1\f51\fs20\b\qc AKEBIA THERAPEUTICS, INC.\par\pard\plain\sb264\cf1\f51\fs20\b\qc Condensed Consolidated Balance Sheets\par\pard\plain\cf1\f51\fs20\b\qc (Unaudited)\par\pard\plain\cf1\f51\fs20\b\qc (in thousands, except share and per share data)\~\~\par\pard\plain\cf1\f51\fs20\ql \~ \par\pard\plain {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7071\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh215 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June\~30,\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc December\~31,\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7071\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh215\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7071\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh215 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2017\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2016\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7071\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh215\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7071\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\cf1\f51\fs20\b\ql Assets\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7071\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7071\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Current assets:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7071\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Cash and cash equivalents\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 125,390\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 187,335\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7071\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Available for sale securities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 195,825\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 73,008\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7071\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Unbilled receivable\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 33,823\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7071\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Prepaid expenses and other current assets\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 11,174\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 2,155\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7071\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7071\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li594\cf1\f51\fs20\ql Total current assets\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 332,389\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 296,321\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7071\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7071\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Property and equipment, net\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 2,934\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 2,612\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7071\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx7071\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Other assets\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 1,499\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 1,283\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx7071\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7071\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281 \pard\plain\intbl\li594\cf1\f51\fs20\ql Total assets\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 336,822\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 300,216\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7071\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7071\clbrdrt\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clbrdrt\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clbrdrt\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clbrdrt\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh315 \pard\plain\intbl\cf1\f51\fs20\b\ql Liabilities and stockholders' equity\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7071\clbrdrt\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clbrdrt\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clbrdrt\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clbrdrt\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh315\row}}} {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7071\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Current liabilities:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7071\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Accounts payable\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 10,212\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 2,039\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7071\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Accrued expenses\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 28,851\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 30,261\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7071\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Short-term deferred revenue\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 142,346\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 81,968\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7071\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Short-term deferred rent\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 182\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7071\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7071\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li594\cf1\f51\fs20\ql Total current liabilities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 181,591\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 114,268\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7071\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7071\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Deferred rent, net of current portion\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 2,678\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 2,480\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7071\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Deferred revenue, net of current portion\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 95,531\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 115,321\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7071\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Other non-current liabilities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 24\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 27\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7071\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx7071\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li594\cf1\f51\fs20\ql Total liabilities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 279,824\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 232,096\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx7071\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7071\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql Commitments and contingencies (Note 10)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7071\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Stockholders' equity:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7071\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh1007 \pard\plain\intbl\li286\cf1\f51\fs20\ql Preferred stock $0.00001 par value, 25,000,000 shares authorized at June 30,\plain\intbl\li286\cf1\f51\fs20\ql 2017 and\par\pard\plain\intbl\li286\cf1\f51\fs20\ql \~\~ December 31, 2016; 0 shares issued and outstanding at June 30, 2017 and\par\pard\plain\intbl\li286\cf1\f51\fs20\ql \~\~ December 31, 2016\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7071\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh1007\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh1254 \pard\plain\intbl\li286\cf1\f51\fs20\ql Common stock: $0.00001 par value; 175,000,000 shares authorized at June 30,\plain\intbl\li286\cf1\f51\fs20\ql 2017\par\pard\plain\intbl\li286\cf1\f51\fs20\ql \~\~ and December\~31, 2016; 42,490,957 and 38,615,709 shares issued and\plain\intbl\li286\cf1\f51\fs20\ql outstanding\par\pard\plain\intbl\li286\cf1\f51\fs20\ql \~\~ at June 30, 2017 and December\~31, 2016, respectively\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh1254\row}}} {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7071\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Additional paid-in capital\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 420,448\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 365,298\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7071\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Accumulated other comprehensive loss\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (254\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (42\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7071\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7071\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Accumulated deficit\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (363,196\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (297,136\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7071\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx7071\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li594\cf1\f51\fs20\ql Total stockholders' equity\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 56,998\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 68,120\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx7071\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7365\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8684\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8791\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8894\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9370\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7071\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281 \pard\plain\intbl\li594\cf1\f51\fs20\ql Total liabilities and stockholders' equity\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 336,822\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 300,216\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{ {\trowd\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7071\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7365\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8684\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8791\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8894\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9370\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281\row}}}\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\sb44\cf1\f51\fs20\qc See accompanying notes to unaudited condensed consolidated financial statements.\par\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\sb264\cf1\f51\fs20\qc 4\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\cf1\f51\fs20\b\qc AKEBIA THERAPEUTICS, INC.{\*\bkmkstart statements_of_operations_and_com}{\*\bkmkend statements_of_operations_and_com}\par\pard\plain\sb264\cf1\f51\fs20\b\qc Condensed Consolidated Statements of Operations and Comprehensive Loss\par\pard\plain\cf1\f51\fs20\b\qc (Unaudited)\par\pard\plain\cf1\f51\fs20\b\qc (in thousands, except share and per share data)\par\pard\plain\cf1\f51\fs20\b\qc \~ \par\pard\plain {\trowd\clshdng100\clcfpat7\clcbpat7\cellx5312\clshdng100\clcfpat7\clcbpat7\cellx5413\clshdng100\clcfpat7\clcbpat7\cellx7901\clshdng100\clcfpat7\clcbpat7\cellx8008\clshdng100\clcfpat7\clcbpat7\cellx8109\clshdng100\clcfpat7\clcbpat7\cellx10688\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Three Months Ended\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Six Months Ended\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\clshdng100\clcfpat7\clcbpat7\cellx5312\clshdng100\clcfpat7\clcbpat7\cellx5413\clshdng100\clcfpat7\clcbpat7\cellx7901\clshdng100\clcfpat7\clcbpat7\cellx8008\clshdng100\clcfpat7\clcbpat7\cellx8109\clshdng100\clcfpat7\clcbpat7\cellx10688\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx5312\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx5413\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx7901\clshdng100\clcfpat7\clcbpat7\cellx8008\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx8109\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10688\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh215 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June\~30,\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June\~30,\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx5312\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx5413\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx7901\clshdng100\clcfpat7\clcbpat7\cellx8008\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx8109\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10688\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh215\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx5312\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx5413\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx6549\clshdng100\clcfpat7\clcbpat7\cellx6656\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx6762\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx7898\clshdng100\clcfpat7\clcbpat7\cellx8005\clshdng100\clcfpat7\clcbpat7\cellx8106\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9242\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9349\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9455\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10682\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh232 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2017\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2016\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2017\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2016\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx5312\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx5413\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx6549\clshdng100\clcfpat7\clcbpat7\cellx6656\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx6762\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx7898\clshdng100\clcfpat7\clcbpat7\cellx8005\clshdng100\clcfpat7\clcbpat7\cellx8106\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9242\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9349\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9455\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10682\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh232\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5312\clshdng100\clcfpat11\clcbpat11\cellx5413\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5583\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6549\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6656\clshdng100\clcfpat11\clcbpat11\cellx6762\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6932\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7898\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8005\clshdng100\clcfpat11\clcbpat11\cellx8106\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx8276\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9242\clshdng100\clcfpat11\clcbpat11\cellx9349\clshdng100\clcfpat11\clcbpat11\cellx9455\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9625\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10682\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql Collaboration revenue\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 28,520\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 49,385\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5312\clshdng100\clcfpat11\clcbpat11\cellx5413\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5583\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6549\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6656\clshdng100\clcfpat11\clcbpat11\cellx6762\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6932\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7898\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8005\clshdng100\clcfpat11\clcbpat11\cellx8106\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx8276\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9242\clshdng100\clcfpat11\clcbpat11\cellx9349\clshdng100\clcfpat11\clcbpat11\cellx9455\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9625\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10682\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat7\clcbpat7\cellx5312\clshdng100\clcfpat7\clcbpat7\cellx5413\clshdng100\clcfpat7\clcbpat7\cellx5583\clshdng100\clcfpat7\clcbpat7\cellx6549\clshdng100\clcfpat7\clcbpat7\cellx6656\clshdng100\clcfpat7\clcbpat7\cellx6762\clshdng100\clcfpat7\clcbpat7\cellx6932\clshdng100\clcfpat7\clcbpat7\cellx7898\clshdng100\clcfpat7\clcbpat7\cellx8005\clshdng100\clcfpat7\clcbpat7\cellx8106\clshdng100\clcfpat7\clcbpat7\cellx8276\clshdng100\clcfpat7\clcbpat7\cellx9242\clshdng100\clcfpat7\clcbpat7\cellx9349\clshdng100\clcfpat7\clcbpat7\cellx9455\clshdng100\clcfpat7\clcbpat7\cellx9625\clshdng100\clcfpat7\clcbpat7\cellx10682\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Operating expenses:\cell\pard\plain\intbl\cf1\f51\fs20\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat7\clcbpat7\cellx5312\clshdng100\clcfpat7\clcbpat7\cellx5413\clshdng100\clcfpat7\clcbpat7\cellx5583\clshdng100\clcfpat7\clcbpat7\cellx6549\clshdng100\clcfpat7\clcbpat7\cellx6656\clshdng100\clcfpat7\clcbpat7\cellx6762\clshdng100\clcfpat7\clcbpat7\cellx6932\clshdng100\clcfpat7\clcbpat7\cellx7898\clshdng100\clcfpat7\clcbpat7\cellx8005\clshdng100\clcfpat7\clcbpat7\cellx8106\clshdng100\clcfpat7\clcbpat7\cellx8276\clshdng100\clcfpat7\clcbpat7\cellx9242\clshdng100\clcfpat7\clcbpat7\cellx9349\clshdng100\clcfpat7\clcbpat7\cellx9455\clshdng100\clcfpat7\clcbpat7\cellx9625\clshdng100\clcfpat7\clcbpat7\cellx10682\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5312\clshdng100\clcfpat11\clcbpat11\cellx5413\clshdng100\clcfpat11\clcbpat11\cellx5583\clshdng100\clcfpat11\clcbpat11\cellx6549\clshdng100\clcfpat11\clcbpat11\cellx6656\clshdng100\clcfpat11\clcbpat11\cellx6762\clshdng100\clcfpat11\clcbpat11\cellx6932\clshdng100\clcfpat11\clcbpat11\cellx7898\clshdng100\clcfpat11\clcbpat11\cellx8005\clshdng100\clcfpat11\clcbpat11\cellx8106\clshdng100\clcfpat11\clcbpat11\cellx8276\clshdng100\clcfpat11\clcbpat11\cellx9242\clshdng100\clcfpat11\clcbpat11\cellx9349\clshdng100\clcfpat11\clcbpat11\cellx9455\clshdng100\clcfpat11\clcbpat11\cellx9625\clshdng100\clcfpat11\clcbpat11\cellx10682\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\li440\cf1\f51\fs20\ql Research and development\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 43,751\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 30,877\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 103,800\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 51,112\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5312\clshdng100\clcfpat11\clcbpat11\cellx5413\clshdng100\clcfpat11\clcbpat11\cellx5583\clshdng100\clcfpat11\clcbpat11\cellx6549\clshdng100\clcfpat11\clcbpat11\cellx6656\clshdng100\clcfpat11\clcbpat11\cellx6762\clshdng100\clcfpat11\clcbpat11\cellx6932\clshdng100\clcfpat11\clcbpat11\cellx7898\clshdng100\clcfpat11\clcbpat11\cellx8005\clshdng100\clcfpat11\clcbpat11\cellx8106\clshdng100\clcfpat11\clcbpat11\cellx8276\clshdng100\clcfpat11\clcbpat11\cellx9242\clshdng100\clcfpat11\clcbpat11\cellx9349\clshdng100\clcfpat11\clcbpat11\cellx9455\clshdng100\clcfpat11\clcbpat11\cellx9625\clshdng100\clcfpat11\clcbpat11\cellx10682\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx5312\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx5413\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx5583\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx6549\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx6656\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx6762\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx6932\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx7898\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx8005\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx8106\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx8276\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9242\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9349\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9455\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9625\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10682\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\li440\cf1\f51\fs20\ql General and administrative\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 6,905\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 5,311\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 12,693\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 11,122\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx5312\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx5413\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx5583\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx6549\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx6656\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx6762\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx6932\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx7898\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx8005\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx8106\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx8276\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9242\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9349\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9455\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9625\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10682\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx5312\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx5413\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx5583\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx6549\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx6656\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx6762\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx6932\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx7898\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx8005\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx8106\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx8276\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9242\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9349\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9455\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9625\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx10682\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li748\cf1\f51\fs20\ql Total operating expenses\cell\pard\plain\intbl\cf1\f51\fs20\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 50,656\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 36,188\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 116,493\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 62,234\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx5312\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx5413\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx5583\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx6549\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx6656\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx6762\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx6932\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx7898\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx8005\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx8106\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx8276\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9242\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9349\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9455\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9625\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx10682\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat7\clcbpat7\cellx5312\clshdng100\clcfpat7\clcbpat7\cellx5413\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx5583\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx6549\clshdng100\clcfpat7\clcbpat7\cellx6656\clshdng100\clcfpat7\clcbpat7\cellx6762\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx6932\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx7898\clshdng100\clcfpat7\clcbpat7\cellx8005\clshdng100\clcfpat7\clcbpat7\cellx8106\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx8276\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9242\clshdng100\clcfpat7\clcbpat7\cellx9349\clshdng100\clcfpat7\clcbpat7\cellx9455\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9625\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10682\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql Operating loss\cell\pard\plain\intbl\cf1\f51\fs20\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (22,136\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (36,188\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (67,108\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (62,234\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell{ {\trowd\clshdng100\clcfpat7\clcbpat7\cellx5312\clshdng100\clcfpat7\clcbpat7\cellx5413\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx5583\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx6549\clshdng100\clcfpat7\clcbpat7\cellx6656\clshdng100\clcfpat7\clcbpat7\cellx6762\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx6932\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx7898\clshdng100\clcfpat7\clcbpat7\cellx8005\clshdng100\clcfpat7\clcbpat7\cellx8106\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx8276\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9242\clshdng100\clcfpat7\clcbpat7\cellx9349\clshdng100\clcfpat7\clcbpat7\cellx9455\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9625\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10682\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5312\clshdng100\clcfpat11\clcbpat11\cellx5413\clshdng100\clcfpat11\clcbpat11\cellx5583\clshdng100\clcfpat11\clcbpat11\cellx6549\clshdng100\clcfpat11\clcbpat11\cellx6656\clshdng100\clcfpat11\clcbpat11\cellx6762\clshdng100\clcfpat11\clcbpat11\cellx6932\clshdng100\clcfpat11\clcbpat11\cellx7898\clshdng100\clcfpat11\clcbpat11\cellx8005\clshdng100\clcfpat11\clcbpat11\cellx8106\clshdng100\clcfpat11\clcbpat11\cellx8276\clshdng100\clcfpat11\clcbpat11\cellx9242\clshdng100\clcfpat11\clcbpat11\cellx9349\clshdng100\clcfpat11\clcbpat11\cellx9455\clshdng100\clcfpat11\clcbpat11\cellx9625\clshdng100\clcfpat11\clcbpat11\cellx10682\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Other income (expense):\cell\pard\plain\intbl\cf1\f51\fs20\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5312\clshdng100\clcfpat11\clcbpat11\cellx5413\clshdng100\clcfpat11\clcbpat11\cellx5583\clshdng100\clcfpat11\clcbpat11\cellx6549\clshdng100\clcfpat11\clcbpat11\cellx6656\clshdng100\clcfpat11\clcbpat11\cellx6762\clshdng100\clcfpat11\clcbpat11\cellx6932\clshdng100\clcfpat11\clcbpat11\cellx7898\clshdng100\clcfpat11\clcbpat11\cellx8005\clshdng100\clcfpat11\clcbpat11\cellx8106\clshdng100\clcfpat11\clcbpat11\cellx8276\clshdng100\clcfpat11\clcbpat11\cellx9242\clshdng100\clcfpat11\clcbpat11\cellx9349\clshdng100\clcfpat11\clcbpat11\cellx9455\clshdng100\clcfpat11\clcbpat11\cellx9625\clshdng100\clcfpat11\clcbpat11\cellx10682\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat7\clcbpat7\cellx5312\clshdng100\clcfpat7\clcbpat7\cellx5413\clshdng100\clcfpat7\clcbpat7\cellx5583\clshdng100\clcfpat7\clcbpat7\cellx6549\clshdng100\clcfpat7\clcbpat7\cellx6656\clshdng100\clcfpat7\clcbpat7\cellx6762\clshdng100\clcfpat7\clcbpat7\cellx6932\clshdng100\clcfpat7\clcbpat7\cellx7898\clshdng100\clcfpat7\clcbpat7\cellx8005\clshdng100\clcfpat7\clcbpat7\cellx8106\clshdng100\clcfpat7\clcbpat7\cellx8276\clshdng100\clcfpat7\clcbpat7\cellx9242\clshdng100\clcfpat7\clcbpat7\cellx9349\clshdng100\clcfpat7\clcbpat7\cellx9455\clshdng100\clcfpat7\clcbpat7\cellx9625\clshdng100\clcfpat7\clcbpat7\cellx10682\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\li440\cf1\f51\fs20\ql Interest income\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 608\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 270\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 1,044\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 504\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat7\clcbpat7\cellx5312\clshdng100\clcfpat7\clcbpat7\cellx5413\clshdng100\clcfpat7\clcbpat7\cellx5583\clshdng100\clcfpat7\clcbpat7\cellx6549\clshdng100\clcfpat7\clcbpat7\cellx6656\clshdng100\clcfpat7\clcbpat7\cellx6762\clshdng100\clcfpat7\clcbpat7\cellx6932\clshdng100\clcfpat7\clcbpat7\cellx7898\clshdng100\clcfpat7\clcbpat7\cellx8005\clshdng100\clcfpat7\clcbpat7\cellx8106\clshdng100\clcfpat7\clcbpat7\cellx8276\clshdng100\clcfpat7\clcbpat7\cellx9242\clshdng100\clcfpat7\clcbpat7\cellx9349\clshdng100\clcfpat7\clcbpat7\cellx9455\clshdng100\clcfpat7\clcbpat7\cellx9625\clshdng100\clcfpat7\clcbpat7\cellx10682\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx5312\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx5413\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx5583\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx6549\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx6656\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx6762\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx6932\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx7898\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx8005\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx8106\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx8276\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9242\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9349\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9455\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9625\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx10682\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\li440\cf1\f51\fs20\ql Other income\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 10\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 139\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 4\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 153\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx5312\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx5413\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx5583\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx6549\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx6656\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx6762\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx6932\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx7898\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx8005\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx8106\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx8276\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9242\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9349\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9455\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9625\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx10682\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx5312\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx5413\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx5583\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx6549\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx6656\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx6762\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx6932\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx7898\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx8005\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx8106\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx8276\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9242\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9349\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9455\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9625\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10682\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql Net loss\cell\pard\plain\intbl\cf1\f51\fs20\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (21,518\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (35,779\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (66,060\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (61,577\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell{ {\trowd\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx5312\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx5413\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx5583\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx6549\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx6656\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx6762\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx6932\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx7898\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx8005\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx8106\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx8276\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9242\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9349\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9455\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9625\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10682\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281\row}}} {\trowd\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx5312\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx5413\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx5583\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx6549\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx6656\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx6762\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx6932\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx7898\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx8005\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx8106\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx8276\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9242\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9349\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9455\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9625\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx10682\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh315 \pard\plain\intbl\cf1\f51\fs20\ql Net loss per share\~\~- basic and diluted\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (0.53\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (0.95\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (1.66\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (1.65\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell{ {\trowd\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx5312\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx5413\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx5583\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx6549\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx6656\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx6762\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx6932\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx7898\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx8005\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx8106\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx8276\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9242\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9349\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9455\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9625\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx10682\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh315\row}}} {\trowd\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx5312\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx5413\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5583\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6549\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6656\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6762\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6932\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7898\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8005\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8106\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8276\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9242\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9349\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9455\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9625\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10682\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh512 \pard\plain\intbl\cf1\f51\fs20\ql Weighted-average number of common shares - basic and\plain\intbl\cf1\f51\fs20\ql diluted\cell\pard\plain\intbl\cf1\f51\fs20\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 40,819,957\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 37,811,056\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 39,795,282\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 37,342,324\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx5312\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx5413\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5583\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6549\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6656\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6762\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6932\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7898\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8005\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8106\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8276\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9242\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9349\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9455\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9625\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10682\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh512\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5312\clshdng100\clcfpat11\clcbpat11\cellx5413\clbrdrt\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx5583\clbrdrt\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx6549\clshdng100\clcfpat11\clcbpat11\cellx6656\clshdng100\clcfpat11\clcbpat11\cellx6762\clbrdrt\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx6932\clbrdrt\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx7898\clshdng100\clcfpat11\clcbpat11\cellx8005\clshdng100\clcfpat11\clcbpat11\cellx8106\clbrdrt\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx8276\clbrdrt\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9242\clshdng100\clcfpat11\clcbpat11\cellx9349\clshdng100\clcfpat11\clcbpat11\cellx9455\clbrdrt\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9625\clbrdrt\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx10682\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh315 \pard\plain\intbl\cf1\f51\fs20\ql Comprehensive loss:\cell\pard\plain\intbl\cf1\f51\fs20\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx5312\clshdng100\clcfpat11\clcbpat11\cellx5413\clbrdrt\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx5583\clbrdrt\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx6549\clshdng100\clcfpat11\clcbpat11\cellx6656\clshdng100\clcfpat11\clcbpat11\cellx6762\clbrdrt\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx6932\clbrdrt\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx7898\clshdng100\clcfpat11\clcbpat11\cellx8005\clshdng100\clcfpat11\clcbpat11\cellx8106\clbrdrt\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx8276\clbrdrt\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9242\clshdng100\clcfpat11\clcbpat11\cellx9349\clshdng100\clcfpat11\clcbpat11\cellx9455\clbrdrt\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9625\clbrdrt\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx10682\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh315\row}}} {\trowd\clshdng100\clcfpat7\clcbpat7\cellx5312\clshdng100\clcfpat7\clcbpat7\cellx5413\clshdng100\clcfpat7\clcbpat7\cellx5583\clshdng100\clcfpat7\clcbpat7\cellx6549\clshdng100\clcfpat7\clcbpat7\cellx6656\clshdng100\clcfpat7\clcbpat7\cellx6762\clshdng100\clcfpat7\clcbpat7\cellx6932\clshdng100\clcfpat7\clcbpat7\cellx7898\clshdng100\clcfpat7\clcbpat7\cellx8005\clshdng100\clcfpat7\clcbpat7\cellx8106\clshdng100\clcfpat7\clcbpat7\cellx8276\clshdng100\clcfpat7\clcbpat7\cellx9242\clshdng100\clcfpat7\clcbpat7\cellx9349\clshdng100\clcfpat7\clcbpat7\cellx9455\clshdng100\clcfpat7\clcbpat7\cellx9625\clshdng100\clcfpat7\clcbpat7\cellx10682\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\li594\cf1\f51\fs20\ql Net loss\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (21,518\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (35,779\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (66,060\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (61,577\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell{ {\trowd\clshdng100\clcfpat7\clcbpat7\cellx5312\clshdng100\clcfpat7\clcbpat7\cellx5413\clshdng100\clcfpat7\clcbpat7\cellx5583\clshdng100\clcfpat7\clcbpat7\cellx6549\clshdng100\clcfpat7\clcbpat7\cellx6656\clshdng100\clcfpat7\clcbpat7\cellx6762\clshdng100\clcfpat7\clcbpat7\cellx6932\clshdng100\clcfpat7\clcbpat7\cellx7898\clshdng100\clcfpat7\clcbpat7\cellx8005\clshdng100\clcfpat7\clcbpat7\cellx8106\clshdng100\clcfpat7\clcbpat7\cellx8276\clshdng100\clcfpat7\clcbpat7\cellx9242\clshdng100\clcfpat7\clcbpat7\cellx9349\clshdng100\clcfpat7\clcbpat7\cellx9455\clshdng100\clcfpat7\clcbpat7\cellx9625\clshdng100\clcfpat7\clcbpat7\cellx10682\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx5312\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx5413\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx5583\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx6549\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx6656\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx6762\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx6932\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx7898\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx8005\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx8106\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx8276\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9242\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9349\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9455\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9625\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx10682\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\li594\cf1\f51\fs20\ql Other comprehensive loss - unrealized loss on\~\~securities\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (75\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 63\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (254\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 37\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx5312\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx5413\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx5583\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx6549\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx6656\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx6762\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx6932\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx7898\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx8005\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx8106\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx8276\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9242\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9349\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9455\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9625\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx10682\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx5312\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx5413\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx5583\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx6549\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx6656\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx6762\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx6932\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx7898\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx8005\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx8106\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx8276\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9242\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9349\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9455\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9625\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10682\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281 \pard\plain\intbl\li594\cf1\f51\fs20\ql Comprehensive loss\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (21,593\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (35,716\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (66,314\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (61,540\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell{ {\trowd\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx5312\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx5413\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx5583\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx6549\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx6656\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx6762\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx6932\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx7898\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx8005\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx8106\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx8276\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9242\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9349\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9455\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9625\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10682\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281\row}}}\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\sb44\cf1\f51\fs20\qc See accompanying notes to unaudited condensed consolidated financial statements.\par\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\b\qc \~\par\pard\plain\sb264\cf1\f51\fs20\qc 5\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\cf1\f51\fs20\b\qc AKEBIA THERAPEUTICS, INC.{\*\bkmkstart statements_of_cash_flows_1173793}{\*\bkmkend statements_of_cash_flows_1173793}\par\pard\plain\sb264\cf1\f51\fs20\b\qc Condensed Consolidated Statements of Cash Flows\par\pard\plain\cf1\f51\fs20\b\qc (Unaudited)\par\pard\plain\cf1\f51\fs20\b\qc (in thousands)\par\pard\plain\cf1\f51\fs20\ql \~ \par\pard\plain {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7443\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7547\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10690\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Six months ended\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7443\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7547\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10690\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7443\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7547\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9006\clshdng100\clcfpat7\clcbpat7\cellx9118\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9229\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10688\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh232 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June 30, 2017\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June 30, 2016\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7443\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7547\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9006\clshdng100\clcfpat7\clcbpat7\cellx9118\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9229\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10688\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh232\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7443\clshdng100\clcfpat11\clcbpat11\cellx7547\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx7751\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9005\clshdng100\clcfpat11\clcbpat11\cellx9117\clshdng100\clcfpat11\clcbpat11\cellx9228\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9432\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx10686\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\cf1\f51\fs20\b\ql Operating activities:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7443\clshdng100\clcfpat11\clcbpat11\cellx7547\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx7751\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9005\clshdng100\clcfpat11\clcbpat11\cellx9117\clshdng100\clcfpat11\clcbpat11\cellx9228\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9432\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx10686\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7443\clshdng100\clcfpat7\clcbpat7\cellx7547\clshdng100\clcfpat7\clcbpat7\cellx7751\clshdng100\clcfpat7\clcbpat7\cellx9005\clshdng100\clcfpat7\clcbpat7\cellx9117\clshdng100\clcfpat7\clcbpat7\cellx9228\clshdng100\clcfpat7\clcbpat7\cellx9432\clshdng100\clcfpat7\clcbpat7\cellx10686\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Net loss\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (66,060\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (61,577\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell{ {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7443\clshdng100\clcfpat7\clcbpat7\cellx7547\clshdng100\clcfpat7\clcbpat7\cellx7751\clshdng100\clcfpat7\clcbpat7\cellx9005\clshdng100\clcfpat7\clcbpat7\cellx9117\clshdng100\clcfpat7\clcbpat7\cellx9228\clshdng100\clcfpat7\clcbpat7\cellx9432\clshdng100\clcfpat7\clcbpat7\cellx10686\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7443\clshdng100\clcfpat11\clcbpat11\cellx7547\clshdng100\clcfpat11\clcbpat11\cellx7751\clshdng100\clcfpat11\clcbpat11\cellx9005\clshdng100\clcfpat11\clcbpat11\cellx9117\clshdng100\clcfpat11\clcbpat11\cellx9228\clshdng100\clcfpat11\clcbpat11\cellx9432\clshdng100\clcfpat11\clcbpat11\cellx10686\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Adjustments to reconcile net loss to net cash used in operating activities:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7443\clshdng100\clcfpat11\clcbpat11\cellx7547\clshdng100\clcfpat11\clcbpat11\cellx7751\clshdng100\clcfpat11\clcbpat11\cellx9005\clshdng100\clcfpat11\clcbpat11\cellx9117\clshdng100\clcfpat11\clcbpat11\cellx9228\clshdng100\clcfpat11\clcbpat11\cellx9432\clshdng100\clcfpat11\clcbpat11\cellx10686\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7443\clshdng100\clcfpat7\clcbpat7\cellx7547\clshdng100\clcfpat7\clcbpat7\cellx7751\clshdng100\clcfpat7\clcbpat7\cellx9005\clshdng100\clcfpat7\clcbpat7\cellx9117\clshdng100\clcfpat7\clcbpat7\cellx9228\clshdng100\clcfpat7\clcbpat7\cellx9432\clshdng100\clcfpat7\clcbpat7\cellx10686\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\li594\cf1\f51\fs20\ql Depreciation and amortization\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 253\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 78\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7443\clshdng100\clcfpat7\clcbpat7\cellx7547\clshdng100\clcfpat7\clcbpat7\cellx7751\clshdng100\clcfpat7\clcbpat7\cellx9005\clshdng100\clcfpat7\clcbpat7\cellx9117\clshdng100\clcfpat7\clcbpat7\cellx9228\clshdng100\clcfpat7\clcbpat7\cellx9432\clshdng100\clcfpat7\clcbpat7\cellx10686\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7443\clshdng100\clcfpat11\clcbpat11\cellx7547\clshdng100\clcfpat11\clcbpat11\cellx7751\clshdng100\clcfpat11\clcbpat11\cellx9005\clshdng100\clcfpat11\clcbpat11\cellx9117\clshdng100\clcfpat11\clcbpat11\cellx9228\clshdng100\clcfpat11\clcbpat11\cellx9432\clshdng100\clcfpat11\clcbpat11\cellx10686\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\li594\cf1\f51\fs20\ql Amortization of premium/discount on investments\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 389\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 287\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7443\clshdng100\clcfpat11\clcbpat11\cellx7547\clshdng100\clcfpat11\clcbpat11\cellx7751\clshdng100\clcfpat11\clcbpat11\cellx9005\clshdng100\clcfpat11\clcbpat11\cellx9117\clshdng100\clcfpat11\clcbpat11\cellx9228\clshdng100\clcfpat11\clcbpat11\cellx9432\clshdng100\clcfpat11\clcbpat11\cellx10686\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7443\clshdng100\clcfpat7\clcbpat7\cellx7547\clshdng100\clcfpat7\clcbpat7\cellx7751\clshdng100\clcfpat7\clcbpat7\cellx9005\clshdng100\clcfpat7\clcbpat7\cellx9117\clshdng100\clcfpat7\clcbpat7\cellx9228\clshdng100\clcfpat7\clcbpat7\cellx9432\clshdng100\clcfpat7\clcbpat7\cellx10686\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\li594\cf1\f51\fs20\ql Stock-based compensation - equity awards\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 4,522\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 2,473\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7443\clshdng100\clcfpat7\clcbpat7\cellx7547\clshdng100\clcfpat7\clcbpat7\cellx7751\clshdng100\clcfpat7\clcbpat7\cellx9005\clshdng100\clcfpat7\clcbpat7\cellx9117\clshdng100\clcfpat7\clcbpat7\cellx9228\clshdng100\clcfpat7\clcbpat7\cellx9432\clshdng100\clcfpat7\clcbpat7\cellx10686\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7443\clshdng100\clcfpat11\clcbpat11\cellx7547\clshdng100\clcfpat11\clcbpat11\cellx7751\clshdng100\clcfpat11\clcbpat11\cellx9005\clshdng100\clcfpat11\clcbpat11\cellx9117\clshdng100\clcfpat11\clcbpat11\cellx9228\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9432\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10686\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\li594\cf1\f51\fs20\ql Fair value of warrants issued for license\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 3,413\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7443\clshdng100\clcfpat11\clcbpat11\cellx7547\clshdng100\clcfpat11\clcbpat11\cellx7751\clshdng100\clcfpat11\clcbpat11\cellx9005\clshdng100\clcfpat11\clcbpat11\cellx9117\clshdng100\clcfpat11\clcbpat11\cellx9228\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9432\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10686\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7443\clshdng100\clcfpat7\clcbpat7\cellx7547\clshdng100\clcfpat7\clcbpat7\cellx7751\clshdng100\clcfpat7\clcbpat7\cellx9005\clshdng100\clcfpat7\clcbpat7\cellx9117\clshdng100\clcfpat7\clcbpat7\cellx9228\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9432\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10686\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\li594\cf1\f51\fs20\ql Changes in operating assets and liabilities:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7443\clshdng100\clcfpat7\clcbpat7\cellx7547\clshdng100\clcfpat7\clcbpat7\cellx7751\clshdng100\clcfpat7\clcbpat7\cellx9005\clshdng100\clcfpat7\clcbpat7\cellx9117\clshdng100\clcfpat7\clcbpat7\cellx9228\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9432\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10686\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7443\clshdng100\clcfpat11\clcbpat11\cellx7547\clshdng100\clcfpat11\clcbpat11\cellx7751\clshdng100\clcfpat11\clcbpat11\cellx9005\clshdng100\clcfpat11\clcbpat11\cellx9117\clshdng100\clcfpat11\clcbpat11\cellx9228\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9432\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10686\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\li902\cf1\f51\fs20\ql Unbilled receivable\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 33,823\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7443\clshdng100\clcfpat11\clcbpat11\cellx7547\clshdng100\clcfpat11\clcbpat11\cellx7751\clshdng100\clcfpat11\clcbpat11\cellx9005\clshdng100\clcfpat11\clcbpat11\cellx9117\clshdng100\clcfpat11\clcbpat11\cellx9228\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9432\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10686\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7443\clshdng100\clcfpat7\clcbpat7\cellx7547\clshdng100\clcfpat7\clcbpat7\cellx7751\clshdng100\clcfpat7\clcbpat7\cellx9005\clshdng100\clcfpat7\clcbpat7\cellx9117\clshdng100\clcfpat7\clcbpat7\cellx9228\clshdng100\clcfpat7\clcbpat7\cellx9432\clshdng100\clcfpat7\clcbpat7\cellx10686\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\li902\cf1\f51\fs20\ql Prepaid expenses and other current assets\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (9,019\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (1,311\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell{ {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7443\clshdng100\clcfpat7\clcbpat7\cellx7547\clshdng100\clcfpat7\clcbpat7\cellx7751\clshdng100\clcfpat7\clcbpat7\cellx9005\clshdng100\clcfpat7\clcbpat7\cellx9117\clshdng100\clcfpat7\clcbpat7\cellx9228\clshdng100\clcfpat7\clcbpat7\cellx9432\clshdng100\clcfpat7\clcbpat7\cellx10686\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7443\clshdng100\clcfpat11\clcbpat11\cellx7547\clshdng100\clcfpat11\clcbpat11\cellx7751\clshdng100\clcfpat11\clcbpat11\cellx9005\clshdng100\clcfpat11\clcbpat11\cellx9117\clshdng100\clcfpat11\clcbpat11\cellx9228\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9432\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10686\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\li902\cf1\f51\fs20\ql Other long-term assets\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (79\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7443\clshdng100\clcfpat11\clcbpat11\cellx7547\clshdng100\clcfpat11\clcbpat11\cellx7751\clshdng100\clcfpat11\clcbpat11\cellx9005\clshdng100\clcfpat11\clcbpat11\cellx9117\clshdng100\clcfpat11\clcbpat11\cellx9228\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9432\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10686\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7443\clshdng100\clcfpat7\clcbpat7\cellx7547\clshdng100\clcfpat7\clcbpat7\cellx7751\clshdng100\clcfpat7\clcbpat7\cellx9005\clshdng100\clcfpat7\clcbpat7\cellx9117\clshdng100\clcfpat7\clcbpat7\cellx9228\clshdng100\clcfpat7\clcbpat7\cellx9432\clshdng100\clcfpat7\clcbpat7\cellx10686\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\li902\cf1\f51\fs20\ql Accounts payable\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 8,173\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 2,830\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7443\clshdng100\clcfpat7\clcbpat7\cellx7547\clshdng100\clcfpat7\clcbpat7\cellx7751\clshdng100\clcfpat7\clcbpat7\cellx9005\clshdng100\clcfpat7\clcbpat7\cellx9117\clshdng100\clcfpat7\clcbpat7\cellx9228\clshdng100\clcfpat7\clcbpat7\cellx9432\clshdng100\clcfpat7\clcbpat7\cellx10686\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7443\clshdng100\clcfpat11\clcbpat11\cellx7547\clshdng100\clcfpat11\clcbpat11\cellx7751\clshdng100\clcfpat11\clcbpat11\cellx9005\clshdng100\clcfpat11\clcbpat11\cellx9117\clshdng100\clcfpat11\clcbpat11\cellx9228\clshdng100\clcfpat11\clcbpat11\cellx9432\clshdng100\clcfpat11\clcbpat11\cellx10686\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\li902\cf1\f51\fs20\ql Accrued expense\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (1,547\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 6,362\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7443\clshdng100\clcfpat11\clcbpat11\cellx7547\clshdng100\clcfpat11\clcbpat11\cellx7751\clshdng100\clcfpat11\clcbpat11\cellx9005\clshdng100\clcfpat11\clcbpat11\cellx9117\clshdng100\clcfpat11\clcbpat11\cellx9228\clshdng100\clcfpat11\clcbpat11\cellx9432\clshdng100\clcfpat11\clcbpat11\cellx10686\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7443\clshdng100\clcfpat7\clcbpat7\cellx7547\clshdng100\clcfpat7\clcbpat7\cellx7751\clshdng100\clcfpat7\clcbpat7\cellx9005\clshdng100\clcfpat7\clcbpat7\cellx9117\clshdng100\clcfpat7\clcbpat7\cellx9228\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9432\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10686\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\li902\cf1\f51\fs20\ql Deferred revenue\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 40,588\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 40,000\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7443\clshdng100\clcfpat7\clcbpat7\cellx7547\clshdng100\clcfpat7\clcbpat7\cellx7751\clshdng100\clcfpat7\clcbpat7\cellx9005\clshdng100\clcfpat7\clcbpat7\cellx9117\clshdng100\clcfpat7\clcbpat7\cellx9228\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9432\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10686\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx7443\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx7547\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx7751\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9005\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9117\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9228\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9432\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx10686\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\li902\cf1\f51\fs20\ql Deferred rent\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 380\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 1,337\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx7443\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx7547\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx7751\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9005\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9117\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9228\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9432\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx10686\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7443\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7547\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx7751\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9005\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9117\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9228\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9432\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10686\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281 \pard\plain\intbl\li594\cf1\f51\fs20\ql Net cash provided by (used in) operating activities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 14,836\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (9,521\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7443\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7547\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx7751\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9005\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9117\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9228\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9432\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10686\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7443\clshdng100\clcfpat11\clcbpat11\cellx7547\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx7751\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9005\clshdng100\clcfpat11\clcbpat11\cellx9117\clshdng100\clcfpat11\clcbpat11\cellx9228\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9432\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx10686\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\cf1\f51\fs20\b\ql Investing activities:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7443\clshdng100\clcfpat11\clcbpat11\cellx7547\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx7751\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9005\clshdng100\clcfpat11\clcbpat11\cellx9117\clshdng100\clcfpat11\clcbpat11\cellx9228\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9432\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx10686\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7443\clshdng100\clcfpat7\clcbpat7\cellx7547\clshdng100\clcfpat7\clcbpat7\cellx7751\clshdng100\clcfpat7\clcbpat7\cellx9005\clshdng100\clcfpat7\clcbpat7\cellx9117\clshdng100\clcfpat7\clcbpat7\cellx9228\clshdng100\clcfpat7\clcbpat7\cellx9432\clshdng100\clcfpat7\clcbpat7\cellx10686\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Purchase of equipment\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (575\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (1,358\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell{ {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7443\clshdng100\clcfpat7\clcbpat7\cellx7547\clshdng100\clcfpat7\clcbpat7\cellx7751\clshdng100\clcfpat7\clcbpat7\cellx9005\clshdng100\clcfpat7\clcbpat7\cellx9117\clshdng100\clcfpat7\clcbpat7\cellx9228\clshdng100\clcfpat7\clcbpat7\cellx9432\clshdng100\clcfpat7\clcbpat7\cellx10686\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7443\clshdng100\clcfpat11\clcbpat11\cellx7547\clshdng100\clcfpat11\clcbpat11\cellx7751\clshdng100\clcfpat11\clcbpat11\cellx9005\clshdng100\clcfpat11\clcbpat11\cellx9117\clshdng100\clcfpat11\clcbpat11\cellx9228\clshdng100\clcfpat11\clcbpat11\cellx9432\clshdng100\clcfpat11\clcbpat11\cellx10686\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Proceeds from the maturities of available for sale securities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 54,118\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 64,874\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7443\clshdng100\clcfpat11\clcbpat11\cellx7547\clshdng100\clcfpat11\clcbpat11\cellx7751\clshdng100\clcfpat11\clcbpat11\cellx9005\clshdng100\clcfpat11\clcbpat11\cellx9117\clshdng100\clcfpat11\clcbpat11\cellx9228\clshdng100\clcfpat11\clcbpat11\cellx9432\clshdng100\clcfpat11\clcbpat11\cellx10686\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7443\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7547\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx7751\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9005\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9117\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9228\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9432\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10686\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Purchase of available for sale securities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (177,536\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (118,684\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7443\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7547\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx7751\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9005\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9117\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9228\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9432\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10686\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx7443\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx7547\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx7751\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9005\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9117\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9228\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9432\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx10686\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li594\cf1\f51\fs20\ql Net cash used in investing activities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (123,993\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (55,168\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx7443\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx7547\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx7751\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9005\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9117\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9228\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9432\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx10686\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7443\clshdng100\clcfpat7\clcbpat7\cellx7547\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx7751\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9005\clshdng100\clcfpat7\clcbpat7\cellx9117\clshdng100\clcfpat7\clcbpat7\cellx9228\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9432\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10686\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281 \pard\plain\intbl\cf1\f51\fs20\b\ql Financing activities:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7443\clshdng100\clcfpat7\clcbpat7\cellx7547\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx7751\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9005\clshdng100\clcfpat7\clcbpat7\cellx9117\clshdng100\clcfpat7\clcbpat7\cellx9228\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9432\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10686\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7443\clshdng100\clcfpat11\clcbpat11\cellx7547\clshdng100\clcfpat11\clcbpat11\cellx7751\clshdng100\clcfpat11\clcbpat11\cellx9005\clshdng100\clcfpat11\clcbpat11\cellx9117\clshdng100\clcfpat11\clcbpat11\cellx9228\clshdng100\clcfpat11\clcbpat11\cellx9432\clshdng100\clcfpat11\clcbpat11\cellx10686\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Proceeds from the issuance of common stock, net of issuance costs\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 46,912\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 60,869\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7443\clshdng100\clcfpat11\clcbpat11\cellx7547\clshdng100\clcfpat11\clcbpat11\cellx7751\clshdng100\clcfpat11\clcbpat11\cellx9005\clshdng100\clcfpat11\clcbpat11\cellx9117\clshdng100\clcfpat11\clcbpat11\cellx9228\clshdng100\clcfpat11\clcbpat11\cellx9432\clshdng100\clcfpat11\clcbpat11\cellx10686\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7443\clshdng100\clcfpat7\clcbpat7\cellx7547\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7751\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9005\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9117\clshdng100\clcfpat7\clcbpat7\cellx9228\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9432\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10686\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Proceeds from the sale of stock under employee stock purchase plan\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 125\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 105\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7443\clshdng100\clcfpat7\clcbpat7\cellx7547\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7751\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9005\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9117\clshdng100\clcfpat7\clcbpat7\cellx9228\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9432\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10686\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7443\clshdng100\clcfpat11\clcbpat11\cellx7547\clshdng100\clcfpat11\clcbpat11\cellx7751\clshdng100\clcfpat11\clcbpat11\cellx9005\clshdng100\clcfpat11\clcbpat11\cellx9117\clshdng100\clcfpat11\clcbpat11\cellx9228\clshdng100\clcfpat11\clcbpat11\cellx9432\clshdng100\clcfpat11\clcbpat11\cellx10686\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Proceeds from the exercise of stock options\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 178\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 120\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7443\clshdng100\clcfpat11\clcbpat11\cellx7547\clshdng100\clcfpat11\clcbpat11\cellx7751\clshdng100\clcfpat11\clcbpat11\cellx9005\clshdng100\clcfpat11\clcbpat11\cellx9117\clshdng100\clcfpat11\clcbpat11\cellx9228\clshdng100\clcfpat11\clcbpat11\cellx9432\clshdng100\clcfpat11\clcbpat11\cellx10686\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7443\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7547\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx7751\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9005\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9117\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9228\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9432\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10686\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Payments on capital lease obligations\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (3\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (6\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7443\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7547\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx7751\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9005\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9117\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9228\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9432\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10686\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx7443\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx7547\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx7751\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9005\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9117\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9228\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9432\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx10686\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li594\cf1\f51\fs20\ql Net cash provided by financing activities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 47,212\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 61,088\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx7443\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx7547\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx7751\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9005\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9117\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9228\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9432\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx10686\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7443\clshdng100\clcfpat7\clcbpat7\cellx7547\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx7751\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9005\clshdng100\clcfpat7\clcbpat7\cellx9117\clshdng100\clcfpat7\clcbpat7\cellx9228\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9432\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10686\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql Decrease in cash and cash equivalents\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (61,945\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (3,601\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell{ {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7443\clshdng100\clcfpat7\clcbpat7\cellx7547\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx7751\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9005\clshdng100\clcfpat7\clcbpat7\cellx9117\clshdng100\clcfpat7\clcbpat7\cellx9228\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9432\clbrdrt\brdrs\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10686\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx7443\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx7547\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx7751\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9005\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9117\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9228\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9432\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx10686\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Cash and cash equivalents at beginning of the period\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 187,335\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 49,778\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx7443\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx7547\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx7751\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9005\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9117\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx9228\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9432\clbrdrb\brdrs\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx10686\clbrdrb\brdrs\brdrcf7\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7443\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7547\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx7751\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9005\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9117\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9228\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9432\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10686\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql Cash and cash equivalents at end of the period\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 125,390\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 46,177\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7443\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx7547\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx7751\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9005\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9117\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx9228\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx9432\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clshdng100\clcfpat7\clcbpat7\cellx10686\clbrdrb\brdrdb\brdrcf7\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281\row}}} {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7443\clshdng100\clcfpat11\clcbpat11\cellx7547\clbrdrt\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx7751\clbrdrt\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9005\clshdng100\clcfpat11\clcbpat11\cellx9117\clshdng100\clcfpat11\clcbpat11\cellx9228\clbrdrt\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9432\clbrdrt\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx10686\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh315 \pard\plain\intbl\cf1\f51\fs20\ql Non-cash financing activities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clshdng100\clcfpat11\clcbpat11\cellx7443\clshdng100\clcfpat11\clcbpat11\cellx7547\clbrdrt\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx7751\clbrdrt\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9005\clshdng100\clcfpat11\clcbpat11\cellx9117\clshdng100\clcfpat11\clcbpat11\cellx9228\clbrdrt\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx9432\clbrdrt\brdrdb\brdrcf1\clshdng100\clcfpat11\clcbpat11\cellx10686\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh315\row}}} {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7443\clshdng100\clcfpat7\clcbpat7\cellx7547\clshdng100\clcfpat7\clcbpat7\cellx7751\clshdng100\clcfpat7\clcbpat7\cellx9005\clshdng100\clcfpat7\clcbpat7\cellx9117\clshdng100\clcfpat7\clcbpat7\cellx9228\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9432\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10686\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Unpaid follow-on offering costs\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 137\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 131\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{ {\trowd\clshdng100\clcfpat7\clcbpat7\cellx7443\clshdng100\clcfpat7\clcbpat7\cellx7547\clshdng100\clcfpat7\clcbpat7\cellx7751\clshdng100\clcfpat7\clcbpat7\cellx9005\clshdng100\clcfpat7\clcbpat7\cellx9117\clshdng100\clcfpat7\clcbpat7\cellx9228\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9432\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10686\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}}\pard\plain\sb44\cf1\f51\fs20\qc See accompanying notes to unaudited condensed consolidated financial statements\par\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\sb264\cf1\f51\fs20\qc \~\par\pard\plain\sb264\cf1\f51\fs20\qc 6\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\cf1\f51\fs20\qc Akebia Therapeutics, Inc.{\*\bkmkstart notes_to_financial_statements_11}{\*\bkmkend notes_to_financial_statements_11}\par\pard\plain\sb264\cf1\f51\fs20\qc Notes to Condensed Consolidated Financial Statements\par\pard\plain\cf1\f51\fs20\qc (Unaudited)\par\pard\plain\sb264\cf1\f51\fs20\qc June 30, 2017\par\pard\plain\cf1\f51\fs24\ql \~\par\pard\plain\cf1\f51\fs20\b\ql 1. Nature of Organization and Operations\par\pard\plain\sb132\cf1\f51\fs20\ql The Company is a biopharmaceutical company focused on developing and delivering novel therapeutics for patients based on\plain\cf1\f51\fs20\ql hypoxia-inducible factor, or HIF, biology, and building our pipeline while leveraging our development and commercial expertise\plain\cf1\f51\fs20\ql in renal disease. HIF is the primary regulator of the production of red blood cells, or RBCs, in the body, as well as other\plain\cf1\f51\fs20\ql important metabolic functions.\~\~Pharmacologic modulation of the HIF pathway may have broad therapeutic applications. The\plain\cf1\f51\fs20\ql Company\u8217?s lead product candidate, vadadustat, is an oral therapy in Phase 3 development, which has the potential to set a\plain\cf1\f51\fs20\ql new standard of care in the treatment of anemia associated with chronic kidney disease (CKD). The Company\u8217?s\plain\cf1\f51\fs20\ql management team has extensive experience in developing and commercializing drugs for the treatment of renal and metabolic\plain\cf1\f51\fs20\ql disorders, as well as a deep understanding of HIF biology. This unique combination of HIF and renal expertise is enabling the\plain\cf1\f51\fs20\ql Company to advance a pipeline of HIF-based therapies to address serious diseases.\par\pard\plain\sb264\cf1\f51\fs20\ql The Company\u8217?s operations to date have been limited to organizing and staffing the Company, business planning, raising\plain\cf1\f51\fs20\ql capital, acquiring and developing its technology, identifying potential product candidates and undertaking preclinical and clinical\plain\cf1\f51\fs20\ql studies. The Company has not generated any product revenue to date and may never generate any product revenue in the future.\plain\cf1\f51\fs20\ql The Company\u8217?s product candidates are subject to long development cycles and the Company may be unsuccessful in its\plain\cf1\f51\fs20\ql efforts to develop, obtain regulatory approval for or market its product candidates.\par\pard\plain\sb264\cf1\f51\fs20\ql The Company is subject to a number of risks including possible failure of preclinical testing or clinical trials, reliance on contract\plain\cf1\f51\fs20\ql manufacturing organizations, the need to obtain marketing approval for its product candidates, the development of new\plain\cf1\f51\fs20\ql technological innovations by competitors, the need to successfully commercialize and gain market acceptance of any of the\plain\cf1\f51\fs20\ql Company\u8217?s products that are approved and uncertainty around intellectual property matters. If the Company does not\plain\cf1\f51\fs20\ql successfully commercialize any of its products, it will be unable to generate product revenue or achieve profitability.\par\pard\plain\cf1\f51\fs24\ql \~\par\pard\plain\cf1\f51\fs20\ql The Company believes that its existing cash resources of approximately $321.2 million at June 30, 2017, together with the net\plain\cf1\f51\fs20\ql proceeds from the follow-on public offering in July 2017 of approximately $62.6 million and committed funding from its\plain\cf1\f51\fs20\ql collaboration partners, will be sufficient to allow the Company to fund its current operating plan into the second quarter of 2019,\plain\cf1\f51\fs20\ql and as a result, through at least twelve months from the filing of the Company\u8217?s 2017 second quarter Form 10-Q. There\plain\cf1\f51\fs20\ql can be no assurance, however, that the current operating plan will be achieved in the time frame anticipated by the Company, or\plain\cf1\f51\fs20\ql that its cash resources will fund the Company\u8217?s operating plan for the period anticipated by the Company or that\plain\cf1\f51\fs20\ql additional funding will be available on terms acceptable to the Company, or at all. We will require additional capital for the\plain\cf1\f51\fs20\ql further development of our existing product candidates and will need to raise additional funds sooner to pursue development\plain\cf1\f51\fs20\ql activities related to additional product candidates. If and until we can generate a sufficient amount of revenue from our products,\plain\cf1\f51\fs20\ql we expect to finance future cash needs through public or private equity, debt offerings, or strategic transactions.\par\pard\plain\cf1\f51\fs18\ql \~\par\pard\plain\sb198\cf1\f51\fs20\b\ql 2. Summary of Significant Accounting Policies\par\pard\plain\sb132\cf1\f51\fs20\b\ql Basis of Presentation\par\pard\plain\sb132\cf1\f51\fs20\ql The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned\plain\cf1\f51\fs20\ql subsidiaries, Akebia Therapeutics Securities Corporation and Akebia Europe Limited.\~\~All intercompany balances and transactions\plain\cf1\f51\fs20\ql have been eliminated in consolidation.\~\~These condensed consolidated financial statements have been prepared in conformity with\plain\cf1\f51\fs20\ql accounting principles generally accepted in the United States of America (U.S. GAAP).\~\~Any reference in these notes to\plain\cf1\f51\fs20\ql applicable guidance is meant to refer to the authoritative U.S. GAAP as found in the Accounting Standards Codification (ASC)\plain\cf1\f51\fs20\ql and Accounting Standards Update (ASU) of the Financial Accounting Standards Board (FASB).\par\pard\plain\sb264\cf1\f51\fs20\ql In the quarter ended June 30, 2017, we identified and corrected an immaterial error in the amount of research and development\plain\cf1\f51\fs20\ql expenses related to our global Phase 3 study of vadadustat.\~\~This adjustment also affected the amount of revenue recognized\plain\cf1\f51\fs20\ql pursuant to our license and collaboration agreements with Otsuka.\~\~The adjustments impact our results of operations in each\plain\cf1\f51\fs20\ql quarter of 2016 and the first quarter of 2017.\~\~We concluded the effect of these adjustments was not material to our consolidated\plain\cf1\f51\fs20\ql financial statements for any prior period.\par\pard\plain\sb264\cf1\f51\fs20\qc 7\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb396\cf1\f51\fs20\b\ql Recent Accounting Pronouncements\par\pard\plain\sb132\cf1\f51\fs20\ql From time to time, new accounting pronouncements are issued by the FASB or other standard-setting bodies and adopted by the\plain\cf1\f51\fs20\ql Company as of the specified effective date. Unless otherwise discussed, the Company believes the impact of recently issued\plain\cf1\f51\fs20\ql standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption.\par\pard\plain\sb264\cf1\f51\fs20\ql In February 2016, the FASB issued ASU 2016-02,\~\plain\cf1\f51\fs20\i\ql Leases\plain\cf1\f51\fs20\ql \~(Topic 842), which supersedes the existing guidance for lease\plain\cf1\f51\fs20\ql accounting, Leases (Topic 840). ASU 2016-02 requires lessees to recognize leases on their balance sheets, and leaves lessor\plain\cf1\f51\fs20\ql accounting largely unchanged. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and\plain\cf1\f51\fs20\ql interim periods within those fiscal years. Early application is permitted for all entities. ASU 2016-02 requires a modified\plain\cf1\f51\fs20\ql retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use\plain\cf1\f51\fs20\ql certain transition relief. The Company is currently evaluating the impact of this new standard on its consolidated financial\plain\cf1\f51\fs20\ql statements.\par\pard\plain\sb264\cf1\f51\fs20\ql In May 2014, the FASB, issued a new revenue recognition standard which amends revenue recognition principles and provides a\plain\cf1\f51\fs20\ql single, comprehensive set of criteria for revenue recognition within and across all industries. The new standard provides a\plain\cf1\f51\fs20\ql five-step framework whereby revenue is recognized when promised goods or services are transferred to a customer at an amount\plain\cf1\f51\fs20\ql that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard\plain\cf1\f51\fs20\ql also requires enhanced disclosures pertaining to revenue recognition in both interim and annual periods. In August 2015, the\plain\cf1\f51\fs20\ql FASB deferred the effective date of the new revenue standard from January\~1, 2017 to January\~1, 2018. Early adoption is\plain\cf1\f51\fs20\ql permitted any time after the original effective date, which for us is January\~1, 2017. The Company intends to adopt the new\plain\cf1\f51\fs20\ql standard on January 1, 2018. The standard allows for adoption using a full retrospective method or a modified retrospective\plain\cf1\f51\fs20\ql method. The Company\u8217?s historical revenue has been derived from its collaboration agreements with Mitsubishi Tanabe\plain\cf1\f51\fs20\ql Pharma Corporation, or MTPC and Otsuka Pharmaceutical Co. Ltd., or Otsuka. These arrangements contain multiple-elements\plain\cf1\f51\fs20\ql and have been accounted for pursuant to ASC Topic 605\u8209?25,\~\plain\cf1\f51\fs20\i\ql Revenue Recognition Multiple\u8209?Element\plain\cf1\f51\fs20\i\ql Arrangements\plain\cf1\f51\fs20\ql \~(ASC 605\u8209?25). As of June 30, 2017, the Company has not commenced revenue recognition under the\plain\cf1\f51\fs20\ql MTPC arrangement as the Company is not yet able to determine all of its deliverables and the total amount of arrangement\plain\cf1\f51\fs20\ql consideration. The new revenue standard provides guidance in assessing what comprises the distinct service being provided to a\plain\cf1\f51\fs20\ql customer that may have implications to our performance obligations and unit of account identified in our three existing\plain\cf1\f51\fs20\ql collaborations which could be defined differently under the new guidance. As a result, there could be changes to the timing of\plain\cf1\f51\fs20\ql revenue recognition upon adoption of the new standard. The Company is currently assessing the impact of the new revenue\plain\cf1\f51\fs20\ql recognition standard on its collaboration agreements with MTPC and Otsuka and evaluating which method it will adopt.\par\pard\plain\cf1\f51\fs12\ql \~\par\pard\plain\sb264\cf1\f51\fs20\b\ql Segment Information\par\pard\plain\sb132\cf1\f51\fs20\ql Operating segments are defined as components of an enterprise about which separate discrete information is available for\plain\cf1\f51\fs20\ql evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in\plain\cf1\f51\fs20\ql assessing performance. The Company views its operations and manages its business in one operating segment, which is the\plain\cf1\f51\fs20\ql business of developing and commercializing proprietary therapeutics based on HIF biology.\par\pard\plain\sb396\cf1\f51\fs20\b\ql Derivative Financial Instruments\par\pard\plain\sb132\cf1\f51\fs20\ql The Company accounts for warrants and other derivative financial instruments as either equity or liabilities in accordance with\plain\cf1\f51\fs20\ql ASC Topic 815,\plain\cf1\f51\fs20\i\ql Derivatives and Hedging\plain\cf1\f51\fs20\ql (ASC 815) based upon the characteristics and provisions of each instrument. Warrants\plain\cf1\f51\fs20\ql classified as equity are recorded at fair value as of the date of issuance on the Company\u8217?s consolidated balance sheets and\plain\cf1\f51\fs20\ql no further adjustments to their valuation are made. Warrants classified as derivative liabilities and other derivative financial\plain\cf1\f51\fs20\ql instruments that require separate accounting as liabilities are recorded on the Company\u8217?s consolidated balance sheets at\plain\cf1\f51\fs20\ql their fair value on the date of issuance and will be revalued on each subsequent balance sheet date until such instruments are\plain\cf1\f51\fs20\ql exercised or expire, with any changes in the fair value between reporting periods recorded as other income or expense.\~\~The\plain\cf1\f51\fs20\ql warrant issued by the Company in connection with the Janssen Pharmaceutica NV Research and License Agreement, the Janssen\plain\cf1\f51\fs20\ql Agreement, is classified as equity in the Company\u8217?s condensed consolidated balance sheet.\~\~(See Note 7).\par\pard\plain\sb396\cf1\f51\fs20\b\ql Use of Estimates{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb132\cf1\f51\fs20\ql The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions\plain\cf1\f51\fs20\ql that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the\plain\cf1\f51\fs20\ql financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ\plain\cf1\f51\fs20\ql from those estimates. Management considers many factors in selecting appropriate financial accounting policies and controls, and\plain\cf1\f51\fs20\ql in developing the estimates and assumptions that are used in the preparation of these financial statements. Management must\plain\cf1\f51\fs20\ql apply significant judgment in this process. In addition, other factors may affect estimates, including: expected business and\plain\cf1\f51\fs20\ql operational changes, sensitivity and volatility associated with the assumptions used in developing estimates, and whether historical\plain\cf1\f51\fs20\ql trends are expected to be representative of future trends. The estimation process often may yield a range of potentially reasonable\plain\cf1\f51\fs20\ql estimates of the ultimate future outcomes, and management must select an amount that falls within that range of reasonable\plain\cf1\f51\fs20\ql estimates. Estimates are used in the\par\pard\plain\sb264\cf1\f51\fs20\qc 8\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sb132\cf1\f51\fs20\ql following areas, among others: prepaid and accrued research and development expense, stock-based compensation expense,\plain\cf1\f51\fs20\ql revenue and income taxes.\par\pard\plain\sb396\cf1\f51\fs20\b\ql Cash and Cash Equivalents\par\pard\plain\sb132\cf1\f51\fs20\ql Cash and cash equivalents consist of all cash on hand, deposits and funds invested in available-for-sale securities with original\plain\cf1\f51\fs20\ql maturities of three months or less at the time of purchase. At June 30, 2017, the Company\u8217?s cash is primarily in money\plain\cf1\f51\fs20\ql market funds. The Company may maintain balances with its banks in excess of federally insured limits.\par\pard\plain\sb396\cf1\f51\fs20\b\ql Investments\par\pard\plain\sb132\cf1\f51\fs20\ql Management determines the appropriate classification of securities at the time of purchase and reevaluates such designation as of\plain\cf1\f51\fs20\ql each balance sheet date. Currently, the Company classifies all securities as available-for-sale which are included in current assets\plain\cf1\f51\fs20\ql as they are intended to fund current operations. The Company carries available-for-sale securities at fair value. The Company\plain\cf1\f51\fs20\ql conducts periodic reviews to identify and evaluate each investment that has an unrealized loss, in accordance with the meaning of\plain\cf1\f51\fs20\ql other-than-temporary impairment and its application to certain investments. When assessing whether a decline in the fair value\plain\cf1\f51\fs20\ql of a security is other-than-temporary, the Company considers the fair market value of the security, the duration of the\plain\cf1\f51\fs20\ql security\u8217?s decline, and prospects for the underlying business.\~\~Based on these considerations, the Company did not identify\plain\cf1\f51\fs20\ql any other-than-temporary unrealized losses at June 30, 2017. Unrealized losses on available-for-sale securities that are\plain\cf1\f51\fs20\ql determined to be temporary, and not related to credit loss, are recorded in accumulated other comprehensive loss, a component of\plain\cf1\f51\fs20\ql stockholders\u8217? equity. The amortized cost of debt securities in this category reflects amortization of premiums and accretion\plain\cf1\f51\fs20\ql of discounts to maturity computed under the effective interest method. The Company includes this amortization in the caption\plain\cf1\f51\fs20\ql \u8220?Interest income\u8221? within the consolidated statements of operations and comprehensive loss. The Company also\plain\cf1\f51\fs20\ql includes in net investment income, realized gains and losses and declines in value determined to be other than temporary. The\plain\cf1\f51\fs20\ql Company bases the cost of securities sold upon the specific identification method, and includes interest and dividends on\plain\cf1\f51\fs20\ql securities in interest income.\par\pard\plain\sb396\cf1\f51\fs20\b\ql Revenue Recognition\par\pard\plain\sb132\cf1\f51\fs20\ql To date, the Company has not generated any revenue from the sales of products. For the foreseeable future, the Company expects\plain\cf1\f51\fs20\ql substantially all of its revenues will be generated from its collaborations with MTPC and Otsuka (see Note 10) and any other\plain\cf1\f51\fs20\ql collaborations the Company may enter into.\par\pard\plain\sb396\cf1\f51\fs20\i\ql Multiple-Element Arrangements\par\pard\plain\sb132\cf1\f51\fs20\ql The Company recognizes revenue in accordance with ASC Topic 605,\~\plain\cf1\f51\fs20\i\ql Revenue Recognition\plain\cf1\f51\fs20\ql \~(ASC 605). Accordingly, revenue is\plain\cf1\f51\fs20\ql recognized for each unit of accounting when all of the following criteria are met: \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql Persuasive evidence of an arrangement exists;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql Delivery has occurred or services have been rendered;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql The seller\u8217?s price to the buyer is fixed or determinable; and\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql Collectability is reasonably assured.\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}}\pard\plain\sb264\cf1\f51\fs20\ql Amounts received prior to satisfying the revenue recognition criteria are recorded as deferred revenue. Amounts expected to be\plain\cf1\f51\fs20\ql recognized as revenue within the 12\~months following the balance sheet date are classified in current liabilities. Amounts not\plain\cf1\f51\fs20\ql expected to be recognized as revenue within the 12\~months following the balance sheet date are classified as deferred revenue,\plain\cf1\f51\fs20\ql net of current portion.\par\pard\plain\sb264\cf1\f51\fs20\ql Revenue recognition from our MTPC collaboration will commence when all criteria as required under ASC 605 have been\plain\cf1\f51\fs20\ql satisfied.\~\~Therefore, collaboration revenue in the current period is generated exclusively from our collaborations agreements with\plain\cf1\f51\fs20\ql Otsuka. The terms of these arrangements contain multiple deliverables, which include at inception: (i)\~license, (ii)\~development\plain\cf1\f51\fs20\ql services, (iii)\~rights to future intellectual property and (iv) joint committee services. Non-refundable payments to the Company\plain\cf1\f51\fs20\ql under these arrangements include: (i)\~up-front fee, (ii)\~payments for development services and (iii) payments based on the\plain\cf1\f51\fs20\ql achievement of certain milestones. Also, under the Otsuka U.S. Agreement, the Company and Otsuka share costs incurred with\plain\cf1\f51\fs20\ql respect to jointly conducted medical affairs and commercialization and non-promotional activities under the collaboration.\plain\cf1\f51\fs20\ql Additionally, the Company may receive its share of net sales and bear its share of shared costs from the sale of products\plain\cf1\f51\fs20\ql containing or comprising vadadustat in the United States through its U.S. collaboration with Otsuka.\~\~The Company will\plain\cf1\f51\fs20\ql recognize revenue related to amounts allocated to the License Unit of Accounting on a proportional performance basis as the\plain\cf1\f51\fs20\ql underlying services are performed.\par\pard\plain\sb264\cf1\f51\fs20\qc 9\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb264\cf1\f51\fs20\ql The Company evaluates multiple\u8209?element arrangements based on the guidance in ASC 605\u8209?25. Pursuant to the\plain\cf1\f51\fs20\ql guidance in ASC 605\u8209?25, the Company evaluates multiple\u8209?element arrangements to determine (i)\~the deliverables\plain\cf1\f51\fs20\ql included in the arrangement and (ii)\~whether the individual deliverables represent separate units of accounting or whether they\plain\cf1\f51\fs20\ql must be accounted for as a combined unit of accounting. This evaluation involves subjective determinations and requires the\plain\cf1\f51\fs20\ql Company to make judgments about the individual deliverables and whether such deliverables are separable from the other aspects\plain\cf1\f51\fs20\ql of the contractual relationship. Deliverables are considered separate units of accounting provided that: (i) the delivered item(s)\plain\cf1\f51\fs20\ql has value to the customer on a standalone basis and (ii) if the arrangement includes a general right of return relative to the\plain\cf1\f51\fs20\ql delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in the\plain\cf1\f51\fs20\ql Company\u8217?s control. In assessing whether an item has standalone value, the Company considers factors such as the\plain\cf1\f51\fs20\ql research, development, manufacturing and commercialization capabilities of the collaboration partner and the availability of the\plain\cf1\f51\fs20\ql associated expertise in the general marketplace. In addition, the Company considers whether the collaboration partner can use the\plain\cf1\f51\fs20\ql other deliverable(s) for their intended purpose without the receipt of the remaining deliverable(s), whether the value of the\plain\cf1\f51\fs20\ql deliverable is dependent on the undelivered item and whether there are other vendors that can provide the undelivered item(s).\plain\cf1\f51\fs20\ql The Company\u8217?s collaboration arrangements do not contain a general right of return relative to delivered item(s).\~\par\pard\plain\sb264\cf1\f51\fs20\ql Arrangement consideration that is fixed or determinable is allocated among the separate units of accounting using the relative\plain\cf1\f51\fs20\ql selling price method. The Company determines the selling price for a unit of accounting following the hierarchy of evidence\plain\cf1\f51\fs20\ql prescribed by ASC 605-25.\~\~Accordingly, the Company determines the estimated selling price for units of accounting within each\plain\cf1\f51\fs20\ql arrangement using vendor\u8209?specific objective evidence (VSOE) of selling price, if available, third\u8209?party evidence\plain\cf1\f51\fs20\ql (TPE) of selling price if VSOE is not available, or best estimate of selling price (BESP) if neither VSOE nor TPE is available.\plain\cf1\f51\fs20\ql Determining the BESP for a unit of accounting requires significant judgment. In developing the BESP for a unit of accounting,\plain\cf1\f51\fs20\ql the Company considers applicable market conditions and relevant entity\u8209?specific factors, including factors that were\plain\cf1\f51\fs20\ql contemplated in negotiating the agreement with the customer and estimated costs. The Company validates the BESP for units of\plain\cf1\f51\fs20\ql accounting by evaluating whether changes in the key assumptions used to determine the BESP will have a significant effect on\plain\cf1\f51\fs20\ql the allocation of arrangement consideration between multiple units of accounting.\par\pard\plain\sb264\cf1\f51\fs20\ql The Company recognizes arrangement consideration allocated to each unit of accounting when all of the revenue recognition\plain\cf1\f51\fs20\ql criteria in ASC 605 are satisfied for that particular unit of accounting. The Company recognizes as revenue arrangement\plain\cf1\f51\fs20\ql consideration attributed to licenses that have standalone value from other deliverables to be provided in an arrangement upon\plain\cf1\f51\fs20\ql delivery.\~\~The Company recognizes as revenue arrangement consideration attributed to licenses that do not have standalone value\plain\cf1\f51\fs20\ql from the other deliverables to be provided in an arrangement over the contractual or estimated performance period associated\plain\cf1\f51\fs20\ql with the undelivered elements included in the combined unit of accounting, which is typically the term of the Company\u8217?s\plain\cf1\f51\fs20\ql development obligations. If there is no discernible pattern of performance and/or objectively measurable performance measures do\plain\cf1\f51\fs20\ql not exist, then the Company recognizes revenue under the arrangement on a straight\u8209?line basis over the period the\plain\cf1\f51\fs20\ql Company is expected to complete its performance obligations. Conversely, if the pattern of performance in which the service is\plain\cf1\f51\fs20\ql provided to the customer can be determined and objectively measurable performance measures exist, then the Company\plain\cf1\f51\fs20\ql recognizes revenue under the arrangement using the proportional performance method. Revenue recognized is limited to the lesser\plain\cf1\f51\fs20\ql of the cumulative amount of payments received or the cumulative amount of revenue earned, as determined using the\plain\cf1\f51\fs20\ql straight\u8209?line method or proportional performance method, as applicable, as of the period ending date.\par\pard\plain\sb264\cf1\f51\fs20\ql The Company recognizes revenue associated with milestones in accordance with the provisions of ASC Topic 605-28,\plain\cf1\f51\fs20\i\ql Revenue\plain\cf1\f51\fs20\i\ql Recognition-Milestone Method\plain\cf1\f51\fs20\ql .\~\~Accordingly, at the inception of an arrangement that includes milestone payments, the Company\plain\cf1\f51\fs20\ql evaluates whether each milestone is substantive and at risk to both parties on the basis of the contingent nature of the milestone.\plain\cf1\f51\fs20\ql This evaluation includes an assessment of whether: (i)\~the consideration is commensurate with either the Company\u8217?s\plain\cf1\f51\fs20\ql performance to achieve the milestone or the enhancement of the value of the delivered item(s) as a result of a specific outcome\plain\cf1\f51\fs20\ql resulting from its performance to achieve the milestone, (ii)\~the consideration relates solely to past performance and (iii)\~the\plain\cf1\f51\fs20\ql consideration is reasonable relative to all of the deliverables and payment terms within the arrangement. The Company evaluates\plain\cf1\f51\fs20\ql factors such as the scientific, clinical, regulatory, commercial, and other risks that must be overcome to achieve the respective\plain\cf1\f51\fs20\ql milestone and the level of effort and investment required to achieve the respective milestone in making this assessment. There is\plain\cf1\f51\fs20\ql considerable judgment involved in determining whether a milestone satisfies all of the criteria required to conclude that a\plain\cf1\f51\fs20\ql milestone is substantive. Milestones that are considered substantive are recognized as revenue in their entirety upon achievement,\plain\cf1\f51\fs20\ql assuming all other revenue recognition criteria are met.\~\~Milestones that are not considered substantive are recognized as revenue\plain\cf1\f51\fs20\ql upon achievement if there are no remaining performance obligations or over the remaining period of performance if there are\plain\cf1\f51\fs20\ql remaining performance obligations, assuming all other revenue recognition criteria are met.\~\~Revenue from commercial milestone\plain\cf1\f51\fs20\ql payments will be accounted for as royalties and recorded as revenue upon achievement of the milestone, assuming all other\plain\cf1\f51\fs20\ql revenue recognition criteria are met.\par\pard\plain\sb264\cf1\f51\fs20\ql The Company will recognize royalty revenue in the period of sale of the related product(s), based on the underlying contract\plain\cf1\f51\fs20\ql terms, provided that the reported sales are reliably measurable and the Company has no remaining performance obligations,\plain\cf1\f51\fs20\ql assuming all other revenue recognition criteria are met.\par\pard\plain\sb264\cf1\f51\fs20\qc 10\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb396\cf1\f51\fs20\i\ql Collaborative Arrangements\par\pard\plain\sb132\cf1\f51\fs20\ql The Company records the elements of its collaboration agreements that represent joint operating activities in accordance with\plain\cf1\f51\fs20\ql ASC Topic 808,\plain\cf1\f51\fs20\i\ql Collaborative Arrangements\plain\cf1\f51\fs20\ql (ASC 808).\~\~Accordingly, the elements of the collaboration agreements that\plain\cf1\f51\fs20\ql represent activities in which both parties are active participants and to which both parties are exposed to the significant risks and\plain\cf1\f51\fs20\ql rewards that are dependent on the commercial success of the activities are recorded as collaborative arrangements.\~\~The Company\plain\cf1\f51\fs20\ql considers the guidance in ASC Topic 605-45,\plain\cf1\f51\fs20\i\ql Revenue Recognition\u8212?Principal Agent Considerations\plain\cf1\f51\fs20\ql (ASC 605-45) in\plain\cf1\f51\fs20\ql determining the appropriate treatment for the transactions between the Company and its collaborative partner and the transactions\plain\cf1\f51\fs20\ql between the Company and third parties.\~\~Generally, the classification of transactions under the collaborative arrangements is\plain\cf1\f51\fs20\ql determined based on the nature and contractual terms of the arrangement along with the nature of the operations of the\plain\cf1\f51\fs20\ql participants.\~\~The Company recognizes its allocation of the shared costs incurred with respect to the jointly conducted medical\plain\cf1\f51\fs20\ql affairs and commercialization and non-promotional activities under the U.S. collaboration with Otsuka as a component of the\plain\cf1\f51\fs20\ql related expense in the period incurred.\~\~To the extent revenue is generated from the collaboration, the Company will recognize its\plain\cf1\f51\fs20\ql share of the net sales on a gross basis if it is deemed to be the principal in the transactions with customers, or on a net basis if it\plain\cf1\f51\fs20\ql is instead deemed to be the agent in the transactions with customers, consistent with the guidance in ASC 605-45.\par\pard\plain\sb396\cf1\f51\fs20\b\ql Patents\par\pard\plain\sb132\cf1\f51\fs20\ql Costs incurred in connection with the application for and issuance of patents are expensed as incurred.\par\pard\plain\sb396\cf1\f51\fs20\b\ql Income Taxes\par\pard\plain\sb132\cf1\f51\fs20\ql Income taxes are recorded in accordance with FASB Topic 740,\plain\cf1\f51\fs20\i\ql Income Taxes\plain\cf1\f51\fs20\ql (ASC 740), which provides for deferred taxes\plain\cf1\f51\fs20\ql using an asset and liability approach. The Company recognizes deferred tax assets and liabilities for the expected future tax\plain\cf1\f51\fs20\ql consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are\plain\cf1\f51\fs20\ql determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates\plain\cf1\f51\fs20\ql in effect for the year in which the differences are expected to reverse. Valuation allowances are provided, if, based upon the\plain\cf1\f51\fs20\ql weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.\par\pard\plain\sb264\cf1\f51\fs20\ql The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740. When uncertain tax positions\plain\cf1\f51\fs20\ql exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized.\plain\cf1\f51\fs20\ql The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax\plain\cf1\f51\fs20\ql position, as well as consideration of the available facts and circumstances. As of June 30, 2017 and 2016, the Company does not\plain\cf1\f51\fs20\ql have any significant uncertain tax positions. The Company recognizes interest and penalties related to uncertain tax positions in\plain\cf1\f51\fs20\ql income tax expense.\par\pard\plain\sb396\cf1\f51\fs20\b\ql Stock-Based Compensation\par\pard\plain\sb132\cf1\f51\fs20\ql The Company accounts for its stock-based compensation awards in accordance with ASC Topic 718,\plain\cf1\f51\fs20\i\ql Compensation\u8212?Stock\plain\cf1\f51\fs20\i\ql Compensation\plain\cf1\f51\fs20\ql (ASC 718). ASC 718 requires all stock-based payments to employees, including grants of employee stock options,\plain\cf1\f51\fs20\ql restricted stock, restricted stock units, or RSUs, and modifications to existing stock awards, to be recognized in the statements of\plain\cf1\f51\fs20\ql operations and comprehensive loss based on their fair values. The Company accounts for stock-based awards to non-employees\plain\cf1\f51\fs20\ql in accordance with ASC Topic 505-50,\plain\cf1\f51\fs20\i\ql Equity-Based Payments to Non-Employees\plain\cf1\f51\fs20\ql (ASC 505-50), which requires the fair value\plain\cf1\f51\fs20\ql of the award to be re-measured at fair value until a performance commitment is reached or counterparty performance is\plain\cf1\f51\fs20\ql complete. The Company\u8217?s stock-based awards are comprised of stock options, shares of restricted stock, shares of\plain\cf1\f51\fs20\ql common stock and warrants. The Company estimates the fair value of options granted using the Black-Scholes option pricing\plain\cf1\f51\fs20\ql model. The Company uses a blend of its stock price and the quoted market price of comparable public companies to determine\plain\cf1\f51\fs20\ql the fair value of restricted stock awards and common stock awards.{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb264\cf1\f51\fs20\ql The Black-Scholes option pricing model requires the input of certain subjective assumptions, including (a)\~the expected stock\plain\cf1\f51\fs20\ql price volatility, (b)\~the calculation of expected term of the award, (c)\~the risk-free interest rate and (d)\~expected dividends. Due to\plain\cf1\f51\fs20\ql the lack of company-specific historical and implied volatility data for trading the Company\u8217?s stock in the public market,\plain\cf1\f51\fs20\ql the Company has based its estimate of expected volatility on the historical volatility of a group of similar companies that are\plain\cf1\f51\fs20\ql publicly traded. The historical volatility is calculated based on a period of time commensurate with the expected term assumption.\plain\cf1\f51\fs20\ql The computation of expected volatility is based on the historical volatility of a representative group of companies with similar\plain\cf1\f51\fs20\ql characteristics to the Company, including stage of product development and life science industry focus. During 2017, the\plain\cf1\f51\fs20\ql Company began to estimate its volatility by using a blend of its stock price history for the length of time it has market data for\plain\cf1\f51\fs20\ql its stock and the historical volatility of similar public companies for the expected term of each grant. The Company is in the\plain\cf1\f51\fs20\ql product development stage with no product revenue and the representative group of companies has certain similar characteristics\plain\cf1\f51\fs20\ql to the Company. The Company believes the group selected has sufficient similar economic and industry characteristics, and\plain\cf1\f51\fs20\ql includes companies that are most representative of the Company.\~\~The Company uses the simplified method as prescribed by the\plain\cf1\f51\fs20\ql SEC Staff Accounting Bulletin No.\~107, Share-Based Payment, to\par\pard\plain\sb264\cf1\f51\fs20\qc 11\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sb264\cf1\f51\fs20\ql calculate the expected term for options granted to employees as it does not have sufficient historical exercise data to provide a\plain\cf1\f51\fs20\ql reasonable basis upon which to estimate the expected term. The expected term is applied to the stock option grant group as a\plain\cf1\f51\fs20\ql whole, as the Company does not expect substantially different exercise or post-vesting termination behavior among its employee\plain\cf1\f51\fs20\ql population. For options granted to non-employees, the Company utilizes the contractual term of the arrangement as the basis for\plain\cf1\f51\fs20\ql the expected term assumption. The risk-free interest rate is based on a treasury instrument whose term is consistent with the\plain\cf1\f51\fs20\ql expected life of the stock options. The expected dividend yield is assumed to be zero as the Company has never paid dividends\plain\cf1\f51\fs20\ql and has no current plans to pay any dividends on its common stock, which is similar to the Company\u8217?s peer group.\par\pard\plain\sb264\cf1\f51\fs20\ql The Company\u8217?s stock-based awards are subject to service based vesting conditions. Compensation expense related to\plain\cf1\f51\fs20\ql awards to employees with service-based vesting conditions is recognized on a straight-line basis based on the grant date fair\plain\cf1\f51\fs20\ql value over the associated service period of the award, which is generally the vesting term. Consistent with the guidance in ASC\plain\cf1\f51\fs20\ql 505- 50, compensation expense related to awards to non-employees with service-based vesting conditions is recognized on a\plain\cf1\f51\fs20\ql straight-line basis based on the then-current fair value at each financial reporting date prior to the measurement date over the\plain\cf1\f51\fs20\ql associated service period of the award, which is generally the vesting term.\~\~\par\pard\plain\sb264\cf1\f51\fs20\ql The Company adopted ASU No. 2016-09,\~\plain\cf1\f51\fs20\i\ql Compensation-Stock Compensation (Topic 718): Improvements to Employee\plain\cf1\f51\fs20\i\ql Share-Based Payment Accounting,\plain\cf1\f51\fs20\ql effective in the first quarter of the year ended December 31, 2017. Prior to adoption,\plain\cf1\f51\fs20\ql share-based compensation expense was recognized on a straight line basis, net of estimated forfeitures, such that expense was\plain\cf1\f51\fs20\ql recognized only for share-based awards that are expected to vest. A forfeiture rate was estimated annually and revised, if\plain\cf1\f51\fs20\ql necessary, in subsequent periods if actual forfeitures differed from initial estimates. Upon adoption, the Company will no longer\plain\cf1\f51\fs20\ql apply a forfeiture rate and instead will account for forfeitures as they occur.\par\pard\plain\sb396\cf1\f51\fs20\b\ql Fair Value of Financial Instruments\par\pard\plain\sb132\cf1\f51\fs20\ql The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of\plain\cf1\f51\fs20\ql the inputs used in determining the reported fair values. ASC Topic 820,\plain\cf1\f51\fs20\i\ql Fair Value Measurements and Disclosures\plain\cf1\f51\fs20\ql (ASC 820),\plain\cf1\f51\fs20\ql establishes a hierarchy of inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use\plain\cf1\f51\fs20\ql of unobservable inputs by requiring that the observable inputs be used when available.\par\pard\plain\sb264\cf1\f51\fs20\ql Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained\plain\cf1\f51\fs20\ql from sources independent of the Company. Unobservable inputs are inputs that reflect the Company\u8217?s assumptions about\plain\cf1\f51\fs20\ql the inputs that market participants would use in pricing the asset or liability, and are developed based on the best information\plain\cf1\f51\fs20\ql available in the circumstances. The fair value hierarchy applies only to the valuation inputs used in determining the reported fair\plain\cf1\f51\fs20\ql value of the investments, and is not a measure of the investment credit quality. The three levels of the fair value hierarchy are\plain\cf1\f51\fs20\ql described below: \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql Level\~1\~\u8211? Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that\plain\intbl\cf1\f51\fs20\ql the Company has the ability to access at the measurement date.\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql Level\~2\~\u8211? Valuations based on quoted prices for similar assets or liabilities in markets that are not active, or\plain\intbl\cf1\f51\fs20\ql for which all significant inputs are observable, either directly or indirectly.\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql Level\~3\~\u8211? Valuations that require inputs that reflect the Company\u8217?s own assumptions that are both\plain\intbl\cf1\f51\fs20\ql significant to the fair value measurement and unobservable.\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}}\pard\plain\sb264\cf1\f51\fs20\ql To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the\plain\cf1\f51\fs20\ql determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in\plain\cf1\f51\fs20\ql determining fair value is greatest for instruments categorized in Level\~3. A financial instrument\u8217?s level within the fair\plain\cf1\f51\fs20\ql value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.\par\pard\plain\sb264\cf1\f51\fs20\ql Items measured at fair value on a recurring basis include short-term investments (see Note\~4). The carrying amounts of prepaid\plain\cf1\f51\fs20\ql expenses and other current assets, accounts payable and accrued expenses approximate their fair values due to their short-term\plain\cf1\f51\fs20\ql maturities. The rate implicit within the Company\u8217?s capital lease obligation approximates market interest rates.\par\pard\plain\sb396\cf1\f51\fs20\b\ql Concentrations of Credit Risk and Off-Balance Sheet Risk\par\pard\plain\sb132\cf1\f51\fs20\ql Cash and investments are the only financial instruments that potentially subject the Company to concentrations of credit risk. The\plain\cf1\f51\fs20\ql Company maintains its cash with high quality, accredited financial institutions and, accordingly, such funds are subject to\plain\cf1\f51\fs20\ql minimal credit risk. The Company has no significant off-balance sheet concentrations of credit risk, such as foreign currency\plain\cf1\f51\fs20\ql exchange contracts, option contracts or other hedging arrangements.\par\pard\plain\sb264\cf1\f51\fs20\qc 12\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb396\cf1\f51\fs20\b\ql Net Loss per Share\par\pard\plain\sb132\cf1\f51\fs20\ql Basic net loss per share is calculated by dividing net loss by the weighted-average shares outstanding during the period, without\plain\cf1\f51\fs20\ql consideration for common stock equivalents. Diluted net loss per share is calculated by adjusting weighted-average shares\plain\cf1\f51\fs20\ql outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury-stock\plain\cf1\f51\fs20\ql method. For purposes of the diluted net loss per share calculation, preferred stock, stock options, warrants, unvested restricted\plain\cf1\f51\fs20\ql stock and RSUs are considered to be common stock equivalents, but have been excluded from the calculation of diluted net loss\plain\cf1\f51\fs20\ql per share, as their effect would be anti-dilutive for all periods presented. Therefore, basic and diluted net loss per share were the\plain\cf1\f51\fs20\ql same for all periods presented.\par\pard\plain\sb396\cf1\f51\fs20\b\ql Property and Equipment\par\pard\plain\sb132\cf1\f51\fs20\ql Property and equipment is stated at cost, less accumulated depreciation. Assets under capital lease are included in property and\plain\cf1\f51\fs20\ql equipment. Property and equipment is depreciated using the straight-line method over the estimated useful lives of the assets,\plain\cf1\f51\fs20\ql generally three to seven years. Such costs are periodically reviewed for recoverability when impairment indicators are present.\plain\cf1\f51\fs20\ql Such indicators include, among other factors, operating losses, unused capacity, market value declines and technological\plain\cf1\f51\fs20\ql obsolescence. Recorded values of asset groups of equipment that are not expected to be recovered through undiscounted future\plain\cf1\f51\fs20\ql net cash flows are written down to current fair value, which generally is determined from estimated discounted future net cash\plain\cf1\f51\fs20\ql flows (assets held for use) or net realizable value (assets held for sale).\par\pard\plain\sb264\cf1\f51\fs20\ql The following is the summary of property and equipment and related accumulated depreciation as of June 30, 2017 and\plain\cf1\f51\fs20\ql December\~31, 2016.\par\pard\plain\cf1\f51\fs20\ql \~ \par\pard\plain {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4770\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4855\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5977\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6062\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7030\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7136\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7221\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8529\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8640\trrh413 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Useful Life\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June\~30,\plain\intbl\cf1\f51\fs16\b\qc 2017\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc December\~31,\plain\intbl\cf1\f51\fs16\b\qc 2016\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4770\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4855\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5977\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6062\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7030\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7136\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7221\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8529\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8640\trrh413\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4770\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4855\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5977\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6062\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8531\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8640\trrh306 \pard\plain\intbl\cf1\f51\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs22\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc (in thousands)\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4770\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4855\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5977\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6062\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8531\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8640\trrh306\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4770\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4855\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5977\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6062\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6356\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7030\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7136\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7221\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7697\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8529\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8640\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Computer equipment and software\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc 3\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 495\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 476\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4770\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4855\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5977\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6062\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6356\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7030\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7136\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7221\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7697\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8529\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8640\trrh264\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4770\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4855\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5977\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6062\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6356\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7030\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7136\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7221\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7697\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8529\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8640\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Furniture and fixtures\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc 5\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 800\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 729\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4770\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4855\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5977\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6062\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6356\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7030\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7136\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7221\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7697\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8529\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8640\trrh264\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4770\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4855\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5977\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6062\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6356\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7030\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7136\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7221\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7697\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8529\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8640\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Equipment\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc 7\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 72\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 50\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4770\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4855\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5977\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6062\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6356\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7030\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7136\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7221\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7697\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8529\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8640\trrh264\row}}} {\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx4770\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4855\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5977\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6062\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6356\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7030\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7136\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7221\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7697\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8529\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8640\trrh1254 \pard\plain\intbl\cf1\f51\fs20\ql Leasehold improvements\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc Shorter\~of\~the\par\pard\plain\intbl\cf1\f51\fs20\qc useful life or\par\pard\plain\intbl\cf1\f51\fs20\qc remaining\par\pard\plain\intbl\cf1\f51\fs20\qc lease term\par\pard\plain\intbl\cf1\f51\fs20\qc (10\~years)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 2,226\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 1,763\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx4770\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4855\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5977\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6062\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6356\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7030\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7136\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7221\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7697\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8529\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8640\trrh1254\row}}} {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4770\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4855\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5977\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6062\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6356\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7030\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7136\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7221\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7697\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8529\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8640\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Office equipment under capital lease\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc 3\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 36\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 36\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4770\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4855\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5977\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6062\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6356\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7030\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7136\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7221\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7697\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8529\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8640\trrh264\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4770\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4855\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5977\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6062\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6356\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7030\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7136\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7221\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7697\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8529\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8640\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 3,629\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 3,054\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4770\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4855\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5977\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6062\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6356\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7030\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7136\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7221\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7697\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8529\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8640\trrh281\row}}} {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4770\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4855\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5977\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6062\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6356\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7030\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7136\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7221\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7697\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8529\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8640\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Less accumulated depreciation\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (695\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (442\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4770\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4855\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5977\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6062\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6356\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7030\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7136\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7221\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7697\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8529\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8640\trrh264\row}}} {\trowd\trqc\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4770\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4855\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5977\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6062\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6356\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7030\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7136\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7221\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7697\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8529\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8640\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql Net property and equipment\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 2,934\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 2,612\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4770\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4855\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5977\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6062\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6356\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7030\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7136\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7221\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7697\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8529\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8640\trrh281\row}}}\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\sb88\cf1\f51\fs20\ql Depreciation expense, including expense associated with assets under capital leases, was approximately $0.1 million\plain\cf1\f51\fs24\ql \~\plain\cf1\f51\fs20\ql and $46,000\plain\cf1\f51\fs20\ql for the three months ended June 30, 2017 and 2016, respectively and approximately $0.3 and $0.1 million for the six months\plain\cf1\f51\fs20\ql ended June 30, 2017 and 2016, respectively.\par\pard\plain\cf1\f51\fs18\ql \~\par\pard\plain\cf1\f51\fs18\ql \~\par\pard\plain\cf1\f51\fs20\b\ql 3. Strategic Collaborations and Other Significant Agreements\par\pard\plain\sb132\cf1\f51\fs20\b\i\ql Mitsubishi Tanabe Pharma Corporation Collaboration Agreement\par\pard\plain\sb132\cf1\f51\fs20\i\ql Summary of Agreement\par\pard\plain\sb132\cf1\f51\fs20\ql On December 11, 2015, the Company and MTPC entered into a collaboration agreement, the MTPC Agreement, providing\plain\cf1\f51\fs20\ql MTPC with exclusive development and commercialization rights to vadadustat, the Company\u8217?s product candidate for the\plain\cf1\f51\fs20\ql treatment of anemia related to chronic kidney disease, in Japan and certain other Asian countries, collectively, the Territory.\par\pard\plain\sb264\cf1\f51\fs20\ql Pursuant to the MTPC Agreement, MTPC has an exclusive license to develop and commercialize vadadustat in the Territory. In\plain\cf1\f51\fs20\ql addition, the Company will supply vadadustat for both clinical and commercial use in the Territory. The countries included in the\plain\cf1\f51\fs20\ql Territory are Japan, Taiwan, South Korea, Singapore, Malaysia, India, Indonesia, East Timor, Mongolia, the Philippines, Vietnam,\plain\cf1\f51\fs20\ql Laos, Cambodia, Thailand, Brunei, Myanmar, Nepal, Sri Lanka, Bangladesh, Bhutan, Maldives, Palau and Tonga and their\plain\cf1\f51\fs20\ql territories.\~\~\par\pard\plain\sb264\cf1\f51\fs20\ql In consideration for the exclusive license and other rights contained in the MTPC Agreement, MTPC will make payments totaling\plain\cf1\f51\fs20\ql up to $350.0 million to fund the vadadustat global Phase 3 program, including up to $100.0 million in upfront and development\plain\cf1\f51\fs20\ql payments, of which $40.0 million was received in January 2016. To the extent Japanese patients are included in the Phase 3\plain\cf1\f51\fs20\ql program, MTPC will fund up the balance of $60.0 million of development costs (Global Scenario).\par\pard\plain\sb264\cf1\f51\fs20\qc 13\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb264\cf1\f51\fs20\ql If Japanese patients are not included in the Phase 3 program (Local Scenario), MTPC would be responsible for the costs of local\plain\cf1\f51\fs20\ql development in Japan and would make no additional funding payments for the Phase 3 program.\~\~In addition, $20.0 million of\plain\cf1\f51\fs20\ql the $40.0 million received in 2016 would be used to fund local development of vadadustat in Japan.\~\~The Company is currently\plain\cf1\f51\fs20\ql conducting Phase 2 studies in Japan and will, if under the Local Scenario, apply the $20.0 million against the Phase 2 costs\plain\cf1\f51\fs20\ql already incurred, and MTPC will reimburse the Company for costs in excess of $20.0 million to complete the studies.\par\pard\plain\sb264\cf1\f51\fs20\ql The final determination of whether Japanese patients can be included in the Phase 3 program will be made by the Company and\plain\cf1\f51\fs20\ql MTPC, in consultation with the Pharmaceuticals and Medical Devices Agency, PMDA, following the results of our Phase 2\plain\cf1\f51\fs20\ql studies being conducted in Japan, which is expected in the second half of 2017.\par\pard\plain\sb264\cf1\f51\fs20\ql The Company is also eligible to receive up to approximately $250.0 million in additional payments based upon achievement of\plain\cf1\f51\fs20\ql certain development, regulatory and sales milestones, as well as tiered double-digit royalty payments on sales of vadadustat in\plain\cf1\f51\fs20\ql the Territory.\par\pard\plain\sb264\cf1\f51\fs20\ql The Company and MTPC have established a joint steering committee pursuant to the agreement to oversee development and\plain\cf1\f51\fs20\ql commercialization of vadadustat in the Territory, including approval of any development or commercialization plans. Unless\plain\cf1\f51\fs20\ql earlier terminated, the MTPC Agreement will continue in effect on a country-by-country basis until the later of: expiration of\plain\cf1\f51\fs20\ql the last-to-expire patent covering vadadustat in such country in the Territory; expiration of marketing or regulatory exclusivity in\plain\cf1\f51\fs20\ql such country in the Territory; or ten years after the first commercial sale of vadadustat in such country in the Territory. MTPC\plain\cf1\f51\fs20\ql may terminate the MTPC Agreement upon twelve months\u8217? notice at any time after the second anniversary of the effective\plain\cf1\f51\fs20\ql date of the MTPC Agreement. Either party may terminate the MTPC Agreement upon the material breach of the other party that\plain\cf1\f51\fs20\ql is not cured within a specified time period or upon the insolvency of the other party.\par\pard\plain\sb396\cf1\f51\fs20\i\ql Revenue Recognition\par\pard\plain\sb132\cf1\f51\fs20\ql The Company has evaluated all of the development, regulatory and sales milestones that may be received in connection with the\plain\cf1\f51\fs20\ql MTPC Agreement. In evaluating if a milestone\~\~is substantive, the Company assesses whether: (i) the consideration is\plain\cf1\f51\fs20\ql commensurate with either the Company\u8217?s performance to achieve the milestone or the enhancement of the value of the\plain\cf1\f51\fs20\ql delivered item(s) as a result of a specific outcome resulting from the Company\u8217?s performance to achieve the milestone, (ii)\plain\cf1\f51\fs20\ql the consideration relates solely to past performance, and (iii) the consideration is reasonable relative to all of the deliverables and\plain\cf1\f51\fs20\ql payment terms within the arrangement. All development and regulatory milestones are considered substantive on the basis of the\plain\cf1\f51\fs20\ql contingent nature of the milestone, specifically reviewing factors such as the scientific, clinical, regulatory, commercial and other\plain\cf1\f51\fs20\ql risks that must be overcome to achieve the milestone as well as the level of effort and investment required. Accordingly, such\plain\cf1\f51\fs20\ql amounts will be recognized as revenue in full in the period in which the associated milestone is achieved, assuming all other\plain\cf1\f51\fs20\ql revenue recognition criteria are met. The total aggregate amount of development milestones is $10.0 million and the total\plain\cf1\f51\fs20\ql aggregate amount of approval milestones is up to $65.0 million. All sales milestones, up to $175.0 million, will be accounted for\plain\cf1\f51\fs20\ql in the same manner as royalties and recorded as revenue upon achievement of the milestone, assuming all other revenue\plain\cf1\f51\fs20\ql recognition criteria are met.\par\pard\plain\sb264\cf1\f51\fs20\ql The Company will recognize royalty revenue in the period of sale of the related product(s), based on the underlying contract\plain\cf1\f51\fs20\ql terms, provided that the reported sales are reliably measurable and the Company has no remaining performance obligations,\plain\cf1\f51\fs20\ql assuming all other revenue recognition criteria are met.\par\pard\plain\sb264\cf1\f51\fs20\ql As of June 30, 2017, the Company cannot determine all of its deliverables or the total amount of consideration to be received for\plain\cf1\f51\fs20\ql which revenue will be recognized until it knows whether vadadustat will be developed for the Japan market under a Global\plain\cf1\f51\fs20\ql Scenario or under a Local Scenario. Given the uncertainty around both deliverables and the total consideration to be received, in\plain\cf1\f51\fs20\ql accordance with the provisions of ASC 605-25, as of June 30, 2017, we concluded that we lack sufficient persuasive evidence of\plain\cf1\f51\fs20\ql an arrangement until these uncertainties are resolved (that is, there is uncertainty regarding our rights and obligations under the\plain\cf1\f51\fs20\ql arrangement). Under a Global Scenario, our deliverable will be a Services Deliverable as we will be required to include Japanese\plain\cf1\f51\fs20\ql subjects in our ongoing global Phase 3 study. Under a Local Scenario, our deliverable will be a Supply Deliverable as we will\plain\cf1\f51\fs20\ql not include Japanese subjects in our ongoing Phase 3 program, but will instead provide clinical supply of vadadustat to MTPC in\plain\cf1\f51\fs20\ql order for MTPC to conduct a local study. The final determination will be made by the Company and MTPC in consultation with\plain\cf1\f51\fs20\ql the PMDA following the results of our Phase 2 studies being conducted in Japan. Revenue recognition for the MTPC Agreement\plain\cf1\f51\fs20\ql will commence when all criteria as required under ASC 605 have been satisfied, which the Company expects will be in the\plain\cf1\f51\fs20\ql second half of 2017. Therefore, the $40.0 million payment received in January 2016 is recorded as deferred revenue in the\plain\cf1\f51\fs20\ql accompanying consolidated balance sheets.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Otsuka Pharmaceutical Co. Ltd. U.S. Collaboration and License Agreement\par\pard\plain\sb132\cf1\f51\fs20\i\ql Summary of Agreement{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb132\cf1\f51\fs20\ql On December 18, 2016, the Company entered into a collaboration and license agreement with Otsuka, or the Otsuka U.S.\plain\cf1\f51\fs20\ql Agreement. The collaboration is focused on the development and commercialization of vadadustat in the United States. Under the\plain\cf1\f51\fs20\ql terms of the Otsuka U.S. Agreement, the Company will continue to lead the development of vadadustat, including the ongoing\plain\cf1\f51\fs20\ql Phase 3\par\pard\plain\sb264\cf1\f51\fs20\qc 14\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sb132\cf1\f51\fs20\ql development program. The Company and Otsuka will co-commercialize vadadustat in the United States, subject to the approval\plain\cf1\f51\fs20\ql of vadadustat by the FDA.\par\pard\plain\sb264\cf1\f51\fs20\ql Under the terms of the Otsuka U.S. Agreement, the Company granted to Otsuka a co-exclusive, non-sublicensable license under\plain\cf1\f51\fs20\ql certain intellectual property controlled by the Company solely to perform medical affairs activities and to conduct\plain\cf1\f51\fs20\ql non-promotional and commercialization activities related to vadadustat in accordance with the associated plans. The co-exclusive\plain\cf1\f51\fs20\ql license relates to activities that will be jointly conducted by the Company and Otsuka pursuant to the terms of the Otsuka U.S.\plain\cf1\f51\fs20\ql Agreement.\par\pard\plain\sb264\cf1\f51\fs20\ql Pursuant to the terms of the Otsuka U.S. Agreement, the Company is responsible for performing all activities related to the\plain\cf1\f51\fs20\ql development of vadadustat as outlined in the current global development plan. The current global development plan encompasses\plain\cf1\f51\fs20\ql all activities with respect to the ongoing PRO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql TECT and INNO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql VATE clinical programs that are necessary through the filing\plain\cf1\f51\fs20\ql for regulatory approval, as well as other studies. Under the Otsuka U.S. Agreement, the Company controls and retains final\plain\cf1\f51\fs20\ql decision making authority with respect to the development of vadadustat. The Company\u8217?s obligations related to the\plain\cf1\f51\fs20\ql conduct of the current global development plan include the associated manufacturing and supply services for vadadustat.\par\pard\plain\sb264\cf1\f51\fs20\ql Under the Otsuka U.S. Agreement, the parties jointly conduct, and have equal responsibility for, all medical affairs,\plain\cf1\f51\fs20\ql commercialization and non-promotional activities pursuant to underlying plans as agreed to by the parties. If approved by the\plain\cf1\f51\fs20\ql FDA, the Company will provide vadadustat to Otsuka for commercialization pursuant to a separate supply agreement to be\plain\cf1\f51\fs20\ql negotiated.\par\pard\plain\sb264\cf1\f51\fs20\ql The activities under the Otsuka U.S. Agreement are governed by a joint steering committee, or JSC, formed by an equal number\plain\cf1\f51\fs20\ql of representatives from the Company and Otsuka. The JSC coordinates and monitors the parties\u8217? activities under the\plain\cf1\f51\fs20\ql collaboration. Among other responsibilities, the JSC manages the overall strategic alignment between the parties, oversees the\plain\cf1\f51\fs20\ql current global development plan and reviews the other detailed plans setting forth the parties\u8217? activities under the\plain\cf1\f51\fs20\ql arrangement, including the medical affairs plan and commercialization and non-promotional activities plan. Additionally, the\plain\cf1\f51\fs20\ql parties established a joint development committee, or JDC, which is comprised of an equal number of representatives from the\plain\cf1\f51\fs20\ql Company and Otsuka. Among other responsibilities, the JDC will share information related to, and review and discuss activities\plain\cf1\f51\fs20\ql and progress under, the current global development plan and any other development that may be conducted pursuant to the\plain\cf1\f51\fs20\ql collaboration. In support of the potential commercialization of vadadustat, the parties will establish a joint commercialization\plain\cf1\f51\fs20\ql committee, or JCC, which will be comprised of an equal number of representatives from the Company and Otsuka. Among other\plain\cf1\f51\fs20\ql responsibilities, the JCC will manage the activities and progress under the commercialization and non-promotional activities plan\plain\cf1\f51\fs20\ql and all other sales and marketing activities. The Company has retained the final decision making authority with respect to all\plain\cf1\f51\fs20\ql development matters, pricing strategy and certain other key commercialization matters.\par\pard\plain\sb264\cf1\f51\fs20\ql Under the terms of the Otsuka U.S. Agreement, the Company received a $125.0 million up-front, non-refundable, non-creditable\plain\cf1\f51\fs20\ql cash payment in December 2016. In March 2017, the Company received a payment of approximately $33.8 million which\plain\cf1\f51\fs20\ql represents reimbursement for Otsuka\u8217?s share of costs previously incurred by the Company in implementing the current\plain\cf1\f51\fs20\ql global development plan through December 31, 2016. Going forward, Otsuka will contribute a percentage\~of the remaining costs\plain\cf1\f51\fs20\ql to be incurred under the current global development plan subsequent to December 31, 2016, commencing upon the date on which\plain\cf1\f51\fs20\ql the Company has incurred a specified amount of incremental costs. The Company estimates that Otsuka\u8217?s funding of the\plain\cf1\f51\fs20\ql current global development plan costs subsequent to December 31, 2016 will total $153.6 million or more. The costs associated\plain\cf1\f51\fs20\ql with the performance of any development activities in addition to those outlined in the current global development plan will be\plain\cf1\f51\fs20\ql subject to a cost sharing or reimbursement mechanism to be determined by the parties. Costs incurred with respect to medical\plain\cf1\f51\fs20\ql affairs and commercialization and non-promotional activities will generally be shared equally by the parties. Either party\u8217?s\plain\cf1\f51\fs20\ql share of the medical affairs and/or commercialization activities may be increased at such party\u8217?s request upon mutual\plain\cf1\f51\fs20\ql agreement of the parties. In addition, if the costs incurred in completing the activities under the current global development plan\plain\cf1\f51\fs20\ql exceed a certain threshold, then the Company may elect to require Otsuka to fund a higher percentage of the current global\plain\cf1\f51\fs20\ql development costs. In such event, the excess of the payments made under such election and Otsuka\u8217?s allocated share of\plain\cf1\f51\fs20\ql the current global development costs is fully creditable against future payments due to the Company under the arrangement.\par\pard\plain\sb264\cf1\f51\fs20\ql In addition, Otsuka would be required to make certain milestone payments to the Company upon the achievement of specified\plain\cf1\f51\fs20\ql development, regulatory and commercial events. More specifically, the Company is eligible to receive up to $125.0 million in\plain\cf1\f51\fs20\ql development milestone payments and up to $65.0 million in regulatory milestone payments for the first product to achieve the\plain\cf1\f51\fs20\ql associated event. Moreover, the Company is eligible for up to $575.0 million in commercial milestone payments associated with\plain\cf1\f51\fs20\ql aggregate sales of all products. Due to the uncertainty of pharmaceutical development and the high historical failure rates\plain\cf1\f51\fs20\ql associated therewith, no milestone payments may ever be received from Otsuka.{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb264\cf1\f51\fs20\ql Under the Otsuka U.S. Agreement, the Company and Otsuka share the costs of developing and commercializing vadadustat in the\plain\cf1\f51\fs20\ql United States and the profits from the sales of vadadustat after approval by the FDA. In connection with the profit share\plain\cf1\f51\fs20\ql calculation, net sales include gross sales to third-party customers net of discounts, rebates, chargebacks, taxes, freight and\plain\cf1\f51\fs20\ql insurance charges and other applicable deductions. Shared costs generally include costs attributable or reasonably allocable to the\plain\cf1\f51\fs20\ql manufacture of vadadustat\par\pard\plain\sb264\cf1\f51\fs20\qc 15\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sb264\cf1\f51\fs20\ql for commercialization purposes and the performance of medical affairs activities, non-promotional activities and\plain\cf1\f51\fs20\ql commercialization activities.\par\pard\plain\sb264\cf1\f51\fs20\ql Under the Otsuka U.S. Agreement, Otsuka originally had a limited period of time in which it can exercise an option to convert\plain\cf1\f51\fs20\ql the arrangement from a profit share to a right to receive a mid-single digit royalty on future net sales of commercialized\plain\cf1\f51\fs20\ql products (the Royalty Conversion Option). On August 4, 2017, Otsuka agreed to waive its right to exercise the Royalty\plain\cf1\f51\fs20\ql Conversion Option, consequently, Otsuka has no further right to elect to exercise this option.\par\pard\plain\sb264\cf1\f51\fs20\ql Unless earlier terminated, the Agreement will expire on a country-by-country and product-by-product basis on the date that one\plain\cf1\f51\fs20\ql or more generic versions of vadadustat first achieves 90% market penetration. Either party may terminate the Otsuka U.S.\plain\cf1\f51\fs20\ql Agreement in its entirety upon an uncured breach or insolvency on the part of the other party. Otsuka may terminate the Otsuka\plain\cf1\f51\fs20\ql U.S. Agreement in its entirety upon 12 months\u8217? prior written notice at any time after the release of the first topline data\plain\cf1\f51\fs20\ql from the global Phase 3 development program. In the event of termination of the Otsuka U.S. Agreement, all rights and licensees\plain\cf1\f51\fs20\ql granted to Otsuka under the Otsuka U.S. Agreement will automatically terminate and the licenses granted to the Company will\plain\cf1\f51\fs20\ql become freely sublicensable.\~\~In addition, the upfront payment, all development costs and milestone payments received by the\plain\cf1\f51\fs20\ql Company prior to such termination will not be refunded to Otsuka.\par\pard\plain\sb396\cf1\f51\fs20\i\ql Revenue Recognition\par\pard\plain\sb132\cf1\f51\fs20\ql The Company evaluated the elements of the Otsuka US Agreement in accordance with the provisions of ASC 605-25. The\plain\cf1\f51\fs20\ql Company\u8217?s arrangement with Otsuka contains the following deliverables:\~\~(i) license under certain of the\plain\cf1\f51\fs20\ql Company\u8217?s intellectual property to develop, perform medical affairs activities with respect to and conduct\plain\cf1\f51\fs20\ql non-promotional and commercialization activities related to vadadustat and products containing or comprising vadadustat (the\plain\cf1\f51\fs20\ql License Deliverable), (ii) development services to be performed pursuant to the current global development plan (the\plain\cf1\f51\fs20\ql Development Services Deliverable), (iii) rights to future intellectual property (the Future IP Deliverable), and (iv) joint committee\plain\cf1\f51\fs20\ql services (the Committee Deliverable).\par\pard\plain\sb264\cf1\f51\fs20\ql The Company has identified three units of accounting in connection with its obligations under the Otsuka U.S. Agreement.\plain\cf1\f51\fs20\ql Factors considered in making the assessment of standalone value included, among other things, the capabilities of the\plain\cf1\f51\fs20\ql collaboration partner, whether any other vendor sells the item separately, whether the value of the deliverable is dependent on the\plain\cf1\f51\fs20\ql other elements in the arrangement, whether there are other vendors that can provide the items and if the customer could use the\plain\cf1\f51\fs20\ql item for its intended purpose without the other deliverables in the arrangement. Additionally, the Otsuka U.S. Agreement does\plain\cf1\f51\fs20\ql not include a general right of return. The three units of accounting identified in connection with the Company\u8217?s\plain\cf1\f51\fs20\ql obligations under the Otsuka U.S. Agreement are as follows: \par\pard\plain {\trowd\cellx432\cellx864\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\i\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\i\ql (i)\cell\pard\plain\intbl\sb132\cf1\f51\fs20\i\ql License and Development Services Combined (License Unit of Accounting)\cell{ {\trowd\cellx432\cellx864\cellx10800\trrh382\row}}}\pard\plain\li198\sb132\cf1\f51\fs20\ql The License Deliverable does not qualify for separation from the Development Services Deliverable, due to the\plain\li198\cf1\f51\fs20\ql contractual limitations inherent in the license conveyed.\~\~More specifically, Otsuka does not have the contractual right\plain\li198\cf1\f51\fs20\ql to manufacture vadadustat and products containing or comprising vadadustat. However, the manufacturing and supply\plain\li198\cf1\f51\fs20\ql services that are conducted as part of the services to be performed pursuant to the current global development plan\plain\li198\cf1\f51\fs20\ql are necessary for Otsuka to fully exploit the associated license for its intended purpose. The value of the rights\plain\li198\cf1\f51\fs20\ql provided through the license conveyed will be realized when the underlying products covered by the intellectual\plain\li198\cf1\f51\fs20\ql property progress through the development cycle, receive regulatory approval and are commercialized. Products\plain\li198\cf1\f51\fs20\ql containing or comprising vadadustat cannot be commercialized until the development services under the current\plain\li198\cf1\f51\fs20\ql global development plan are completed. Accordingly, Otsuka must obtain the manufacturing and supply of the\plain\li198\cf1\f51\fs20\ql associated products that is included within the development services to be performed pursuant to the current global\plain\li198\cf1\f51\fs20\ql development plan from the Company in order to derive benefit from the license which significantly limits the ability\plain\li198\cf1\f51\fs20\ql for Otsuka to utilize the License Deliverable for its intended purpose on a standalone basis. \par\pard\plain {\trowd\cellx432\cellx864\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\i\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\i\ql (ii)\cell\pard\plain\intbl\sb132\cf1\f51\fs20\i\ql Rights to Future Intellectual Property\cell{ {\trowd\cellx432\cellx864\cellx10800\trrh382\row}}}\pard\plain\li198\sb132\cf1\f51\fs20\ql The License Deliverable and the Development Services Deliverable qualify for separation from the Future IP\plain\li198\cf1\f51\fs20\ql Deliverable because Otsuka can obtain the value of the license using the clinical trial materials implicit in the\plain\li198\cf1\f51\fs20\ql development services without the receipt of any other intellectual property that may be discovered or developed in the\plain\li198\cf1\f51\fs20\ql future. The Future IP Deliverable qualifies for separation from the Committee Deliverable because the joint\plain\li198\cf1\f51\fs20\ql committee services have no bearing on the value to be derived from the rights to potential future intellectual property. \par\pard\plain {\trowd\cellx432\cellx864\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\i\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\i\ql (iii)\cell\pard\plain\intbl\sb132\cf1\f51\fs20\i\ql Joint Committee Services\cell{ {\trowd\cellx432\cellx864\cellx10800\trrh382\row}}}\pard\plain\li198\sb132\cf1\f51\fs20\ql The License Deliverable and Development Services Deliverable qualify for separation from the Committee\plain\li198\cf1\f51\fs20\ql Deliverable because Otsuka can obtain the value of the license using the clinical trial materials implicit in the\plain\li198\cf1\f51\fs20\ql development services without the joint committee services. The Committee Deliverable has standalone value from the\plain\li198\cf1\f51\fs20\ql rights to Future IP Deliverable because the joint committee services have no bearing on the value to be derived from\plain\li198\cf1\f51\fs20\ql the rights to potential future intellectual property.\par\pard\plain\sb264\cf1\f51\fs20\qc 16\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb264\cf1\f51\fs20\ql The Company has determined that neither VSOE of selling price nor TPE of selling price is available for any of the units of\plain\cf1\f51\fs20\ql accounting identified at inception of the arrangement with Otsuka. Accordingly, the selling price of each unit of accounting was\plain\cf1\f51\fs20\ql determined based on the Company\u8217?s BESP. The Company developed the BESP with the objective of determining the price\plain\cf1\f51\fs20\ql at which it would sell such an item if it were to be sold regularly on a standalone basis. In developing the BESP for the Joint\plain\cf1\f51\fs20\ql Committee Services Unit of Accounting, the Company considered the nature of the services to be performed and estimates of the\plain\cf1\f51\fs20\ql associated effort and rates applicable to such services that would be expected to be realized under similar contracts. The\plain\cf1\f51\fs20\ql Company developed the BESP for the Rights to Future Intellectual Property Unit of Accounting primarily based on the likelihood\plain\cf1\f51\fs20\ql that additional intellectual property covered by the license conveyed will be developed during the term of the arrangement. The\plain\cf1\f51\fs20\ql Company did not develop a BESP for the License Unit of Accounting due to the following:\~\~(i) the BESP associated with the\plain\cf1\f51\fs20\ql Rights to Future Intellectual Property Unit of Accounting was determined to be immaterial and (ii) the period of performance and\plain\cf1\f51\fs20\ql pattern of recognition for the License Unit of Accounting and the Joint Committee Services Unit of Accounting was determined\plain\cf1\f51\fs20\ql to be similar. The Company has concluded that a change in the key assumptions used to determine the BESP for each unit of\plain\cf1\f51\fs20\ql accounting would not have a significant impact on the allocation of arrangement consideration.\par\pard\plain\sb264\cf1\f51\fs20\ql Allocable arrangement consideration at inception is comprised of:\~\~(i) the up-front payment of $125.0 million, (ii) the cost share\plain\cf1\f51\fs20\ql payment with respect to amounts incurred by the Company through December 31, 2016 of $33.8 million and (iii) an estimate of\plain\cf1\f51\fs20\ql the cost share payments to be received with respect to amounts incurred by the Company subsequent to December 31, 2016 of\plain\cf1\f51\fs20\ql $153.6 million. No amounts were allocated to the Rights to Future Intellectual Property Unit of Accounting because the\plain\cf1\f51\fs20\ql associated BESP was determined to be immaterial. Due to the similar performance period and recognition pattern between the\plain\cf1\f51\fs20\ql License Unit of Accounting and the Joint Committee Services Unit of Accounting, the arrangement consideration totaling $312.4\plain\cf1\f51\fs20\ql million has been allocated to the License Unit of Accounting and the Joint Committee Services Unit of Accounting on a\plain\cf1\f51\fs20\ql combined basis.\~\~Accordingly, the Company will recognize revenue related to the allocable arrangement consideration on a\plain\cf1\f51\fs20\ql proportional performance basis as the underlying development services are performed pursuant to the current global development\plain\cf1\f51\fs20\ql plan which is commensurate with the period and consistent with the pattern over which the Company\u8217?s obligations are\plain\cf1\f51\fs20\ql satisfied for both the License Unit of Accounting and the Joint Committee Services Unit of Accounting.\~\~Effectively, the\plain\cf1\f51\fs20\ql Company has treated the arrangement as if the License Unit of Accounting and the Joint Committee Services Unit of Accounting\plain\cf1\f51\fs20\ql are a single unit of accounting.\par\pard\plain\sb264\cf1\f51\fs20\ql The Company has evaluated all of the development, regulatory and commercial milestones that may be received in connection\plain\cf1\f51\fs20\ql with the Otsuka U.S. Agreement. In evaluating if a milestone\~\~is substantive, the Company assesses whether: (i) the consideration\plain\cf1\f51\fs20\ql is commensurate with either the Company\u8217?s performance to achieve the milestone or the enhancement of the value of the\plain\cf1\f51\fs20\ql delivered item(s) as a result of a specific outcome resulting from the Company\u8217?s performance to achieve the milestone, (ii)\plain\cf1\f51\fs20\ql the consideration relates solely to past performance, and (iii) the consideration is reasonable relative to all of the deliverables and\plain\cf1\f51\fs20\ql payment terms within the arrangement. All development and regulatory milestones are considered substantive on the basis of the\plain\cf1\f51\fs20\ql contingent nature of the milestone, specifically reviewing factors such as the scientific, clinical, regulatory, commercial and other\plain\cf1\f51\fs20\ql risks that must be overcome to achieve the milestone as well as the level of effort and investment required. Accordingly, such\plain\cf1\f51\fs20\ql amounts will be recognized as revenue in full in the period in which the associated milestone is achieved, assuming all other\plain\cf1\f51\fs20\ql revenue recognition criteria are met. All commercial milestones will be recorded as revenue upon achievement of the milestone,\plain\cf1\f51\fs20\ql assuming all other revenue recognition criteria are met.\par\pard\plain\sb264\cf1\f51\fs20\ql During the three and six months ended June 30, 2017, the Company recognized revenue totaling approximately $16.6 million and\plain\cf1\f51\fs20\ql $37.5 million, respectively, with respect to the Otsuka U.S. Agreement. The revenue is classified as collaboration revenue in the\plain\cf1\f51\fs20\ql accompanying consolidated statement of operations. As of June 30, 2017, there is approximately $119.8 million of deferred\plain\cf1\f51\fs20\ql revenue related to the Otsuka U.S. Agreement of which $112.3 million is classified as current and $7.5 million is classified as\plain\cf1\f51\fs20\ql long-term in the accompanying consolidated balance sheet based on the performance period of the underlying obligations. During\plain\cf1\f51\fs20\ql the three months ended June 30, 2017, the Company did not incur any costs related to the cost-sharing provisions of the Otsuka\plain\cf1\f51\fs20\ql U.S. Agreement.\par\pard\plain\sb264\cf1\f51\fs20\ql The Company determined that the medical affairs and commercialization and non-promotional activities elements of the Otsuka\plain\cf1\f51\fs20\ql U.S. Agreement represent joint operating activities in which both parties are active participants and of which both parties are\plain\cf1\f51\fs20\ql exposed to significant risks and rewards that are dependent on the commercial success of the activities. Accordingly, the\plain\cf1\f51\fs20\ql Company is accounting for the joint medical affairs and commercialization and non-promotional activities in accordance with\plain\cf1\f51\fs20\ql ASC No. 808,\plain\cf1\f51\fs20\i\ql Collaborative Arrangements\plain\cf1\f51\fs20\ql (ASC 808). Additionally, the medical affairs and commercialization and\plain\cf1\f51\fs20\ql non-promotional activities were not deemed to be deliverables under ASC No. 605-25,\plain\cf1\f51\fs20\i\ql Revenue\plain\cf1\f51\fs20\i\ql Recognition\u8211?Multiple-Element Arrangements\plain\cf1\f51\fs20\ql (ASC 605-25). As a result, the activities conducted pursuant to the medical\plain\cf1\f51\fs20\ql affairs and commercialization and non-promotional activities plans will be accounted for as a component of the related expense\plain\cf1\f51\fs20\ql in the period incurred.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Otsuka Pharmaceutical Co. Ltd. EU Collaboration and License Agreement\par\pard\plain\sb132\cf1\f51\fs20\i\ql Summary of Agreement{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb132\cf1\f51\fs20\ql On April 25, 2017, the Company entered into a collaboration and license agreement with Otsuka, the Otsuka EU Agreement. The\plain\cf1\f51\fs20\ql collaboration is focused on the development and commercialization of vadadustat in Europe, Russia, China, Canada, Australia, the\par\pard\plain\sb264\cf1\f51\fs20\qc 17\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sb132\cf1\f51\fs20\ql Middle East and certain other territories, collectively, the Territory. Under the terms of the Otsuka EU Agreement, the Company\plain\cf1\f51\fs20\ql will continue to lead the development of vadadustat, including the ongoing global Phase 3 development program.\~\~Otsuka has the\plain\cf1\f51\fs20\ql sole responsibility, at its own cost, for the commercialization of vadadustat in the Territory, subject to the approval by the\plain\cf1\f51\fs20\ql relevant regulatory authorities.\par\pard\plain\sb264\cf1\f51\fs20\ql Under the terms of the Otsuka EU Agreement, the Company granted to Otsuka an exclusive, sublicensable license under certain\plain\cf1\f51\fs20\ql intellectual property controlled by the Company to develop and commercialize vadadustat and products containing or comprising\plain\cf1\f51\fs20\ql vadadustat in the Territory.\~\~\par\pard\plain\sb264\cf1\f51\fs20\ql Pursuant to the terms of the Otsuka EU Agreement, the Company is responsible for performing all activities related to the\plain\cf1\f51\fs20\ql development of vadadustat as outlined in the current global development plan; however, the parties may agree to allocate certain\plain\cf1\f51\fs20\ql responsibilities to Otsuka.\~\~The current global development plan encompasses all activities with respect to the ongoing\plain\cf1\f51\fs20\ql PRO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql TECT and INNO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql VATE program, as well as other studies, through the filing for regulatory approval. The current global\plain\cf1\f51\fs20\ql development plan also includes other derivative and ancillary studies.\~\~Under the Otsuka EU Agreement, the Company controls\plain\cf1\f51\fs20\ql and retains final decision-making authority with respect to the development of vadadustat other than with respect to certain\plain\cf1\f51\fs20\ql development matters specific to the Territory. Per the terms of the Otsuka EU Agreement, Otsuka is generally responsible for the\plain\cf1\f51\fs20\ql conduct of any development activities that may be required for regulatory approval in the Territory or otherwise performed with\plain\cf1\f51\fs20\ql respect to the Territory that are incremental to those included in the current global development plan.\~\~The Company\u8217?s\plain\cf1\f51\fs20\ql obligations related to the conduct of the current global development plan include the associated manufacturing and supply\plain\cf1\f51\fs20\ql services for vadadustat.\par\pard\plain\sb264\cf1\f51\fs20\ql Under the Otsuka EU Agreement, Otsuka is to be solely responsible for the conduct of all medical affairs and commercialization\plain\cf1\f51\fs20\ql activities in the Territory pursuant to underlying plans as reviewed and discussed by the parties. If approved by the relevant\plain\cf1\f51\fs20\ql jurisdictional regulatory health authorities in the Territory, the Company will provide vadadustat to Otsuka for commercialization\plain\cf1\f51\fs20\ql pursuant to a separate supply agreement to be negotiated.\par\pard\plain\sb264\cf1\f51\fs20\ql The activities under the Otsuka EU Agreement are governed by a JSC formed by up to a specified number of representatives\plain\cf1\f51\fs20\ql from the Company and Otsuka.\~\~The JSC coordinates and monitors the parties\u8217? activities under the collaboration.\~\~Among\plain\cf1\f51\fs20\ql other responsibilities, the JSC manages the overall strategic alignment between the parties, oversees the current global\plain\cf1\f51\fs20\ql development plan and reviews the other detailed plans setting forth any other development activities that may be conducted under\plain\cf1\f51\fs20\ql the arrangement.\~\~Additionally, the parties established a JDC which is be comprised of up to a specified number of\plain\cf1\f51\fs20\ql representatives from the Company and Otsuka.\~\~Among other responsibilities, the JDC shares information related to, and reviews\plain\cf1\f51\fs20\ql and discusses activities and progress under, the current global development plan and any other development that may be\plain\cf1\f51\fs20\ql conducted pursuant to the collaboration.\~\~The Company and Otsuka also established a joint manufacturing committee, or JMC,\plain\cf1\f51\fs20\ql which is comprised of up to a specified number of representatives from each of the parties.\~\~Among other responsibilities, the\plain\cf1\f51\fs20\ql JMC oversees the manufacturing plan and related manufacturing activities.\~\~In support of the potential commercialization of\plain\cf1\f51\fs20\ql vadadustat, the parties established a JCC which is comprised of up to a specified number of representatives from the Company\plain\cf1\f51\fs20\ql and Otsuka.\~\~Among other responsibilities, the JCC reviews and discusses the activities and progress under the commercialization\plain\cf1\f51\fs20\ql plan and all other sales and marketing activities.\~\~The Company has retained the final decision making authority with respect to\plain\cf1\f51\fs20\ql all development matters, other than decisions related to certain development matters specific to the Territory.\~\~Otsuka has retained\plain\cf1\f51\fs20\ql the final decision making authority with respect to all commercialization matters, other than decisions related to certain marketing\plain\cf1\f51\fs20\ql matters.\par\pard\plain\sb264\cf1\f51\fs20\ql Under the terms of the Otsuka EU Agreement, the Company received a $73.0 million up-front, non-refundable, non-creditable\plain\cf1\f51\fs20\ql cash payment.\~\~The Company also received a payment of approximately $0.2 million which represents reimbursement for\plain\cf1\f51\fs20\ql Otsuka\u8217?s share of costs previously incurred by the Company in implementing the current global development plan in\plain\cf1\f51\fs20\ql excess of a specified threshold during the quarter-ended March 31, 2017.\~\~Additionally, Otsuka will contribute a percentage of\plain\cf1\f51\fs20\ql the remaining costs to be incurred under the current global development plan subsequent to March 31, 2017.\~\~The Company\plain\cf1\f51\fs20\ql estimates that Otsuka\u8217?s funding of the current global development plan costs subsequent to March 31, 2017 will total\plain\cf1\f51\fs20\ql roughly $163.6 million.\~\~The costs associated with the performance of any mutually agreed upon development activities in\plain\cf1\f51\fs20\ql addition to those outlined in the current global development plan will be subject to a cost sharing or reimbursement mechanism\plain\cf1\f51\fs20\ql to be determined by the parties.\~\~Otsuka may elect to conduct additional studies of vadadustat in the EU, subject to the\plain\cf1\f51\fs20\ql Company\u8217?s right to delay such studies based on its objectives outside the Territory.\~\~Otsuka will pay a percentage of the\plain\cf1\f51\fs20\ql costs of any such studies, and the Company will pay its portion of the costs in the form of a credit against future amounts due to\plain\cf1\f51\fs20\ql the Company under the Otsuka EU Agreement. The costs incurred related to any other development activities, which are pursued\plain\cf1\f51\fs20\ql solely for obtaining or maintaining regulatory approval in the Territory or otherwise performed solely with respect to the\plain\cf1\f51\fs20\ql Territory that are incremental to the development activities included in the current global development plan will be borne in their\plain\cf1\f51\fs20\ql entirety by Otsuka. Otsuka will pay costs incurred with respect to medical affairs and commercialization activities in the\plain\cf1\f51\fs20\ql Territory.\~\~{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb264\cf1\f51\fs20\ql In addition, Otsuka would be required to make certain milestone payments to the Company upon the achievement of specified\plain\cf1\f51\fs20\ql development, regulatory and commercial events.\~\~More specifically, the Company is eligible to receive up to $80.0 million in\plain\cf1\f51\fs20\ql development milestone payments and up to $52.0 million in regulatory milestone payments for the first product to achieve the\plain\cf1\f51\fs20\ql associated event.\~\~Moreover, the Company is eligible for up to $525.0 million in commercial milestone payments associated with\par\pard\plain\sb264\cf1\f51\fs20\qc 18\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sb264\cf1\f51\fs20\ql aggregate sales of all products. Additionally, to the extent vadadustat is commercialized, the Company would be entitled to\plain\cf1\f51\fs20\ql receive tiered royalty payments ranging from the low double digits to the low thirties based on a percentage of net\plain\cf1\f51\fs20\ql sales.\~\~Royalties are due on a country-by-country basis from the date of the first commercial sale of a licensed product in a\plain\cf1\f51\fs20\ql country until the latest to occur of:\~\~(i) the expiration date in such country of the last to expire valid claim within the intellectual\plain\cf1\f51\fs20\ql property covering the licensed product, (ii) the date of expiration of data or regulatory exclusivity in such country or (iii) the\plain\cf1\f51\fs20\ql tenth anniversary of the first commercial sale of such licensed product in such country.\~\~Due to the uncertainty of pharmaceutical\plain\cf1\f51\fs20\ql development and the high historical failure rates associated therewith, no milestone or royalty payments may ever be received\plain\cf1\f51\fs20\ql from Otsuka.\~\~There are no cancellation, termination or refund provisions in the Otsuka EU Agreement that contain material\plain\cf1\f51\fs20\ql financial consequences to the Company.\par\pard\plain\sb264\cf1\f51\fs20\ql Unless earlier terminated, the Otsuka EU Agreement will expire upon the expiration of the royalty term in the last country in the\plain\cf1\f51\fs20\ql Territory.\~\~Either party may terminate the Otsuka EU Agreement in its entirety upon an uncured material breach or insolvency on\plain\cf1\f51\fs20\ql the part of the other party. Otsuka may terminate the Otsuka EU Agreement in its entirety or for a specific sub-division of the\plain\cf1\f51\fs20\ql Territory upon 12 months\u8217? prior written notice at any time after the release of the first topline data from either the\plain\cf1\f51\fs20\ql PRO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql TECT Phase 3 development program or the INNO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql VATE Phase 3 development program, whichever comes first. In the\plain\cf1\f51\fs20\ql event of termination of the Otsuka EU Agreement, all rights and licensees granted to Otsuka under the Otsuka U.S. Agreement\plain\cf1\f51\fs20\ql will automatically terminate and the licenses granted to the Company will become freely sublicensable, but potentially subject to\plain\cf1\f51\fs20\ql a future royalty.\~\~In addition, the upfront payment, all development costs and milestone payments received by the Company prior\plain\cf1\f51\fs20\ql to such termination will not be eligible for refund to Otsuka.\par\pard\plain\sb396\cf1\f51\fs20\i\qj Revenue Recognition\par\pard\plain\sb132\cf1\f51\fs20\ql The Company has accounted for the Otsuka EU Agreement separately from the collaboration arrangement with Otsuka with\plain\cf1\f51\fs20\ql respect to the U.S. due to the lack of interrelationship and interdependence of the elements and payment terms within each of the\plain\cf1\f51\fs20\ql contracts as it relates to the respective territories.\~\~Accordingly, the Company has applied the guidance in ASC No. 605-25,\plain\cf1\f51\fs20\i\ql Revenue Recognition\u8211?Multiple-Element Arrangements\plain\cf1\f51\fs20\ql (ASC 605-25) solely in reference to the terms and conditions of the\plain\cf1\f51\fs20\ql Otsuka EU Agreement, while the collaboration arrangement with Otsuka related to the U.S. has continued to be accounted for as\plain\cf1\f51\fs20\ql a discrete agreement in its own right.\~\~The Company evaluated the Otsuka EU Agreement in accordance with the provisions of\plain\cf1\f51\fs20\ql ASC 605-25.\~\~The Company\u8217?s arrangement with Otsuka related to the Territory contains the following deliverables:\~\~(i)\plain\cf1\f51\fs20\ql license under certain of the Company\u8217?s intellectual property to develop and commercialize (including the associated\plain\cf1\f51\fs20\ql packaging) vadadustat and products containing or comprising vadadustat (the License Deliverable), (ii) development services to\plain\cf1\f51\fs20\ql be performed pursuant to the current global development plan (the Development Services Deliverable), (iii) rights to future\plain\cf1\f51\fs20\ql intellectual property (the Future IP Deliverable) and (iv) joint committee services (the Committee Deliverable).\par\pard\plain\sb264\cf1\f51\fs20\ql The Company has identified three units of accounting in connection with its obligation under the Otsuka EU Agreement. Factors\plain\cf1\f51\fs20\ql considered in making this assessment included, among other things, the capabilities of the collaboration partner, whether any\plain\cf1\f51\fs20\ql other vendor sells the item separately, whether the value of the deliverable is dependent on the other elements in the arrangement,\plain\cf1\f51\fs20\ql whether there are other vendors that can provide the items and if the customer could use the item for its intended purpose\plain\cf1\f51\fs20\ql without the other deliverables in the arrangement.\~\~Additionally, the Otsuka EU Agreement does not include a general right of\plain\cf1\f51\fs20\ql return. The three units of accounting identified in connection with the Company\u8217?s obligations under the Otsuka EU\plain\cf1\f51\fs20\ql Agreement are as follows:\~\~ \par\pard\plain {\trowd\cellx432\cellx864\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\qj \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\qj (i)\cell\pard\plain\intbl\sb132\cf1\f51\fs20\i\qj License and Development Services Combined (License Unit of Accounting)\cell{ {\trowd\cellx432\cellx864\cellx10800\trrh382\row}}}\pard\plain\li198\sb132\cf1\f51\fs20\ql The License Deliverable does not qualify for separation from the Development Services Deliverable due to the\plain\li198\cf1\f51\fs20\ql contractual limitations inherent in the license conveyed.\~\~More specifically, Otsuka does not have the contractual right\plain\li198\cf1\f51\fs20\ql to manufacture vadadustat and products containing or comprising vadadustat.\~\~However, the manufacturing and supply\plain\li198\cf1\f51\fs20\ql services that are conducted as part of the services to be performed pursuant to the current global development plan\plain\li198\cf1\f51\fs20\ql are necessary for Otsuka to fully exploit the associated license for its intended purpose.\~\~The value of the rights\plain\li198\cf1\f51\fs20\ql provided through the license conveyed will be realized when the underlying products covered by the intellectual\plain\li198\cf1\f51\fs20\ql property progress through the development cycle, receive regulatory approval and are commercialized. Products\plain\li198\cf1\f51\fs20\ql containing or comprising vadadustat cannot be commercialized until the development services under the current\plain\li198\cf1\f51\fs20\ql global development plan are completed.\~\~Accordingly, Otsuka must obtain the manufacturing and supply of the\plain\li198\cf1\f51\fs20\ql associated products that is included within the development services to be performed pursuant to the current global\plain\li198\cf1\f51\fs20\ql development plan from the Company in order to derive benefit from the license which significantly limits the ability\plain\li198\cf1\f51\fs20\ql for Otsuka to utilize the License Deliverable for its intended purpose on a standalone basis.\~\~Therefore, the License\plain\li198\cf1\f51\fs20\ql Deliverable does not have standalone value from the Development Services Deliverable. As a result, the License\plain\li198\cf1\f51\fs20\ql Deliverable and the Development Services Deliverable have been combined as a single unit of accounting (the\plain\li198\cf1\f51\fs20\ql License Unit of Accounting).\~\~ \par\pard\plain {\trowd\cellx432\cellx864\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\qj \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\qj (ii)\cell\pard\plain\intbl\sb132\cf1\f51\fs20\i\qj Rights to Future Intellectual Property\cell{ {\trowd\cellx432\cellx864\cellx10800\trrh382\row}}}{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\pard\plain\li198\sb132\cf1\f51\fs20\ql The License Deliverable and the Development Services Deliverable qualify for separation from the Future IP\plain\li198\cf1\f51\fs20\ql Deliverable because Otsuka can obtain the value of the license using the clinical trial materials implicit in the\plain\li198\cf1\f51\fs20\ql development services without the receipt of any other intellectual property that may be discovered or developed in the\plain\li198\cf1\f51\fs20\ql future. The Future IP\par\pard\plain\sb264\cf1\f51\fs20\qc 19\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\li198\sb132\cf1\f51\fs20\li979\ql Deliverable qualifies for separation from the Committee Deliverable because the Committee Services Deliverable has\plain\li198\cf1\f51\fs20\ql no bearing on the value to be derived from the rights to potential future intellectual property. \par\pard\plain {\trowd\cellx432\cellx864\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\qj \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\qj (iii)\cell\pard\plain\intbl\sb132\cf1\f51\fs20\i\qj Joint Committee Services\cell{ {\trowd\cellx432\cellx864\cellx10800\trrh382\row}}}\pard\plain\li198\sb132\cf1\f51\fs20\ql The License Deliverable and the Development Services deliverable qualify for separation from the Committee\plain\li198\cf1\f51\fs20\ql Deliverable because Otsuka can obtain the value of the license using the clinical trial materials implicit in the\plain\li198\cf1\f51\fs20\ql development service without the joint committee services. The Committee Deliverable qualifies for separation from\plain\li198\cf1\f51\fs20\ql the Future IP Deliverable because the Committee Deliverable has no bearing on the value to be derived from the\plain\li198\cf1\f51\fs20\ql rights to potential future intellectual property.\par\pard\plain\sb264\cf1\f51\fs20\ql The Company has determined that neither VSOE of selling price nor TPE of selling price is available for any of the units of\plain\cf1\f51\fs20\ql accounting identified at inception of the arrangement with Otsuka.\~\~Accordingly, the selling price of each unit of accounting was\plain\cf1\f51\fs20\ql determined based on the Company\u8217?s BESP.\~\~The Company developed the BESP with the objective of determining the\plain\cf1\f51\fs20\ql price at which it would sell such an item if it were to be sold regularly on a standalone basis.\~\~In developing the BESP for the\plain\cf1\f51\fs20\ql Joint Committee Services Unit of Accounting, the Company considered the nature of the services to be performed and estimates\plain\cf1\f51\fs20\ql of the associated effort and rates applicable to such services that would be expected to be realized under similar contracts.\~\~The\plain\cf1\f51\fs20\ql Company developed the BESP for the Rights to Future Intellectual Property Unit of Accounting primarily based on the likelihood\plain\cf1\f51\fs20\ql that additional intellectual property covered by the license conveyed will be developed during the term of the arrangement.\~\~The\plain\cf1\f51\fs20\ql Company did not develop a BESP for the License Unit of Accounting due to the following:\~\~(i) the BESP associated with the\plain\cf1\f51\fs20\ql rights to future intellectual property unit of accounting was determined to be immaterial and (ii) the period of performance and\plain\cf1\f51\fs20\ql pattern of recognition for the License Unit of Accounting and the joint committee services unit of accounting was determined to\plain\cf1\f51\fs20\ql be similar.\~\~The Company has concluded that a change in the key assumptions used to determine the BESP for each unit of\plain\cf1\f51\fs20\ql accounting would not have a significant impact on the allocation of arrangement consideration.\par\pard\plain\sb264\cf1\f51\fs20\ql Allocable arrangement consideration at inception is comprised of:\~\~(i) the up-front payment of $73.0 million, (ii) the cost share\plain\cf1\f51\fs20\ql payment with respect to amounts incurred by the Company during the quarter ended March 31, 2017 of $0.2 million and (iii) an\plain\cf1\f51\fs20\ql estimate of the cost share payments to be received with respect to amounts incurred by the Company subsequent to March 31,\plain\cf1\f51\fs20\ql 2017 of $163.6 million. No amounts were allocated to the Rights to Future Intellectual Property Unit of Accounting because the\plain\cf1\f51\fs20\ql associated BESP was determined to be immaterial.\~\~Due to the similar performance period and recognition pattern between the\plain\cf1\f51\fs20\ql License Unit of Accounting and the Joint Committee Services Unit of Accounting, the arrangement consideration totaling $236.7\plain\cf1\f51\fs20\ql million has been allocated to the License Unit of Accounting and the Joint Committee Services Unit of Accounting on a\plain\cf1\f51\fs20\ql combined basis.\~\~Accordingly, the Company will recognize revenue related to the allocable arrangement consideration on a\plain\cf1\f51\fs20\ql proportional performance basis as the underlying development services are performed pursuant to the current global development\plain\cf1\f51\fs20\ql plan which is commensurate with the period and consistent with the pattern over which the Company\u8217?s obligations are\plain\cf1\f51\fs20\ql satisfied for both the License Unit of Accounting and the Joint Committee Services Unit of Accounting.\~\~Effectively, the\plain\cf1\f51\fs20\ql Company has treated the arrangement as if the License Unit of Accounting and the Joint Committee Services Unit of Accounting\plain\cf1\f51\fs20\ql are a single unit of accounting.\par\pard\plain\sb264\cf1\f51\fs20\ql The Company has evaluated all of the development, regulatory and commercial milestones that may be received in connection\plain\cf1\f51\fs20\ql with the Otsuka EU Agreement. In evaluating if a milestone is substantive, the Company assesses whether: (i) the consideration\plain\cf1\f51\fs20\ql is commensurate with either the Company\u8217?s performance to achieve the milestone or the enhancement of the value of the\plain\cf1\f51\fs20\ql delivered item(s) as a result of a specific outcome resulting from the Company\u8217?s performance to achieve the milestone, (ii)\plain\cf1\f51\fs20\ql the consideration relates solely to past performance, and (iii) the consideration is reasonable relative to all of the deliverables and\plain\cf1\f51\fs20\ql payment terms within the arrangement. All development and regulatory milestones are considered substantive on the basis of the\plain\cf1\f51\fs20\ql contingent nature of the milestone, specifically reviewing factors such as the scientific, clinical, regulatory, commercial and other\plain\cf1\f51\fs20\ql risks that must be overcome to achieve the milestone as well as the level of effort and investment required. Accordingly, such\plain\cf1\f51\fs20\ql amounts will be recognized as revenue in full in the period in which the associated milestone is achieved, assuming all other\plain\cf1\f51\fs20\ql revenue recognition criteria are met.\~\~All commercial milestones will be accounted for in the same manner as royalties and\plain\cf1\f51\fs20\ql recorded as revenue upon achievement of the milestone, assuming all other revenue recognition criteria are met.\~\~The Company\plain\cf1\f51\fs20\ql will recognize royalty revenue in the period of sale of the related product(s), based on the underlying contract terms, provided\plain\cf1\f51\fs20\ql that the reported sales are reliably measurable and the Company has no remaining performance obligations, assuming all other\plain\cf1\f51\fs20\ql revenue recognition criteria are met.\par\pard\plain\sb264\cf1\f51\fs20\ql During the three and six months ended June 30, 2017, the Company recognized revenue totaling approximately $11.9 million\plain\cf1\f51\fs20\ql with respect to the Otsuka EU Agreement.\~\~The revenue is classified as collaboration revenue in the accompanying consolidated\plain\cf1\f51\fs20\ql statement of operations.\~\~As of June 30, 2017, there is approximately $73.4 million of deferred revenue related to the Otsuka EU\plain\cf1\f51\fs20\ql Agreement of which $30.1 million is classified as current and $43.3 million is classified as long-term in the accompanying\plain\cf1\f51\fs20\ql consolidated balance sheet based on the performance period of the underlying obligations.\par\pard\plain\sb264\cf1\f51\fs20\qc 20\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Janssen Pharmaceutica NV Research and License Agreement\par\pard\plain\sb132\cf1\f51\fs20\i\ql Summary of Agreement\par\pard\plain\sb132\cf1\f51\fs20\ql In February 2017, the Company entered into a Research and License Agreement, the Janssen Agreement, with Janssen\plain\cf1\f51\fs20\ql Pharmaceutica NV, one of the Janssen Pharmaceutical Companies of Johnson and Johnson, Janssen, pursuant to which Janssen\plain\cf1\f51\fs20\ql granted the Company an exclusive license under certain intellectual property rights to develop and commercialize worldwide\plain\cf1\f51\fs20\ql certain HIF-PH targeted compounds.\par\pard\plain\sb264\cf1\f51\fs20\ql Under the terms of the Janssen Agreement, Janssen granted to the Company a license for a three-year research term to conduct\plain\cf1\f51\fs20\ql research on the HIF compound portfolio, unless the Company elects to extend such research term for up to two additional\plain\cf1\f51\fs20\ql one-year periods upon payment of an extension fee. During the research term, the Company may designate one or more\plain\cf1\f51\fs20\ql compounds as candidates for development and commercialization. Once a compound is designated for development and\plain\cf1\f51\fs20\ql commercialization, the Company will be solely responsible for the development and commercialization of the compound\plain\cf1\f51\fs20\ql worldwide at its own cost and expense. The Janssen Agreement includes a license to develop and commercialize AKB-5169, a\plain\cf1\f51\fs20\ql preclinical compound in development as an oral treatment for inflammatory bowel disease, or IBD.\par\pard\plain\sb264\cf1\f51\fs20\ql Under the terms of the Janssen Agreement, the Company made an upfront payment of $1.0 million in cash to Janssen and issued\plain\cf1\f51\fs20\ql a warrant to purchase 509,611 share of the Company\u8217?s common stock, the fair value of which was approximately $3.4\plain\cf1\f51\fs20\ql million, the total of which was recorded in research and development expenses for the three months ended March 31, 2017. In\plain\cf1\f51\fs20\ql addition, Janssen could be eligible to receive up to an aggregate of $16.5 million from the Company in specified development\plain\cf1\f51\fs20\ql milestone payments on a product-by-product basis. Janssen will also be eligible to receive up to $215.0 million from the\plain\cf1\f51\fs20\ql Company in specified commercial milestones as well as tiered, escalating royalties ranging from a low to mid-single digit\plain\cf1\f51\fs20\ql percentage of net sales, on a product-by-product basis.\par\pard\plain\sb264\cf1\f51\fs20\ql Unless earlier terminated, the Janssen Agreement will expire on a product-by-product and country-by-country basis upon the\plain\cf1\f51\fs20\ql expiration of the last royalty term, which ends upon the longer of the expiry of the patents licensed under the Janssen Agreement,\plain\cf1\f51\fs20\ql the expiry of regulatory exclusivity for such product, or 10 years from first commercial sale of such product. The Company may\plain\cf1\f51\fs20\ql terminate the Janssen Agreement in its entirety or only with respect to a particular licensed compound or product upon 180\plain\cf1\f51\fs20\ql days\u8217? prior written notice to Janssen. The parties also have customary termination rights, subject to a cure period, in the\plain\cf1\f51\fs20\ql event of the other party\u8217?s material breach of the Janssen Agreement or in the event of certain additional circumstances.\par\pard\plain\sb264\cf1\f51\fs20\ql As discussed above, the Company issued a Common Stock Purchase Warrant, the Warrant, to Johnson & Johnson Innovation\plain\cf1\f51\fs20\ql \u8211? JJDC, Inc., or JJDC, an affiliate of Janssen, for 509,611 shares of the Company\u8217?s common stock at an exercise\plain\cf1\f51\fs20\ql price of $9.81 per share. The Warrant is exercisable by JJDC, in whole or in part, at any time prior to the fifth anniversary of the\plain\cf1\f51\fs20\ql date of issuance. The Warrant and the shares issuable upon exercise of the Warrant will be sold and issued without registration\plain\cf1\f51\fs20\ql under the Securities Act of 1933, or the Securities Act. The Company recorded the fair value of the warrant in the amount of\plain\cf1\f51\fs20\ql $3.4 million to additional paid in capital and research and development expense in March 2017.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Vifor (International) Ltd. License Agreement\par\pard\plain\sb132\cf1\f51\fs20\i\ql Summary of Agreement\par\pard\plain\sb132\cf1\f51\fs20\ql In May 2017, the Company entered into a License Agreement with Vifor (International) Ltd., or Vifor, the Vifor Agreement,\plain\cf1\f51\fs20\ql pursuant to which the Company will grant Vifor an exclusive license to sell vadadustat solely to Fresenius Kidney Care Group\plain\cf1\f51\fs20\ql LLC, or FKC, an affiliate of Fresenius Medical Care North America, in the United States (the \u8220?Territory\u8221?).\par\pard\plain\sb264\cf1\f51\fs20\ql The parties\u8217? rights under the Vifor Agreement are conditioned upon the approval of vadadustat for DD-CKD patients by\plain\cf1\f51\fs20\ql the FDA, inclusion of vadadustat in a bundled reimbursement model, and payment by Vifor of a $20.0\~million milestone upon\plain\cf1\f51\fs20\ql the occurrence of these two events. The Vifor Agreement is structured as a profit share arrangement between the Company and\plain\cf1\f51\fs20\ql Vifor in which the Company will receive a majority of the profit from Vifor\u8217?s sales of vadadustat to FKC in the Territory.\plain\cf1\f51\fs20\ql The Company will share the milestone payment and the revenue from the profit share with Otsuka pursuant to the Otsuka U.S\plain\cf1\f51\fs20\ql Agreement. The Company retains all rights to commercialize vadadustat for use in the\~NDD-CKD market and in other dialysis\plain\cf1\f51\fs20\ql organizations in the Territory, which will be done in collaboration with Otsuka following FDA approval.\par\pard\plain\sb264\cf1\f51\fs20\ql Prior to FDA approval of vadadustat, the Company and Vifor will enter into a commercial supply agreement for vadadustat\plain\cf1\f51\fs20\ql pursuant to which the Company will supply all of Vifor\u8217?s requirements for vadadustat in the Territory. In addition, Vifor\plain\cf1\f51\fs20\ql will enter into a supply agreement with FKC that will govern the terms pursuant to which Vifor will supply vadadustat to FKC\plain\cf1\f51\fs20\ql for use in patients at its dialysis centers. During the term of the Vifor Agreement, Vifor will not sell to FKC or its affiliates any\plain\cf1\f51\fs20\ql HIF product that competes with vadadustat in the Territory.\par\pard\plain\sb264\cf1\f51\fs20\qc 21\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb264\cf1\f51\fs20\ql Unless earlier terminated, the Vifor Agreement will expire upon the later of the expiration of all patents that claim or cover\plain\cf1\f51\fs20\ql vadadustat, or expiration of data or regulatory exclusivity for vadadustat in the Territory. Vifor may terminate the Vifor\plain\cf1\f51\fs20\ql Agreement in its entirety upon 12 months\u8217? prior written notice after the release of the first topline data in the vadadustat\plain\cf1\f51\fs20\ql global Phase 3 program for dialysis-dependent CKD patients. Either party may terminate the Vifor Agreement in the event of the\plain\cf1\f51\fs20\ql other party\u8217?s uncured material breach. The Company may also terminate the Vifor Agreement upon the occurrence of\plain\cf1\f51\fs20\ql other events, such as for specific violations of the Vifor Agreement or if there are changes in Vifor\u8217?s relationship with\plain\cf1\f51\fs20\ql FKC.\par\pard\plain\sb396\cf1\f51\fs20\i\ql Investment Agreement\par\pard\plain\sb132\cf1\f51\fs20\ql In connection with the Vifor Agreement, in May 2017, the Company and Vifor entered into an investment agreement, the\plain\cf1\f51\fs20\ql Investment Agreement, pursuant to which the Company sold an aggregate of 3,571,429 shares of common stock, the Shares, par\plain\cf1\f51\fs20\ql value $0.00001 per share, to Vifor at a price per share of $14.00 for a total of $50.0\~million dollars.\~\~The amount representing the\plain\cf1\f51\fs20\ql premium over the closing stock price of $12.69 on the date of the transaction, totaling $4.7 million, was determined by the\plain\cf1\f51\fs20\ql Company to represent consideration related to the Vifor Agreement.\~ As the parties\u8217? rights under the Vifor Agreement are\plain\cf1\f51\fs20\ql conditioned upon (a) the approval of vadadustat for DD-CKD patients by the FDA; (b) inclusion of vadadustat in a bundled\plain\cf1\f51\fs20\ql reimbursement model; and (c) payment by Vifor of a $20.0\~million milestone upon the occurrence of these two events, in\plain\cf1\f51\fs20\ql accordance with ASC 605, the Company cannot currently determine the extent of its responsibility to supply all of Vifor\u8217?s\plain\cf1\f51\fs20\ql requirements for vadadustat in the Territory.\~\~Accordingly, the $4.7 million is recorded as deferred revenue in the accompanying\plain\cf1\f51\fs20\ql consolidated balance sheets.\~\~Upon the satisfaction of the aforementioned conditions, revenue will be recognized as the Company\plain\cf1\f51\fs20\ql supplies vadadustat to Vifor using a proportional performance method.\~\~\par\pard\plain\sb264\cf1\f51\fs20\ql Vifor has agreed to a\~lock-up\~restriction such that it agrees not to sell its shares for a period of time following the effective date\plain\cf1\f51\fs20\ql of the Investment Agreement as well as a customary standstill agreement. In addition, the Investment Agreement contains voting\plain\cf1\f51\fs20\ql agreements made by Vifor with respect to the Shares. The Shares have not been registered pursuant to Securities Act of 1933, the\plain\cf1\f51\fs20\ql \u8220?Act\u8221?, and were issued and sold in reliance upon the exemption from registration contained in Section 4(a)(2) of the\plain\cf1\f51\fs20\ql Act and Rule 506 promulgated thereunder.\par\pard\plain\cf1\f51\fs18\ql \~\par\pard\plain\cf1\f51\fs18\ql \~\par\pard\plain\cf1\f51\fs20\b\ql 4. Available for sale securities\par\pard\plain\sb132\cf1\f51\fs20\ql Available for sale securities at June 30, 2017 and December\~31, 2016 consist of the following\plain\cf1\f51\fs20\ql :\par\pard\plain\cf1\f51\fs20\ql \~ \par\pard\plain {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4001\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4639\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5458\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5553\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5642\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6843\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6938\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7027\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8228\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8334\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8423\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8799\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9618\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh289 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f62\fs22\b\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\b\qc \~\cell\pard\plain\intbl\cf1\f62\fs22\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Gross\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Gross\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f62\fs22\b\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\b\qc \~\cell\pard\plain\intbl\cf1\f62\fs22\b\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4001\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4639\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5458\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5553\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5642\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6843\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6938\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7027\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8228\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8334\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8423\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8799\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9618\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh289\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4001\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4639\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5458\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5553\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5642\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6843\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6938\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7027\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8228\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8334\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8423\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8799\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9618\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh215 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Unrealized\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Unrealized\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4001\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4639\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5458\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5553\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5642\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6843\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6938\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7027\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8228\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8334\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8423\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8799\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9618\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh215\row}}} {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4001\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5459\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5554\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5643\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6844\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6939\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7028\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8229\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8335\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8424\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9620\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh215 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Amortized\~Cost\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Gains\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Losses\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Fair\~Value\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4001\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5459\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5554\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5643\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6844\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6939\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7028\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8229\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8335\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8424\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9620\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh215\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4001\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9623\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh215 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc (in thousands)\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4001\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9623\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh215\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4001\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4090\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4639\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5458\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5553\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5642\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6025\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6843\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6938\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7027\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7410\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8228\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8334\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8423\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8799\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9618\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh264 \pard\plain\intbl\cf1\f51\fs20\b\ql June\~30, 2017\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4001\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4090\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4639\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5458\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5553\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5642\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6025\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6843\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6938\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7027\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7410\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8228\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8334\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8423\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8799\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9618\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh264\row}}} {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4001\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4639\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5458\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5553\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5642\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6025\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6843\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6938\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7027\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7410\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8228\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8334\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8423\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8799\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9618\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Cash and cash equivalents\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 125,390\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 125,390\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4001\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4639\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5458\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5553\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5642\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6025\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6843\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6938\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7027\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7410\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8228\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8334\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8423\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8799\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9618\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4001\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4090\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4639\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5458\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5553\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5642\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6025\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6843\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6938\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7027\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7410\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8228\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8334\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8423\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8799\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9618\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql Available for sale securities:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4001\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4090\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4639\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5458\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5553\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5642\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6025\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6843\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6938\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7027\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7410\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8228\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8334\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8423\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8799\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9618\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh281\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4001\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4639\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5458\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5553\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5642\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6843\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6938\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7027\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8228\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8334\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8423\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8799\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9618\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Certificates of deposit\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 14,855\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 14,855\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4001\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4639\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5458\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5553\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5642\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6843\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6938\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7027\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8228\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8334\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8423\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8799\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9618\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4001\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4090\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4639\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5458\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5553\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5642\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6843\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6938\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7027\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7410\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8228\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8334\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8423\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8799\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9618\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql U.S. Government debt securities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 128,413\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (187\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 128,226\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4001\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4090\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4639\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5458\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5553\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5642\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6843\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6938\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7027\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7410\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8228\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8334\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8423\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8799\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9618\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh264\row}}} {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4001\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4639\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5458\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5553\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5642\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6025\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6843\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6938\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7027\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7410\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8228\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8334\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8423\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8799\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9618\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Corporate debt securities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 52,810\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (66\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 52,744\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4001\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4639\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5458\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5553\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5642\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6025\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6843\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6938\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7027\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7410\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8228\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8334\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8423\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8799\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9618\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264\row}}} {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4001\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4090\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4639\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5458\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5553\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5642\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6025\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6843\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6938\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7027\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7410\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8228\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8334\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8423\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8799\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9618\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql Total available for sale securities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 196,078\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (253\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 195,825\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4001\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4090\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4639\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5458\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5553\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5642\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6025\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6843\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6938\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7027\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7410\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8228\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8334\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8423\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8799\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9618\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh281\row}}} {\trowd\trqc\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4001\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4639\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5458\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5553\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5642\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6025\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6843\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6938\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7027\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7410\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8228\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8334\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8423\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8799\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9618\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh512 \pard\plain\intbl\cf1\f51\fs20\ql Total cash, cash equivalents, and available for\plain\intbl\cf1\f51\fs20\ql sale securities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 321,468\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (253\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 321,215\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4001\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4639\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5458\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5553\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5642\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6025\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6843\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6938\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7027\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7410\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8228\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8334\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8423\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8799\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9618\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh512\row}}}\pard\plain\sb44\cf1\f51\fs24\ql \~ \par\pard\plain {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4001\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4639\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5458\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5553\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5642\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6843\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6938\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7027\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8228\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8334\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8423\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8799\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9618\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh289 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f62\fs22\b\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\b\qc \~\cell\pard\plain\intbl\cf1\f62\fs22\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Gross\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Gross\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f62\fs22\b\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\b\qc \~\cell\pard\plain\intbl\cf1\f62\fs22\b\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4001\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4639\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5458\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5553\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5642\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6843\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6938\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7027\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8228\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8334\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8423\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8799\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9618\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh289\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4001\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4639\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5458\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5553\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5642\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6843\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6938\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7027\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8228\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8334\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8423\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8799\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9618\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh215 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Unrealized\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Unrealized\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4001\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4639\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5458\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5553\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5642\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6843\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6938\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7027\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8228\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8334\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8423\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8799\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9618\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh215\row}}} {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4001\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5459\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5554\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5643\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6844\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6939\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7028\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8229\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8335\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8424\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9620\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh215 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Amortized\~Cost\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Gains\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Losses\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Fair\~Value\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4001\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5459\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5554\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5643\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6844\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6939\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7028\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8229\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8335\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8424\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9620\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh215\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4001\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9623\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh215 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc (in thousands)\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4001\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9623\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh215\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4001\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4090\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4639\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5458\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5553\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5642\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6025\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6843\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6938\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7027\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7410\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8228\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8334\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8423\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8799\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9618\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh264 \pard\plain\intbl\cf1\f51\fs20\b\ql December\~31, 2016\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4001\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4090\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4639\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5458\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5553\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5642\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6025\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6843\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6938\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7027\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7410\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8228\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8334\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8423\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8799\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9618\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh264\row}}} {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4001\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4639\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5458\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5553\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5642\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6025\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6843\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6938\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7027\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7410\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8228\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8334\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8423\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8799\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9618\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Cash and cash equivalents\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 187,335\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 187,335\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4001\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4639\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5458\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5553\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5642\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6025\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6843\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6938\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7027\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7410\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8228\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8334\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8423\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8799\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9618\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4001\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4090\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4639\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5458\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5553\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5642\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6025\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6843\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6938\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7027\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7410\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8228\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8334\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8423\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8799\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9618\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql Available for sale securities:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4001\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4090\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4639\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5458\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5553\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5642\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6025\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6843\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6938\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7027\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7410\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8228\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8334\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8423\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8799\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9618\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh281\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4001\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4639\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5458\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5553\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5642\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6843\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6938\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7027\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7410\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8228\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8334\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8423\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8799\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9618\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Certificates of deposit\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 12,698\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 12,698\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4001\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4639\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5458\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5553\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5642\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6843\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6938\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7027\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7410\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8228\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8334\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8423\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8799\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9618\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4001\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4090\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4639\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5458\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5553\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5642\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6843\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6938\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7027\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7410\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8228\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8334\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8423\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8799\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9618\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql U.S. Government debt securities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 50,952\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (32\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 50,920\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4001\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4090\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4639\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5458\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5553\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5642\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6843\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6938\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7027\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7410\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8228\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8334\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8423\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8799\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9618\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh264\row}}} {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4001\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4639\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5458\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5553\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5642\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6843\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6938\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7027\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7410\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8228\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8334\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8423\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8799\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9618\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Corporate debt securities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 9,398\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (8\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 9,390\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4001\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4639\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5458\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5553\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5642\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6843\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6938\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7027\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7410\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8228\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8334\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8423\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8799\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9618\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264\row}}} {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4001\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4090\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4639\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5458\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5553\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5642\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6025\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6843\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6938\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7027\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7410\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8228\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8334\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8423\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8799\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9618\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql Total available for sale securities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 73,048\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (40\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 73,008\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4001\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4090\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4639\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5458\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5553\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5642\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6025\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6843\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6938\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7027\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7410\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8228\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8334\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8423\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8799\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9618\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh281\row}}} {\trowd\trqc\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4001\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4639\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5458\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5553\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5642\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6025\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6843\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6938\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7027\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7410\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8228\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8334\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8423\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8799\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9618\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh512 \pard\plain\intbl\cf1\f51\fs20\ql Total cash, cash equivalents, and available for\plain\intbl\cf1\f51\fs20\ql sale securities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 260,383\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (40\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 260,343\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4001\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4090\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4639\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5458\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5553\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5642\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6025\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6843\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6938\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7027\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7410\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8228\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8334\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8423\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8799\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9618\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh512\row}}}\pard\plain\sb264\cf1\f51\fs20\qc 22\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sb44\cf1\f51\fs24\ql \~\par\pard\plain\cf1\f51\fs20\ql The estimated fair value of the Company\u8217?s available for sale securities balance at June 30, 2017, by contractual maturity,\plain\cf1\f51\fs20\ql is as follows:\par\pard\plain\cf1\f51\fs20\ql \~ \par\pard\plain {\trowd\trqc\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4122\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4315\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4455\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6389\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6480\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Due in one year or less\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 191,182\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4122\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4315\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4455\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6389\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6480\trrh264\row}}} {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4122\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4315\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4455\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6389\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6480\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Due after one year\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 4,643\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4122\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4315\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4455\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6389\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6480\trrh264\row}}} {\trowd\trqc\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4122\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4315\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4455\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6389\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6480\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql Total available for sale securities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 195,825\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4122\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4315\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4455\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6389\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6480\trrh281\row}}}\pard\plain\cf1\f51\fs18\ql \~\par\pard\plain\cf1\f51\fs18\ql \~\par\pard\plain\cf1\f51\fs20\b\ql 5. Fair Value of Financial Instruments\par\pard\plain\sb132\cf1\f51\fs20\ql The Company utilizes a portfolio management company for the valuation of the majority of its investments. This company is an\plain\cf1\f51\fs20\ql independent, third-party vendor recognized to be an industry leader with access to market information that obtains or computes\plain\cf1\f51\fs20\ql fair market values from quoted market prices, pricing for similar securities, recently executed transactions, cash flow models with\plain\cf1\f51\fs20\ql yield curves and other pricing models. For valuations obtained from the pricing service, the Company performs due diligence to\plain\cf1\f51\fs20\ql understand how the valuation was calculated or derived, focusing on the valuation technique used and the nature of the inputs.\par\pard\plain\sb264\cf1\f51\fs20\ql Based on the fair value hierarchy, the Company classifies its cash equivalents and marketable securities within Level\~1 or\plain\cf1\f51\fs20\ql Level\~2. This is because the Company values its cash equivalents and marketable securities using quoted market prices or\plain\cf1\f51\fs20\ql alternative pricing sources and models utilizing market observable inputs.\par\pard\plain\sb264\cf1\f51\fs20\ql Assets measured or disclosed at fair value on a recurring basis as of June30, 2017 and December 31, 2016 are summarized\plain\cf1\f51\fs20\ql below:\par\pard\plain\cf1\f51\fs20\ql \~ \par\pard\plain {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4599\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4692\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9622\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Fair Value Measurements Using\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4599\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4692\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9622\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264\row}}} {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4599\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4692\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5797\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5893\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5987\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7092\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7188\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7282\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8387\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8483\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8577\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9618\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh232 \pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Level\~1\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Level\~2\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Level\~3\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Total\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4599\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4692\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5797\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5893\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5987\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7092\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7188\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7282\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8387\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8483\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8577\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9618\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh232\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4599\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4692\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9622\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh215 \pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc (in thousands)\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4599\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4692\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9622\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh215\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4599\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4692\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4948\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5797\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5893\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5987\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6243\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7092\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7188\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7282\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7538\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8386\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8482\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8576\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8768\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9617\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh264 \pard\plain\intbl\cf1\f51\fs20\b\ql June\~30, 2017\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4599\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4692\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4948\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5797\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5893\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5987\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6243\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7092\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7188\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7282\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7538\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8386\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8482\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8576\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8768\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9617\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh264\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4599\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4692\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4948\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5797\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5893\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5987\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6243\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7092\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7188\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7282\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7538\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8386\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8482\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8576\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8768\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9617\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Assets:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4599\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4692\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4948\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5797\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5893\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5987\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6243\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7092\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7188\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7282\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7538\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8386\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8482\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8576\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8768\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9617\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4599\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4692\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4948\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5797\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5893\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5987\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6243\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7092\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7188\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7282\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7538\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8386\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8482\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8576\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8768\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9617\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Cash and cash equivalents\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 125,390\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 125,390\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4599\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4692\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4948\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5797\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5893\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5987\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6243\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7092\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7188\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7282\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7538\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8386\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8482\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8576\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8768\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9617\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh264\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4599\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4692\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4948\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5797\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5893\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5987\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6243\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7092\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7188\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7282\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7538\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8386\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8482\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8576\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8768\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9617\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Certificates of deposit\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 14,855\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 14,855\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4599\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4692\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4948\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5797\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5893\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5987\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6243\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7092\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7188\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7282\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7538\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8386\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8482\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8576\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8768\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9617\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4599\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4692\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4948\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5797\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5893\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5987\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6243\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7092\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7188\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7282\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7538\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8386\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8482\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8576\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8768\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9617\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql U.S. Government debt securities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 128,226\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 128,226\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4599\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4692\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4948\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5797\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5893\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5987\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6243\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7092\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7188\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7282\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7538\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8386\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8482\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8576\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8768\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9617\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh264\row}}} {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4599\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4692\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4948\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5797\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5893\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5987\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6243\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7092\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7188\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7282\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7538\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8386\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8482\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8576\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8768\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9617\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Corporate debt securities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 52,744\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 52,744\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4599\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4692\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4948\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5797\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5893\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5987\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6243\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7092\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7188\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7282\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7538\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8386\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8482\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8576\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8768\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9617\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264\row}}} {\trowd\trqc\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4599\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4692\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4948\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5797\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5893\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5987\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6243\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7092\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7188\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7282\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7538\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8386\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8482\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8576\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8768\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9617\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 125,390\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 195,825\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 321,215\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4599\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4692\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4948\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5797\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5893\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5987\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6243\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7092\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7188\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7282\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7538\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8386\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8482\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8576\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8768\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9617\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh281\row}}}\pard\plain\sb44\cf1\f51\fs24\ql \~ \par\pard\plain {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4600\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4693\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9622\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Fair Value Measurements Using\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4600\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4693\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9622\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264\row}}} {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4600\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4693\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5798\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5894\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5988\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7093\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7189\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7283\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8388\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8484\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8578\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9619\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh232 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Level\~1\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Level\~2\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Level\~3\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Total\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4600\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4693\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5798\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5894\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5988\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7093\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7189\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7283\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8388\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8484\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8578\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9619\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh232\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4600\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4693\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9622\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh215 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc (in thousands)\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4600\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4693\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9622\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh215\row}}} {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4600\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4693\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4949\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5798\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5894\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5988\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6244\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7092\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7188\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7282\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7538\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8386\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8482\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8576\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8768\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9617\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh264 \pard\plain\intbl\cf1\f51\fs20\b\ql December\~31, 2016\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx4600\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4693\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4949\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5798\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5894\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5988\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6244\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7092\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7188\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7282\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7538\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8386\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8482\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8576\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8768\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9617\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh264\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4600\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4693\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4949\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5798\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5894\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5988\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6244\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7092\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7188\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7282\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7538\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8386\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8482\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8576\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8768\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9617\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Assets:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4600\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4693\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4949\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5798\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5894\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5988\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6244\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7092\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7188\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7282\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7538\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8386\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8482\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8576\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8768\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9617\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4600\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4693\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4949\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5798\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5894\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5988\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6244\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7092\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7188\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7282\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7538\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8386\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8482\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8576\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8768\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9617\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Cash and cash equivalents\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 187,335\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 187,335\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4600\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4693\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4949\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5798\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5894\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5988\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6244\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7092\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7188\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7282\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7538\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8386\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8482\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8576\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8768\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9617\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh264\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4600\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4693\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4949\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5798\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5894\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5988\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6244\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7092\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7188\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7282\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7538\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8386\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8482\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8576\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8768\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9617\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Certificates of deposit\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 12,698\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 12,698\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4600\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4693\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4949\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5798\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5894\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5988\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6244\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7092\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7188\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7282\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7538\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8386\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8482\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8576\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8768\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9617\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4600\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4693\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4949\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5798\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5894\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5988\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6244\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7092\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7188\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7282\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7538\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8386\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8482\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8576\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8768\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9617\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql U.S. Government debt securities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 50,920\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 50,920\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4600\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4693\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4949\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5798\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5894\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5988\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6244\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7092\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7188\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7282\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7538\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8386\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8482\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8576\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8768\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9617\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh264\row}}} {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4600\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4693\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4949\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5798\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5894\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5988\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6244\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7092\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7188\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7282\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7538\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8386\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8482\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8576\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8768\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9617\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264 \pard\plain\intbl\li286\cf1\f51\fs20\ql Corporate debt securities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 9,390\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 9,390\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4600\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4693\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4949\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5798\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5894\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5988\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6244\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7092\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7188\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7282\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7538\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8386\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8482\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8576\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8768\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9617\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9720\trrh264\row}}} {\trowd\trqc\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4600\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4693\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4949\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5798\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5894\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5988\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6244\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7092\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7188\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7282\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7538\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8386\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8482\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8576\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8768\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9617\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 187,335\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 73,008\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 260,343\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4600\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4693\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4949\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5798\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5894\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5988\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6244\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7092\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7188\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7282\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7538\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8386\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8482\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8576\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8768\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9617\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9720\trrh281\row}}}\pard\plain\cf1\f51\fs24\ql \~\par\pard\plain\sb44\cf1\f51\fs20\ql The Company\u8217?s corporate debt securities are all investment grade.\par\pard\plain\sb44\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\ql The Company had no assets or liabilities measured at fair value on a recurring basis using significant unobservable inputs\plain\cf1\f51\fs20\ql (Level\~3) at June 30, 2017 and December\~31, 2016.\par\pard\plain\sb264\cf1\f51\fs20\ql Investment securities are exposed to various risks such as interest rate, market and credit risks. Due to the level of risk associated\plain\cf1\f51\fs20\ql with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is at least\plain\cf1\f51\fs20\ql reasonably possible that changes in risks in the near term would result in material changes in the fair value of investments.\par\pard\plain\cf1\f51\fs18\ql \~\par\pard\plain\cf1\f51\fs18\ql \~\par\pard\plain\sb264\cf1\f51\fs20\qc 23\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\cf1\f51\fs20\b\ql 6. Accrued Expenses\par\pard\plain\sb132\cf1\f51\fs20\ql Accrued expenses are as follows:\par\pard\plain\cf1\f51\fs20\ql \~ \par\pard\plain {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4014\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4089\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5605\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5695\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5770\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7468\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7560\trrh215 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June\~30, 2017\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc December\~31, 2016\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4014\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4089\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5605\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5695\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5770\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7468\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7560\trrh215\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4014\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4089\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7469\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7560\trrh215 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc (in thousands)\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4014\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4089\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7469\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7560\trrh215\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4014\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4089\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4383\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5605\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5695\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5770\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6246\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7468\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7560\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Accrued clinical expenses\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 22,576\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 23,643\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4014\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4089\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4383\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5605\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5695\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5770\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6246\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7468\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7560\trrh264\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4014\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4089\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4383\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5605\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5695\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5770\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6246\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7468\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7560\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Accrued bonus\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 1,750\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 2,995\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4014\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4089\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4383\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5605\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5695\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5770\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6246\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7468\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7560\trrh264\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4014\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4089\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4383\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5605\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5695\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5770\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6246\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7468\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7560\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Accrued professional fees\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 761\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 539\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4014\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4089\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4383\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5605\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5695\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5770\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6246\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7468\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7560\trrh264\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4014\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4089\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4383\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5605\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5695\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5770\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6246\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7468\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7560\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Accrued vacation\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 681\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 513\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4014\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4089\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4383\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5605\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5695\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5770\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6246\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7468\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7560\trrh264\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4014\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4089\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4383\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5605\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5695\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5770\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6246\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7468\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7560\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Accrued payroll\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 646\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 596\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4014\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4089\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4383\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5605\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5695\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5770\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6246\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7468\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7560\trrh264\row}}} {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4014\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4089\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4383\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5605\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5695\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5770\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6246\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7468\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7560\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Accrued other\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 2,437\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 1,975\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4014\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4089\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4383\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5605\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5695\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5770\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6246\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7468\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7560\trrh264\row}}} {\trowd\trqc\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4014\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4089\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4383\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5605\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5695\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5770\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6246\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7468\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7560\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql Total accrued expenses\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 28,851\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 30,261\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4014\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4089\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4383\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5605\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5695\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5770\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6246\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7468\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7560\trrh281\row}}}\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\sb176\cf1\f51\fs20\b\ql 7. Warrant\par\pard\plain\cf1\f51\fs12\b\ql \~\par\pard\plain\cf1\f51\fs20\ql In connection with the Janssen Agreement, in February 2017 the Company issued a warrant to purchase 509,611 shares of the\plain\cf1\f51\fs20\ql Company\u8217?s common stock at an exercise price of $9.81 per share.\~\~The warrant is fully vested upon issuance and\plain\cf1\f51\fs20\ql exercisable in whole or in part, at any time prior to the fifth anniversary of the date of issuance. The warrant satisfied the equity\plain\cf1\f51\fs20\ql classification criteria of ASC 815, and is therefore classified as an equity instrument.\~\~The fair value at issuance of $3.4 million\plain\cf1\f51\fs20\ql was calculated using the Black Scholes option pricing model and was charged to research and development expense as it\plain\cf1\f51\fs20\ql represented consideration for a license for which the underlying intellectual property was deemed to have no alternative future\plain\cf1\f51\fs20\ql use. As of June 30, 2017, the warrant remains outstanding and expires on February 9, 2022.\par\pard\plain\cf1\f51\fs18\ql \~\par\pard\plain\sb198\cf1\f51\fs20\b\ql 8. Stockholders\u8217? Equity\par\pard\plain\sb132\cf1\f51\fs20\b\i\ql Authorized and Outstanding Capital Stock\par\pard\plain\sb132\cf1\f51\fs20\ql As of June 30, 2017, the authorized capital stock of the Company included 175,000,000 shares of common stock, par value\plain\cf1\f51\fs20\ql $0.00001 per share, of which 42,490,957 and 38,615,709 shares are issued and outstanding at June 30, 2017 and December 31,\plain\cf1\f51\fs20\ql 2016, respectively; and 25,000,000 shares of undesignated preferred stock, par value $0.00001 per share, of which 0 shares are\plain\cf1\f51\fs20\ql issued and outstanding at June 30, 2017 and December 31, 2016.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Equity Plans\par\pard\plain\sb132\cf1\f51\fs20\ql On February\~28, 2014, the Company\u8217?s Board of Directors adopted its 2014 Incentive Plan (the \u8220?2014 Plan\u8221?)\plain\cf1\f51\fs20\ql and its 2014 Employee Stock Purchase Plan (the \u8220?ESPP\u8221?), which were subsequently approved by its stockholders\plain\cf1\f51\fs20\ql and became effective upon the closing of the Company\u8217?s initial public offering IPO on March\~25, 2014. The 2014 Plan\plain\cf1\f51\fs20\ql replaced the 2008 Equity Incentive Plan (as amended, the \u8220?2008 Plan\u8221?), however, options or other awards granted\plain\cf1\f51\fs20\ql under the 2008 Plan prior to the adoption of the 2014 Plan that have not been settled or forfeited remain outstanding and\plain\cf1\f51\fs20\ql effective. In May 2016 the Company\u8217?s Board of Directors approved an inducement award program that was separate from\plain\cf1\f51\fs20\ql the Company\u8217?s equity plans and which, consistent with NASDAQ listing rules, did not require shareholder approval (the\plain\cf1\f51\fs20\ql 2016 program and similar programs, each an \u8220?Inducement Award Program\u8221?) under which 350,000 shares were\plain\cf1\f51\fs20\ql reserved to be issued in 2016 and awards relating to 255,000 shares were granted and remain eligible to vest. The Company\plain\cf1\f51\fs20\ql continues to grant inducement awards to new hires under a 2017 authorization.\par\pard\plain\sb264\cf1\f51\fs20\ql The 2014 Plan allows for the granting of stock options, stock appreciation rights (SARs), restricted stock, unrestricted stock,\plain\cf1\f51\fs20\ql restricted stock units (RSUs), performance awards and other awards convertible into or otherwise based on shares of our common\plain\cf1\f51\fs20\ql stock. Dividend equivalents may also be provided in connection with an award under the 2014 Plan. The Company\u8217?s\plain\cf1\f51\fs20\ql employees, officers, directors and consultants and advisors are eligible to receive awards under the 2014 Plan. The Company\plain\cf1\f51\fs20\ql initially reserved 1,785,000 shares of its common stock for the issuance of awards under the 2014 Plan. The 2014 Plan provides\plain\cf1\f51\fs20\ql that the number of shares reserved and available for issuance under the 2014 Plan will automatically increase annually on\plain\cf1\f51\fs20\ql January\~1\plain\cf1\f51\fs15\ql\super st\plain\cf1\f51\fs20\ql of each calendar year, by an amount equal to three percent (3%)\~of the number of shares of stock outstanding on a\plain\cf1\f51\fs20\ql fully diluted basis as of the close of business on the immediately preceding December\~31\plain\cf1\f51\fs15\ql\super st\plain\cf1\f51\fs20\ql (the \u8220?2014 Plan Evergreen\plain\cf1\f51\fs20\ql Provision\u8221?). The Company\u8217?s Board of Directors may act prior to January\~1\plain\cf1\f51\fs15\ql\super st\plain\cf1\f51\fs20\ql of any year to provide that there will\plain\cf1\f51\fs20\ql be no automatic increase in the number of shares available for grant under the 2014 Plan for that year (or that the increase will\plain\cf1\f51\fs20\ql be less than the amount that would otherwise have automatically been made). During the first six months of 2017, the Company\plain\cf1\f51\fs20\ql granted 1,043,900 stock options to employees, of which 324,500 were granted under the Inducement Award program, 439,900\plain\cf1\f51\fs20\ql RSUs to employees and 87,500 stock options to directors under the 2014 Plan.\~\~{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb264\cf1\f51\fs20\ql The ESPP provides for the issuance of options to purchase shares of the Company\u8217?s common stock to participating\plain\cf1\f51\fs20\ql employees at a discount to their fair market value. The maximum aggregate number of shares of common stock available for\plain\cf1\f51\fs20\ql purchase pursuant to the exercise of options granted under the ESPP will be the lesser of (a) 262,500 shares, increased on each\plain\cf1\f51\fs20\ql anniversary of the adoption of\par\pard\plain\sb264\cf1\f51\fs20\qc 24\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sb264\cf1\f51\fs20\ql the ESPP by one percent (1%) of the total shares of common stock then outstanding (the \u8220?ESPP Evergreen\plain\cf1\f51\fs20\ql Provision\u8221?) and (b) 739,611 shares (which is equal to five percent (5%) of the total shares of common stock outstanding\plain\cf1\f51\fs20\ql on the date of the adoption of the ESPP on a fully diluted, as converted basis. Under the ESPP, each offering period is six\plain\cf1\f51\fs20\ql months, at the end of which employees may purchase shares of common stock through payroll deductions made over the term of\plain\cf1\f51\fs20\ql the offering. The per-share purchase price at the end of each offering period is equal to the lesser of eighty-five percent (85%)\plain\cf1\f51\fs20\ql of the closing price of our common stock at the beginning or end of the offering period.\~\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Shares Reserved for Future Issuance\par\pard\plain\sb132\cf1\f51\fs20\ql The Company has reserved for future issuance the following number of shares of common stock:\par\pard\plain\cf1\f51\fs20\ql \~ \par\pard\plain {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3875\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4015\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5535\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5625\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5765\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7467\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7560\trrh215 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June\~30, 2017\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc December\~31, 2016\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3875\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4015\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5535\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5625\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5765\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7467\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7560\trrh215\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3875\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4015\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4309\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5535\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5625\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5765\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6241\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7467\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7560\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql Common stock options and RSU's outstanding\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 4,856,871\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 3,579,694\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3875\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4015\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4309\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5535\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5625\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5765\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6241\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7467\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7560\trrh281\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3875\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4015\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4309\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5535\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5625\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5765\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6241\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7467\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7560\trrh512 \pard\plain\intbl\cf1\f51\fs20\ql Shares available for issuance under the 2014\plain\intbl\cf1\f51\fs20\ql Plan \plain\intbl\cf1\f51\fs18\ql\super (1)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 739,579\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 885,328\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3875\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4015\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4309\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5535\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5625\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5765\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6241\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7467\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7560\trrh512\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3875\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4015\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4309\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5535\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5625\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5765\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6241\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7467\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7560\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Warrant to purchase common stock\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 509,611\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3875\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4015\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4309\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5535\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5625\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5765\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6241\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7467\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7560\trrh264\row}}} {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3875\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4015\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4309\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5535\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5625\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5765\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6241\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7467\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7560\trrh512 \pard\plain\intbl\cf1\f51\fs20\ql Shares available for issuance under the ESPP\plain\intbl\cf1\f51\fs18\ql\super (2)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 677,762\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 803,105\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3875\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4015\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4309\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5535\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5625\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5765\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6241\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7467\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7560\trrh512\row}}} {\trowd\trqc\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3875\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4015\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4309\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5535\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5625\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5765\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6241\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7467\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7560\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql Total\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 6,783,823\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 5,268,127\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3875\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4015\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4309\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5535\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5625\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5765\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6241\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7467\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7560\trrh281\row}}}\pard\plain\cf1\f51\fs24\ql \~ \par\pard\plain {\trowd\cellx432\cellx864\cellx10800\trrh540 \pard\plain\intbl\sb44\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb44\cf1\f51\fs18\ql\super (1)\cell\pard\plain\intbl\sb44\cf1\f51\fs20\ql On January 1, 2017 and January 1, 2016, the shares reserved for future grants under the 2014 Plan increased by\plain\intbl\cf1\f51\fs20\ql 1,265,863 and 986,800 shares, respectively pursuant to the 2014 Plan Evergreen Provision.\cell{ {\trowd\cellx432\cellx864\cellx10800\trrh540\row}}} \par\pard\plain {\trowd\cellx432\cellx864\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs18\ql\super (2)\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql On February 28, 2016, the shares reserved for future issuance under the ESPP increased by 273,404 shares pursuant to\plain\intbl\cf1\f51\fs20\ql the ESPP Evergreen Provision.\cell{ {\trowd\cellx432\cellx864\cellx10800\trrh630\row}}}\pard\plain\sb396\cf1\f51\fs20\b\i\ql Stock-Based Compensation\par\pard\plain\sb132\cf1\f51\fs20\b\ql Stock Options\par\pard\plain\sb132\cf1\f51\fs20\ql On February 21, 2017, as part of the Company\u8217?s annual grant of equity, the Company issued 719,400 stock options to\plain\cf1\f51\fs20\ql employees. In addition, the Company issues stock options to new hires and occasionally to other employees not in connection\plain\cf1\f51\fs20\ql with the annual grant process.\~\~Options granted by the Company vest over periods of between 12 and 48 months, subject, in each\plain\cf1\f51\fs20\ql case, to the individual\u8217?s continued service through the applicable vesting date. Options vest in installments of (i)\~25% at\plain\cf1\f51\fs20\ql the one year anniversary and (ii)\~in either 36 or 48 equal monthly or 12 equal quarterly installments beginning in the thirteenth\plain\cf1\f51\fs20\ql month after the initial vesting commencement date or grant date, subject to the individual\u8217?s continuous service with the\plain\cf1\f51\fs20\ql Company. Options generally expire ten years after the date of grant. The Company recorded approximately $1.7 million and\plain\cf1\f51\fs20\ql approximately $1.0 million of stock-based compensation expense related to stock options during the three months ended June 30,\plain\cf1\f51\fs20\ql 2017 and 2016, respectively and approximately $3.3 million and $2.1 million during the six months ended June 30, 2017 and\plain\cf1\f51\fs20\ql 2016, respectively.\par\pard\plain\sb396\cf1\f51\fs20\b\ql Restricted Stock\par\pard\plain\sb132\cf1\f51\fs20\ql On December\~23, 2013, the Company issued 450,224 shares of restricted stock to employees and 79,067 shares of restricted stock\plain\cf1\f51\fs20\ql to non-employees at a grant date fair value of $7.42 per share.\~\~The aggregate grant date fair value for the shares of restricted\plain\cf1\f51\fs20\ql stock issued on December 23, 2013 totaled approximately $3.9 million. The awards of restricted stock contained a performance\plain\cf1\f51\fs20\ql condition wherein vesting is contingent upon the Company\u8217?s consummation of a liquidity event, as defined, prior to the\plain\cf1\f51\fs20\ql fifth anniversary of the date of grant. Certain of the awards of restricted stock have a requisite service period that was complete\plain\cf1\f51\fs20\ql upon grant. The remainder of the awards of restricted stock have a requisite service period of four years whereby the award vests\plain\cf1\f51\fs20\ql 25% on the one year anniversary of the Vesting Commencement Date (as defined), then ratably on the first day of each calendar\plain\cf1\f51\fs20\ql quarter for 12 quarters, subject to continuous service by the individual and achievement of the performance target. Due to the\plain\cf1\f51\fs20\ql nature of the performance condition, the Company had concluded that the performance condition was not probable of\plain\cf1\f51\fs20\ql achievement and therefore, recognition of compensation cost had been deferred until the occurrence of a liquidity event, as\plain\cf1\f51\fs20\ql defined.\~\~Compensation expense related to the restricted stock awards is being recognized over the associated requisite service\plain\cf1\f51\fs20\ql period which commenced on March 25, 2014. The Company recorded approximately $49,000 and $27,000 of stock-based\plain\cf1\f51\fs20\ql compensation expense related to restricted stock during the three months ended June 30, 2017 and 2016, respectively and\plain\cf1\f51\fs20\ql approximately $0.1 million and $13,000 during the six months ended June 30, 2017 and 2016, respectively, as a result of mark to\plain\cf1\f51\fs20\ql market adjustments related to non-employees.\~\~\par\pard\plain\sb396\cf1\f51\fs20\b\ql Restricted Stock Units{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb132\cf1\f51\fs20\ql On February 21, 2017, as part of the Company\u8217?s annual grant of equity, the Company issued 423,650 RSUs to\plain\cf1\f51\fs20\ql employees.\~\~In addition, the Company occasionally issues RSUs not in connection with the annual grant process to employees.\plain\cf1\f51\fs20\ql 100% of each RSU grant vests on the third anniversary of the grant date, subject, in each case, to the individual\u8217?s\plain\cf1\f51\fs20\ql continued service through the applicable vesting date. Total stock-compensation expense to be recognized over the life of the\plain\cf1\f51\fs20\ql RSUs is $2.9 million and will be recognized on a straight-\par\pard\plain\sb264\cf1\f51\fs20\qc 25\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sb132\cf1\f51\fs20\ql line basis over the vesting period. The Company recorded approximately $0.6 million and $0.2 million of stock-based\plain\cf1\f51\fs20\ql compensation expense related to the RSUs during the three months ended June 30, 2017 and 2016, respectively, and\plain\cf1\f51\fs20\ql approximately $1.1 million and $0.3 million during the six months ended June 30, 2017 and 2016, respectively.\par\pard\plain\sb396\cf1\f51\fs20\b\ql Employee Stock Purchase Plan\par\pard\plain\sb132\cf1\f51\fs20\ql The first offering period under the ESPP opened on January 2, 2015.\~\~The Company issued 19,317 shares during the first quarter\plain\cf1\f51\fs20\ql of 2017.\~\~The Company recorded approximately $42,000\~\~and $16,000 of stock-based compensation expense related to ESPP\plain\cf1\f51\fs20\ql during the three months ended June 30, 2017 and 2016, respectively and approximately $0.1 million and $47,000 during the six\plain\cf1\f51\fs20\ql months ended June 30, 2017 and 2016, respectively.\par\pard\plain\sb396\cf1\f51\fs20\b\ql Stock-Based Compensation Expense Summary\par\pard\plain\sb132\cf1\f51\fs20\ql The Company has classified its stock-based compensation expense related to share-based awards as follows:\par\pard\plain\cf1\f51\fs20\ql \~ \par\pard\plain {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5299\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5406\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7942\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8049\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8154\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10690\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Three months ended\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Six months ended\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5299\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5406\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7942\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8049\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8154\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10690\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5299\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5406\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6566\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6673\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6780\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7940\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8047\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8152\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9312\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9419\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9526\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10686\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh232 \pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June 30, 2017\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June 30, 2016\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June 30, 2017\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June 30, 2016\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5299\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5406\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6566\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6673\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6780\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7940\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8047\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8152\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9312\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9419\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9526\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10686\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh232\row}}} {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5299\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5406\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7942\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8049\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8154\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10690\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh215 \pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc (in thousands)\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc (in thousands)\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5299\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5406\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7942\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8049\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8154\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10690\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh215\row}}} {\trowd\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5299\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5406\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5606\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6566\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6673\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6780\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6980\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7940\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8047\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8152\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8352\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9312\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9419\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9526\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9726\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10686\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh289 \pard\plain\intbl\cf1\f51\fs20\ql Research and development\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 997\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 365\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 5,171\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 757\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5299\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5406\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5606\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6566\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6673\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6780\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6980\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7940\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8047\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8152\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8352\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9312\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9419\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9526\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9726\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10686\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh289\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5299\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5406\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5606\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6566\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6673\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6780\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6980\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7940\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8047\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8152\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8352\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9312\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9419\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9526\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9726\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10686\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh289 \pard\plain\intbl\cf1\f51\fs20\ql General and administrative\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 1,508\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 857\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 2,762\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 1,716\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5299\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5406\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5606\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6566\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6673\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6780\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6980\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7940\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8047\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8152\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8352\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9312\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9419\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9526\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9726\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10686\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh289\row}}} {\trowd\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5299\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5406\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5606\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6566\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6673\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6780\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6980\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7940\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8047\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8152\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8352\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9312\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9419\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9526\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9726\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10686\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh289 \pard\plain\intbl\cf1\f51\fs20\ql Total\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 2,505\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 1,222\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 7,933\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 2,473\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{ {\trowd\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5299\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5406\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5606\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6566\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6673\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6780\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6980\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7940\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8047\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8152\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8352\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9312\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9419\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9526\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9726\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10686\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh289\row}}}\pard\plain\cf1\f51\fs24\ql \~\par\pard\plain\sb44\cf1\f51\fs20\ql Compensation expense by type of award:\par\pard\plain\cf1\f51\fs20\ql \~ \par\pard\plain {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5286\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5393\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7938\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8045\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8150\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10690\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Three months ended\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Six months ended\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5286\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5393\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7938\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8045\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8150\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10690\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5286\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5393\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6557\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6664\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6771\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7935\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8042\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8147\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9307\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9414\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9521\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10685\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh232 \pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June 30, 2017\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June 30, 2016\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June 30, 2017\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June 30, 2016\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5286\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5393\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6557\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6664\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6771\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7935\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8042\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8147\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9307\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9414\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9521\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10685\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh232\row}}} {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5286\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5393\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7938\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8045\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8150\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10690\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh215 \pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc (in thousands)\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc (in thousands)\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5286\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5393\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7938\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8045\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8150\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10690\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh215\row}}} {\trowd\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5286\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5393\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5593\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6557\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6664\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6771\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6971\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7935\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8042\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8147\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8347\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9307\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9414\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9521\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9721\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10685\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh289 \pard\plain\intbl\cf1\f51\fs20\ql Stock options\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 1,747\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 1,021\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 3,322\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 2,149\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5286\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5393\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5593\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6557\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6664\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6771\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6971\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7935\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8042\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8147\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8347\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9307\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9414\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9521\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9721\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10685\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh289\row}}} {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5286\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5393\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5593\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6557\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6664\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6771\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6971\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7935\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8042\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8147\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8347\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9307\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9414\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9521\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9721\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10685\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh289 \pard\plain\intbl\cf1\f51\fs20\ql Restricted stock\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 57\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 27\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 65\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 13\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5286\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5393\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5593\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6557\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6664\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6771\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6971\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7935\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8042\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8147\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8347\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9307\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9414\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9521\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9721\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10685\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh289\row}}} {\trowd\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5286\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5393\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5593\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6557\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6664\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6771\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6971\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7935\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8042\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8147\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8347\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9307\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9414\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9521\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9721\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10685\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh289 \pard\plain\intbl\cf1\f51\fs20\ql Restricted stock units\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 659\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 158\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 1,050\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 264\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5286\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5393\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5593\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6557\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6664\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6771\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6971\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7935\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8042\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8147\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8347\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9307\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9414\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9521\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9721\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10685\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh289\row}}} {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5286\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5393\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5593\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6557\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6664\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6771\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6971\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7935\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8042\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8147\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8347\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9307\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9414\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9521\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9721\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10685\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh289 \pard\plain\intbl\cf1\f51\fs20\ql Employee stock purchase plan\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 42\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 16\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 83\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 47\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5286\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5393\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5593\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6557\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6664\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6771\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6971\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7935\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8042\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8147\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8347\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9307\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9414\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9521\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9721\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10685\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh289\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5286\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5393\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5593\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6557\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6664\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6771\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6971\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7935\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8042\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8147\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8347\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9307\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9414\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9521\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9721\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10685\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh289 \pard\plain\intbl\cf1\f51\fs20\ql Warrant\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 3,413\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5286\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5393\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5593\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6557\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6664\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6771\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6971\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7935\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8042\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8147\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8347\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9307\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9414\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9521\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9721\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10685\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh289\row}}} {\trowd\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5286\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5393\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5593\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6557\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6664\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6771\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6971\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7935\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8042\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8147\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8347\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9307\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9414\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9521\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9721\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10685\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh289 \pard\plain\intbl\cf1\f51\fs20\ql Total\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 2,505\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 1,222\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 7,933\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 2,473\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{ {\trowd\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5286\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5393\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5593\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6557\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6664\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6771\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6971\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7935\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8042\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8147\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8347\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9307\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9414\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9521\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9721\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10685\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh289\row}}}\pard\plain\cf1\f51\fs18\ql \~\par\pard\plain\cf1\f51\fs18\ql \~\par\pard\plain\cf1\f51\fs20\b\ql 9. Income Taxes\par\pard\plain\sb132\cf1\f51\fs20\ql Deferred tax assets and deferred tax liabilities are recognized based on temporary differences between the financial reporting and\plain\cf1\f51\fs20\ql tax basis of assets and liabilities using statutory rates. A valuation allowance is recorded against deferred tax assets if it is more\plain\cf1\f51\fs20\ql likely than not that some or all of the deferred tax assets will not be realized. There were no significant income tax provisions or\plain\cf1\f51\fs20\ql benefits for the three months ended June 30, 2017 and 2016. Due to the uncertainty surrounding the realization of the favorable\plain\cf1\f51\fs20\ql tax attributes in future tax returns, the Company has recorded a full valuation allowance against the Company\u8217?s otherwise\plain\cf1\f51\fs20\ql recognizable net deferred tax assets.\par\pard\plain\cf1\f51\fs18\ql \~\par\pard\plain\cf1\f51\fs18\ql \~\par\pard\plain\cf1\f51\fs20\b\ql 10. Commitments and Contingencies\par\pard\plain\sb132\cf1\f51\fs20\ql The Company leases approximately 45,362 square feet of office and lab space in Cambridge, Massachusetts under a lease which\plain\cf1\f51\fs20\ql was most recently amended in July 2016, collectively, the Lease.\~\~Total monthly lease payments for base rent are approximately\plain\cf1\f51\fs20\ql $242,000 per month which is subject to annual rent escalations.\~In addition to such annual rent escalations, base rent payments\plain\cf1\f51\fs20\ql for a portion of said premises commenced on January 1, 2017 in the monthly amount of approximately $22,000.\~\~Landlord\plain\cf1\f51\fs20\ql contributions included in the Lease from the landlord totaled $2,169,920, including $70,526 in leasehold improvements not yet\plain\cf1\f51\fs20\ql utilized.\~\~The landlord contributions are being accounted for as a deferred lease incentive and reduction in monthly rent expense\plain\cf1\f51\fs20\ql over the term of the Lease. The term of the Lease with respect to the office space expires on September 11, 2026, with one five\plain\cf1\f51\fs20\ql year extension option available.\~\~The term of the Lease for the lab space is five years, with an extension option for one additional\plain\cf1\f51\fs20\ql period of two years. The total security deposit in connection with the Lease of $1,280,857 is included in other assets in the\plain\cf1\f51\fs20\ql Company\u8217?s condensed consolidated balance sheets as of June 30, 2017 and December 31, 2016.\~\~\par\pard\plain\sb264\cf1\f51\fs20\ql The Company recognizes rent expense and records a deferred lease obligation representing the cumulative difference between\plain\cf1\f51\fs20\ql actual facility lease payments and lease expense recognized ratably over the lease period, which is included in the\plain\cf1\f51\fs20\ql Company\u8217?s condensed consolidated balance sheets as of June 30, 2017 and December 31, 2016.\~\par\pard\plain\sb264\cf1\f51\fs20\qc 26\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb264\cf1\f51\fs20\ql The Company leases office equipment under three year capital leases with payments commencing in February\~2014, April 2015\plain\cf1\f51\fs20\ql and February 2016, respectively.\~\~The capital lease amounts are included in accrued expenses and other liabilities.\~\~\~\~\~\~\par\pard\plain\sb264\cf1\f51\fs20\ql At June 30, 2017, the Company\u8217?s future minimum payments required under these leases are as follows:\par\pard\plain\cf1\f51\fs20\ql \~ \par\pard\plain {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2956\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3060\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3421\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4459\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4565\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4669\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6088\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6194\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6298\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7727\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7833\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7937\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8200\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9147\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9253\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9357\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9549\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10685\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh215 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Lease Payments\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2956\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3060\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3421\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4459\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4565\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4669\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6088\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6194\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6298\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7727\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7833\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7937\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8200\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9147\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9253\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9357\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9549\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10685\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh215\row}}} {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx2956\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3060\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4459\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4565\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4669\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6088\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6194\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6298\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7727\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7833\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7937\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9147\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9253\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9357\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9549\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10685\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh215 \pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Operating\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc to be Received\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Net Operating\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Capital\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx2956\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3060\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4459\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4565\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4669\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6088\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6194\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6298\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7727\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7833\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7937\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9147\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9253\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9357\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9549\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10685\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh215\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx2956\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3060\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4459\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4565\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4669\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6088\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6194\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6298\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7727\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7833\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7937\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9147\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9253\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9357\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10686\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh215 \pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Lease\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc from Sublease\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Lease Payments\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Lease\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Total\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx2956\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3060\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4459\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4565\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4669\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6088\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6194\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6298\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7727\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7833\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7937\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9147\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9253\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9357\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10686\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh215\row}}} {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx2956\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3060\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7730\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7836\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7940\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8203\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9150\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9256\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9360\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9552\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10688\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh232 \pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc (in thousands)\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx2956\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3060\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7730\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7836\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7940\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8203\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9150\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9256\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9360\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9552\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10688\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh232\row}}} {\trowd\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx2956\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3060\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3421\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4459\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4565\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4669\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5042\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6088\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6194\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6298\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6689\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7727\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7833\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7937\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8200\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9147\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9253\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9357\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9549\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10685\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql 2017\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 1,773\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 129\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 1,644\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 4\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 1,648\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx2956\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3060\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3421\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4459\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4565\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4669\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5042\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6088\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6194\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6298\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6689\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7727\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7833\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7937\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8200\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9147\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9253\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9357\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9549\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10685\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx2956\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3060\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3421\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4459\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4565\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4669\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5042\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6088\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6194\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6298\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6689\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7727\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7833\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7937\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8200\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9147\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9253\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9357\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9549\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10685\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql 2018\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 3,545\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 257\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 3,288\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 5\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 3,293\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx2956\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3060\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3421\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4459\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4565\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4669\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5042\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6088\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6194\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6298\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6689\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7727\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7833\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7937\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8200\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9147\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9253\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9357\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9549\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10685\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx2956\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3060\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3421\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4459\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4565\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4669\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5042\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6088\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6194\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6298\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6689\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7727\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7833\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7937\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8200\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9147\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9253\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9357\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9549\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10685\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql 2019\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 3,545\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 3,545\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 3,545\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx2956\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3060\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3421\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4459\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4565\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4669\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5042\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6088\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6194\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6298\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6689\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7727\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7833\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7937\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8200\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9147\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9253\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9357\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9549\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10685\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx2956\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3060\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3421\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4459\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4565\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4669\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5042\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6088\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6194\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6298\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6689\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7727\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7833\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7937\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8200\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9147\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9253\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9357\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9549\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10685\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql 2020\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 3,545\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 3,545\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 3,545\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx2956\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3060\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3421\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4459\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4565\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4669\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5042\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6088\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6194\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6298\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6689\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7727\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7833\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7937\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8200\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9147\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9253\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9357\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9549\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10685\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx2956\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3060\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3421\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4459\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4565\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4669\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5042\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6088\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6194\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6298\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6689\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7727\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7833\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7937\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8200\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9147\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9253\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9357\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9549\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10685\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql 2021\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 3,510\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 3,510\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 3,510\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx2956\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3060\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3421\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4459\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4565\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4669\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5042\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6088\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6194\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6298\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6689\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7727\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7833\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7937\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8200\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9147\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9253\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9357\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9549\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10685\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx2956\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3060\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3421\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4459\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4565\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4669\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5042\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6088\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6194\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6298\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6689\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7727\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7833\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7937\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8200\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9147\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9253\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9357\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9549\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10685\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Thereafter\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 14,666\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 14,666\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 14,666\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx2956\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3060\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3421\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4459\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4565\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4669\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5042\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6088\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6194\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6298\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6689\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7727\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7833\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7937\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8200\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9147\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9253\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9357\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9549\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10685\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx2956\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3060\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3421\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4459\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4565\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4669\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5042\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6088\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6194\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6298\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6689\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7727\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7833\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7937\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8200\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9147\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9253\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9357\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9549\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10685\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql Total\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 30,584\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 386\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 30,198\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 9\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 30,207\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx2956\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3060\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3421\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4459\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4565\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4669\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5042\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6088\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6194\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6298\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6689\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7727\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7833\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7937\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8200\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9147\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9253\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9357\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9549\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10685\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx2956\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3060\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3421\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4459\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4565\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4669\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5042\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6088\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6194\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6298\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6689\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7727\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7833\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7937\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8200\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9147\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9253\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9357\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9549\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10685\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh315 \pard\plain\intbl\cf1\f51\fs20\ql Less amount representing interest\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx2956\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3060\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3421\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4459\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4565\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4669\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5042\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6088\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6194\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6298\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx6689\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7727\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7833\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7937\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8200\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9147\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9253\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9357\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9549\clbrdrt\brdrdb\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10685\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh315\row}}} {\trowd\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx2956\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3060\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3421\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4459\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4565\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4669\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5042\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6088\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6194\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6298\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6689\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7727\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7833\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7937\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8200\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9147\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9253\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9357\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9549\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10685\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh512 \pard\plain\intbl\cf1\f51\fs20\ql Present value of minimum lease\par\pard\plain\intbl\cf1\f51\fs20\ql \~\~ payments at June 30, 2017\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 9\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{ {\trowd\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx2956\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3060\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3421\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4459\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4565\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4669\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5042\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6088\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6194\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6298\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx6689\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7727\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7833\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7937\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8200\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9147\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9253\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9357\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9549\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10685\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh512\row}}}\pard\plain\sb44\cf1\f51\fs20\ql \~\par\pard\plain\sb44\cf1\f51\fs20\ql The Company recorded approximately $0.8 million and $0.7 million in rent expense for the three months ended June 30, 2017\plain\cf1\f51\fs20\ql and 2016, respectively and approximately $1.6 million and $1.0 million for the six months ended June 30, 2017 and 2016,\plain\cf1\f51\fs20\ql respectively.\par\pard\plain\sb264\cf1\f51\fs20\ql Under the Company\u8217?s agreement with a subsidiary of Quintiles IMS Holdings, Inc., or Quintiles, to provide services for\plain\cf1\f51\fs20\ql the PRO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql TECT and INNO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql VATE programs, the total remaining contract costs as of June 30, 2017 were approximately $334.7\plain\cf1\f51\fs20\ql million. The estimated period of performance for the committed work with Quintiles is through the fourth quarter of 2019.\~\~The\plain\cf1\f51\fs20\ql Company contracts with various other organizations to conduct research and development activities with remaining contract costs\plain\cf1\f51\fs20\ql to the Company of approximately $26.5 million and $24.9 million at June 30, 2017 and December\~31, 2016, respectively. The\plain\cf1\f51\fs20\ql scope of the services under these research and development contracts can be modified and the contracts cancelled by the\plain\cf1\f51\fs20\ql Company upon written notice. In some instances, the contracts may be cancelled by the third party upon written notice.\par\pard\plain\sb264\cf1\f51\fs20\ql The Company has had a number of positive developments in its opposition and invalidity proceedings against FibroGen, Inc., or\plain\cf1\f51\fs20\ql FibroGen.\~With regard to the opposition that the Company filed in Europe against FibroGen\u8217?s European Patent No.\plain\cf1\f51\fs20\ql 1463823, or the \u8217?823 patent, an oral proceeding took place March 8 and 9, 2016. Following the oral proceeding, the\plain\cf1\f51\fs20\ql European Opposition Division ruled that the patent as granted did not meet the requirements for patentability under the European\plain\cf1\f51\fs20\ql Patent Convention and, therefore, revoked the patent in its entirety.\~FibroGen has appealed that decision and the appeal process is\plain\cf1\f51\fs20\ql expected to take 2 to 3 years. Likewise, with regard to the invalidity proceeding that the Company filed in Japan against certain\plain\cf1\f51\fs20\ql claims of FibroGen\u8217?s Japanese Patent No. 4804131, or the \u8217?131 patent, which is the Japanese counterpart to the\plain\cf1\f51\fs20\ql \u8217?823 patent, the Japan Patent Office, or JPO, issued a preliminary decision finding all of the challenged claims to be\plain\cf1\f51\fs20\ql invalid.\~FibroGen subsequently amended the claims and the JPO accepted the amendments. The resulting FibroGen Japanese\plain\cf1\f51\fs20\ql \u8217?131 patent does not cover vadadustat or any pyridine carboxamide compounds. To date, FibroGen has been unsuccessful\plain\cf1\f51\fs20\ql in its attempts to obtain a patent in the United States covering the same claim scope as it obtained initially in Europe and Japan\plain\cf1\f51\fs20\ql in the \u8217?823 and \u8217?131 patents.\~In the event FibroGen were to obtain such a patent in the United States, the Company\plain\cf1\f51\fs20\ql may decide to challenge them like the Company has done in Europe and Japan.\par\pard\plain\sb264\cf1\f51\fs20\ql With regard to the opposition that we filed in Europe against FibroGen\u8217?s European Patent No. 163333, or the \u8217?333\plain\cf1\f51\fs20\ql patent, an oral proceeding took place December 8 and 9, 2016.\~\~Following the oral proceeding, the European Opposition Division\plain\cf1\f51\fs20\ql ruled that the patent as granted did not meet the requirements for patentability under the European Patent Convention and,\plain\cf1\f51\fs20\ql therefore, revoked the patent in its entirety.\~\~FibroGen has appealed that decision.{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb264\cf1\f51\fs20\ql On May 13, 2015, May 20, 2015 and July 6, 2015, the Company filed oppositions to FibroGen\u8217?s European Patent Nos.\plain\cf1\f51\fs20\ql 2322153, 2322155, and 1633333, or the \u8217?153 patent, the \u8217?155 patent, and the \u8217?333 patent, respectively,\plain\cf1\f51\fs20\ql requesting the patents be revoked in their entirety. These related patents claim, among other things, various compounds that either\plain\cf1\f51\fs20\ql stabilize HIF\u945? or inhibit a HIF hydroxylase or a HIF prolyl hydroxylase for treating or preventing various conditions,\plain\cf1\f51\fs20\ql including,\plain\cf1\f51\fs20\i\ql inter alia\plain\cf1\f51\fs20\ql , iron deficiency, microcytosis associated with iron deficiency, anemia of chronic disease, anemia wherein the\plain\cf1\f51\fs20\ql subject has a transferrin saturation of less than 20%, anemia refractory to treatment with exogenously administered erythropoietin,\plain\cf1\f51\fs20\ql or EPO, and microcytosis in microcytic anemia. Such method of use patents do not prevent persons from using the compound for\plain\cf1\f51\fs20\ql other uses, including any previously known use of the compound. In particular, these patents do not claim methods of using any\plain\cf1\f51\fs20\ql of our product candidates for purposes of inhibiting hypoxia-inducible factor prolyl hydroxylases, or HIF-PHs, for the treatment\plain\cf1\f51\fs20\ql of anemia secondary to CKD.\~While the Company does not believe these patents will prevent it from commercializing vadadustat\plain\cf1\f51\fs20\ql for treatment of anemia secondary to CKD, the Company filed these oppositions to provide us and any future partners with\plain\cf1\f51\fs20\ql maximum flexibility for developing vadadustat and our pipeline of HIF PH\par\pard\plain\sb264\cf1\f51\fs20\qc 27\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sb264\cf1\f51\fs20\ql inhibitors. Oppositions to the \u8217?155 patent and to the \u8217?153 patent were also filed by Glaxo Group Limited, or Glaxo,\plain\cf1\f51\fs20\ql and by Bayer Intellectual Property GmbH, Bayer Pharma Aktiengesellschaft, and Bayer Animal Health GmbH.\~\~In oral\plain\cf1\f51\fs20\ql proceedings held on\~May 29, 2017, the European Opposition Division ruled that the '155 patent as granted did not meet the\plain\cf1\f51\fs20\ql requirements for patentability under the\~European Patent Convention\~and, therefore, revoked the patent in its entirety.\plain\cf1\f51\fs20\ql Subsequently, in related oral proceedings held on\~May 31, 2017\~and\~June 1, 2017\~for the '153 patent, FibroGen significantly\plain\cf1\f51\fs20\ql narrowed the claims to an indication for which vadadustat is not intended to be developed.\par\pard\plain\sb264\cf1\f51\fs20\ql The Company\u8217?s policy is to record a liability if a loss in a significant legal dispute is considered probable and an amount\plain\cf1\f51\fs20\ql can be reasonably estimated. The Company provides disclosure when a loss in excess of any reserve is reasonably possible, and\plain\cf1\f51\fs20\ql the Company is in a position to estimate the potential loss or range of possible loss. Significant judgment is required to assess the\plain\cf1\f51\fs20\ql likelihood of various potential outcomes and the quantification of loss in those scenarios.\~The Company\u8217?s estimates change\plain\cf1\f51\fs20\ql as litigation progresses and new information comes to light.\~Changes in Company estimates could have a material impact on the\plain\cf1\f51\fs20\ql Company\u8217?s results and financial position.\par\pard\plain\cf1\f51\fs18\ql \~\par\pard\plain\cf1\f51\fs18\ql \~\par\pard\plain\cf1\f51\fs20\b\ql 11. Employee Retirement Plan\par\pard\plain\sb132\cf1\f51\fs20\ql During 2008, the Company established a retirement plan (the Plan) authorized by Section\~401(k) of the Internal Revenue Code. In\plain\cf1\f51\fs20\ql accordance with the Plan, all employees who have attained the age of 21 are eligible to participate in the Plan as of the first\plain\cf1\f51\fs20\ql Entry Date, as defined, following their date of employment. Each employee can contribute a percentage of compensation up to a\plain\cf1\f51\fs20\ql maximum of the statutory limits per year. Company contributions are discretionary and contributions in the amount of\plain\cf1\f51\fs20\ql approximately $39,000 and $29,000 were made during the three months ended June 30, 2017 and 2016, respectively, and\plain\cf1\f51\fs20\ql approximately $0.2 million and $0.1 million during the six months ended June 30, 2017 and 2016, respectively.\par\pard\plain\cf1\f51\fs18\ql \~\par\pard\plain\cf1\f51\fs18\ql \~\par\pard\plain\cf1\f51\fs20\b\ql 12. Net Loss per Share\par\pard\plain\sb132\cf1\f51\fs20\ql The shares in the table below were excluded from the calculation of diluted net loss per share, prior to the use of the treasury\plain\cf1\f51\fs20\ql stock method, due to their anti-dilutive effect:\par\pard\plain\cf1\f51\fs20\ql \~ \par\pard\plain {\trowd\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5307\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5411\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7947\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8053\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8153\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh289 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Three months ended\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Six months ended\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5307\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5411\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7947\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8053\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8153\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh289\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5307\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5411\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6572\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6679\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6786\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7947\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8053\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8153\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9314\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9421\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9528\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh289 \pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June 30, 2017\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June 30, 2016\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June 30, 2017\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June 30, 2016\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5307\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5411\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6572\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6679\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6786\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7947\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8053\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8153\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9314\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9421\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9528\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh289\row}}} {\trowd\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5307\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5411\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5611\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6572\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6679\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6786\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6986\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7947\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8053\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8153\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8353\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9314\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9421\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9528\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9728\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh289 \pard\plain\intbl\cf1\f51\fs20\ql Warrants\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 509,611\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 509,611\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5307\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5411\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5611\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6572\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6679\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6786\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6986\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7947\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8053\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8153\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8353\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9314\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9421\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9528\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9728\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh289\row}}} {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5307\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5411\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5611\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6572\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6679\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6786\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6986\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7947\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8053\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8153\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8353\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9314\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9421\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9528\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9728\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh289 \pard\plain\intbl\cf1\f51\fs20\ql Outstanding stock options\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 4,027,408\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 2,753,908\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 4,027,408\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 2,753,908\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5307\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5411\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5611\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6572\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6679\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6786\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6986\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7947\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8053\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8153\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8353\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9314\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9421\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9528\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9728\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh289\row}}} {\trowd\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5307\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5411\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5611\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6572\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6679\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6786\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6986\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7947\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8053\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8153\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8353\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9314\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9421\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9528\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9728\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh289 \pard\plain\intbl\cf1\f51\fs20\ql Unvested restricted stock\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 28,512\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 159,640\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 28,512\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 159,640\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5307\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5411\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5611\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6572\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6679\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6786\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6986\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7947\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8053\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8153\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8353\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9314\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9421\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9528\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9728\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh289\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5307\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5411\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5611\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6572\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6679\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6786\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6986\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7947\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8053\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8153\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8353\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9314\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9421\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9528\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9728\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh289 \pard\plain\intbl\cf1\f51\fs20\ql Unvested restricted stock units\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 829,463\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 396,813\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 829,463\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 396,813\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5307\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5411\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5611\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6572\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6679\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6786\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6986\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7947\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8053\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8153\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8353\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9314\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9421\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9528\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9728\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh289\row}}} {\trowd\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5307\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5411\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5611\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6572\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6679\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6786\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6986\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7947\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8053\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8153\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8353\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9314\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9421\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9528\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9728\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh289 \pard\plain\intbl\li440\cf1\f51\fs20\ql Total\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 5,394,994\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 3,310,361\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 5,394,994\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 3,310,361\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{ {\trowd\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5307\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5411\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx5611\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6572\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6679\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6786\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx6986\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx7947\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8053\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8153\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx8353\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9314\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9421\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9528\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9728\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10689\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh289\row}}}\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs16\ql \~\par\pard\plain\cf1\f51\fs20\b\ql 13. Subsequent Event\par\pard\plain\cf1\f51\fs12\ql \~\par\pard\plain\cf1\f51\fs20\ql In July 2017, the Company completed a follow-on-public offering whereby the Company sold 4,600,000 shares of common\plain\cf1\f51\fs20\ql stock, including 600,000 shares of common stock pursuant to the full exercise of an over-allotment granted to the underwriters in\plain\cf1\f51\fs20\ql connection with the offering, at a price of $14.50 per share.\~\~The aggregate net proceeds received by the Company from the\plain\cf1\f51\fs20\ql offering were approximately $62.6 million, net of underwriting discounts and commissions and estimated offering expenses\plain\cf1\f51\fs20\ql payable by the Company.\~\~\par\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\ql Under the Otsuka U.S. Agreement, Otsuka originally had a limited period of time in which it can exercise an option to convert\plain\cf1\f51\fs20\ql the arrangement from a profit share to a right to receive a mid-single digit royalty on future net sales of commercialized\plain\cf1\f51\fs20\ql products (the Royalty Conversion Option).\~\~On August 4, 2017, Otsuka agreed to waive its right to exercise the Royalty\plain\cf1\f51\fs20\ql Conversion Option, consequently, Otsuka has no further right to elect to exercise this option.\par\pard\plain\cf1\f51\fs20\ql \~{\*\bkmkstart item_1_3_2}{\*\bkmkend item_1_3_2}{\*\bkmkstart item_2_mda_11737931}{\*\bkmkend item_2_mda_11737931}\par\pard\plain\sb176\cf1\f51\fs20\b\ql Item\~2. Management\u8217?s Discussion and Analysis of Financial Condition and Results of Operations\par\pard\plain\sb132\cf1\f51\fs20\i\ql The following information should be read in conjunction with the unaudited financial information and the notes thereto included\plain\cf1\f51\fs20\i\ql in this Quarterly Report on Form 10-Q and the condensed consolidated financial statements and notes thereto for the year\plain\cf1\f51\fs20\i\ql ended December\~31, 2016, and the related Management\u8217?s Discussion and Analysis of Financial Condition and Results of\plain\cf1\f51\fs20\i\ql Operations, contained in our annual report on Form 10-K filed with the United States Securities and Exchange Commission, or\plain\cf1\f51\fs20\i\ql the SEC, on March\~6, 2017, which we refer to as our annual report.{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb264\cf1\f51\fs20\i\ql This report contains forward-looking statements that are being made pursuant to the safe harbor provisions of the Private\plain\cf1\f51\fs20\i\ql Securities Litigation Reform Act of 1995, or PSLRA, with the intention of obtaining the benefits of the \u8220?safe\plain\cf1\f51\fs20\i\ql harbor\u8221? provisions of the PSLRA.\par\pard\plain\sb264\cf1\f51\fs20\qc 28\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sb264\cf1\f51\fs20\i\ql Forward-looking statements involve risks and uncertainties. In this Quarterly Report on Form 10-Q, words such as\plain\cf1\f51\fs20\i\ql \u8220?may,\u8221? \u8220?will,\u8221? \u8220?expect,\u8221? \u8220?anticipate,\u8221? \u8220?estimate,\u8221?\plain\cf1\f51\fs20\i\ql \u8220?intend,\u8221? and similar expressions (as well as other words or expressions referencing future events, conditions or\plain\cf1\f51\fs20\i\ql circumstances) are intended to identify forward-looking statements.\par\pard\plain\sb264\cf1\f51\fs20\i\ql Our actual results and the timing of certain events may differ materially from the results discussed, projected, anticipated, or\plain\cf1\f51\fs20\i\ql indicated in any forward-looking statements. We caution our readers that forward-looking statements are not guarantees of\plain\cf1\f51\fs20\i\ql future performance and that our actual results of operations, financial condition and liquidity, and the development of the\plain\cf1\f51\fs20\i\ql industry in which we operate may differ materially from those expressed or implied by the forward-looking statements contained\plain\cf1\f51\fs20\i\ql in this Quarterly Report on Form 10-Q.\par\pard\plain\sb264\cf1\f51\fs20\i\ql The following information, including all forward-looking statements, should be considered in light of factors discussed elsewhere\plain\cf1\f51\fs20\i\ql in this Quarterly Report on Form 10-Q, including those risks identified under Part II, Item\~1A. Risk Factors.\par\pard\plain\sb264\cf1\f51\fs20\i\ql We caution readers not to place undue reliance on any forward-looking statements made by us, which speak only as of the date\plain\cf1\f51\fs20\i\ql they are made. We disclaim any obligation, except as specifically required by law and the rules of the SEC, to publicly update or\plain\cf1\f51\fs20\i\ql revise any such statements to reflect any change in our expectations or in events, conditions or circumstances on which any such\plain\cf1\f51\fs20\i\ql statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the\plain\cf1\f51\fs20\i\ql forward-looking statements.\par\pard\plain\sb396\cf1\f51\fs20\b\ql Operating Overview\par\pard\plain\sb132\cf1\f51\fs20\ql We are a biopharmaceutical company focused on developing and delivering novel therapeutics for patients based on\plain\cf1\f51\fs20\ql hypoxia-inducible factor, or HIF, biology, and building our pipeline while leveraging our development and commercial expertise\plain\cf1\f51\fs20\ql in renal disease. HIF is the primary regulator of the production of red blood cells, or RBCs, in the body, as well as other\plain\cf1\f51\fs20\ql important metabolic functions.\~\~Pharmacologic modulation of the HIF pathway may have broad therapeutic applications. Our lead\plain\cf1\f51\fs20\ql product candidate, vadadustat, is an oral therapy in Phase 3 development, which has the potential to set a new standard of care in\plain\cf1\f51\fs20\ql the treatment of anemia associated with chronic kidney disease (CKD). Our management team has extensive experience in\plain\cf1\f51\fs20\ql developing and commercializing drugs for the treatment of renal and metabolic disorders, as well as a deep understanding of HIF\plain\cf1\f51\fs20\ql biology. This unique combination of HIF and renal expertise is enabling us to advance a pipeline of HIF-based therapies to\plain\cf1\f51\fs20\ql address serious diseases.\par\pard\plain\sb264\cf1\f51\fs20\ql HIF, a pathway involving hundreds of genes, is responsible for orchestrating the body\u8217?s natural response to lower levels of\plain\cf1\f51\fs20\ql oxygen, or hypoxia. In response to hypoxia, a coordinated adaptive response occurs resulting in both an increase in red blood cell\plain\cf1\f51\fs20\ql production, a normal biological process known as erythropoiesis, and enhancement of the delivery of iron to the bone marrow to\plain\cf1\f51\fs20\ql support erythropoiesis. The significance of the HIF pathway was recognized by the 2016 Albert Lasker Basic Medical Research\plain\cf1\f51\fs20\ql Award, which honored the three physician-scientists who discovered the HIF pathway and elucidated this primary oxygen\plain\cf1\f51\fs20\ql sensing mechanism that is essential for survival. HIF protein is constantly being produced under normal oxygen conditions, but is\plain\cf1\f51\fs20\ql quickly degraded by prolyl hydroxylases, or PH.\~\~Under hypoxic conditions, HIF-PH\u8217?s are inhibited, allowing HIF to\plain\cf1\f51\fs20\ql stimulate erythropoiesis.\~\~These findings have opened up new possibilities for developing therapeutics, such as HIF-PH inhibitors,\plain\cf1\f51\fs20\ql which have the potential to treat many diseases.\par\pard\plain\sb264\cf1\f51\fs20\ql Our lead product candidate, vadadustat, is a HIF-PH inhibitor in Phase 3 development for the treatment of anemia of CKD.\plain\cf1\f51\fs20\ql Anemia is a serious medical condition in which blood is deficient in hemoglobin, which is critical for delivering oxygen to\plain\cf1\f51\fs20\ql organs and tissue. Untreated anemia is associated with chronic fatigue, increased risk of progression of multiple diseases and\plain\cf1\f51\fs20\ql death. Anemia is common in patients with CKD, cancer, heart failure, inflammatory diseases and other critical illnesses.\par\pard\plain\sb264\cf1\f51\fs20\ql More than 30 million people in the United States have CKD, with estimates that over 1.8 million of these patients suffer from\plain\cf1\f51\fs20\ql anemia. Anemia from CKD is currently treated by injectable recombinant erythropoiesis-stimulating agents, or rESAs, such as\plain\cf1\f51\fs20\ql EPOGEN\plain\cf1\f51\fs15\ql\super \u174?\plain\cf1\f51\fs20\ql and Aranesp\plain\cf1\f51\fs15\ql\super \u174?\plain\cf1\f51\fs20\ql , as well as with iron supplementation or red blood cell transfusion. Based on the reported\plain\cf1\f51\fs20\ql revenues of companies that market and sell rESAs, global sales of injectable rESAs were estimated to be between $6.5 and $7.0\plain\cf1\f51\fs20\ql billion in 2015. The vast majority of these sales were for the treatment of anemia associated with renal disease.\par\pard\plain\sb264\cf1\f51\fs20\ql rESAs deliver supra-physiological levels of exogenous erythropoietin, or EPO, to stimulate production of RBCs. While injectable\plain\cf1\f51\fs20\ql rESAs may be effective in raising hemoglobin levels, they carry significant potential side effects, and need to be injected under\plain\cf1\f51\fs20\ql the skin (subcutaneously) or into a vein (intravenously). In particular, injectable rESAs may lead to thrombosis, stroke,\plain\cf1\f51\fs20\ql myocardial infarction and death. These safety concerns, which became evident starting in 2006, have led to a significant\plain\cf1\f51\fs20\ql reduction in the use of injectable rESAs. Today, anemia is either not treated or inadequately treated in the majority of\plain\cf1\f51\fs20\ql non-dialysis dependent (NDD) CKD patients. We believe that novel treatment options that address these concerns are needed and\plain\cf1\f51\fs20\ql would have significant market potential. Because it mimics the body\u8217?s natural adaptive response to hypoxia,\plain\cf1\f51\fs20\ql vadadustat\u8217?s HIF-PH inhibition may raise hemoglobin levels without causing supra-physiological levels of EPO.{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb264\cf1\f51\fs20\ql Vadadustat has the potential to set a new standard of care for the treatment of anemia in CKD. Early clinical studies of\plain\cf1\f51\fs20\ql vadadustat demonstrated that diurnal variation of EPO was maintained resulting in predictable increases in hemoglobin in normal\plain\cf1\f51\fs20\ql human\par\pard\plain\sb264\cf1\f51\fs20\qc 29\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sb264\cf1\f51\fs20\ql volunteers and similar results were seen in NDD-CKD. These data led us to the design of our Phase 3 clinical program. The\plain\cf1\f51\fs20\ql vadadustat Phase\~3 program in NDD-CKD patients with anemia, called PRO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql TECT, and in dialysis dependent (DD) CKD\plain\cf1\f51\fs20\ql patients with anemia, called INNO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql VATE, is designed to enroll up to 6,300 patients evaluating once daily oral dosing of\plain\cf1\f51\fs20\ql vadadustat against an rESA active comparator, darbepoetin alfa. The enrollment numbers and the completion of the Phase 3\plain\cf1\f51\fs20\ql program will be driven by the rate of major adverse cardiovascular events, or MACE. In December 2015 the first patient was\plain\cf1\f51\fs20\ql dosed in PRO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql TECT, and the first patient was dosed in INNO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql VATE in August 2016. We expect the remaining cost of the\plain\cf1\f51\fs20\ql Phase 3 program to aggregate in the range of $450.0 million to $480.0 million in external CRO costs for the total program. We\plain\cf1\f51\fs20\ql expect to report top-line clinical data for the PRO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql TECT study in the second half of 2018 or the first half of 2019 and top-line\plain\cf1\f51\fs20\ql clinical data for the INNO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql VATE study in the first half of 2019.\~\~If the results from our Phase 3 program are favorable, we\plain\cf1\f51\fs20\ql currently anticipate submitting marketing applications for vadadustat for the treatment of anemia associated with CKD in the\plain\cf1\f51\fs20\ql United States and Europe in the second half of 2019.\par\pard\plain\sb264\cf1\f51\fs20\ql In May 2017, we initiated a Phase 2 study of vadadustat in the rESA hyporesponder population, called FO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql RWARD.\~\~Patients\plain\cf1\f51\fs20\ql who do not adequately respond to rESA treatment represent approximately 10-15% of DD-CKD patients, yet hyporesponders\plain\cf1\f51\fs20\ql account for 30-40% of total rESA use.\~\~These patients have demonstrated a persistently higher risk of mortality than\plain\cf1\f51\fs20\ql non-hyporesponders, and represent a high unmet need.\~\~We believe that, given its differentiated mechanism of action, vadadustat\plain\cf1\f51\fs20\ql may provide a treatment option for these patients, and we anticipate results from FO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql RWARD in the second half of 2018.\~\~We\plain\cf1\f51\fs20\ql plan to initiate a Phase 3 dosing study, called TRILO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql GY, in the second half of 2017 to evaluate three-times weekly dosing of\plain\cf1\f51\fs20\ql vadadustat in approximately 300 DD-CKD patients receiving hemodialysis using the same active comparator, darbepoetin\plain\cf1\f51\fs20\ql alfa.\~\~This is an important dosing option for dialysis providers, and we previously investigated this dosing regimen in our Phase 2\plain\cf1\f51\fs20\ql dialysis study.\par\pard\plain\sb264\cf1\f51\fs20\ql If vadadustat is approved by the United States Food and Drug Administration, or FDA, we plan to establish our own commercial\plain\cf1\f51\fs20\ql organization in the United States while leveraging our collaborations with Otsuka Pharmaceutical Co. Ltd., or Otsuka, and its\plain\cf1\f51\fs20\ql well-established commercial organization in the United States, Europe, China and other markets. In Japan and other countries in\plain\cf1\f51\fs20\ql Asia, we plan to commercialize vadadustat through our collaboration with Mitsubishi Tanabe Pharma Corporation, or MTPC. In\plain\cf1\f51\fs20\ql May 2017, we entered into an exclusive license agreement with Vifor Pharma, or Vifor, to sell vadadustat solely to Fresenius\plain\cf1\f51\fs20\ql Kidney Care Group LLC Fresenius Medical Care, or FKC, dialysis clinics in the United States upon approval by the FDA and\plain\cf1\f51\fs20\ql inclusion of vadadustat in a bundled reimbursement model.\~\~During the term of the license agreement, Vifor may not sell to FKC\plain\cf1\f51\fs20\ql or its affiliates any HIF product that competes with vadadustat in the United States.\plain\cf1\f51\fs15\ql \~\par\pard\plain\sb264\cf1\f51\fs20\ql In addition to vadadustat, we are developing a HIF-based portfolio of product candidates that target serious diseases of high\plain\cf1\f51\fs20\ql unmet need. Our portfolio includes product candidates developed internally as well as in-licensed product candidates, such as\plain\cf1\f51\fs20\ql AKB-5169. In February 2017, we signed an exclusive agreement with Janssen Pharmaceutica NV, or Janssen, a subsidiary of\plain\cf1\f51\fs20\ql Johnson & Johnson, for access to an extensive library of well-characterized HIF pathway compounds with potential applications\plain\cf1\f51\fs20\ql across multiple therapeutic areas.\~\~The lead compound, AKB-5169, is a differentiated preclinical compound in development as an\plain\cf1\f51\fs20\ql oral treatment for inflammatory bowel disease, or IBD. We intend to complete further preclinical development of this compound\plain\cf1\f51\fs20\ql with the goal of submitting an Investigational New Drug application to the FDA in 2018.\par\pard\plain\sb264\cf1\f51\fs20\ql Since our inception in 2007, we have devoted the largest portion of our resources to our development efforts relating to\plain\cf1\f51\fs20\ql vadadustat, including preparing for and conducting clinical studies of vadadustat, providing general and administrative support for\plain\cf1\f51\fs20\ql these operations and protecting our intellectual property. We do not have any products approved for sale and have not generated\plain\cf1\f51\fs20\ql any revenue from product sales. We have funded our operations primarily through equity offerings and strategic collaborations.\par\pard\plain\sb264\cf1\f51\fs20\ql We have never been profitable and have incurred net losses in each year since inception. Our net losses were $66.1 million and\plain\cf1\f51\fs20\ql $61.6\~million for the six months ended June 30, 2017 and 2016, respectively. Substantially all of our net losses resulted from\plain\cf1\f51\fs20\ql costs incurred in connection with our research and development programs and from general and administrative costs associated\plain\cf1\f51\fs20\ql with our operations.\par\pard\plain\sb264\cf1\f51\fs20\ql We expect to continue to incur significant operating expenses and increased operating losses for at least the next several years.\plain\cf1\f51\fs20\ql We expect our expenses will increase substantially in connection with our ongoing activities, as we: \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql complete the development of vadadustat for anemia secondary to CKD;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql conduct the FO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql RWARD and TRILO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql GY clinical studies;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql seek regulatory approvals for our product candidates that successfully complete clinical trials;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql have our product candidates manufactured for clinical trials and for commercial sale;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql establish a sales, marketing and distribution infrastructure to commercialize any products for which we may obtain\plain\intbl\cf1\f51\fs20\ql marketing approval;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql initiate and continue preclinical and clinical development of our HIF compounds and product candidates;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql initiate additional preclinical, clinical or other studies for additional indications for vadadustat;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}}\pard\plain\sb264\cf1\f51\fs20\qc 30\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\pard\plain\intbl\sb132\cf1\f51\fs20\ql seek to discover and develop additional product candidates;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql acquire, in-license and develop other commercial products, product candidates and technologies;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql make royalty, milestone or other payments under any in-license agreements;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql maintain, protect and expand our intellectual property portfolio;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql attract and retain skilled personnel; and\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql create additional infrastructure to support our operations as a public company.\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}}\pard\plain\sb264\cf1\f51\fs20\ql We do not expect to generate revenue from product sales unless and until we successfully complete development and obtain\plain\cf1\f51\fs20\ql regulatory approval for one or more of our product candidates, which we expect will take a number of years and is subject to\plain\cf1\f51\fs20\ql significant uncertainty. We have no manufacturing facilities, and all of our manufacturing activities are contracted out to third\plain\cf1\f51\fs20\ql parties. Additionally, we currently utilize third-party contract research organizations, or CROs, to carry out our clinical\plain\cf1\f51\fs20\ql development activities, and we do not yet have a sales organization. If we obtain regulatory approval for any of our product\plain\cf1\f51\fs20\ql candidates, we expect to incur significant commercialization expenses related to product sales, marketing, manufacturing and\plain\cf1\f51\fs20\ql distribution. Accordingly, we will seek to fund our operations through public or private equity or debt financings or other sources\plain\cf1\f51\fs20\ql including geographic partnerships. However, we may be unable to raise additional funds or enter into other arrangements when\plain\cf1\f51\fs20\ql needed on favorable terms or at all. Our failure to raise capital or enter into such other arrangements as and when needed would\plain\cf1\f51\fs20\ql have a negative impact on our financial condition and our ability to develop our products.\par\pard\plain\sb264\cf1\f51\fs20\ql Through June 2017, we have raised approximately $255.7 million of net proceeds, including $230.0 million from three\plain\cf1\f51\fs20\ql underwritten public offerings and $25.7 million of net proceeds in an at-the-market offering, or ATM, pursuant to a Sales\plain\cf1\f51\fs20\ql Agreement with Cantor Fitzgerald & Co.\par\pard\plain\sb264\cf1\f51\fs20\ql In July 2017, we completed a follow-on-public offering whereby we sold 4,600,000 shares of common stock, including 600,000\plain\cf1\f51\fs20\ql shares of common stock pursuant to the full exercise of an over-allotment granted to the underwriters in connection with the\plain\cf1\f51\fs20\ql offering, at a price of $14.50 per share.\~\~The aggregate net proceeds received by us from the offering were approximately $62.6\plain\cf1\f51\fs20\ql million, net of underwriting discounts and commissions and estimated offering expenses payable by us.{\*\bkmkstart highlight_result_2_11737931}{\*\bkmkend highlight_result_2_11737931}\par\pard\plain\sb264\cf1\f51\fs20\ql In addition to proceeds from our public offerings, in May 2017, we received $50.0 million from the sale of 3,571,429 shares of\plain\cf1\f51\fs20\ql common stock to Vifor Pharma.\~\~Our collaborators\plain\cf1\f51\fs20\ql have committed up to $373.0 million or more in license payments and\plain\cf1\f51\fs20\ql cost-share funding, which the Company continues to receive on a quarterly prepaid basis.\par\pard\plain\sb396\cf1\f51\fs20\b\ql Financial Overview\par\pard\plain\sb132\cf1\f51\fs20\ql In the quarter ended June 30, 2017, we identified and corrected an immaterial error in the amount of research and development\plain\cf1\f51\fs20\ql expenses related to our global Phase 3 study of vadadustat.\~\~This adjustment also affected the amount of revenue recognized\plain\cf1\f51\fs20\ql pursuant to our license and collaboration agreements with Otsuka.\~\~The adjustments impact our results of operations in each\plain\cf1\f51\fs20\ql quarter of 2016 and the first quarter of 2017.\~\~We concluded the effect of these adjustments was not material to our consolidated\plain\cf1\f51\fs20\ql financial statements for any prior period.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Revenue\par\pard\plain\sb132\cf1\f51\fs20\ql To date, we have not generated any revenue from the sales of products. Our revenues have been derived from collaboration\plain\cf1\f51\fs20\ql agreements.\par\pard\plain\sb264\cf1\f51\fs20\ql Revenue recognition for our MTPC collaboration commence when all criteria as required under ASC 605 have been satisfied,\plain\cf1\f51\fs20\ql which the Company expects will be in the second half of 2017. Therefore, collaboration revenue in the current period is\plain\cf1\f51\fs20\ql generated exclusively from our collaboration arrangements with Otsuka. The terms of the Otsuka U.S. Agreement contain\plain\cf1\f51\fs20\ql multiple deliverables, which include at inception: (i)\~license under certain of our intellectual property to develop, perform medical\plain\cf1\f51\fs20\ql affairs activities with respect to and conduct non-promotional and commercialization activities related to vadadustat\~\~(the License\plain\cf1\f51\fs20\ql Deliverable), (ii) development services to be performed pursuant to the current global development plan (the Development\plain\cf1\f51\fs20\ql Services Deliverable), (iii) rights to future intellectual property (the Future IP Deliverable) and (iv) joint committee services (the\plain\cf1\f51\fs20\ql Committee Deliverable). We have identified three units of accounting in connection with our obligations under the U.S.\plain\cf1\f51\fs20\ql collaboration agreement with Otsuka as follows: (i) License Unit of Accounting, which combines the License Deliverable and the\plain\cf1\f51\fs20\ql Development Services Deliverable (ii) Rights to Future Intellectual Property Unit of Accounting and (iii) Joint Committee\plain\cf1\f51\fs20\ql Services Unit of Accounting.{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb264\cf1\f51\fs20\ql The terms of the Otsuka EU Agreement contain multiple deliverables, which include at inception: (i)\~license under certain of our\plain\cf1\f51\fs20\ql intellectual property to develop and commercialization activities related to vadadustat (the License Deliverable), (ii) development\plain\cf1\f51\fs20\ql services to be performed pursuant to the current global development plan (the Development Services Deliverable), (iii) rights to\plain\cf1\f51\fs20\ql future\par\pard\plain\sb264\cf1\f51\fs20\qc 31\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sb264\cf1\f51\fs20\ql intellectual property (the Future IP Deliverable), and (iv) joint committee services (the Committee Deliverable). We have\plain\cf1\f51\fs20\ql identified three units of accounting in connection with our obligations under the EU collaboration agreement with Otsuka as\plain\cf1\f51\fs20\ql follows: (i) License Unit of Accounting, which combines the License Deliverable and the Development Services Deliverable (ii)\plain\cf1\f51\fs20\ql Rights to Future Intellectual Property Unit of Accounting, and (iii) Joint Committee Services Unit of Accounting.\par\pard\plain\sb264\cf1\f51\fs20\ql We recognize arrangement consideration allocated to each unit of accounting when all of the revenue recognition criteria in\plain\cf1\f51\fs20\ql Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 605,\~\plain\cf1\f51\fs20\i\ql Revenue Recognition\plain\cf1\f51\fs20\ql ,\plain\cf1\f51\fs20\ql or ASC 605, are satisfied for that particular unit of accounting.\par\pard\plain\sb264\cf1\f51\fs20\ql The Company will recognize revenue related to amounts allocated to the License Unit of Accounting on a proportional\plain\cf1\f51\fs20\ql performance basis as the underlying services are performed.\par\pard\plain\sb264\cf1\f51\fs20\ql Our ability to generate product revenue and become profitable depends upon our ability to successfully develop and\plain\cf1\f51\fs20\ql commercialize products. We expect to incur losses for the foreseeable future, and we expect these losses to increase as we\plain\cf1\f51\fs20\ql continue our development of, and seek regulatory approvals for, our product candidates and begin to commercialize any approved\plain\cf1\f51\fs20\ql products. Because of the numerous risks and uncertainties associated with product development, we are unable to predict the\plain\cf1\f51\fs20\ql timing or amount of increased expenses or when or if we will be able to achieve or maintain profitability. Even if we are able to\plain\cf1\f51\fs20\ql generate revenue from the sale of our products, we may not become profitable. If we fail to become profitable or are unable to\plain\cf1\f51\fs20\ql sustain profitability on a continuing basis, then we may be unable to continue our operations at planned levels and be forced to\plain\cf1\f51\fs20\ql reduce our operations.\par\pard\plain\sb264\cf1\f51\fs20\ql For the foreseeable future, we expect substantially all of our revenue will be generated from our collaborations with Otsuka and\plain\cf1\f51\fs20\ql MTPC and any other collaborations we may enter into.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Research and Development Expenses\par\pard\plain\sb132\cf1\f51\fs20\ql Research and development expenses consist primarily of costs incurred for the development of our product candidates, which\plain\cf1\f51\fs20\ql include: \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql employee-related expenses, including salaries, benefits, recruiting fees, travel and stock-based compensation\plain\intbl\cf1\f51\fs20\ql expense;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql expenses incurred under agreements with the CROs and investigative sites that conduct our clinical studies;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the cost of acquiring, developing and manufacturing clinical study materials;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql facilities, depreciation and other expenses, which include direct and allocated expenses for rent and maintenance of\plain\intbl\cf1\f51\fs20\ql facilities, insurance and other supplies; and\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql costs associated with preclinical and clinical activities.\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}}\pard\plain\sb264\cf1\f51\fs20\ql Research and development costs are expensed as incurred. Costs for certain development activities are recognized based on an\plain\cf1\f51\fs20\ql evaluation of the progress to completion of specific tasks using information and data provided to us by our vendors and our\plain\cf1\f51\fs20\ql clinical sites.\par\pard\plain\sb264\cf1\f51\fs20\ql We cannot determine with certainty the duration and completion costs of the current or future clinical studies of our product\plain\cf1\f51\fs20\ql candidates or if, when, or to what extent we will generate revenue from the commercialization and sale of any of our product\plain\cf1\f51\fs20\ql candidates that obtain regulatory approval. We may never succeed in achieving regulatory approval for any of our product\plain\cf1\f51\fs20\ql candidates.\par\pard\plain\sb264\cf1\f51\fs20\ql The duration, costs and timing of clinical studies and development of our product candidates will depend on a variety of factors,\plain\cf1\f51\fs20\ql including: \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the results of our meetings with the FDA and the EMA and other regulatory authorities and the consequential effect\plain\intbl\cf1\f51\fs20\ql on our study design, study size and resulting operating costs;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the size, rate of progress, results and costs of completing our global Phase 3 development of vadadustat;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql difficulties or delays in enrolling patients in our clinical trials;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh1125 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql assuming favorable Phase 3 clinical results, the timing of, and the costs involved in, obtaining regulatory approvals\plain\intbl\cf1\f51\fs20\ql for vadadustat in dialysis and non-dialysis indications, including to fund the preparation and filing of regulatory\plain\intbl\cf1\f51\fs20\ql submissions for vadadustat with the FDA, the EMA and other regulatory authorities, and whether we will seek\plain\intbl\cf1\f51\fs20\ql regulatory approval for both indications simultaneously;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh1125\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the cost of conducting the FO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql RWARD and TRILO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql GY clinical studies;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the cost, timing and outcome of our efforts to obtain marketing approval for vadadustat in the United States, Europe\plain\intbl\cf1\f51\fs20\ql and other regions;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}}\pard\plain\sb264\cf1\f51\fs20\qc 32\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\pard\plain\intbl\sb132\cf1\f51\fs20\ql the scope, progress, results and costs of additional preclinical, clinical, or other studies for additional indications for\plain\intbl\cf1\f51\fs20\ql vadadustat, as well as any studies of AKB-5169 and other product candidates that we may develop or acquire;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the timing of, and the costs involved in, obtaining regulatory approvals for AKB-5169 and other product candidates\plain\intbl\cf1\f51\fs20\ql that we may develop or acquire, if clinical studies are successful;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the cost of having our product candidates manufactured and obtaining comparator product for clinical trials;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the cost and timing of future commercialization activities for our products, if any of our product candidates are\plain\intbl\cf1\f51\fs20\ql approved for marketing, including product manufacturing, marketing, sales and distribution costs;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql our ability to establish and maintain strategic collaborations, licensing or other arrangements and the financial terms\plain\intbl\cf1\f51\fs20\ql of such agreements; and\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql unanticipated changes to laws or regulations applicable to our clinical trials.\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}}\pard\plain\sb264\cf1\f51\fs20\ql A change in the outcome of any of these variables with respect to the development of a product candidate could mean a\plain\cf1\f51\fs20\ql significant change in the costs and timing associated with the development of that product candidate. For example, if the FDA,\plain\cf1\f51\fs20\ql EMA or another regulatory authority were to require us to conduct clinical studies in addition to or different from those that we\plain\cf1\f51\fs20\ql currently anticipate, or if we experience significant delays in enrollment in any of our clinical studies, we could be required to\plain\cf1\f51\fs20\ql expend significant additional financial resources and time on the completion of clinical development.\par\pard\plain\sb264\cf1\f51\fs20\ql From inception through June 30, 2017, we have incurred $335.7 million in research and development expenses. We plan to\plain\cf1\f51\fs20\ql increase our research and development expenditures for the foreseeable future as we continue the development of vadadustat and\plain\cf1\f51\fs20\ql our other product candidates. Our current and/or planned research and development activities include the following: \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql global development of vadadustat, including the PRO2TECT and INNO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql VATE clinical programs;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql research and development of compounds in our HIF portfolio, including product candidates such as AKB-5169; and\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql diversification of our pipeline in kidney disease and other HIF-modulated diseases.\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}}\pard\plain\sb264\cf1\f51\fs20\ql Our direct research and development expenses consist principally of external costs, such as fees paid to clinical trial sites,\plain\cf1\f51\fs20\ql consultants, central laboratories and CROs in connection with our clinical studies, and costs related to acquiring and\plain\cf1\f51\fs20\ql manufacturing clinical study materials.\par\pard\plain\sb264\cf1\f51\fs20\ql We currently have four programs to which our research and development costs are attributable. Historically, we have not\plain\cf1\f51\fs20\ql accumulated and tracked our research and development costs or our personnel and personnel-related costs on a\plain\cf1\f51\fs20\ql program-by-program basis. Our employee and infrastructure resources, and many of our costs, were directed broadly to\plain\cf1\f51\fs20\ql applicable research endeavors. As a result, we are unable to specify precisely the historical costs incurred for each of our\plain\cf1\f51\fs20\ql programs on a program-by-program basis.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql General and Administrative Expenses\par\pard\plain\sb132\cf1\f51\fs20\ql General and administrative expenses consist primarily of salaries and related costs for personnel, including stock-based\plain\cf1\f51\fs20\ql compensation and travel expenses. Other general and administrative expenses include facility-related costs, fees for directors,\plain\cf1\f51\fs20\ql accounting and legal services fees, recruiting fees and expenses associated with obtaining and maintaining patents.\~\~\par\pard\plain\sb264\cf1\f51\fs20\ql We anticipate that our general and administrative expenses will increase in the future as we increase our headcount to support our\plain\cf1\f51\fs20\ql continued research and development and potential commercialization of our product candidates. We also anticipate increased\plain\cf1\f51\fs20\ql expenses related to finance, legal, regulatory and tax-related services associated with maintaining compliance with exchange\plain\cf1\f51\fs20\ql listing and SEC requirements, and our other costs associated with being a public company. Additionally, we anticipate an\plain\cf1\f51\fs20\ql increase in payroll and related expenses if and when we prepare for commercial operations, especially in sales and marketing.\par\pard\plain\sb396\cf1\f51\fs20\b\ql Critical Accounting Policies and Significant Judgments and Estimates\par\pard\plain\sb132\cf1\f51\fs20\ql Our management\u8217?s discussion and analysis of our financial condition and results of operations are based on our\plain\cf1\f51\fs20\ql consolidated financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles.\plain\cf1\f51\fs20\ql The preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported\plain\cf1\f51\fs20\ql amounts of assets, liabilities, and expenses and the disclosure of contingent assets and liabilities in our consolidated financial\plain\cf1\f51\fs20\ql statements. On an ongoing basis, we evaluate our estimates and judgments, including those related to prepaid and accrued\plain\cf1\f51\fs20\ql research and development expenses and stock-based compensation. We base our estimates on historical experience, known trends\plain\cf1\f51\fs20\ql and events, and various other factors that are believed to be reasonable under the circumstances, the results of which form the\plain\cf1\f51\fs20\ql basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.\plain\cf1\f51\fs20\ql Actual results may differ from these estimates under different assumptions or conditions.\par\pard\plain\sb264\cf1\f51\fs20\qc 33\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb264\cf1\f51\fs20\ql While our significant accounting policies are described in more detail in the notes to our consolidated financial statements\plain\cf1\f51\fs20\ql appearing elsewhere in this Quarterly Report on Form 10-Q, we believe the following accounting policies to be most critical to\plain\cf1\f51\fs20\ql the judgments and estimates used in the preparation of our consolidated financial statements.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Revenue\~\~\par\pard\plain\sb132\cf1\f51\fs20\ql We recognize revenue in accordance with Financial Accounting Standards Board, or FASB, Accounting Standards Codification,\plain\cf1\f51\fs20\ql or ASC, Topic 605,\~\plain\cf1\f51\fs20\i\ql Revenue Recognition\plain\cf1\f51\fs20\ql , or ASC 605. Accordingly, revenue is recognized for each unit of accounting when all\plain\cf1\f51\fs20\ql of the following criteria are met: \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql persuasive evidence of an arrangement exists;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql delivery has occurred or services have been rendered;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the seller\u8217?s price to the buyer is fixed or determinable; and\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql collectability is reasonably assured.\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}}\pard\plain\sb264\cf1\f51\fs20\ql Amounts received prior to satisfying the revenue recognition criteria are recorded as deferred revenue in our\~consolidated\~balance\plain\cf1\f51\fs20\ql sheets.\par\pard\plain\sb396\cf1\f51\fs20\i\ql Multiple Element Arrangements\par\pard\plain\sb132\cf1\f51\fs20\ql Determination of Accounting Units\par\pard\plain\sb132\cf1\f51\fs20\ql We analyze multiple element arrangements based on the guidance in ASC Topic 605\u8209?25,\~\plain\cf1\f51\fs20\i\ql Revenue\plain\cf1\f51\fs20\i\ql Recognition\u8212?Multiple Element Arrangements,\plain\cf1\f51\fs20\ql \~or ASC\~605\u8209?25. Pursuant to the guidance in ASC\~605\u8209?25, we\plain\cf1\f51\fs20\ql evaluate multiple element arrangements to determine (1)\~the deliverables included in the arrangement and (2)\~whether the\plain\cf1\f51\fs20\ql individual deliverables represent separate units of accounting or whether they must be accounted for as a combined unit of\plain\cf1\f51\fs20\ql accounting. This evaluation involves subjective determinations and requires management to make judgments about the individual\plain\cf1\f51\fs20\ql deliverables and whether such deliverables are separate from other aspects of the contractual relationship. Deliverables are\plain\cf1\f51\fs20\ql considered separate units of accounting provided that: (i)\~the delivered item(s) has value to the customer on a standalone basis\plain\cf1\f51\fs20\ql and (ii)\~if the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the\plain\cf1\f51\fs20\ql undelivered item(s) is considered probable and substantially within our control. In assessing whether an item under a\plain\cf1\f51\fs20\ql collaboration has standalone value, we consider factors such as the research, manufacturing, and commercialization capabilities of\plain\cf1\f51\fs20\ql the collaboration partner and the availability of the associated expertise in the general marketplace. We also consider whether our\plain\cf1\f51\fs20\ql collaboration partner can use the other deliverable(s) for their intended purpose without the receipt of the remaining element(s),\plain\cf1\f51\fs20\ql whether the value of the deliverable is dependent on the undelivered item(s), and whether there are other vendors that can\plain\cf1\f51\fs20\ql provide the undelivered element(s).\par\pard\plain\sb264\cf1\f51\fs20\ql Options under a collaboration are considered substantive if, at the inception of the arrangement, we are at risk as to whether the\plain\cf1\f51\fs20\ql collaboration partner will choose to exercise the option. Factors that we consider in evaluating whether an option is substantive\plain\cf1\f51\fs20\ql include the cost to exercise the option, the overall objective of the arrangement, the benefit the collaboration partner might obtain\plain\cf1\f51\fs20\ql from the arrangement without exercising the option, and the likelihood the option will be exercised. When an option is\plain\cf1\f51\fs20\ql considered substantive, we would not consider the option or item underlying the option to be a deliverable at the inception of the\plain\cf1\f51\fs20\ql arrangement and the associated option fees are not included in allocable consideration, assuming the option is not priced at a\plain\cf1\f51\fs20\ql significant and incremental discount. Conversely, when an option is not considered substantive, we would consider the option,\plain\cf1\f51\fs20\ql including other deliverables contingent upon the exercise of the option, to be a deliverable at the inception of the arrangement\plain\cf1\f51\fs20\ql and a corresponding amount would be included in allocable arrangement consideration. In addition, if the price of the option\plain\cf1\f51\fs20\ql includes a significant incremental discount, the discount would be included as a deliverable at the inception of the arrangement.\par\pard\plain\sb396\cf1\f51\fs20\ql Allocation of Arrangement Consideration{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb132\cf1\f51\fs20\ql Arrangement consideration that is fixed or determinable is allocated among the separate units of accounting using the relative\plain\cf1\f51\fs20\ql selling price method. The applicable revenue recognition criteria in ASC 605 are applied to each of the separate units of\plain\cf1\f51\fs20\ql accounting in determining the appropriate period and pattern of recognition. We determine the selling price of a unit of\plain\cf1\f51\fs20\ql accounting following the hierarchy of evidence prescribed by ASC 605\u8209?25. Accordingly, we determine the estimated\plain\cf1\f51\fs20\ql selling price for units of accounting within each arrangement using vendor specific objective evidence, or VSOE, of selling price,\plain\cf1\f51\fs20\ql if available, third\u8209?party evidence, or TPE, of selling price if VSOE is not available, or best estimate of selling price, or\plain\cf1\f51\fs20\ql BESP, if neither VSOE or TPE is available. We have only used BESP to estimate selling price, since we have not had VSOE or\plain\cf1\f51\fs20\ql TPE of selling price for any units of accounting to date. Determining BESP for a unit of accounting requires significant\plain\cf1\f51\fs20\ql judgment. In developing the BESP for a unit of accounting, we consider applicable market conditions and relevant\plain\cf1\f51\fs20\ql entity\u8209?specific factors, including factors that were contemplated in negotiating the applicable agreement and estimated\plain\cf1\f51\fs20\ql costs. We validate BESP for units of accounting by evaluating whether changes in the key\par\pard\plain\sb264\cf1\f51\fs20\qc 34\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sb132\cf1\f51\fs20\ql assumptions used by us to determine the BESP will have a significant effect on the allocation of arrangement consideration\plain\cf1\f51\fs20\ql between multiple units of accounting.\par\pard\plain\sb396\cf1\f51\fs20\ql Pattern of Recognition\par\pard\plain\sb132\cf1\f51\fs20\ql We recognize the arrangement\u8217?s consideration allocated to each unit of accounting when all of the revenue recognition\plain\cf1\f51\fs20\ql criteria in ASC 605 are satisfied for that particular unit of accounting. We recognize revenue associated with licenses, license\plain\cf1\f51\fs20\ql options, or the discount related to a license option upon (i)\~delivery of the license or (ii)\~the earlier of exercise or expiration of\plain\cf1\f51\fs20\ql the license option, if the underlying license has standalone value from the other deliverables to be provided after delivering that\plain\cf1\f51\fs20\ql license. If the license does not have standalone value, the amounts allocated to the license are combined with the related\plain\cf1\f51\fs20\ql undelivered items as a single unit of accounting.\par\pard\plain\sb264\cf1\f51\fs20\ql We recognize the amounts associated with collaboration research and development services, joint research committees, or other\plain\cf1\f51\fs20\ql services ratably over the associated period of performance. If there is no discernible pattern of performance or objectively\plain\cf1\f51\fs20\ql measurable performance measures do not exist, then we recognize revenue under the arrangement on a straight\u8209?line basis\plain\cf1\f51\fs20\ql over the period that we are expected to complete our performance obligations. Conversely, if the pattern of performance in which\plain\cf1\f51\fs20\ql the service is provided to the collaboration partner can be determined and objectively measureable performance exists, then we\plain\cf1\f51\fs20\ql recognize revenue under the arrangement using the proportional performance method. Revenue to be recognized is limited to the\plain\cf1\f51\fs20\ql lesser of the cumulative amount of payments received or the cumulative revenue earned determined using the straight line method\plain\cf1\f51\fs20\ql or proportional performance, as applicable, as of the period end date.\par\pard\plain\sb396\cf1\f51\fs20\ql Recognition of Milestones and Royalties\par\pard\plain\sb132\cf1\f51\fs20\ql At the inception of an arrangement that includes milestone payments, we evaluate whether each milestone is substantive and at\plain\cf1\f51\fs20\ql risk to both parties on the basis of the contingent nature of the milestone. This evaluation includes an assessment of whether:\plain\cf1\f51\fs20\ql (1)\~the consideration is commensurate with either our performance to achieve the milestone or the enhancement of the value of\plain\cf1\f51\fs20\ql the delivered item(s) as a result of a specific outcome resulting from our performance to achieve the milestone, (2)\~the\plain\cf1\f51\fs20\ql consideration relates solely to past performance, and (3)\~the consideration is reasonably relative to all of the deliverables and\plain\cf1\f51\fs20\ql payment terms within the arrangement. We evaluate factors such as clinical, regulatory, commercial, and other risks that must be\plain\cf1\f51\fs20\ql overcome to achieve the respective milestones and the level of effort and investment required to achieve the respective milestones\plain\cf1\f51\fs20\ql in making this assessment. There is considerable judgment involved in determining whether a milestone satisfies all of the criteria\plain\cf1\f51\fs20\ql required to conclude that a milestone is substantive. In accordance with ASC Topic 605\u8209?28\plain\cf1\f51\fs20\i\ql , Revenue\plain\cf1\f51\fs20\i\ql Recognition\u8212?Milestone Method\plain\cf1\f51\fs20\ql , or ASC 605\u8209?28, a clinical or regulatory milestone that is considered substantive will\plain\cf1\f51\fs20\ql be recognized as revenue in its entirety upon successful accomplishment of the milestone, assuming all other revenue recognition\plain\cf1\f51\fs20\ql criteria are met. Milestones that are not considered substantive would be recognized as revenue over the remaining period of\plain\cf1\f51\fs20\ql performance, assuming all other revenue recognition criteria are met. Revenue from a commercial milestone payment will be\plain\cf1\f51\fs20\ql accounted for as royalties and recorded as revenue upon achievement of the milestone, assuming all other revenue recognition\plain\cf1\f51\fs20\ql criteria are met.\par\pard\plain\sb264\cf1\f51\fs20\ql We will recognize royalty revenue in the period of sale of the related product(s), based on the underlying contract terms,\plain\cf1\f51\fs20\ql provided that the reported sales are reliably measurable, we have no remaining performance obligations, and assuming all other\plain\cf1\f51\fs20\ql revenue recognition criteria are met.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Prepaid and Accrued Research and Development Expenses\par\pard\plain\sb132\cf1\f51\fs20\ql As part of the process of preparing our consolidated financial statements, we are required to estimate our prepaid and accrued\plain\cf1\f51\fs20\ql research and development expenses. This process involves reviewing open contracts and purchase orders, communicating with our\plain\cf1\f51\fs20\ql personnel to identify services that have been performed on our behalf and estimating the level of service performed and the\plain\cf1\f51\fs20\ql associated cost incurred for the service when we have not yet been invoiced or otherwise notified of the actual cost. The majority\plain\cf1\f51\fs20\ql of our service providers invoice us monthly in arrears for services performed. We make estimates of our prepaid and accrued\plain\cf1\f51\fs20\ql research and development expenses as of each balance sheet date in our consolidated financial statements based on facts and\plain\cf1\f51\fs20\ql circumstances known to us at that time. We confirm the accuracy of our estimates with the service providers and make\plain\cf1\f51\fs20\ql adjustments if necessary. Examples of estimated prepaid and accrued research and development expenses include expenses for: \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql CROs in connection with clinical studies;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql investigative sites in connection with clinical studies;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql vendors in connection with preclinical development activities; and\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql vendors related to product manufacturing, development and distribution of clinical materials.\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}}\pard\plain\sb264\cf1\f51\fs20\qc 35\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb264\cf1\f51\fs20\ql We base our expenses related to clinical studies on our estimates of the services received and efforts expended pursuant to\plain\cf1\f51\fs20\ql contracts with multiple CROs that conduct and manage clinical studies on our behalf. The financial terms of these agreements are\plain\cf1\f51\fs20\ql subject to negotiation, vary from contract to contract and may result in uneven payment flows. The scope of services under\plain\cf1\f51\fs20\ql contracts for research and development activities can be modified and some of the agreements may be cancelled by either party\plain\cf1\f51\fs20\ql upon written notice. There may be instances in which payments made to our vendors will exceed the level of services provided\plain\cf1\f51\fs20\ql and result in a prepayment of the clinical expense. Payments under some of these contracts depend on factors such as the\plain\cf1\f51\fs20\ql successful enrollment of subjects and the completion of clinical study milestones. In accruing service fees, we estimate the time\plain\cf1\f51\fs20\ql period over which services will be performed and the level of effort to be expended in each period. If the actual timing of the\plain\cf1\f51\fs20\ql performance of services or the level of effort varies from our estimate, we adjust the accrual or prepaid accordingly.\par\pard\plain\sb264\cf1\f51\fs20\ql Although we do not expect our estimates to be materially different from amounts actually incurred, if our estimates of the status\plain\cf1\f51\fs20\ql and timing of services performed differ from the actual status and timing of services performed we may report amounts that are\plain\cf1\f51\fs20\ql too high or too low in any particular period. To date, there have been no material differences between our estimates and the\plain\cf1\f51\fs20\ql amount actually incurred.\~\~\par\pard\plain\sb396\cf1\f51\fs2\ql \~\plain\cf1\f51\fs20\b\i\ql Stock-Based Compensation\par\pard\plain\sb132\cf1\f51\fs20\i\ql Stock-Based Awards\par\pard\plain\sb132\cf1\f51\fs20\ql We issue stock-based awards to employees and non-employees, generally in the form of stock options, restricted stock, RSUs,\plain\cf1\f51\fs20\ql shares of common stock and warrants. We account for our stock-based compensation awards in accordance with Financial\plain\cf1\f51\fs20\ql Accounting Standards Board, (FASB) ASC Topic 718,\plain\cf1\f51\fs20\i\ql Compensation\u8212?Stock Compensation\plain\cf1\f51\fs20\ql , or ASC 718. ASC 718\plain\cf1\f51\fs20\ql requires all stock-based payments to employees, including grants of employee stock options and restricted stock and\plain\cf1\f51\fs20\ql modifications to existing stock awards, to be recognized in the statements of operations and comprehensive loss based on their\plain\cf1\f51\fs20\ql fair values. We account for stock-based awards to non-employees in accordance with ASC Topic 505-50,\plain\cf1\f51\fs20\i\ql Equity-Based-Payments to Non-Employees\plain\cf1\f51\fs20\ql , or ASC 505-50, which requires the fair value of the award to be re-measured at\plain\cf1\f51\fs20\ql fair value until a performance commitment is reached or counterparty performance is complete. Described below is the\plain\cf1\f51\fs20\ql methodology we have utilized in measuring stock-based compensation expense. Stock option, common stock and restricted stock\plain\cf1\f51\fs20\ql values are determined based on a blend of our stock price and the quoted market price of our comparable public companies.\par\pard\plain\sb264\cf1\f51\fs20\ql We estimate the fair value of our stock-based awards of options to purchase shares of common stock to employees and\plain\cf1\f51\fs20\ql non-employees using the Black-Scholes option pricing model, which requires the input of highly subjective assumptions,\plain\cf1\f51\fs20\ql including (a)\~the expected stock price volatility, (b)\~the calculation of the expected term of the award, (c)\~the risk-free interest\plain\cf1\f51\fs20\ql rate and (d)\~expected dividends. Due to the lack of company-specific historical and implied volatility data for trading our stock\plain\cf1\f51\fs20\ql in the public market, we have based our estimate of expected volatility on the historical volatility of a group of similar\plain\cf1\f51\fs20\ql companies that are publicly traded. The historical volatility is calculated based on a period of time commensurate with the\plain\cf1\f51\fs20\ql expected term assumption. The computation of expected volatility is based on the historical volatility of a representative group of\plain\cf1\f51\fs20\ql companies with similar characteristics to our company, including stage of product development and life science industry focus.\plain\cf1\f51\fs20\ql During 2017, we began to estimate our volatility by using a blend of our stock price history for the length of time we have\plain\cf1\f51\fs20\ql market data for our stock and the historical volatility of similar public companies for the expected term of each grant. We are a\plain\cf1\f51\fs20\ql company in the product development stage with no product revenue and the representative group of companies has certain similar\plain\cf1\f51\fs20\ql characteristics. We believe the group selected has sufficient similar economic and industry characteristics, and includes companies\plain\cf1\f51\fs20\ql that are most representative of our company. We use the simplified method as prescribed by the SEC Staff Accounting Bulletin\plain\cf1\f51\fs20\ql No.\~107,\plain\cf1\f51\fs20\i\ql Share-Based Payment,\plain\cf1\f51\fs20\ql to calculate the expected term for options granted to employees as we do not have sufficient\plain\cf1\f51\fs20\ql historical exercise data to provide a reasonable basis upon which to estimate the expected term. The expected term is applied to\plain\cf1\f51\fs20\ql the stock option grant group as a whole, as we do not expect substantially different exercise or post-vesting termination behavior\plain\cf1\f51\fs20\ql among our employee population. For options granted to non-employees, we utilize the contractual term of the arrangement as the\plain\cf1\f51\fs20\ql basis for the expected term assumption. The risk-free interest rate is based on a treasury instrument whose term is consistent\plain\cf1\f51\fs20\ql with the expected life of the stock options. The expected dividend yield is assumed to be zero as we have never paid dividends\plain\cf1\f51\fs20\ql and have no current plans to pay any dividends on our common stock, similar to our peer group. We estimate grant date fair\plain\cf1\f51\fs20\ql value of restricted stock awards with corresponding promissory notes using the Black-Scholes option pricing model. The grant\plain\cf1\f51\fs20\ql date fair value of restricted stock awards and awards of common stock has been based on the estimated value of our common\plain\cf1\f51\fs20\ql stock at the date of grant.\par\pard\plain\sb264\cf1\f51\fs20\ql Our stock-based awards are subject to service-based vesting conditions. Compensation expense related to awards to employees\plain\cf1\f51\fs20\ql with service-based vesting conditions is recognized on a straight-line basis based on the grant date fair value over the associated\plain\cf1\f51\fs20\ql service period of the award, which is generally the vesting term. Consistent with the guidance in ASC 505-50, compensation\plain\cf1\f51\fs20\ql expense related to awards to non-employees with service-based vesting conditions is recognized on a straight-line basis based\plain\cf1\f51\fs20\ql on the then-current fair value at each financial reporting date prior to the measurement date over the associated service period of\plain\cf1\f51\fs20\ql the award, which is generally the vesting term.\par\pard\plain\sb264\cf1\f51\fs20\qc 36\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb264\cf1\f51\fs20\ql The Company adopted ASU No. 2016-09,\~\plain\cf1\f51\fs20\i\ql Compensation-Stock Compensation (Topic 718): Improvements to Employee\plain\cf1\f51\fs20\i\ql Share-Based Payment Accounting,\plain\cf1\f51\fs20\ql effective in the first quarter of the year ended December 31, 2017. Prior to adoption,\plain\cf1\f51\fs20\ql share-based compensation expense was recognized on a straight line basis, net of estimated forfeitures, such that expense was\plain\cf1\f51\fs20\ql recognized only for share-based awards that are expected to vest. A forfeiture rate was estimated annually and revised, if\plain\cf1\f51\fs20\ql necessary, in subsequent periods if actual forfeitures differed from initial estimates. Upon adoption, the Company will no longer\plain\cf1\f51\fs20\ql apply a forfeiture rate and instead will account for forfeitures as they occur.\par\pard\plain\sb264\cf1\f51\fs2\ql \~\plain\cf1\f51\fs20\ql Stock-based compensation expense totaled approximately $2.5 million and $1.2 million for the three months ended June 30,\plain\cf1\f51\fs20\ql 2017 and 2016, respectively, and approximately $7.9 and $2.5 million for the six months ended June 30, 2017 and 2016,\plain\cf1\f51\fs20\ql respectively.\par\pard\plain\sb264\cf1\f51\fs20\ql We expect the impact of our stock-based compensation expense for stock options and restricted stock granted to employees and\plain\cf1\f51\fs20\ql non-employees to grow in future periods due to the potential increases in the fair value of our common stock and the increase in\plain\cf1\f51\fs20\ql the number of grants as a result of an increase in headcount.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Emerging Growth Company Status\par\pard\plain\sb132\cf1\f51\fs20\ql The JOBS Act permits an \u8220?emerging growth company\u8221? to take advantage of an extended transition period to\plain\cf1\f51\fs20\ql comply with new or revised accounting standards applicable to public companies. We chose to \u8220?opt out\u8221? of this\plain\cf1\f51\fs20\ql provision and, as a result, we will comply with new or revised accounting standards as required when they are adopted. This\plain\cf1\f51\fs20\ql decision to opt out of the extended transition period under the JOBS Act is irrevocable.\par\pard\plain\sb396\cf1\f51\fs20\b\ql Results of Operations\par\pard\plain\sb132\cf1\f51\fs20\b\i\ql Comparison of the Three Months Ended June 30, 2017 and 2016\par\pard\plain\cf1\f51\fs20\ql \~ \par\pard\plain {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5448\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5551\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8796\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8903\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9006\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh215 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Three months ended\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Increase\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5448\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5551\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8796\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8903\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9006\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh215\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5448\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5551\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7064\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7171\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7277\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8794\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8901\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9004\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10687\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh232 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June 30, 2017\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June 30, 2016\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc (Decrease)\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5448\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5551\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7064\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7171\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7277\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8794\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8901\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9004\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10687\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh232\row}}} {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5448\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5551\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10691\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh215 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\i\qc (In\~Thousands)\cell\pard\plain\intbl\cf1\f51\fs16\i\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5448\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5551\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10691\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh215\row}}} {\trowd\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5448\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5551\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5751\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7064\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7171\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7277\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7477\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8794\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8901\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9004\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9373\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10686\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Collaboration revenue\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 28,520\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 28,520\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5448\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5551\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5751\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7064\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7171\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7277\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7477\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8794\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8901\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9004\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9373\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10686\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5448\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5551\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5751\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7064\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7171\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7277\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7477\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8794\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8901\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9004\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9373\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10686\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Operating expenses:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5448\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5551\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5751\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7064\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7171\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7277\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7477\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8794\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8901\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9004\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9373\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10686\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5448\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5551\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5751\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7064\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7171\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7277\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7477\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8794\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8901\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9004\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9373\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10686\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\li440\cf1\f51\fs20\ql Research and development\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 43,751\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 30,877\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 12,874\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5448\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5551\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5751\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7064\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7171\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7277\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7477\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8794\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8901\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9004\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9373\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10686\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5448\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5551\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5751\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7064\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7171\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7277\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7477\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8794\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8901\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9004\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9373\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10686\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\li440\cf1\f51\fs20\ql General and administrative\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 6,905\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 5,311\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 1,594\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5448\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5551\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5751\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7064\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7171\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7277\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7477\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8794\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8901\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9004\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9373\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10686\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5448\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5551\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5751\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7064\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7171\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7277\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7477\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8794\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8901\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9004\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9373\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10686\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li748\cf1\f51\fs20\ql Total operating expenses\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 50,656\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 36,188\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 14,468\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5448\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5551\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5751\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7064\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7171\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7277\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7477\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8794\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8901\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9004\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9373\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10686\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5448\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5551\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5751\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7064\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7171\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7277\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7477\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8794\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8901\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9004\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9373\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10686\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql Loss from operations\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (22,136\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (36,188\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (14,052\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell{ {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5448\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5551\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5751\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7064\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7171\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7277\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7477\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8794\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8901\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9004\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9373\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10686\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5448\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5551\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5751\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7064\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7171\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7277\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7477\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8794\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8901\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9004\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9373\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10686\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Other income, net\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 618\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 409\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 209\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5448\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5551\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5751\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7064\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7171\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7277\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7477\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8794\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8901\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9004\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9373\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10686\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5448\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5551\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5751\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7064\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7171\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7277\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7477\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8794\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8901\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9004\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9373\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10686\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql Net loss\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (21,518\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (35,779\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (14,261\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell{ {\trowd\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5448\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5551\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5751\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7064\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7171\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7277\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7477\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8794\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8901\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9004\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9373\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10686\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281\row}}}\pard\plain\sb44\cf1\f51\fs20\ql \~\par\pard\plain\sb44\cf1\f51\fs20\i\ql Collaboration Revenue\plain\cf1\f51\fs20\ql . Collaboration revenue was $28.5 million for the three months ended June 30, 2017 and related entirely to\plain\cf1\f51\fs20\ql our agreements with Otsuka. We did not recognize any collaboration revenue in the three month period ended June 30, 2016 as\plain\cf1\f51\fs20\ql the Otsuka agreements were not consummated in that time period, and all revenue recognition criteria for the MTPC Agreement,\plain\cf1\f51\fs20\ql as required under ASC 605, had not been satisfied, which the Company expects will be in the second half of 2017.\par\pard\plain\sb264\cf1\f51\fs20\i\ql Research and Development Expenses\plain\cf1\f51\fs20\ql . Research and development expenses were $43.8 million for the three months ended June\plain\cf1\f51\fs20\ql 30, 2017, compared to $30.9\~million for the three months ended June 30, 2016, an increase of $12.9 million. The increase was\plain\cf1\f51\fs20\ql primarily due to the following:\par\pard\plain\cf1\f51\fs20\ql \~ \par\pard\plain {\trowd\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9216\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10691\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh289 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\i\qc (in\plain\intbl\cf1\f62\fs16\qc \~\plain\intbl\cf1\f51\fs16\i\qc millions)\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9216\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10691\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh289\row}}} {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9216\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9510\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10691\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9216\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9510\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10691\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9216\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9510\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10691\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql PRO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql TECT and INNO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql VATE Phase 3 program\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 7.4\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9216\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9510\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10691\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9216\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9510\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10691\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql FO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql RWARD Phase 2 study\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 1.7\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9216\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9510\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10691\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9216\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9510\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10691\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql TRILO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql GY Phase 3 study\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 1.2\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9216\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9510\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10691\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9216\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9510\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10691\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Regulatory activities and other clinical and non-clinical\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 0.3\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9216\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9510\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10691\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9216\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9510\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10691\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Manufacture of drug substance\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (0.7\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9216\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9510\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10691\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9216\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9510\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10691\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql Total increase related to the continued development of vadadustat\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 9.9\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9216\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9510\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10691\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9216\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9510\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10691\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9216\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9510\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10691\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9216\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9510\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10691\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Headcount, consulting and facilities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 2.9\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9216\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9510\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10691\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9216\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9510\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10691\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Other\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 0.1\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9216\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9510\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10691\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9216\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9510\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10691\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql Total net increase\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 12.9\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{ {\trowd\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9216\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9510\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10691\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281\row}}}\pard\plain\sb44\cf1\f51\fs20\ql \~\par\pard\plain\sb264\cf1\f51\fs20\qc 37\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb44\cf1\f51\fs20\ql The increase in the costs related to the development of vadadustat is primarily attributable to external costs related to the\plain\cf1\f51\fs20\ql PRO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql TECT and INNO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql VATE Phase 3 program as well as the FO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql RWARD and TRILO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql GY studies.\~\~The increase in\plain\cf1\f51\fs20\ql headcount, consulting and facility related costs relates to additional resources required in support of our expanding research and\plain\cf1\f51\fs20\ql development programs, as well as rent associated with our leasing of additional office and lab space. We expect our research and\plain\cf1\f51\fs20\ql development expenses to increase in future periods in support of the Phase 3 programs and other studies and our pipeline\plain\cf1\f51\fs20\ql development.\par\pard\plain\sb264\cf1\f51\fs20\i\ql General and Administrative Expenses\plain\cf1\f51\fs20\ql . General and administrative expenses were $6.9 million for the three months ended June\plain\cf1\f51\fs20\ql 30, 2017, compared to $5.3 million for the three months ended June 30, 2016. The increase of $1.6 million was primarily due to\plain\cf1\f51\fs20\ql an increase in costs to support our research and development programs, including headcount and compensation-related costs, and\plain\cf1\f51\fs20\ql associated facility-related costs. We expect our general and administrative expenses to increase in future periods to support our\plain\cf1\f51\fs20\ql continued research and development and potential commercialization of our product candidates.\par\pard\plain\sb264\cf1\f51\fs20\i\ql Other Income, Net\plain\cf1\f51\fs20\ql . Other income, net, was $0.6 million for the three months ended June 30, 2017 and $0.4 million for the three\plain\cf1\f51\fs20\ql months ended June 30, 2016. Other income, net for the three months ended June 30, 2017 and 2016 is primarily comprised of\plain\cf1\f51\fs20\ql interest income. \~\par\pard\plain\sb396\cf1\f51\fs20\b\ql Results of Operations\par\pard\plain\sb132\cf1\f51\fs20\b\i\ql Comparison of the Six Months Ended June 30, 2017 and 2016\par\pard\plain\cf1\f51\fs20\ql \~ \par\pard\plain {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5452\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5555\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8806\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8913\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9016\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10692\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Six Months Ended\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Increase\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5452\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5555\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8806\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8913\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9016\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10692\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5452\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5555\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7073\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7180\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7287\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8804\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8911\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9014\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10690\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281 \pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June 30, 2017\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June 30, 2016\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc (Decrease)\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5452\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5555\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7073\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7180\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7287\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8804\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8911\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9014\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10690\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281\row}}} {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5452\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5555\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10693\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\i\qc (In\~Thousands)\cell\pard\plain\intbl\cf1\f51\fs16\i\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5452\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5555\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10693\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5452\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5555\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5755\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7073\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7180\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7287\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7487\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8804\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8911\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9014\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9383\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Collaboration revenue\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 49,385\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr \u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 49,385\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5452\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5555\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5755\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7073\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7180\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7287\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7487\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8804\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8911\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9014\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9383\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5452\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5555\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5755\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7073\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7180\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7287\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7487\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8804\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8911\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9014\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9383\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Operating expenses:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5452\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5555\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5755\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7073\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7180\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7287\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7487\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8804\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8911\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9014\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9383\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5452\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5555\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5755\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7073\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7180\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7287\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7487\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8804\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8911\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9014\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9383\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\li440\cf1\f51\fs20\ql Research and development\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 103,800\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 51,112\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 52,688\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5452\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5555\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5755\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7073\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7180\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7287\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7487\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8804\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8911\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9014\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9383\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10689\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5452\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5555\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5755\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7073\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7180\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7287\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7487\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8804\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8911\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9014\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9383\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\li440\cf1\f51\fs20\ql General and administrative\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 12,693\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 11,122\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 1,571\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5452\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5555\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5755\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7073\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7180\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7287\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7487\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8804\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8911\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9014\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9383\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5452\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5555\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5755\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7073\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7180\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7287\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7487\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8804\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8911\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9014\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9383\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\li748\cf1\f51\fs20\ql Total operating expenses\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 116,493\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 62,234\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 54,259\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5452\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5555\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5755\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7073\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7180\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7287\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7487\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8804\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8911\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9014\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9383\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5452\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5555\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5755\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7073\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7180\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7287\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7487\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8804\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8911\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9014\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9383\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql Loss from operations\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (67,108\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (62,234\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 4,874\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5452\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5555\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5755\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7073\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7180\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7287\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7487\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8804\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8911\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9014\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9383\clbrdrt\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10689\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5452\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5555\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5755\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7073\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7180\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7287\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7487\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8804\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8911\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9014\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9383\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Other income, net\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 1,048\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 657\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 391\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5452\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5555\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5755\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7073\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7180\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7287\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7487\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8804\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx8911\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9014\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx9383\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10689\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5452\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5555\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5755\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7073\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7180\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7287\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7487\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8804\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8911\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9014\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9383\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10689\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql Net loss\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (66,060\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (61,577\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 4,483\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{ {\trowd\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5452\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5555\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5755\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7073\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7180\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7287\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7487\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8804\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx8911\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9014\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx9383\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10689\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281\row}}}\pard\plain\sb44\cf1\f51\fs20\ql \~\par\pard\plain\sb44\cf1\f51\fs20\i\ql Collaboration Revenue\plain\cf1\f51\fs20\ql . Collaboration revenue was $49.4 million for the six months ended June 30, 2017 under our agreement\plain\cf1\f51\fs20\ql with Otsuka. We did not recognize any collaboration revenue in the six month period ended June 30, 2016 as the Otsuka\plain\cf1\f51\fs20\ql agreements were not consummated in that time period, and all revenue recognition criteria for the MTPC Agreement, as required\plain\cf1\f51\fs20\ql under ASC 605, had not been satisfied, which the Company expects will be in the second half of 2017.\~\~\par\pard\plain\sb264\cf1\f51\fs20\i\ql Research and Development Expenses\plain\cf1\f51\fs20\ql . Research and development expenses were $103.8 million for the six months ended June\plain\cf1\f51\fs20\ql 30, 2017, compared to $51.1\~million for the six months ended June 30, 2016, an increase of $52.7 million. The increase was\plain\cf1\f51\fs20\ql primarily due to the following:\par\pard\plain\cf1\f51\fs20\ql \~ \par\pard\plain {\trowd\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9119\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10691\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\i\qc (in millions)\cell\pard\plain\intbl\cf1\f51\fs20\i\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9119\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10691\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9119\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9519\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10690\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9119\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9519\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10690\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh281\row}}} {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9119\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9519\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10690\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql PRO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql TECT and INNO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql VATE Phase 3 program\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 39.9\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9119\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9519\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10690\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9119\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9519\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10690\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql FO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql RWARD Phase 2 study\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 1.7\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9119\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9519\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10690\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9119\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9519\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10690\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Regulatory and other clinical and non-clinical activities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 1.6\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9119\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9519\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10690\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9119\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9519\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10690\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql TRILO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql GY Phase 3 study\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 1.2\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9119\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9519\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10690\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9119\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9519\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10690\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Manufacture of drug substance\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (1.2\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9119\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9519\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10690\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9119\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9519\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10690\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql Total increase related to the continued development of vadadustat\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 43.2\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9119\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9519\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10690\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}} {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9119\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9519\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10690\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9119\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9519\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10690\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9119\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9519\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10690\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Headcount, consulting and facilities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 4.8\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9119\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9519\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10690\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9119\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9519\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10690\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Fair value of warrant issued in connection with Janssen Agreement\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 3.4\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9119\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9519\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10690\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9119\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9519\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10690\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql License fee in connection with Janssen Agreement\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 1.0\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9119\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9519\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10690\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9119\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9519\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10690\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Other\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 0.3\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9119\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9519\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10690\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx10800\trrh264\row}}} {\trowd\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9119\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9519\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10690\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql Total net increase\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 52.7\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{ {\trowd\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9119\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx9519\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10690\clbrdrb\brdrdb\brdrcf7\clvertalb\clshdng100\clcfpat11\clcbpat11\cellx10800\trrh281\row}}}\pard\plain\sb44\cf1\f51\fs20\ql \~{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb44\cf1\f51\fs20\ql The increase in the costs related to the development of vadadustat is primarily attributable to external costs related to the\plain\cf1\f51\fs20\ql PRO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql TECT and INNO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql VATE Phase 3 program as well as the FO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql RWARD and TRILO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql GY studies. The increase in\plain\cf1\f51\fs20\ql headcount, consulting and\par\pard\plain\sb264\cf1\f51\fs20\qc 38\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sb44\cf1\f51\fs20\ql facility related costs relates to additional resources required in support of our expanding research and development programs, as\plain\cf1\f51\fs20\ql well as rent associated with our leasing of additional office and lab space.\~\~We expect our research and development expenses to\plain\cf1\f51\fs20\ql increase in future periods in support of the Phase 3 programs and other studies and our pipeline development.\par\pard\plain\sb264\cf1\f51\fs20\i\ql General and Administrative Expenses\plain\cf1\f51\fs20\ql . General and administrative expenses were $12.7 million for the six months ended June 30,\plain\cf1\f51\fs20\ql 2017, compared to $11.1 million for the six months ended June 30, 2016. The increase of $1.6 million was primarily due to an\plain\cf1\f51\fs20\ql increase in costs to support our research and development programs, including headcount and compensation-related costs, and\plain\cf1\f51\fs20\ql associated facility-related costs partially offset by lower commercial planning costs and patent related costs. We expect our\plain\cf1\f51\fs20\ql general and administrative expenses to increase in future periods to support our continued research and development and potential\plain\cf1\f51\fs20\ql commercialization of our product candidates.\par\pard\plain\sb264\cf1\f51\fs20\i\ql Other Income, Net\plain\cf1\f51\fs20\ql . Other income, net, was $1.0 million for the six months ended June 30, 2017 and $0.7 million for the six\plain\cf1\f51\fs20\ql months ended June 30, 2016. Other income, net for the six months ended June 30, 2017 and 2016 is primarily comprised of\plain\cf1\f51\fs20\ql interest income. \~\par\pard\plain\sb396\cf1\f51\fs20\b\ql Liquidity and Capital Resources\par\pard\plain\sb132\cf1\f51\fs20\ql We have incurred losses and cumulative negative cash flows from operations since our inception in February\~2007, and as of\plain\cf1\f51\fs20\ql June 30, 2017, we had an accumulated deficit of $363.2 million. We anticipate that we will continue to incur losses for at least\plain\cf1\f51\fs20\ql the next several years. We expect that our research and development and general and administrative expenses will continue to\plain\cf1\f51\fs20\ql increase and, as a result, we will need additional capital to fund our operations, which we may raise through a combination of\plain\cf1\f51\fs20\ql equity offerings, debt financings, other third-party funding, marketing and distribution arrangements and other collaborations,\plain\cf1\f51\fs20\ql strategic alliances and licensing arrangements.\par\pard\plain\sb264\cf1\f51\fs20\ql We have funded our operations principally through sales of our common stock and payments received from our collaboration\plain\cf1\f51\fs20\ql partners. As of June 30, 2017, we had cash and cash equivalents and available for sale securities of approximately $321.2\plain\cf1\f51\fs20\ql million.\~\~Cash in excess of immediate requirements is invested in accordance with our investment policy, primarily with a view to\plain\cf1\f51\fs20\ql liquidity and capital preservation. Accordingly, available for sale securities, consisting principally of corporate and government\plain\cf1\f51\fs20\ql debt securities stated at fair value, are also available as a source of liquidity.\~\~\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Cash Flows\par\pard\plain\sb132\cf1\f51\fs20\ql The following table sets forth the primary sources and uses of cash for each of the periods set forth below:\par\pard\plain\cf1\f51\fs20\ql \~ \par\pard\plain {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3949\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4083\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7177\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7285\trrh215 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Six Months Ended\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3949\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4083\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7177\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7285\trrh215\row}}} {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3949\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4083\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5514\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5620\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5759\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7176\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7285\trrh232 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June 30, 2017\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc June 30, 2016\cell\pard\plain\intbl\cf1\f51\fs16\b\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3949\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4083\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5514\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5620\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5759\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7176\clbrdrb\brdrs\brdrcf7\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7285\trrh232\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3949\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4083\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7177\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7285\trrh215 \pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\i\qc (In\~Thousands)\cell\pard\plain\intbl\cf1\f51\fs16\i\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3949\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4083\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7177\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7285\trrh215\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3949\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4083\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4283\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5514\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5620\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5759\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5959\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7176\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7285\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql Net cash provided by (used in):\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3949\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4083\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4283\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5514\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5620\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5759\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5959\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7176\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7285\trrh264\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3949\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4083\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4283\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5514\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5620\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5759\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5959\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7176\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7285\trrh264 \pard\plain\intbl\li440\cf1\f51\fs20\ql Operating activities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr 14,836\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (9,521\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3949\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4083\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4283\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5514\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5620\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5759\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5959\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7176\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7285\trrh264\row}}} {\trowd\trqc\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3949\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4083\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4283\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5514\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5620\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5759\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5959\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7176\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7285\trrh264 \pard\plain\intbl\li440\cf1\f51\fs20\ql Investing activities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (123,993\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (55,168\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell{ {\trowd\trqc\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3949\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4083\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4283\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5514\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5620\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5759\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5959\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7176\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7285\trrh264\row}}} {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3949\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4083\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4283\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5514\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5620\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5759\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5959\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7176\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7285\trrh264 \pard\plain\intbl\li440\cf1\f51\fs20\ql Financing activities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 47,212\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr 61,088\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\trqc\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx3949\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4083\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx4283\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5514\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5620\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5759\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx5959\clbrdrb\brdrs\brdrcf1\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7176\clbrdrb\brdrs\brdrcf7\clvertalc\clshdng100\clcfpat7\clcbpat7\cellx7285\trrh264\row}}} {\trowd\trqc\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3949\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4083\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4283\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5514\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5620\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5759\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5959\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7176\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7285\trrh281 \pard\plain\intbl\cf1\f51\fs20\ql Net increase in cash and cash equivalents\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (61,945\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (3,601\cell\pard\plain\intbl\cf1\f51\fs20\ql )\cell{ {\trowd\trqc\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx3949\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4083\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx4283\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5514\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5620\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5759\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx5959\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7176\clbrdrb\brdrdb\brdrcf7\clvertalc\clshdng100\clcfpat11\clcbpat11\cellx7285\trrh281\row}}}\pard\plain\cf1\f51\fs24\ql \~\par\pard\plain\sb44\cf1\f51\fs20\i\ql Operating Activities\plain\cf1\f51\fs20\ql . The net cash provided by operating activities was $14.8 million for the six months ended June 30, 2017 and\plain\cf1\f51\fs20\ql consisted primarily of a net loss of $66.1\~million adjusted for non-cash items, including stock-based compensation expense of\plain\cf1\f51\fs20\ql $7.9 million, amortization of premium/discount on investments of $0.4 million, depreciation and amortization of $0.3 million and\plain\cf1\f51\fs20\ql a net increase in operating assets and liabilities of $72.3 million. The significant items in the change in operating assets and\plain\cf1\f51\fs20\ql liabilities include an increase in deferred revenue of $40.6 million, a decrease in unbilled receivable of approximately $33.8\plain\cf1\f51\fs20\ql million related to unbilled payments from Otsuka received in the first quarter of 2017, an increase in accounts payable and\plain\cf1\f51\fs20\ql accrued expenses of approximately $6.6 million and an increase of $0.4 million in deferred rent partially offset by an increase of\plain\cf1\f51\fs20\ql approximately $9.0 million in prepaid expenses and other current assets. The net increase in accounts payable and accrued\plain\cf1\f51\fs20\ql expenses is primarily driven by clinical and non-clinical study costs associated with vadadustat.{\*\bkmkstart eolpage32_11737931}{\*\bkmkend eolpage32_11737931}\par\pard\plain\sb264\cf1\f51\fs20\ql The net cash used in operating activities was $9.5 million for the six ended June 30, 2016 and consisted primarily of a net loss\plain\cf1\f51\fs20\ql of $61.6\~million adjusted for non-cash items, including stock-based compensation expense of $2.5 million and amortization of\plain\cf1\f51\fs20\ql premium/discount on investments of $0.3 million and a net increase in operating assets and liabilities of $49.2\~million. The\plain\cf1\f51\fs20\ql significant items in the change in operating assets and liabilities include an increase in deferred revenue of $40.0 million\plain\cf1\f51\fs20\ql attributable to payments made to us pursuant to our collaboration with Mitsubishi Tanabe and an increase in accounts payable,\plain\cf1\f51\fs20\ql accrued expenses and other liabilities of approximately $10.5 milli\plain\cf1\f51\fs20\ql on partially offset by a decrease of approximately $1.3 million\plain\cf1\f51\fs20\ql in prepaid expenses and other current assets. The net increase in operating assets and liabilities is primarily driven by clinical and\plain\cf1\f51\fs20\ql non-clinical study costs associated with vadadustat and AKB-6899.\par\pard\plain\sb264\cf1\f51\fs20\qc 39\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb264\cf1\f51\fs20\i\ql Investing Activities\plain\cf1\f51\fs20\ql . Net cash used in investing activities for the six months ended June 30, 2017 was $124.0 million and was\plain\cf1\f51\fs20\ql comprised primarily of purchases of available for sale securities of $177.5 million and purchases of equipment of $0.6 million,\plain\cf1\f51\fs20\ql offset by proceeds from the maturities of available for sale securities of $54.1 million.\par\pard\plain\sb264\cf1\f51\fs20\ql Net cash used in investing activities for the six months ended June 30, 2016 was $55.2 million and was comprised primarily of\plain\cf1\f51\fs20\ql purchases of available for sale securities of $118.7 million and purchases of equipment of $1.4 million, offset by proceeds from\plain\cf1\f51\fs20\ql the maturities of available for sale securities of $64.9 million.\par\pard\plain\sb264\cf1\f51\fs20\i\ql Financing Activities.\plain\cf1\f51\fs20\ql Net cash provided by financing activities for the six months ended June 30, 2017 was $47.2\~million and\plain\cf1\f51\fs20\ql consisted primarily of net proceeds from the public issuance of common stock pursuant to our ATM facility, proceeds from the\plain\cf1\f51\fs20\ql exercise of stock options and proceeds from the sale of stock under our employee stock purchase plan.\par\pard\plain\sb264\cf1\f51\fs20\ql Net cash provided by financing activities for the six months ended June 30, 2016 was $61.1\~million and consisted primarily of\plain\cf1\f51\fs20\ql net proceeds from the public issuance of common stock, proceeds from the exercise of stock options and proceeds from the sale\plain\cf1\f51\fs20\ql of stock under our employee stock purchase plan.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Operating Capital Requirements\par\pard\plain\sb132\cf1\f51\fs20\ql To date, we have not generated any revenue from product sales. We do not know when, or if, we will generate revenue from\plain\cf1\f51\fs20\ql product sales. We do not expect to generate significant revenue from product sales unless and until we obtain regulatory approval\plain\cf1\f51\fs20\ql of and commercialize one of our current or future product candidates. We anticipate that we will continue to generate losses for\plain\cf1\f51\fs20\ql the foreseeable future, and we expect the losses to increase as we continue the development of, and seek regulatory approvals for,\plain\cf1\f51\fs20\ql our product candidates, and begin to commercialize any approved products. We are subject to all risks incident to the\plain\cf1\f51\fs20\ql development and commercialization of novel therapeutics, and we may encounter unforeseen expenses, difficulties, complications,\plain\cf1\f51\fs20\ql delays and other unknown factors that may adversely affect our business. We expect to incur additional costs associated with\plain\cf1\f51\fs20\ql operating as a public company, and we anticipate that we will need substantial additional funding in connection with our\plain\cf1\f51\fs20\ql continuing operations.\par\pard\plain\sb264\cf1\f51\fs20\ql We ended the second quarter of 2017 with cash, cash equivalents and available for sale securities of $321.2 million. The\plain\cf1\f51\fs20\ql Company completed a follow-on offering in July raising approximately $62.6 million in net proceeds. Our collaborators have\plain\cf1\f51\fs20\ql committed up to $373.0 million or more in license payments and cost-share funding, which the Company continues to receive on\plain\cf1\f51\fs20\ql a quarterly prepaid basis. The Company expects its existing cash resources, including net proceeds from the July 2017 follow-on\plain\cf1\f51\fs20\ql offering and the timing of committed research and development funding from its collaborators, to fund the Company\u8217?s\plain\cf1\f51\fs20\ql current operating plan into the second of 2019. Thereafter committed research and development funding will continue to be\plain\cf1\f51\fs20\ql received from Otsuka on a prepaid, quarterly basis.\par\pard\plain\sb264\cf1\f51\fs20\ql We will require additional capital for the further development of our existing product candidates and will need to raise additional\plain\cf1\f51\fs20\ql funds sooner to pursue development activities related to additional product candidates. If and until we can generate a sufficient\plain\cf1\f51\fs20\ql amount of revenue from our products, we expect to finance future cash needs through public or private equity, debt offerings, or\plain\cf1\f51\fs20\ql strategic transactions. We have based these estimates on assumptions that may prove to be wrong, and we could use our available\plain\cf1\f51\fs20\ql capital resources sooner than we currently expect. Furthermore, our development milestones may not be achieved, we may not\plain\cf1\f51\fs20\ql receive the anticipated funding from our collaboration partners, and we may not secure other sources of financing. Additional\plain\cf1\f51\fs20\ql funds may not be available to us on acceptable terms or at all. If we are unable to raise additional capital in sufficient amounts\plain\cf1\f51\fs20\ql or on terms acceptable to us, we may have to significantly delay, scale back or discontinue the development or commercialization\plain\cf1\f51\fs20\ql of one or more of our product candidates. If we raise additional funds through the issuance of additional debt or equity securities,\plain\cf1\f51\fs20\ql it could result in dilution to our existing stockholders or increased fixed payment obligations, and any such securities may have\plain\cf1\f51\fs20\ql rights senior to those of our common stock. If we incur indebtedness, we could become subject to covenants that would restrict\plain\cf1\f51\fs20\ql our operations and potentially impair our competitiveness, such as limitations on our ability to incur additional debt, limitations\plain\cf1\f51\fs20\ql on our ability to acquire, sell or license intellectual property rights and other operating restrictions that could adversely impact\plain\cf1\f51\fs20\ql our ability to conduct our business. Any of these events could significantly harm our business, financial condition and prospects.\par\pard\plain\sb264\cf1\f51\fs20\ql Our forecast of the period of time through which our financial resources will be adequate to support our operations is a\plain\cf1\f51\fs20\ql forward-looking statement and involves risks and uncertainties, and actual results could vary as a result of a number of factors.\plain\cf1\f51\fs20\ql We have based this estimate on assumptions that may be substantially different than actual results, and we could utilize our\plain\cf1\f51\fs20\ql available capital resources sooner than we currently expect. Our future funding requirements, both near- and long-term, will\plain\cf1\f51\fs20\ql depend on many factors including, but not limited to, those described under Part II, Item 1A. Risk Factors of this Quarterly\plain\cf1\f51\fs20\ql Report on Form 10-Q.\par\pard\plain\sb264\cf1\f51\fs20\ql If we cannot expand our operations or otherwise capitalize on our business opportunities because we lack sufficient capital, our\plain\cf1\f51\fs20\ql business, financial condition and results of operations could be materially adversely affected.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Contractual Obligations and Commitments\par\pard\plain\cf1\f51\fs12\ql \~\par\pard\plain\sb264\cf1\f51\fs20\qc 40\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\cf1\f51\fs20\ql There have been no material changes to our contractual obligations from those described in our Annual Report on Form 10-K\plain\cf1\f51\fs20\ql that was filed with the SEC on March\~6, 2017.\par\pard\plain\sb396\cf1\f51\fs20\b\ql Off-Balance Sheet Arrangements\par\pard\plain\sb132\cf1\f51\fs20\ql As of June 30, 2017 we did not have any off-balance sheet arrangements as defined in the rules and regulations of the SEC.\par\pard\plain\cf1\f51\fs18\ql \~\par\pard\plain\cf1\f51\fs18\ql \~{\*\bkmkstart item_1_3_3}{\*\bkmkend item_1_3_3}{\*\bkmkstart item_3_quantitative_and_qualitat}{\*\bkmkend item_3_quantitative_and_qualitat}\par\pard\plain\cf1\f51\fs20\b\ql Item\~3. Quantitative and Qualitative Disclosures about Market Risk\par\pard\plain\sb132\cf1\f51\fs20\ql We are exposed to market risk related to changes in interest rates. As of June 30, 2017 and December\~31, 2016, we had cash and\plain\cf1\f51\fs20\ql cash equivalents and available-for-sale securities of $321.2 million and $260.3\~million, respectively, primarily money market\plain\cf1\f51\fs20\ql mutual funds consisting of U.S. government debt securities, certificates of deposit and corporate debt securities. Our primary\plain\cf1\f51\fs20\ql exposure to market risk is interest rate sensitivity, which is affected by changes in the general level of U.S. interest rates,\plain\cf1\f51\fs20\ql particularly because our investments are in short-term securities. Our investments are subject to interest rate risk and will fall in\plain\cf1\f51\fs20\ql value if market interest rates increase. Due to the short-term duration of our investment portfolio and the low risk profile of our\plain\cf1\f51\fs20\ql investments, an immediate 100 basis point change in interest rates would not have a material effect on the fair market value of\plain\cf1\f51\fs20\ql our portfolio.\par\pard\plain\cf1\f51\fs18\ql \~\par\pard\plain\cf1\f51\fs18\ql \~{\*\bkmkstart item_1_3_4}{\*\bkmkend item_1_3_4}{\*\bkmkstart item_4_controls_and_procedures_1}{\*\bkmkend item_4_controls_and_procedures_1}\par\pard\plain\cf1\f51\fs20\b\ql Item\~4. Controls and Procedures\par\pard\plain\sb132\cf1\f51\fs20\b\i\ql Management\u8217?s Evaluation of our Disclosure Controls and Procedures\par\pard\plain\sb132\cf1\f51\fs20\ql We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in the\plain\cf1\f51\fs20\ql reports that we file or submit under the Securities Exchange Act of 1934 is (1)\~recorded, processed, summarized, and reported\plain\cf1\f51\fs20\ql within the time periods specified in the SEC\u8217?s rules and forms and (2)\~accumulated and communicated to our\plain\cf1\f51\fs20\ql management, including our principal executive officer and principal financial officer, to allow timely decisions regarding required\plain\cf1\f51\fs20\ql disclosure.\par\pard\plain\sb264\cf1\f51\fs20\ql As of June 30, 2017, our management, with the participation of our principal executive officer and principal financial officer,\plain\cf1\f51\fs20\ql evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules\~13a-15(e) and 15d-15(e) under the\plain\cf1\f51\fs20\ql Securities Exchange Act of 1934). Our management recognizes that any controls and procedures, no matter how well designed\plain\cf1\f51\fs20\ql and operated, can provide only reasonable assurance of achieving their objectives, and management necessarily applies its\plain\cf1\f51\fs20\ql judgment in evaluating the cost-benefit relationship of possible controls and procedures.\par\pard\plain\sb264\cf1\f51\fs20\ql During the second quarter of fiscal 2017, we identified a material weakness in our internal control over financial reporting\plain\cf1\f51\fs20\ql resulting from inadequate control over expense recognition of certain cash advance payments made to one of our clinical research\plain\cf1\f51\fs20\ql organizations supporting our global Phase 3 program.\~\~Specifically, we did not have adequate controls in place to properly\plain\cf1\f51\fs20\ql determine the portion of the cash advance payments that should be recorded as an expense in the period and the portion that\plain\cf1\f51\fs20\ql should be recorded as a prepaid expense.\~\~In addition, the amount of revenue recognized pursuant to certain of our collaboration\plain\cf1\f51\fs20\ql agreements was consequently affected, as such revenue is recognized based on the percentage of expense incurred on the total of\plain\cf1\f51\fs20\ql the expected cost of the global Phase 3 program.\~\~Based upon that discovery, our principal executive officer and principal\plain\cf1\f51\fs20\ql financial officer have concluded that, as of June 30, 2017, our disclosure controls and procedures were not effective at a level\plain\cf1\f51\fs20\ql that provides reasonable assurance.\par\pard\plain\sb264\cf1\f51\fs20\ql To remediate the material weakness described above, we have initiated compensating controls and are enhancing and revising the\plain\cf1\f51\fs20\ql design of existing controls and procedures to properly account for certain research and development expenses. The revised and\plain\cf1\f51\fs20\ql enhanced controls will not be considered effective until they operate for a sufficient period of time and management has\plain\cf1\f51\fs20\ql concluded, through testing, that these controls are operating as designed.\~\~\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Changes in Internal Control over Financial Reporting\par\pard\plain\sb132\cf1\f51\fs20\ql Except as noted above, during the quarter ended June 30, 2017, there have been no changes in our internal control over financial\plain\cf1\f51\fs20\ql reporting, as such term is defined in Rules\~13a-15(f) and 15(d)-15(f) promulgated under the Securities Exchange Act of 1934,\plain\cf1\f51\fs20\ql that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.\par\pard\plain\cf1\f51\fs18\ql \~\par\pard\plain\cf1\f51\fs18\ql \~{\*\bkmkstart part_1_2_2}{\*\bkmkend part_1_2_2}{\*\bkmkstart part_ii_other_11737931}{\*\bkmkend part_ii_other_11737931}\par\pard\plain\cf1\f51\fs20\b\qc Part II. Other Information{\*\bkmkstart item_1_3_5}{\*\bkmkend item_1_3_5}{\*\bkmkstart item_1_legal_proceedings_1173793}{\*\bkmkend item_1_legal_proceedings_1173793}\par\pard\plain\sb264\cf1\f51\fs20\b\ql Item\~1. Legal Proceedings\par\pard\plain\sb132\cf1\f51\fs20\b\i\ql Opposition Proceeding Against Our \u8217?005 Patent{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb132\cf1\f51\fs20\ql In July\~2011, a third party filed an opposition to our issued European Patent No.\~2044005, or the \u8217?005 Patent. During the\plain\cf1\f51\fs20\ql oral proceedings, which took place on April\~10, 2013, the Opposition Division of the European Patent Office maintained the\plain\cf1\f51\fs20\ql \u8217?005 Patent on the basis of the third auxiliary request filed during the oral proceedings. This decision resulted in the\plain\cf1\f51\fs20\ql maintenance of a claim\par\pard\plain\sb264\cf1\f51\fs20\qc 41\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sb132\cf1\f51\fs20\ql directed to a compound chosen from a group of eight compounds, including vadadustat, as well as claims to compositions and\plain\cf1\f51\fs20\ql methods for treating various diseases, including, but not limited to, anemia. Both parties have appealed the decision of the\plain\cf1\f51\fs20\ql Opposition Division and final resolution of the opposition proceedings will likely take a year or more. We cannot be assured of\plain\cf1\f51\fs20\ql the breadth of the claims that will remain in the \u8217?005 Patent or that the patent will not be revoked in its entirety.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Opposition and Invalidity Proceedings Against FibroGen Inc.\par\pard\plain\sb132\cf1\f51\fs20\ql We have had a number of positive developments in our opposition and invalidity proceedings against FibroGen, Inc., or\plain\cf1\f51\fs20\ql FibroGen.\~\~With regard to the opposition that we filed in Europe against FibroGen\u8217?s European Patent No. 1463823, or the\plain\cf1\f51\fs20\ql \u8217?823 patent, an oral proceeding took place March 8 and 9, 2016. Following the oral proceeding, the European Opposition\plain\cf1\f51\fs20\ql Division ruled that the patent as granted did not meet the requirements for patentability under the European Patent Convention\plain\cf1\f51\fs20\ql and, therefore, revoked the patent in its entirety. FibroGen has appealed that decision and the appeal process is expected to take 2\plain\cf1\f51\fs20\ql to 3 years. Likewise, with regard to the invalidity proceeding that we filed in Japan against certain claims of FibroGen\u8217?s\plain\cf1\f51\fs20\ql Japanese Patent No. 4804131, or the \u8217?131 patent, which is the Japanese counterpart to the \u8217?823 patent, the Japan\plain\cf1\f51\fs20\ql Patent Office, or JPO, issued a preliminary decision finding all of the challenged claims to be invalid. FibroGen subsequently\plain\cf1\f51\fs20\ql amended the claims and the JPO accepted the amendments. The resulting FibroGen Japanese \u8217?131 patent does not cover\plain\cf1\f51\fs20\ql vadadustat or any pyridine carboxamide compounds. To date, FibroGen has been unsuccessful in its attempts to obtain a patent in\plain\cf1\f51\fs20\ql the United States covering the same claim scope as it obtained initially in Europe and Japan in the \u8217?823 and \u8217?131\plain\cf1\f51\fs20\ql patents. In the event FibroGen were to obtain such a patent in the United States, we may decide to challenge the patent like we\plain\cf1\f51\fs20\ql have done in Europe and Japan.\~\~\par\pard\plain\sb264\cf1\f51\fs20\ql With regard to the opposition that we filed in Europe against FibroGen\u8217?s European Patent No. 163333, or the \u8217?333\plain\cf1\f51\fs20\ql patent, an oral proceeding took place December 8 and 9, 2016.\~\~Following the oral proceeding, the European Opposition Division\plain\cf1\f51\fs20\ql ruled that the patent as granted did not meet the requirements for patentability under the European Patent Convention and,\plain\cf1\f51\fs20\ql therefore, revoked the patent in its entirety.\~\~FibroGen has appealed that decision.\par\pard\plain\sb264\cf1\f51\fs20\ql On May 13, 2015, May 20, 2015 and July 6, 2015, we filed oppositions to FibroGen\u8217?s European Patent Nos. 2322153,\plain\cf1\f51\fs20\ql 2322155, and 163333, or the \u8217?153 patent, the \u8217?155 patent, and the \u8217?333 patent, respectively, requesting the\plain\cf1\f51\fs20\ql patents be revoked in their entirety. These related patents claim, among other things, various compounds that either stabilize\plain\cf1\f51\fs20\ql HIF\u945? or inhibit a HIF hydroxylase or a HIF prolyl hydroxylase for treating or preventing various conditions, including,\plain\cf1\f51\fs20\i\ql inter\plain\cf1\f51\fs20\i\ql alia\plain\cf1\f51\fs20\ql , iron deficiency, microcytosis associated with iron deficiency, anemia of chronic disease, anemia wherein the subject has a\plain\cf1\f51\fs20\ql transferrin saturation of less than 20%, anemia refractory to treatment with exogenously administered erythropoietin, or EPO, and\plain\cf1\f51\fs20\ql microcytosis in microcytic anemia. Such method of use patents do not prevent persons from using the compound for other uses,\plain\cf1\f51\fs20\ql including any previously known use of the compound. In particular, these patents do not claim methods of using any of our\plain\cf1\f51\fs20\ql product candidates for purposes of inhibiting hypoxia-inducible factor prolyl hydroxylases, or HIF-PHs, for the treatment of\plain\cf1\f51\fs20\ql anemia secondary to CKD. While we do not believe these patents will prevent us from commercializing vadadustat for the\plain\cf1\f51\fs20\ql treatment of anemia secondary to CKD, we filed these oppositions to provide us and any future partners with maximum\plain\cf1\f51\fs20\ql flexibility for developing vadadustat and our pipeline of HIF PH inhibitors. Oppositions to the \u8217?155 patent and to the\plain\cf1\f51\fs20\ql \u8217?153 patent were also filed by Glaxo Group Limited, or Glaxo, and by Bayer Intellectual Property GmbH, Bayer Pharma\plain\cf1\f51\fs20\ql Aktiengesellschaft, and Bayer Animal Health GmbH.\~\~In oral proceedings held on\~May 29, 2017, the European Opposition\plain\cf1\f51\fs20\ql Division ruled that the '155 patent as granted did not meet the requirements for patentability under the\~European Patent\plain\cf1\f51\fs20\ql Convention\~and, therefore, revoked the patent in its entirety. Subsequently, in related oral proceedings held on\~May 31,\plain\cf1\f51\fs20\ql 2017\~and\~June 1, 2017\~for the '153 patent, FibroGen significantly narrowed the claims to an indication for which vadadustat is not\plain\cf1\f51\fs20\ql intended to be developed.\~{\*\bkmkstart item_1_3_6}{\*\bkmkend item_1_3_6}{\*\bkmkstart item_1a_risk_factors_11737931}{\*\bkmkend item_1a_risk_factors_11737931}\par\pard\plain\sb396\cf1\f51\fs20\b\ql Item\~1A. Risk Factors\par\pard\plain\sb132\cf1\f51\fs20\b\i\ql The following risk factors and other information included in this Quarterly Report on Form 10-Q should be carefully\plain\cf1\f51\fs20\b\i\ql considered. The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties not\plain\cf1\f51\fs20\b\i\ql presently known to us or that we currently believe to be immaterial may also adversely affect our business. Please reference\plain\cf1\f51\fs20\b\i\ql our \u8220?Cautionary Note Regarding Forward-Looking Statements,\u8221? which identifies certain forward-looking\plain\cf1\f51\fs20\b\i\ql statements contained in this report that are qualified by these risk factors. If any of the following risks occur, our business,\plain\cf1\f51\fs20\b\i\ql financial condition, results of operations and future growth prospects could be materially and adversely affected.\par\pard\plain\sb396\cf1\f51\fs20\b\ql Risks Related to our Financial Position and Need for Additional Capital\par\pard\plain\sb132\cf1\f51\fs20\b\i\ql We have incurred significant losses since inception and anticipate that we will continue to incur significant losses for the\plain\cf1\f51\fs20\b\i\ql foreseeable future and may never achieve or maintain profitability.\par\pard\plain\sb132\cf1\f51\fs20\ql We have incurred net losses each year since our inception, including net losses of $66.1 million for the six months ended June\plain\cf1\f51\fs20\ql 30, 2017, and $61.6\~million for the six months ended June 30, 2016. As of June 30, 2017, we had an accumulated deficit of\plain\cf1\f51\fs20\ql $363.2 million. To date, we have not commercialized any products or generated any revenue from the sale of products. We do\plain\cf1\f51\fs20\ql not know whether or when we will generate revenue or become profitable.\par\pard\plain\sb264\cf1\f51\fs20\qc 42\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb264\cf1\f51\fs20\ql We have devoted most of our financial resources to research and development, including our clinical and preclinical development\plain\cf1\f51\fs20\ql activities. To date, we have financed our operations primarily through our public offerings of common stock, private placements\plain\cf1\f51\fs20\ql of our preferred stock and strategic collaborations. The amount of our future net losses will depend, in part, on the rate of our\plain\cf1\f51\fs20\ql future expenditures, and our financial position will depend, in part, on our ability to obtain funding through equity or debt\plain\cf1\f51\fs20\ql financings or strategic collaborations. Even if we obtain regulatory approval to market vadadustat, our future revenue will depend\plain\cf1\f51\fs20\ql upon the timing of such approval, the size of any markets in which vadadustat receives approval, our ability to achieve sufficient\plain\cf1\f51\fs20\ql market acceptance, the availability and extent of reimbursement from third-party payors and other factors.\par\pard\plain\sb264\cf1\f51\fs20\ql We expect to continue to incur significant expenses and increased operating losses for the foreseeable future. We anticipate that\plain\cf1\f51\fs20\ql our expenses will increase significantly if and as we: \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql conduct our development program of vadadustat for the treatment of anemia secondary to CKD, including\plain\intbl\cf1\f51\fs20\ql PRO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql TECT,\~\~INNO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql VATE, FO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql RWARD and TRILO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql GY;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql develop plans for the preclinical and clinical development of AKB-5169 and our other product candidates;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql seek regulatory approvals for our product candidates that successfully complete clinical studies;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql have our product candidates manufactured for clinical trials and for commercial sale;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql establish a sales, marketing and distribution infrastructure to commercialize any products for which we may obtain\plain\intbl\cf1\f51\fs20\ql marketing approval;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql initiate additional preclinical, clinical or other studies for additional indications for vadadustat, AKB-5169 and other\plain\intbl\cf1\f51\fs20\ql product candidates that we may develop or acquire;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql seek to discover and develop additional product candidates;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql acquire, in-license and develop other commercial products, product candidates and technologies;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql make royalty, milestone or other payments under our agreement with Janssen and any future in-license agreements;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql maintain, protect and expand our intellectual property portfolio;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql attract and retain skilled personnel; and\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql continue to create additional infrastructure to support our operations as a public company.\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}}\pard\plain\sb264\cf1\f51\fs20\ql Because of the numerous risks and uncertainties associated with pharmaceutical product development, we are unable to accurately\plain\cf1\f51\fs20\ql predict the timing or amount of increased expenses or when, if at all, we will be able to achieve profitability. If we are required\plain\cf1\f51\fs20\ql by the FDA, EMA, or other regulatory authorities to perform studies in addition to, different from or larger than those currently\plain\cf1\f51\fs20\ql expected, or if there are any delays in completing our clinical trials or the development of any of our product candidates, our\plain\cf1\f51\fs20\ql expenses could increase.\par\pard\plain\sb264\cf1\f51\fs20\ql The net losses we incur may fluctuate significantly from quarter to quarter and year to year, such that a period-to-period\plain\cf1\f51\fs20\ql comparison of our results of operations may not be a good indication of our future performance.\par\pard\plain\sb264\cf1\f51\fs20\ql To become and remain profitable, we must succeed in developing and commercializing our product candidates, which must\plain\cf1\f51\fs20\ql generate significant revenue. This will require us to be successful in a range of challenging activities, including completing\plain\cf1\f51\fs20\ql preclinical testing and development, conducting clinical trials of our product candidates, discovering or acquiring additional\plain\cf1\f51\fs20\ql product candidates, obtaining regulatory approval for these product candidates, and manufacturing, marketing and selling any\plain\cf1\f51\fs20\ql products for which we may obtain regulatory approval. We are only in the preliminary stages of most of these activities. We may\plain\cf1\f51\fs20\ql never succeed in these activities and, even if we do, may never generate revenue that is significant enough to achieve\plain\cf1\f51\fs20\ql profitability.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql We will require substantial additional financing. A failure to obtain this necessary capital when needed could force us to\plain\cf1\f51\fs20\b\i\ql delay, limit, reduce or terminate our product development or commercialization efforts.\par\pard\plain\sb132\cf1\f51\fs20\ql As of June 30, 2017, our cash and cash equivalents and available for sale securities were $321.2\~million. We completed a\plain\cf1\f51\fs20\ql follow-on offering in July 2017 raising approximately $62.6 million in net proceeds. We believe that we will continue to expend\plain\cf1\f51\fs20\ql substantial resources for the foreseeable future developing vadadustat, AKB-5169 and any other product candidates that we may\plain\cf1\f51\fs20\ql develop or acquire. These expenditures will include costs associated with research and development, potentially obtaining\plain\cf1\f51\fs20\ql regulatory approvals and having our products manufactured, as well as marketing and selling products approved for sale, if any.\plain\cf1\f51\fs20\ql In addition, other unanticipated costs may arise as a result of our decision to include certain elements in our programs. Because\plain\cf1\f51\fs20\ql the outcome of our current and anticipated clinical trials is highly uncertain, we cannot reasonably estimate the actual amount of\plain\cf1\f51\fs20\ql funding necessary to successfully complete the development and commercialization of our product candidates.\par\pard\plain\sb264\cf1\f51\fs20\qc 43\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb264\cf1\f51\fs20\ql Our future capital requirements depend on many factors, including: \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh1620 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql significant costs associated with our Phase 3 clinical studies of vadadustat for the treatment of anemia secondary to\plain\intbl\cf1\f51\fs20\ql CKD; we expect the remaining aggregate cost of the Phase 3 program to be in the range of $450.0 million to\plain\intbl\cf1\f51\fs20\ql $480.0 million and the PRO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql TECT and INNO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql VATE Phase\~3 programs are designed to enroll up to approximately\plain\intbl\cf1\f51\fs20\ql 6,300\~CKD patients; such estimated costs could increase significantly if the Phase 3 program takes longer to\plain\intbl\cf1\f51\fs20\ql complete or if we choose to add additional investigative sites, add additional patients, modify the clinical trial\plain\intbl\cf1\f51\fs20\ql protocol, or perform other studies in support of the Phase 3 program;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh1620\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the results of our meetings with the FDA and the EMA and other regulatory authorities and the consequential effect\plain\intbl\cf1\f51\fs20\ql on study design, study size and resulting operating costs;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql difficulties or delays in enrolling patients in our clinical trials;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh1125 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql assuming favorable Phase 3 clinical results, the timing of, and the costs involved in, obtaining regulatory approvals\plain\intbl\cf1\f51\fs20\ql for vadadustat in dialysis and non-dialysis indications, including to fund the preparation and filing of regulatory\plain\intbl\cf1\f51\fs20\ql submissions for vadadustat with the FDA, the EMA and other regulatory authorities, and whether we will seek\plain\intbl\cf1\f51\fs20\ql regulatory approval for both indications simultaneously;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh1125\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the cost of conducting the FO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql RWARD and TRILO\plain\intbl\cf1\f51\fs18\ql\sub 2\plain\intbl\cf1\f51\fs20\ql GY clinical studies;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the cost, timing and outcome of our efforts to obtain marketing approval for vadadustat in the United\plain\intbl\cf1\f51\fs20\ql States, Europe and in other jurisdictions;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the scope, progress, results and costs of additional preclinical, clinical, or other studies for additional indications for\plain\intbl\cf1\f51\fs20\ql vadadustat, as well as any studies of AKB-5169 and other product candidates that we may develop or acquire;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the timing of, and the costs involved in, obtaining regulatory approvals for AKB-5169 and other product candidates\plain\intbl\cf1\f51\fs20\ql that we may develop or acquire, if clinical studies are successful;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the cost of securing and validating commercial manufacturing of vadadustat;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the cost and timing of future commercialization activities for our products, if any of our product candidates are\plain\intbl\cf1\f51\fs20\ql approved by regulatory authorities, including product manufacturing, marketing, sales and distribution costs;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the costs involved in preparing, filing and prosecuting patent applications and maintaining, defending and enforcing\plain\intbl\cf1\f51\fs20\ql our intellectual property rights, including litigation costs, and the outcome of such litigation; and\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the extent to which we acquire or in-license other products, product candidates or technologies.\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}}\pard\plain\sb264\cf1\f51\fs20\ql We ended the second quarter of 2017 with cash, cash equivalents and available for sale securities of $321.2 million. We\plain\cf1\f51\fs20\ql completed a follow-on offering in July 2017 raising approximately $62.6 million in net proceeds. Our collaborators have\plain\cf1\f51\fs20\ql committed up to$373.0 million or more in license payments and cost-share funding, which we continue to receive on a quarterly\plain\cf1\f51\fs20\ql prepaid basis. The Company expects its existing cash resources, including net proceeds from the July follow-on offering and the\plain\cf1\f51\fs20\ql timing of committed research and development funding from its collaborators, to fund the Company\u8217?s current operating\plain\cf1\f51\fs20\ql plan into the second quarter of 2019. Thereafter committed research and development funding will continue to be received from\plain\cf1\f51\fs20\ql Otsuka on a prepaid, quarterly basis. If and until we can generate a sufficient amount of revenue from our products, we expect to\plain\cf1\f51\fs20\ql finance future cash needs through public or private equity, debt offerings, or strategic transactions. We have based these estimates\plain\cf1\f51\fs20\ql on assumptions that may prove to be wrong, and we could use our available capital resources sooner than we currently expect.\plain\cf1\f51\fs20\ql Furthermore, our development milestones may not be achieved, we may not receive the anticipated funding from our\plain\cf1\f51\fs20\ql collaboration partners, and we may not secure other sources of financing.\par\pard\plain\sb264\cf1\f51\fs20\ql We will require additional capital for the further development of our existing product candidates and will need to raise additional\plain\cf1\f51\fs20\ql funds sooner to pursue development activities related to additional product candidates. If and until we can generate a sufficient\plain\cf1\f51\fs20\ql amount of revenue from our products, we expect to finance future cash needs through public or private equity, debt offerings, or\plain\cf1\f51\fs20\ql strategic collaborations. Additional funds may not be available to us on acceptable terms or at all.\~If we are unable to raise\plain\cf1\f51\fs20\ql additional capital in sufficient amounts or on terms acceptable to us, we may have to significantly delay, scale back or\plain\cf1\f51\fs20\ql discontinue the development or commercialization of one or more of our product candidates. If we raise additional funds through\plain\cf1\f51\fs20\ql the issuance of additional debt or equity securities, it could result in dilution to our existing stockholders or increased fixed\plain\cf1\f51\fs20\ql payment obligations, and any such securities may have rights senior to those of our common stock. If we incur indebtedness, we\plain\cf1\f51\fs20\ql could become subject to covenants that would restrict our operations and potentially impair our competitiveness, such as\plain\cf1\f51\fs20\ql limitations on our ability to incur additional debt, limitations on our ability to acquire, sell or license intellectual property rights\plain\cf1\f51\fs20\ql and other operating restrictions that could adversely impact our ability to conduct our business. Any of these events could\plain\cf1\f51\fs20\ql significantly harm our business, financial condition and prospects.\par\pard\plain\sb264\cf1\f51\fs20\qc 44\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Raising additional capital may cause dilution to our existing stockholders, restrict our operations or require us to relinquish\plain\cf1\f51\fs20\b\i\ql rights to product candidates on unfavorable terms to us.\par\pard\plain\sb132\cf1\f51\fs20\ql Until such time, if ever, as we can generate substantial product revenue, we expect to finance our cash needs through a\plain\cf1\f51\fs20\ql combination of collaboration funding, equity offerings, debt financings and strategic collaborations. To the extent that we raise\plain\cf1\f51\fs20\ql additional capital through the sale of equity or convertible debt securities, the ownership interests of our common stockholders\plain\cf1\f51\fs20\ql will be diluted, and the terms may include liquidation or other preferences and anti-dilution protections that adversely affect the\plain\cf1\f51\fs20\ql rights of our common stockholders. Debt financing, if available, may involve agreements that include covenants limiting or\plain\cf1\f51\fs20\ql restricting our ability to take certain actions, such as incurring additional debt, making capital expenditures or declaring\plain\cf1\f51\fs20\ql dividends. If we raise additional funds through strategic collaborations with third parties, we may have to relinquish valuable\plain\cf1\f51\fs20\ql rights to our product candidates, future revenue streams, research programs or product candidates or grant licenses on terms that\plain\cf1\f51\fs20\ql are not favorable to us. If we are unable to raise additional funds through equity or debt financing when needed, we may be\plain\cf1\f51\fs20\ql required to delay, limit, reduce or terminate our product development or commercialization efforts for vadadustat, AKB-5169 or\plain\cf1\f51\fs20\ql any other product candidates that we develop or acquire, or grant rights to develop and market product candidates that we would\plain\cf1\f51\fs20\ql otherwise prefer to develop and market ourselves.\par\pard\plain\sb396\cf1\f51\fs20\b\ql Risks Related to our Business and the Clinical Development, Regulatory Review and Approval of Vadadustat Other\plain\cf1\f51\fs20\b\ql Product Candidates\par\pard\plain\sb132\cf1\f51\fs20\b\i\ql We depend heavily on the success of one product candidate, vadadustat, which is in Phase\~3 development. Even if we obtain\plain\cf1\f51\fs20\b\i\ql favorable clinical results in our Phase 3 studies, we may not be able to obtain regulatory approval for, or successfully\plain\cf1\f51\fs20\b\i\ql commercialize, vadadustat.\par\pard\plain\sb132\cf1\f51\fs20\ql We currently have only one product candidate, vadadustat, in clinical development, and our business depends almost entirely on\plain\cf1\f51\fs20\ql the successful clinical development, regulatory approval and commercialization of that product candidate, which may never occur.\plain\cf1\f51\fs20\ql We currently have no drug products for sale, generate no revenue from sales of any drugs, and may never be able to develop\plain\cf1\f51\fs20\ql marketable drug products. Vadadustat, which is in Phase 3 development, will require substantial additional clinical development,\plain\cf1\f51\fs20\ql testing, manufacturing process development, and regulatory approval before we or our collaborators are permitted to commence\plain\cf1\f51\fs20\ql its commercialization. The clinical trials of our product candidates are, and the manufacturing and marketing of our product\plain\cf1\f51\fs20\ql candidates will be, subject to extensive and rigorous review and regulation by numerous government authorities in the United\plain\cf1\f51\fs20\ql States, the European Union, Japan, and in other countries where we and our collaborators intend to test and, if approved, market\plain\cf1\f51\fs20\ql any product candidates. Before obtaining regulatory approval for the commercial sale of any product candidate, we must\plain\cf1\f51\fs20\ql demonstrate through extensive preclinical testing and clinical trials that the product candidate is safe and effective for use in each\plain\cf1\f51\fs20\ql target indication. This process can take many years. Of the large number of drugs in development in the United States, only a\plain\cf1\f51\fs20\ql small percentage successfully complete the FDA regulatory approval process and are commercialized. Accordingly, even if we\plain\cf1\f51\fs20\ql are able to obtain the requisite capital to continue to fund our development and clinical programs, we may be unable to\plain\cf1\f51\fs20\ql successfully develop or commercialize vadadustat.\par\pard\plain\sb264\cf1\f51\fs20\ql We and Otsuka, our collaboration partner, are not permitted to market vadadustat in the United States until we receive approval\plain\cf1\f51\fs20\ql from the FDA, in the European Union until we receive approval from the EMA, or in any jurisdiction outside of the United\plain\cf1\f51\fs20\ql States until we receive the requisite approval from regulatory authorities in such jurisdiction. MTPC, our collaboration partner in\plain\cf1\f51\fs20\ql Asia, will not be permitted to market vadadustat in Japan without approval from the PMDA. As a condition to receiving\plain\cf1\f51\fs20\ql regulatory approval for vadadustat, we must complete Phase 3 studies and any additional non-clinical or clinical studies required\plain\cf1\f51\fs20\ql by the FDA. Vadadustat may not be successful in clinical trials or receive regulatory approval. Further, vadadustat may not\plain\cf1\f51\fs20\ql receive regulatory approval even if it is successful in clinical trials. Obtaining approval of an NDA in the United States is a\plain\cf1\f51\fs20\ql complex, lengthy, expensive and uncertain process that typically takes many years following the completion of clinical trials and\plain\cf1\f51\fs20\ql depends upon numerous factors, including the substantial discretion of the regulatory authorities. In addition, the safety concerns\plain\cf1\f51\fs20\ql associated with injectable rESAs may affect the FDA\u8217?s review of the safety results of compounds of this class, including\plain\cf1\f51\fs20\ql vadadustat. Further, the policies or regulations, or the type and amount of clinical data necessary to gain approval, may change\plain\cf1\f51\fs20\ql during the course of a product candidate\u8217?s clinical development and may vary among jurisdictions. We have not obtained\plain\cf1\f51\fs20\ql regulatory approval for any product candidate and it is possible that vadadustat will never obtain regulatory approval. The FDA\plain\cf1\f51\fs20\ql may delay, limit or deny approval of vadadustat for many reasons including, among others: \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql we may not be able to demonstrate that vadadustat is safe and effective in treating anemia secondary to CKD to the\plain\intbl\cf1\f51\fs20\ql satisfaction of the FDA;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the results of our clinical trials may not meet the level of statistical or clinical significance required by the FDA for\plain\intbl\cf1\f51\fs20\ql marketing approval;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the FDA may disagree with the number, design, size, conduct or implementation of our clinical trials;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the FDA may not approve the formulation, labeling or specifications we request for vadadustat;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the FDA may approve vadadustat for use only in a small patient population;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the FDA may require that we conduct additional clinical trials;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}}\pard\plain\sb264\cf1\f51\fs20\qc 45\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\pard\plain\intbl\sb132\cf1\f51\fs20\ql the contract research organizations, or CROs, that we retain to conduct our clinical trials may not perform\plain\intbl\cf1\f51\fs20\ql effectively or take actions outside of our control that materially adversely impact our clinical trials;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql we or our contract manufacturers may fail to perform in accordance with the FDA\u8217?s current good\plain\intbl\cf1\f51\fs20\ql manufacturing practice, or cGMP, requirements;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the FDA may disagree with inclusion of data obtained from certain regions outside the United States to support the\plain\intbl\cf1\f51\fs20\ql NDA for potential reasons such as differences in clinical practice from United States standards;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the FDA may disagree with our interpretation of data from our nonclinical studies and clinical trials;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the FDA may not approve the manufacturing processes or facilities of third-party manufacturers with whom we\plain\intbl\cf1\f51\fs20\ql contract; or\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the policies or regulations of the FDA may significantly change in a manner that renders our clinical data\plain\intbl\cf1\f51\fs20\ql insufficient for approval, or requires us to amend or submit new clinical protocols.\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}}\pard\plain\sb264\cf1\f51\fs20\ql In addition, similar reasons may cause the EMA or PMDA or other regulatory authorities to delay, limit or deny approval of\plain\cf1\f51\fs20\ql vadadustat outside the United States.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql We may find it difficult to enroll patients in our clinical studies, which could delay or prevent clinical studies of our product\plain\cf1\f51\fs20\b\i\ql candidates.\par\pard\plain\sb132\cf1\f51\fs20\ql Identifying and qualifying patients to participate in clinical studies of our product candidates is critical to our success. The timing\plain\cf1\f51\fs20\ql of our clinical studies depends on the speed at which we can recruit patients to participate in testing our product candidates.\plain\cf1\f51\fs20\ql Patients may be unwilling to participate in our clinical studies for vadadustat because of concerns about adverse events observed\plain\cf1\f51\fs20\ql with injectable rESAs, other investigational agents and commercial products in CKD or for other reasons, including competitive\plain\cf1\f51\fs20\ql clinical studies for similar patient populations. In addition, patients currently receiving treatment with injectable rESAs may be\plain\cf1\f51\fs20\ql reluctant to participate in a clinical trial with an investigational drug. Finally, competition for clinical trial sites may limit our\plain\cf1\f51\fs20\ql access to subjects appropriate for studies of vadadustat. As a result, the timeline for recruiting patients, conducting studies and\plain\cf1\f51\fs20\ql obtaining regulatory approval of potential products may be delayed. These delays could result in increased costs, delays in\plain\cf1\f51\fs20\ql advancing our development of vadadustat, or termination of the clinical studies altogether.\par\pard\plain\sb264\cf1\f51\fs20\ql We may not be able to identify, recruit and enroll a sufficient number of patients, or those with required or desired\plain\cf1\f51\fs20\ql characteristics, to complete our clinical studies in a timely manner. Patient enrollment is affected by many factors, including: \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql severity of the disease under investigation;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql design of the study protocol;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql size and nature of the patient population;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql eligibility criteria for, and design of, the study in question;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql perceived risks and benefits of the product candidate under study;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql proximity and availability of clinical study sites for prospective patients;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql availability of competing therapies and clinical studies and clinicians\u8217? and patients\u8217? perceptions as to\plain\intbl\cf1\f51\fs20\ql the potential advantages of vadadustat in relation to available therapies or other products in development;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql efforts to facilitate timely enrollment in clinical studies;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql patient referral practices of physicians; and\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql ability to monitor patients adequately during and after treatment.\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}}\pard\plain\sb264\cf1\f51\fs20\ql We may not be able to initiate or continue clinical studies if we cannot enroll a sufficient number of eligible patients to\plain\cf1\f51\fs20\ql participate in the clinical studies required by regulatory agencies. If we have difficulty enrolling a sufficient number of patients to\plain\cf1\f51\fs20\ql conduct our clinical studies as planned, we may need to delay, limit or terminate on-going or planned clinical studies, any of\plain\cf1\f51\fs20\ql which would have an adverse effect on our business.\par\pard\plain\sb264\cf1\f51\fs20\qc 46\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql We may not be able to conduct clinical trials in some jurisdictions outside of the United States.\par\pard\plain\sb132\cf1\f51\fs20\ql We currently expect to seek regulatory approval of vadadustat for the treatment of anemia secondary to CKD in markets outside\plain\cf1\f51\fs20\ql the United States, including the European Union and Japan. Our ability to successfully initiate, enroll and complete a clinical\plain\cf1\f51\fs20\ql study in any country outside of the United States is subject to numerous risks unique to conducting business in international\plain\cf1\f51\fs20\ql markets, including: \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql difficulty in establishing or managing relationships with qualified CROs, physicians and clinical trial sites;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql different local standards for the conduct of clinical studies; and\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the potential burden of complying with a variety of laws, medical standards and regulatory requirements, including\plain\intbl\cf1\f51\fs20\ql the regulation of pharmaceutical and biotechnology products and treatments.\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}}\pard\plain\sb264\cf1\f51\fs20\ql Data obtained from studies conducted in the United States may not be accepted by the EMA, PMDA and other regulatory\plain\cf1\f51\fs20\ql authorities outside of the United States. Also, certain jurisdictions require data from studies conducted in their country in order to\plain\cf1\f51\fs20\ql obtain approval in that country.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql We are currently in discussions with the Pharmaceuticals and Medical Devices Agency, or PMDA, in Japan regarding\plain\cf1\f51\fs20\b\i\ql whether Japanese subjects may be enrolled in our global Phase 3 studies.\~\~The outcome of these discussions will have a\plain\cf1\f51\fs20\b\i\ql significant impact on near-term payments that MTPC will be obligated to make to us pursuant to our collaboration\plain\cf1\f51\fs20\b\i\ql agreement with MTPC.\plain\cf1\f51\fs24\b\i\ql \~\~\par\pard\plain\sb132\cf1\f51\fs20\ql Once the results of certain Phase 2 studies of vadadustat in Japan are available, we and MTPC, following consultation with the\plain\cf1\f51\fs20\ql PMDA, will determine whether a separate Phase 3 study of vadadustat will be required in Japan, which we refer to as the Local\plain\cf1\f51\fs20\ql Scenario, or whether Japanese patients can take part in our global Phase 3 clinical studies, which we refer to as the Global\plain\cf1\f51\fs20\ql Scenario.\par\pard\plain\sb264\cf1\f51\fs20\ql Under the Local Scenario, MTPC would be responsible for the costs of the local Phase 3 study in Japan and would make no\plain\cf1\f51\fs20\ql additional funding payments for the global Phase 3 program. This would reduce the total amount of development payments that\plain\cf1\f51\fs20\ql we are eligible to receive under our agreement with MTPC. In addition, $20.0 million of the $40.0 million received in 2016\plain\cf1\f51\fs20\ql would be used to fund local development of vadadustat in Japan.\~\~The Company is currently conducting Phase 2 studies in Japan\plain\cf1\f51\fs20\ql and will, if under the Local Scenario, apply the $20.0 million against the Phase 2 costs already incurred, and MTPC will\plain\cf1\f51\fs20\ql reimburse the Company for costs in excess of $20.0 million to complete the studies.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql If we fail to successfully meet requirements for the conduct of clinical trials outside of the United States, we may be delayed\plain\cf1\f51\fs20\b\i\ql in obtaining, or be unable to obtain, regulatory approval or reimbursement for vadadustat in countries outside of the United\plain\cf1\f51\fs20\b\i\ql States.\par\pard\plain\sb132\cf1\f51\fs20\ql Regulatory authorities outside of the United States will require compliance with numerous and varying requirements. The\plain\cf1\f51\fs20\ql approval procedures vary among jurisdictions and may involve requirements for additional testing, and the time required to obtain\plain\cf1\f51\fs20\ql approval may differ from that required to obtain FDA approval. In addition, in many countries outside the United States, a drug\plain\cf1\f51\fs20\ql product must be approved for reimbursement before it can be approved for sale in that country. In some cases, the price that we\plain\cf1\f51\fs20\ql intend to charge for our product is also subject to approval. Approval by the FDA does not ensure approval by regulatory or\plain\cf1\f51\fs20\ql reimbursement authorities in other countries or jurisdictions, and approval by one regulatory authority outside of the United States\plain\cf1\f51\fs20\ql does not ensure approval by the FDA or regulatory or reimbursement authorities in other countries. However, the failure to obtain\plain\cf1\f51\fs20\ql approval in one jurisdiction may negatively impact our ability to obtain approval in another jurisdiction. The regulatory approval\plain\cf1\f51\fs20\ql process in countries outside of the United States may include all of the risks associated with obtaining FDA approval and, in\plain\cf1\f51\fs20\ql some cases, additional risks. We may not obtain such regulatory approvals on a timely basis, if at all. We may not be able to file\plain\cf1\f51\fs20\ql for regulatory approvals and may not receive the necessary approvals to commercialize our product candidates in any market.\plain\cf1\f51\fs20\ql Also, favorable pricing in certain countries depends on a number of factors, some of which are outside the Company\u8217?s\plain\cf1\f51\fs20\ql control.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Clinical drug development is a lengthy and expensive process with an uncertain outcome, and positive results from the clinical\plain\cf1\f51\fs20\b\i\ql studies of vadadustat thus far are not necessarily predictive of the results of any future clinical studies of vadadustat. If, in\plain\cf1\f51\fs20\b\i\ql our Phase 3 studies, we cannot replicate the positive clinical results observed to date, we may be unable to successfully\plain\cf1\f51\fs20\b\i\ql develop, obtain regulatory approval, for and commercialize vadadustat.{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb132\cf1\f51\fs20\ql Clinical testing is expensive and can take many years to complete, and its outcome is inherently uncertain. Failure can occur at\plain\cf1\f51\fs20\ql any time during the clinical trial process. Success in preclinical studies may not be predictive of similar results in humans during\plain\cf1\f51\fs20\ql clinical trials, and successful results from early or small clinical trials may not be replicated in later and larger clinical trials. For\plain\cf1\f51\fs20\ql example, our encouraging preclinical and clinical results for vadadustat thus far do not ensure that the results of any future\plain\cf1\f51\fs20\ql clinical trials will demonstrate similar results. Our vadadustat Phase 3 development program will enroll a larger number of\plain\cf1\f51\fs20\ql subjects and will treat subjects for longer periods than our prior trials, which will result in a greater likelihood that adverse events\plain\cf1\f51\fs20\ql may be observed. Many companies in the biopharmaceutical industry have suffered significant setbacks in late-stage clinical\plain\cf1\f51\fs20\ql trials after achieving positive results in early stage development, and we may face similar setbacks. If the results of our ongoing\plain\cf1\f51\fs20\ql or future clinical trials for\par\pard\plain\sb264\cf1\f51\fs20\qc 47\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sb132\cf1\f51\fs20\ql vadadustat are inconclusive with respect to efficacy, if we do not meet our clinical endpoints with statistical significance, or if\plain\cf1\f51\fs20\ql there are safety concerns or adverse events, we may be prevented from or delayed in obtaining marketing approval for\plain\cf1\f51\fs20\ql vadadustat.\par\pard\plain\sb264\cf1\f51\fs20\ql We could encounter delays if a clinical trial is suspended or terminated by us, by the relevant independent institutional review\plain\cf1\f51\fs20\ql boards at the sites at which such trials are being conducted, by the Independent Data Monitoring Committee, or IDMC, for such\plain\cf1\f51\fs20\ql trial or by the FDA or other regulatory authorities. Such suspension or termination may be due to a number of factors, including\plain\cf1\f51\fs20\ql failure to conduct the clinical trial in accordance with regulatory requirements or our clinical protocols, critical findings resulting\plain\cf1\f51\fs20\ql from inspection of clinical trial operations, clinical trial site or manufacturing facilities by the FDA or other regulatory\plain\cf1\f51\fs20\ql authorities, the imposition of a clinical hold, unforeseen safety issues or adverse side effects, changes in laws or regulations, or\plain\cf1\f51\fs20\ql lack of adequate funding to continue the clinical trial. Any delays in completing our clinical trials will increase our costs, slow\plain\cf1\f51\fs20\ql down our product candidate development and approval process and jeopardize our ability to commence product sales and\plain\cf1\f51\fs20\ql generate revenue. Any of these occurrences may harm our business, financial condition and prospects significantly.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Even if we receive regulatory approval for our product candidates, such products will be subject to ongoing regulatory review,\plain\cf1\f51\fs20\b\i\ql which may result in significant additional expense. Additionally, our product candidates, if approved, could be subject to\plain\cf1\f51\fs20\b\i\ql labeling and other restrictions, and we may be subject to penalties if we fail to comply with regulatory requirements or\plain\cf1\f51\fs20\b\i\ql experience unanticipated problems with our products.\par\pard\plain\sb132\cf1\f51\fs20\ql Any regulatory approvals that we receive for our product candidates may be subject to limitations on the approved indicated uses\plain\cf1\f51\fs20\ql for which the product may be marketed or other conditions of approval, or contain requirements for potentially costly\plain\cf1\f51\fs20\ql post-marketing studies and surveillance to monitor the safety and efficacy of the product. In addition, if the FDA approves any\plain\cf1\f51\fs20\ql of our product candidates, the manufacturing processes, labeling, packaging, distribution, adverse event reporting, storage,\plain\cf1\f51\fs20\ql advertising, promotion and recordkeeping for the product will be subject to extensive and ongoing regulatory requirements. These\plain\cf1\f51\fs20\ql requirements include submissions of safety and other post-marketing information and reports, as well as continued compliance\plain\cf1\f51\fs20\ql with current Good Manufacturing Practices, or cGMPs, and GCPs for any clinical trials that we conduct post-approval.\par\pard\plain\sb264\cf1\f51\fs20\ql Post-approval discovery of previously unknown problems with an approved drug product, including adverse events of\plain\cf1\f51\fs20\ql unanticipated severity or frequency or relating to manufacturing operations or processes, or failure to comply with regulatory\plain\cf1\f51\fs20\ql requirements, may result in, among other things: \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql restrictions on the marketing or manufacturing of the drug product, withdrawal of the drug product from the market,\plain\intbl\cf1\f51\fs20\ql or drug product recalls;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql fines, warning letters or clinical holds;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql refusal by the FDA or other regulatory authorities to approve pending applications or supplements to approved\plain\intbl\cf1\f51\fs20\ql applications filed by us, or suspension or revocation of product approvals;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql product seizure or detention, or refusal to permit the import or export of products;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql a Risk Evaluation Management Strategy program; and\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql injunctions or the imposition of civil or criminal penalties.\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}}\pard\plain\sb264\cf1\f51\fs20\ql The FDA\u8217?s policies may change and additional government regulations may be enacted. We cannot predict the likelihood,\plain\cf1\f51\fs20\ql nature or extent of government regulation that may arise from future legislation or administrative action, either in the United\plain\cf1\f51\fs20\ql States or abroad. If we are slow or unable to adapt to changes in existing requirements or the adoption of new requirements or\plain\cf1\f51\fs20\ql policies, or are not able to maintain regulatory compliance, we may lose any marketing approval that we may have obtained and\plain\cf1\f51\fs20\ql we may not achieve or sustain profitability, which would adversely affect our business.\par\pard\plain\sb396\cf1\f51\fs20\b\ql Risks Related to our Reliance on Third Parties\par\pard\plain\sb132\cf1\f51\fs20\b\i\ql We rely on third parties to conduct preclinical and clinical studies for our product candidates. If they do not properly and\plain\cf1\f51\fs20\b\i\ql successfully perform their obligations to us, we may not be able to obtain regulatory approvals for our product candidates.\par\pard\plain\sb132\cf1\f51\fs20\ql We are currently relying, and expect to continue to rely, on third parties, such as CROs, clinical data management organizations,\plain\cf1\f51\fs20\ql medical institutions and clinical investigators, to conduct our current and future clinical trials, including our Phase 3 development\plain\cf1\f51\fs20\ql program for vadadustat. We compete with many other companies for the resources of these third parties. The third parties on\plain\cf1\f51\fs20\ql whom we rely may fail to perform effectively or terminate their engagement with us, and having to enter into alternative\plain\cf1\f51\fs20\ql arrangements would delay development and commercialization of our product candidates.\par\pard\plain\sb264\cf1\f51\fs20\ql We entered into an agreement with Quintiles IMS Holdings, Inc. to be our primary CRO for the PRO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql TECT and INNO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql VATE\plain\cf1\f51\fs20\ql programs. If Quintiles cannot perform effectively or terminates their engagement with us, the progress of our Phase 3 clinical\plain\cf1\f51\fs20\ql studies may be impacted and we may incur significant added costs in identifying, qualifying and contracting with a new CRO.\par\pard\plain\sb264\cf1\f51\fs20\qc 48\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb264\cf1\f51\fs20\ql Our reliance on these third parties for research and development activities will reduce our control over these activities but will\plain\cf1\f51\fs20\ql not relieve us of our responsibilities. For example, the FDA and equivalent regulatory authorities outside of the United States\plain\cf1\f51\fs20\ql require compliance with regulations and standards, including GCP requirements, for designing, conducting, monitoring, recording,\plain\cf1\f51\fs20\ql analyzing and reporting the results of clinical trials to ensure that the data and results are credible and accurate and that the\plain\cf1\f51\fs20\ql rights, integrity and confidentiality of study subjects are protected. Although we rely on third parties to conduct our clinical trials,\plain\cf1\f51\fs20\ql we are responsible for ensuring that each of these clinical trials is conducted in accordance with its general investigational plan\plain\cf1\f51\fs20\ql and protocol in compliance with legal and regulatory requirements. Regulatory authorities enforce these GCP requirements\plain\cf1\f51\fs20\ql through periodic inspections of clinical trial sponsors, principal investigators and clinical trial sites. If we or any of our CROs or\plain\cf1\f51\fs20\ql clinical trial sites fail to comply with applicable GCP requirements, the clinical data generated in our clinical trials may be\plain\cf1\f51\fs20\ql deemed unreliable and the FDA, EMA or other regulatory authorities may require us to perform additional clinical trials before\plain\cf1\f51\fs20\ql approving our marketing applications. We cannot assure you that upon inspection by a given regulatory authority, such regulatory\plain\cf1\f51\fs20\ql authority will determine that any of our clinical trials comply with GCP requirements. In addition, our clinical trials must be\plain\cf1\f51\fs20\ql conducted with product that meets certain specifications and is manufactured under applicable cGMP regulations. Failure to\plain\cf1\f51\fs20\ql comply with these regulations may require us to repeat clinical trials, which would delay the regulatory approval process.\par\pard\plain\sb264\cf1\f51\fs20\ql If these third parties do not successfully carry out their duties under their agreements, if the quality or accuracy of the data they\plain\cf1\f51\fs20\ql obtain is compromised due to their failure to adhere to clinical trial protocols or regulatory requirements, or if they otherwise fail\plain\cf1\f51\fs20\ql to comply with clinical trial protocols or meet expected deadlines, the clinical trials of our product candidates may not meet\plain\cf1\f51\fs20\ql regulatory requirements. If clinical trials do not meet regulatory requirements or if these third parties need to be replaced,\plain\cf1\f51\fs20\ql preclinical development activities or clinical trials may be extended, delayed, suspended or terminated. If any of these events\plain\cf1\f51\fs20\ql occur, we may not be able to obtain regulatory approval of our product candidates on a timely basis or at all.\par\pard\plain\sb264\cf1\f51\fs20\ql We also rely on other third parties to store and distribute drug supplies for our clinical trials. Any performance failure on the part\plain\cf1\f51\fs20\ql of our distributors could delay clinical development or marketing approval of our product candidates or commercialization of our\plain\cf1\f51\fs20\ql products, resulting in additional losses and depriving us of potential product revenue. In addition, we are using an active\plain\cf1\f51\fs20\ql comparator in our PRO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql TECT and INNO\plain\cf1\f51\fs18\ql\sub 2\plain\cf1\f51\fs20\ql VATE clinical programs. If our distributors are unable to obtain sufficient supply of\plain\cf1\f51\fs20\ql the active comparator for any reason, or supply active comparator to clinical trial sites in a timely manner, our clinical trials may\plain\cf1\f51\fs20\ql be extended, delayed, suspended or terminated.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql We rely on third parties to conduct some or all aspects of our product manufacturing, and these third parties may not perform\plain\cf1\f51\fs20\b\i\ql satisfactorily.\par\pard\plain\sb132\cf1\f51\fs20\ql We do not have any manufacturing facilities and do not expect to independently manufacture our product candidates for research\plain\cf1\f51\fs20\ql and preclinical and clinical studies. We currently rely, and expect to continue to rely, on third parties to manufacture and supply\plain\cf1\f51\fs20\ql drug product for our vadadustat clinical trials, and we expect to rely on third parties for the manufacture of clinical and\plain\cf1\f51\fs20\ql commercial quantities of all of our product candidates. This reliance on third parties increases the risk that we will not have\plain\cf1\f51\fs20\ql sufficient quantities of our product candidates or such quantities at an acceptable cost or quality, which could delay, prevent or\plain\cf1\f51\fs20\ql impair our development or commercialization efforts.\par\pard\plain\sb264\cf1\f51\fs20\ql Also, these third parties may fail to perform effectively or terminate their engagement with us. We entered into agreements with\plain\cf1\f51\fs20\ql Evonik Corporation and Esteve Quimica for the manufacture of the drug substance for the Phase 3 development program of\plain\cf1\f51\fs20\ql vadadustat. If either of these contract manufacturers cannot perform as agreed or terminates their engagement with us, we may be\plain\cf1\f51\fs20\ql required to find replacement manufacturers. We may incur significant delays and added costs in identifying, qualifying and\plain\cf1\f51\fs20\ql contracting with any such replacement, as well as producing the drug substance. We also have an agreement with Gregory\plain\cf1\f51\fs20\ql Pharmaceutical Holdings (d/b/a UPM Pharmaceuticals Inc., or UPM) for the manufacture of finished drug product for the Phase 3\plain\cf1\f51\fs20\ql development program. Although we believe that there are several other manufacturers who also could manufacture our drug\plain\cf1\f51\fs20\ql product if UPM cannot perform as agreed or terminates their engagement with us, we may incur significant delays and added\plain\cf1\f51\fs20\ql costs in identifying, qualifying, and contracting with another manufacturer. When we engage a second source for the manufacture\plain\cf1\f51\fs20\ql of drug product, we will incur additional costs. In addition, we have to enter into technology transfer agreements and share our\plain\cf1\f51\fs20\ql know-how with such third-party manufacturers, which can be time-consuming and may result in delays. These delays could\plain\cf1\f51\fs20\ql result in a suspension of our clinical trials or, if vadadustat is approved and marketed, a failure to satisfy patient demand.\par\pard\plain\sb264\cf1\f51\fs20\ql Any of these events could lead to clinical study delays or failure to obtain regulatory approval, or affect our ability to\plain\cf1\f51\fs20\ql successfully commercialize our future products. Some of these events could be the basis for FDA action, including injunction,\plain\cf1\f51\fs20\ql recall, seizure or total or partial suspension of production.{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb264\cf1\f51\fs20\ql The facilities and processes used by our contract manufacturers to manufacture our product candidates will be inspected by the\plain\cf1\f51\fs20\ql FDA and other regulatory authorities prior to or after we submit our marketing application. We do not control the manufacturing\plain\cf1\f51\fs20\ql process of, and are completely dependent on, our contract manufacturers for compliance with cGMP requirements for\plain\cf1\f51\fs20\ql manufacture of both drug substance and finished drug product. If our contract manufacturers cannot successfully manufacture\plain\cf1\f51\fs20\ql material that conforms to our specifications and regulatory requirements, we will not be able to secure and/or maintain regulatory\plain\cf1\f51\fs20\ql approval for our product\par\pard\plain\sb264\cf1\f51\fs20\qc 49\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sb264\cf1\f51\fs20\ql candidates. In addition, we have no control over the ability of our contract manufacturers to maintain adequate quality control,\plain\cf1\f51\fs20\ql quality assurance and qualified personnel. If the FDA, EMA or other regulatory authorities do not approve these facilities for the\plain\cf1\f51\fs20\ql manufacture of our product candidates, or if they withdraw any such approval in the future, we may need to find alternative\plain\cf1\f51\fs20\ql manufacturing facilities, which would significantly impact our ability to develop, obtain regulatory approval for or market our\plain\cf1\f51\fs20\ql product candidates, if approved. Moreover, the failure of our contract manufacturers to comply with applicable regulations could\plain\cf1\f51\fs20\ql result in sanctions being imposed on us, including clinical holds, fines, injunctions, civil penalties, delays, suspension or\plain\cf1\f51\fs20\ql withdrawal of approvals, license revocation, seizures or recalls of product candidates or products, operating restrictions and\plain\cf1\f51\fs20\ql criminal prosecutions, any of which could significantly and adversely affect the supply of our products or product candidates.\plain\cf1\f51\fs20\ql Also, if our drug substance or drug product is damaged or lost while in our contract manufacturers\u8217? control, it may impact\plain\cf1\f51\fs20\ql our ability to supply our products or product candidates and we may incur significant financial harm.\par\pard\plain\sb264\cf1\f51\fs20\ql In addition, our product candidates and any products that we may develop may compete with other product candidates and\plain\cf1\f51\fs20\ql products for access to manufacturing facilities. Certain of these manufacturing facilities may be contractually prohibited from\plain\cf1\f51\fs20\ql manufacturing our product candidates or products due to exclusivity provisions in agreements with our competitors. There are a\plain\cf1\f51\fs20\ql limited number of manufacturers that operate under cGMP regulations and are capable of manufacturing our product candidates\plain\cf1\f51\fs20\ql for us.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql If we are unable to obtain our product candidates in sufficient quantities and at sufficient yields, we may experience delays in\plain\cf1\f51\fs20\b\i\ql product development, clinical trials, regulatory approval and commercial distribution.\par\pard\plain\sb132\cf1\f51\fs20\ql Completion of our clinical trials and commercialization of our product candidates require access to facilities to manufacture our\plain\cf1\f51\fs20\ql product candidates at sufficient yields and at clinical and commercial scale. We have limited experience manufacturing, or\plain\cf1\f51\fs20\ql managing third parties in manufacturing, our product candidates in the volumes that will be necessary to support large-scale\plain\cf1\f51\fs20\ql clinical trials or commercial sales. Our contract manufacturers may not meet initial expectations as to scheduling, scale-up,\plain\cf1\f51\fs20\ql reproducibility, yield, purity, cost, potency or quality.\par\pard\plain\sb264\cf1\f51\fs20\ql Our reliance on contract manufacturers may adversely affect our operations or result in unforeseen delays or other problems\plain\cf1\f51\fs20\ql beyond our control. Because of contractual restraints and the limited number of contract manufacturers with the expertise,\plain\cf1\f51\fs20\ql required regulatory approvals and facilities to manufacture our bulk drug substance and drug product on a commercial scale,\plain\cf1\f51\fs20\ql replacement of a manufacturer may be expensive and time-consuming and may cause interruptions in the production of our\plain\cf1\f51\fs20\ql product candidates. A contract manufacturer may also encounter difficulties in production.\par\pard\plain\sb264\cf1\f51\fs20\ql Any delay or interruption in our supply of product candidates or products could have a material adverse effect on our business,\plain\cf1\f51\fs20\ql financial condition, results of operations and cash flows.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql We may not be successful in maintaining our strategic collaborations which could adversely affect our ability to develop and\plain\cf1\f51\fs20\b\i\ql commercialize our product candidates, negatively impacting our operating results.\par\pard\plain\sb132\cf1\f51\fs20\ql We plan to commercialize vadadustat in the United States, Europe, and other territories pursuant to our collaboration agreement\plain\cf1\f51\fs20\ql with Otsuka and have entered into a collaboration agreement with MTPC to develop and commercialize vadadustat in Japan and\plain\cf1\f51\fs20\ql certain other Asian countries. We may not be able to maintain such strategic collaborations.\par\pard\plain\sb264\cf1\f51\fs20\ql In addition, our strategic collaborators may terminate any agreements they enter into with us, and we may not be able to\plain\cf1\f51\fs20\ql adequately protect our rights under these agreements. Furthermore, our strategic collaborators have negotiated for certain rights to\plain\cf1\f51\fs20\ql control decisions regarding the development and commercialization of our product candidates, if approved, and may not conduct\plain\cf1\f51\fs20\ql those activities in the same manner as we do.\par\pard\plain\sb264\cf1\f51\fs20\ql If we fail to maintain our current collaborations with Otsuka or MTPC, we will bear all of the risk and costs related to the\plain\cf1\f51\fs20\ql development and commercialization of any such product candidate, and we may need to seek additional financing, hire additional\plain\cf1\f51\fs20\ql employees and otherwise develop additional expertise. This could negatively affect the development and commercialization of any\plain\cf1\f51\fs20\ql such product candidate.\par\pard\plain\sb396\cf1\f51\fs20\b\ql Risks Related to our Intellectual Property\par\pard\plain\sb132\cf1\f51\fs20\b\i\ql If our efforts to protect our proprietary technologies are not adequate, we may not be able to compete effectively in our\plain\cf1\f51\fs20\b\i\ql market. We are currently involved in an opposition proceeding involving one of our European patents, and the outcome of\plain\cf1\f51\fs20\b\i\ql that proceeding may affect our ability to establish a competitive advantage in the market or successfully commercialize our\plain\cf1\f51\fs20\b\i\ql lead product candidate in the European Union.{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb132\cf1\f51\fs20\ql We rely upon a combination of patents, trade secret protection and confidentiality agreements to protect the intellectual property\plain\cf1\f51\fs20\ql related to our technologies. We will only be able to protect our product candidates, proprietary technologies and their uses from\plain\cf1\f51\fs20\ql unauthorized use by third parties to the extent that valid and enforceable patents or trade secrets cover them. Any disclosure to or\par\pard\plain\sb264\cf1\f51\fs20\qc 50\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sb132\cf1\f51\fs20\ql misappropriation by third parties of our confidential proprietary information could enable competitors to quickly duplicate or\plain\cf1\f51\fs20\ql surpass our technological achievements, thus eroding our competitive position in the market.\par\pard\plain\sb264\cf1\f51\fs20\ql In July\~2011, a third party filed an opposition to one of our issued European patents, European Patent No.\~2044005, or the\plain\cf1\f51\fs20\ql \u8217?005 Patent. During the oral proceedings, which took place on April\~10, 2013, the Opposition Division of the European\plain\cf1\f51\fs20\ql Patent Office decided to maintain certain claims of the patent directed to a compound chosen from a group of eight compounds,\plain\cf1\f51\fs20\ql including vadadustat, as well as claims to compositions and methods for treating various diseases including, but not limited to,\plain\cf1\f51\fs20\ql anemia. Both parties have appealed the decision of the Opposition Division and final resolution of the opposition proceeding will\plain\cf1\f51\fs20\ql likely take a year or more. We cannot be assured of the breadth of the claims that will remain in the \u8217?005 Patent or that\plain\cf1\f51\fs20\ql the patent will not be revoked in its entirety. If the European Patent Office decides to narrow the scope of the claims or revoke\plain\cf1\f51\fs20\ql the \u8217?005 Patent, we may not be able to establish a competitive advantage in the European Union in our market or\plain\cf1\f51\fs20\ql successfully commercialize our product candidates in the European Union, which could materially adversely affect our business,\plain\cf1\f51\fs20\ql operating results and financial condition.\par\pard\plain\sb264\cf1\f51\fs20\ql Composition-of-matter patents on the active pharmaceutical ingredient are generally considered to be the strongest form of\plain\cf1\f51\fs20\ql intellectual property protection for pharmaceutical products, as such patents provide protection without regard to any method of\plain\cf1\f51\fs20\ql use. Method-of-use patents protect the use of a product for the specified method. A method-of-use patent does not prevent a\plain\cf1\f51\fs20\ql competitor from making and marketing a product that is identical to our product for an indication that is outside the scope of the\plain\cf1\f51\fs20\ql patented method. Moreover, even if competitors do not actively promote their product for our targeted indications, physicians\plain\cf1\f51\fs20\ql may prescribe these products \u8220?off-label.\u8221? Although off-label prescriptions may infringe or contribute to the\plain\cf1\f51\fs20\ql infringement of method-of-use patents, the practice is common and such infringement is difficult to prevent or prosecute.\par\pard\plain\sb264\cf1\f51\fs20\ql The strength of patents in the biotechnology and pharmaceutical field involves complex legal and scientific questions and can be\plain\cf1\f51\fs20\ql uncertain. The patent applications that we own or license may fail to result in issued patents in the United States or in other\plain\cf1\f51\fs20\ql countries. Our competitors have taken, and we expect that they will continue to undertake, formal efforts to oppose the issuance\plain\cf1\f51\fs20\ql of claims in our patent applications. We do not control decisions made by the United States Patent and Trademark Office, or US\plain\cf1\f51\fs20\ql PTO, or equivalent bodies outside the United States. Even if our patents do successfully issue, third parties may challenge the\plain\cf1\f51\fs20\ql validity, enforceability, inventorship, or scope of these patents, such actions may result in such patents being narrowed,\plain\cf1\f51\fs20\ql invalidated or held unenforceable. Furthermore, even if they are unchallenged, our patents and patent applications may not\plain\cf1\f51\fs20\ql adequately protect our intellectual property or prevent others from designing around our claims. If the breadth or strength of\plain\cf1\f51\fs20\ql protection provided by the patents and patent applications we hold with respect to our product candidates is threatened, it could\plain\cf1\f51\fs20\ql dissuade companies from collaborating with us to develop, and threaten our ability to commercialize, our product candidates. If\plain\cf1\f51\fs20\ql we encounter delays in our clinical trials, the period of time during which we could market our product candidates under patent\plain\cf1\f51\fs20\ql protection would be reduced. Since patent applications in the United States and most other countries are confidential for a period\plain\cf1\f51\fs20\ql of time after filing, we cannot be certain that we were the first to file any patent application related to our product candidates.\plain\cf1\f51\fs20\ql Furthermore, for applications in which all claims are entitled to a priority date before March\~16, 2013, an interference proceeding\plain\cf1\f51\fs20\ql can be provoked by a third-party or instituted by the US PTO to determine who was the first to invent any of the subject matter\plain\cf1\f51\fs20\ql covered by the patent claims of our applications. For applications containing a claim not entitled to priority before March\~16,\plain\cf1\f51\fs20\ql 2013, there is greater level of uncertainty in the patent law with the passage of the America Invents Act (2011), which brings\plain\cf1\f51\fs20\ql into effect significant changes to the U.S. patent laws and introduces new procedures for challenging pending patent applications\plain\cf1\f51\fs20\ql and issued patents. A primary change under this reform is creating a \u8220?first to file\u8221? system in the United States. This\plain\cf1\f51\fs20\ql will require us to be cognizant of the time from invention to filing of a patent application.\par\pard\plain\sb264\cf1\f51\fs20\ql In addition to the protection afforded by patents, we seek to rely on trade secret protection and confidentiality agreements to\plain\cf1\f51\fs20\ql protect proprietary know-how processes, and any other elements of our drug discovery and development process and information\plain\cf1\f51\fs20\ql or technology that are not covered by patents. Although we require all of our employees to assign their inventions to us, and\plain\cf1\f51\fs20\ql require all of our employees, consultants, advisors and any third parties who have access to our proprietary know-how,\plain\cf1\f51\fs20\ql information or technology to enter into confidentiality agreements, we cannot be certain that our trade secrets and other\plain\cf1\f51\fs20\ql confidential or proprietary information will not be disclosed or that competitors will not otherwise gain access to our trade secrets\plain\cf1\f51\fs20\ql or independently develop substantially equivalent information and techniques. Furthermore, the laws of some countries do not\plain\cf1\f51\fs20\ql protect proprietary rights to the same extent or in the same manner as the laws of the United States. As a result, we may\plain\cf1\f51\fs20\ql encounter significant problems in protecting and defending our intellectual property both in the United States and abroad. If we\plain\cf1\f51\fs20\ql are unable to prevent unauthorized material disclosure of our intellectual property to third parties, we will not be able to establish\plain\cf1\f51\fs20\ql or maintain a competitive advantage in the market, which could materially adversely affect our business, operating results and\plain\cf1\f51\fs20\ql financial condition.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Our reliance on third parties requires us to share our trade secrets, which increases the possibility that a competitor will\plain\cf1\f51\fs20\b\i\ql discover them or that our trade secrets will be misappropriated or disclosed.{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb132\cf1\f51\fs20\ql Because we rely on third parties to research, develop and manufacture our product candidates, we must, at times, share trade\plain\cf1\f51\fs20\ql secrets with them. We seek to protect our proprietary technology in part by entering into confidentiality agreements and, if\plain\cf1\f51\fs20\ql applicable, services agreements, material transfer agreements, consulting agreements, research agreements or other similar\plain\cf1\f51\fs20\ql agreements with our advisors, employees, third-party contractors and consultants prior to beginning research or disclosing\plain\cf1\f51\fs20\ql proprietary information. These agreements typically limit the rights of the third parties to use or disclose our confidential\plain\cf1\f51\fs20\ql information, including our trade secrets.\par\pard\plain\sb264\cf1\f51\fs20\qc 51\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sb132\cf1\f51\fs20\ql Despite the contractual provisions employed when working with third parties, the need to share trade secrets and other\plain\cf1\f51\fs20\ql confidential information increases the risk that such trade secrets become known by our competitors, are inadvertently\plain\cf1\f51\fs20\ql incorporated into the technology of others, or are disclosed or used in violation of these agreements. Given that our proprietary\plain\cf1\f51\fs20\ql position is based, in part, on our know-how and trade secrets, a competitor\u8217?s discovery of our trade secrets or other\plain\cf1\f51\fs20\ql unauthorized use or disclosure would impair our competitive position and may have a material adverse effect on our business.\par\pard\plain\sb264\cf1\f51\fs20\ql In addition, these agreements typically restrict the ability of our advisors, employees, third-party contractors and consultants to\plain\cf1\f51\fs20\ql publish data potentially relating to our trade secrets, although our agreements may contain certain limited publication rights. For\plain\cf1\f51\fs20\ql example, any academic institution that we may collaborate with will usually expect to be granted rights to publish data arising\plain\cf1\f51\fs20\ql out of such collaboration. We often grant such rights, provided that we are notified in advance and given the opportunity to delay\plain\cf1\f51\fs20\ql publication for a limited time period in order for us to secure patent protection of intellectual property rights arising from the\plain\cf1\f51\fs20\ql collaboration and remove confidential or trade secret information from any such publication. In the future, we may also conduct\plain\cf1\f51\fs20\ql joint research and development programs that may require us to share trade secrets under the terms of our research and\plain\cf1\f51\fs20\ql development or similar agreements. Despite our efforts to protect our trade secrets, our competitors may discover our trade\plain\cf1\f51\fs20\ql secrets, either through breach of our agreements with third parties, independent development or publication of information by any\plain\cf1\f51\fs20\ql of our third-party collaborators. A competitor\u8217?s discovery of our trade secrets would impair our competitive position and\plain\cf1\f51\fs20\ql have an adverse impact on our business.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Some of the intellectual property that protects our product candidates is owned by third parties and is licensed to us.\~\~Any\plain\cf1\f51\fs20\b\i\ql dispute that might arise under any such license agreement could jeopardize our rights in such product candidates and\plain\cf1\f51\fs20\b\i\ql materially harm our business.\par\pard\plain\sb132\cf1\f51\fs20\ql We license intellectual property rights that protect some of our product candidates from third parties.\~\~If a dispute were to arise\plain\cf1\f51\fs20\ql with a licensor pursuant to such a license agreement, our rights to use the licensed intellectual property and to develop and\plain\cf1\f51\fs20\ql commercialize the compounds that such intellectual property covers could be jeopardized.\~\~If we have expended significant\plain\cf1\f51\fs20\ql resources developing these compounds, such a dispute could have a material adverse effect on our business.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Third-party claims of intellectual property infringement may be costly and time consuming, and may delay or harm our drug\plain\cf1\f51\fs20\b\i\ql discovery and development efforts.\par\pard\plain\sb132\cf1\f51\fs20\ql Our commercial success depends in part on our avoiding infringement of the patents and proprietary rights of third parties. The\plain\cf1\f51\fs20\ql pharmaceutical and biotechnology industries are characterized by extensive litigation over patent and other intellectual property\plain\cf1\f51\fs20\ql rights. We have in the past and may in the future become a party to, or be threatened with, future adversarial litigation or other\plain\cf1\f51\fs20\ql proceedings regarding intellectual property rights with respect to our drug candidates. As the pharmaceutical and biotechnology\plain\cf1\f51\fs20\ql industries expand and more patents are issued, the risk increases that our drug candidates may give rise to claims of infringement\plain\cf1\f51\fs20\ql of the patent rights of others.\par\pard\plain\sb264\cf1\f51\fs20\ql While our product candidates are in preclinical studies and clinical trials, we believe that the use of our product candidates in\plain\cf1\f51\fs20\ql these preclinical studies and clinical trials in the United States falls within the scope of the exemptions provided by 35 U.S.C.\plain\cf1\f51\fs20\ql Section\~271(e), which provides that it shall not be an act of infringement to make, use, offer to sell, or sell within the United\plain\cf1\f51\fs20\ql States or import into the United States a patented invention solely for uses reasonably related to the development and submission\plain\cf1\f51\fs20\ql of information to the FDA. As our product candidates progress toward commercialization, the possibility of a patent infringement\plain\cf1\f51\fs20\ql claim against us increases. We attempt to ensure that our product candidates and the methods we employ to manufacture them, as\plain\cf1\f51\fs20\ql well as the methods for their use which we intend to promote, do not infringe other parties\u8217? patents and other proprietary\plain\cf1\f51\fs20\ql rights. There can be no assurance they do not, however, and competitors or other parties may assert that we infringe their\plain\cf1\f51\fs20\ql proprietary rights in any event.\par\pard\plain\sb264\cf1\f51\fs20\ql Third parties may hold or obtain patents or other intellectual property rights and allege in the future, that the use of our product\plain\cf1\f51\fs20\ql candidates infringes these patents or intellectual property rights, or that we are employing their proprietary technology without\plain\cf1\f51\fs20\ql authorization. We do not believe that there are any currently issued U.S. patents that conflict with our intellectual property rights;\plain\cf1\f51\fs20\ql nor do we make any admission that any of such patents are valid, enforceable or infringed. Under U.S. law, a party may be able\plain\cf1\f51\fs20\ql to patent a discovery of a new way to use a previously known compound, even if such compound itself is patented, provided the\plain\cf1\f51\fs20\ql newly discovered use is novel and nonobvious. Such a method-of-use patent, however, if valid, only protects the use of a\plain\cf1\f51\fs20\ql claimed compound for the specified methods claimed in the patent. This type of patent does not prevent persons from using the\plain\cf1\f51\fs20\ql compound for any previously known use of the compound. Further, this type of patent does not prevent persons from making and\plain\cf1\f51\fs20\ql marketing the compound for an indication that is outside the scope of the patented method. We are not aware of any valid U.S.\plain\cf1\f51\fs20\ql patents issued to FibroGen, or any other person, that claim methods of using any of our product candidates for purposes of\plain\cf1\f51\fs20\ql inhibiting hypoxia-inducible factor prolyl hydroxylases, or HIF-PHs, for the treatment of anemia secondary to CKD. For\plain\cf1\f51\fs20\ql example, we are aware of certain patents that have been acquired by FibroGen directed to certain heterocyclic carboxamide\plain\cf1\f51\fs20\ql compounds that are described as inhibitors of prolyl-4-hydroxylase. Those patents, however, are believed to have expired as of\plain\cf1\f51\fs20\ql December\~2014.{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb264\cf1\f51\fs20\ql FibroGen has also filed other patent applications in the U.S. and other countries directed to purportedly new methods of using\plain\cf1\f51\fs20\ql such previously known heterocyclic carboxamide compounds for purposes of treating or affecting specified conditions, and some\plain\cf1\f51\fs20\ql of these\par\pard\plain\sb264\cf1\f51\fs20\qc 52\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sb264\cf1\f51\fs20\ql applications have since issued as patents. To the extent any such patents issue or have been issued, we may initiate opposition or\plain\cf1\f51\fs20\ql other legal proceedings with respect to such patents. We have discussed the status of the opposition proceedings against\plain\cf1\f51\fs20\ql FibroGen\u8217?s European \u8217?823, \u8217?153,\u8217?155 and \u8217?333 patents above in Item 1. Legal Proceedings.\par\pard\plain\sb264\cf1\f51\fs20\ql There may be other patents of FibroGen or patents of third parties of which we are currently unaware with claims to compounds,\plain\cf1\f51\fs20\ql materials, formulations, methods of manufacture or methods for treatment related to the use or manufacture of our drug\plain\cf1\f51\fs20\ql candidates. Also, because patent applications can take many years to issue, there may be currently pending patent applications\plain\cf1\f51\fs20\ql which may later result in issued patents that our product candidates may infringe.\par\pard\plain\sb264\cf1\f51\fs20\ql Third parties, including FibroGen, may in the future claim that our product candidates and other technologies infringe upon their\plain\cf1\f51\fs20\ql patents and may challenge our ability to commercialize vadadustat. Parties making claims against us may seek and obtain\plain\cf1\f51\fs20\ql injunctive or other equitable relief, which could effectively block our ability to further develop and commercialize vadadustat,\plain\cf1\f51\fs20\ql AKB-6899, AKB-5169 or other product candidates that we may develop or acquire. If any third-party patents were held by a\plain\cf1\f51\fs20\ql court of competent jurisdiction to cover the manufacturing process of any of our product candidates, any molecules formed\plain\cf1\f51\fs20\ql during the manufacturing process or any final product itself, the holders of any such patents may be able to block our ability to\plain\cf1\f51\fs20\ql commercialize such product candidate unless we obtained a license under the applicable patents, or until such patents expire or\plain\cf1\f51\fs20\ql they are finally determined to be held invalid or unenforceable. Similarly, if any third-party patent were held by a court of\plain\cf1\f51\fs20\ql competent jurisdiction to cover aspects of our formulations, processes for manufacture or our intended methods of use, including\plain\cf1\f51\fs20\ql patient selection methods, the holders of any such patent may be able to block or impair our ability to develop and\plain\cf1\f51\fs20\ql commercialize the applicable product candidate unless we obtained a license or until such patent expires or is finally determined\plain\cf1\f51\fs20\ql to be held invalid or unenforceable. We may also elect to enter into a license in order to settle litigation or in order to resolve\plain\cf1\f51\fs20\ql disputes prior to litigation. Furthermore, even in the absence of litigation, we may need to obtain licenses from third parties to\plain\cf1\f51\fs20\ql advance our research or allow commercialization of our product candidates. Should a license to a third-party patent become\plain\cf1\f51\fs20\ql necessary, we cannot predict whether we would be able to obtain a license or, if a license were available, whether it would be\plain\cf1\f51\fs20\ql available on commercially reasonable terms. If such a license is necessary and a license under the applicable patent is unavailable\plain\cf1\f51\fs20\ql on commercially reasonable terms, or at all, our ability to commercialize our product candidates may be impaired or delayed,\plain\cf1\f51\fs20\ql which could in turn significantly harm our business.\par\pard\plain\sb264\cf1\f51\fs20\ql Further, defense of infringement claims, regardless of their merit, would involve substantial litigation expense and would be a\plain\cf1\f51\fs20\ql substantial diversion of employee resources from our business. In the event of a successful claim of infringement against us, we\plain\cf1\f51\fs20\ql may have to pay substantial damages, including treble damages and attorneys\u8217? fees for willful infringement, pay royalties\plain\cf1\f51\fs20\ql or redesign our products, which may be impossible or require substantial time and monetary expenditure.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql We are currently involved in opposition and invalidity proceedings and may in the future be involved in lawsuits or\plain\cf1\f51\fs20\b\i\ql administrative proceedings to challenge the patents of our competitors or to protect or enforce our patents, which could be\plain\cf1\f51\fs20\b\i\ql expensive, time consuming, and unsuccessful.\par\pard\plain\sb132\cf1\f51\fs20\ql Competitors may infringe our patents or misappropriate our trade secrets or confidential information. To counter infringement or\plain\cf1\f51\fs20\ql unauthorized use, we may be required to file infringement or misappropriation claims, which can be expensive and\plain\cf1\f51\fs20\ql time-consuming. We may not be able to prevent infringement of our patents or misappropriation of our trade secrets or\plain\cf1\f51\fs20\ql confidential information, particularly in countries where the laws may not protect those rights as fully as in the United States. In\plain\cf1\f51\fs20\ql addition, in an infringement proceeding, a court may decide that a patent of ours is not valid or is unenforceable, or may refuse\plain\cf1\f51\fs20\ql to stop the other party from using the technology at issue on the grounds that our patents do not cover the technology in\plain\cf1\f51\fs20\ql question. An adverse result in any litigation or defense proceedings could put one or more of our patents at risk of being\plain\cf1\f51\fs20\ql invalidated, held unenforceable, or interpreted narrowly and could put our patent applications at risk of not issuing. For example,\plain\cf1\f51\fs20\ql we are currently involved in five opposition proceedings in the European Patent Office. These proceedings may be ongoing for a\plain\cf1\f51\fs20\ql number of years and may involve substantial expense and diversion of employee resources from our business. In addition, we\plain\cf1\f51\fs20\ql may become involved in additional opposition proceedings or other legal or administrative proceedings in the future. For more\plain\cf1\f51\fs20\ql information, see the other risk factors under \u8220?Risks Related to Intellectual Property\u8221? and Item 1 \u8211? Legal\plain\cf1\f51\fs20\ql Proceedings.\par\pard\plain\sb264\cf1\f51\fs20\ql In addition, there may be a challenge or dispute regarding inventorship or ownership of patents or applications currently\plain\cf1\f51\fs20\ql identified as being owned by or licensed to us. Defense of these claims, regardless of their merit, would involve substantial\plain\cf1\f51\fs20\ql litigation expense and would be a substantial diversion of employee resources from our business.\par\pard\plain\sb264\cf1\f51\fs20\ql Various administrative proceedings are also available for challenging patents, including interference, reexamination,\plain\cf1\f51\fs20\i\ql inter partes\plain\cf1\f51\fs20\ql review, and post-grant review proceedings before the US PTO or oppositions and other comparable proceedings in foreign\plain\cf1\f51\fs20\ql jurisdictions. Interference proceedings provoked by third parties or brought by the US PTO may be necessary to determine the\plain\cf1\f51\fs20\ql priority of inventions with respect to our patents or patent applications.{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb264\cf1\f51\fs20\ql An unfavorable outcome in any current or future proceeding could require us to cease using the related technology or to attempt\plain\cf1\f51\fs20\ql to license rights to it from the prevailing party. Our business could be harmed if the prevailing party does not offer us a license\plain\cf1\f51\fs20\ql on\par\pard\plain\sb264\cf1\f51\fs20\qc 53\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sb264\cf1\f51\fs20\ql commercially reasonable terms or at all. Even if we are successful, participation in interference or other administrative\plain\cf1\f51\fs20\ql proceedings before the US PTO or a foreign patent office may result in substantial costs and distract our management and other\plain\cf1\f51\fs20\ql employees.\par\pard\plain\sb264\cf1\f51\fs20\ql Furthermore, because of the substantial amount of discovery required in connection with intellectual property litigation and some\plain\cf1\f51\fs20\ql administrative proceedings, there is a risk that some of our confidential information could be compromised by disclosure. In\plain\cf1\f51\fs20\ql addition, there could be public announcements of the results of hearings, motions or other interim proceedings or developments.\plain\cf1\f51\fs20\ql If securities analysts or investors perceive these results to be negative, it could have a substantial adverse effect on the price of\plain\cf1\f51\fs20\ql our common stock.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Obtaining and maintaining our patent protection depends on compliance with various procedural, document submission, fee\plain\cf1\f51\fs20\b\i\ql payment and other requirements imposed by governmental patent agencies, and our patent protection could be reduced or\plain\cf1\f51\fs20\b\i\ql eliminated for non-compliance with these requirements.\par\pard\plain\sb132\cf1\f51\fs20\ql Periodic maintenance fees on any issued patent are due to be paid to the US PTO and foreign patent agencies in several stages\plain\cf1\f51\fs20\ql over the lifetime of the patent. The US PTO and various foreign governmental patent agencies also require compliance with a\plain\cf1\f51\fs20\ql number of procedural, documentary, fee payment (such as annuities) and other similar provisions during the patent application\plain\cf1\f51\fs20\ql process. While an inadvertent lapse in many cases can be cured by payment of a late fee or by other means in accordance with\plain\cf1\f51\fs20\ql the applicable rules, there are situations in which non-compliance can result in abandonment or lapse of the patent or patent\plain\cf1\f51\fs20\ql application, resulting in partial or complete loss of patent rights in the relevant jurisdiction. Non-compliance events that could\plain\cf1\f51\fs20\ql result in abandonment or lapse of a patent or patent application include, but are not limited to, failure to respond to official\plain\cf1\f51\fs20\ql actions within prescribed time limits, non-payment of fees, and failure to properly legalize and submit formal documents. In such\plain\cf1\f51\fs20\ql an event, our competitors might be able to enter the market, which would have a material adverse effect on our business.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql We may be subject to claims that our employees, consultants or independent contractors have wrongfully used or disclosed\plain\cf1\f51\fs20\b\i\ql confidential information of third parties.\par\pard\plain\sb132\cf1\f51\fs20\ql We have received confidential and proprietary information from potential collaborators, prospective licensees and other third\plain\cf1\f51\fs20\ql parties. In addition, we employ individuals who were previously employed at other biotechnology or pharmaceutical companies.\plain\cf1\f51\fs20\ql We may be subject to claims that we or our employees, consultants or independent contractors have inadvertently or otherwise\plain\cf1\f51\fs20\ql used or disclosed confidential information of these third parties or our employees\u8217? former employers. We may also be\plain\cf1\f51\fs20\ql subject to claims that former employees, collaborators or other third parties have an ownership interest in our patents or other\plain\cf1\f51\fs20\ql intellectual property. We may be subject to ownership disputes in the future arising, for example, from conflicting obligations of\plain\cf1\f51\fs20\ql consultants or others who are involved in developing our drug candidates. Litigation may be necessary to defend against these\plain\cf1\f51\fs20\ql claims. If we fail in defending any such claims, in addition to paying monetary damages, we may lose valuable intellectual\plain\cf1\f51\fs20\ql property rights, such as exclusive ownership of, or right to use, valuable intellectual property. Such an outcome could have a\plain\cf1\f51\fs20\ql material adverse effect on our business. Even if we are successful in defending against these claims, litigation could result in\plain\cf1\f51\fs20\ql substantial cost and be a distraction to our management and employees.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql We may not be able to protect our intellectual property rights throughout the world.\par\pard\plain\sb132\cf1\f51\fs20\ql Filing, prosecuting and defending patents on our product candidates in all countries throughout the world would be prohibitively\plain\cf1\f51\fs20\ql expensive. Consequently, the breadth of our intellectual property rights in some countries outside the United States may be less\plain\cf1\f51\fs20\ql extensive than those in the United States. In addition, the laws of some countries do not protect intellectual property rights to the\plain\cf1\f51\fs20\ql same extent as laws in the United States. Consequently, we may not be able to prevent third parties from practicing our\plain\cf1\f51\fs20\ql inventions in all countries outside the United States, or from selling or importing products made using our inventions in and into\plain\cf1\f51\fs20\ql the United States or other countries. Competitors may use our technologies in countries where we have not obtained patent\plain\cf1\f51\fs20\ql protection to develop their own products and, further, may infringe our patents in territories where we have patent protection, but\plain\cf1\f51\fs20\ql enforcement is not as strong as in the United States. These products may compete with our products and our patents or other\plain\cf1\f51\fs20\ql intellectual property rights may not be effective or sufficient to prevent them from competing.\par\pard\plain\sb264\cf1\f51\fs20\ql Many companies have encountered significant problems in protecting and defending intellectual property rights in certain\plain\cf1\f51\fs20\ql countries. The legal systems of certain countries, particularly certain developing countries, do not favor the enforcement of\plain\cf1\f51\fs20\ql patents, trade secrets and other intellectual property, particularly those relating to pharmaceutical and biotechnology products,\plain\cf1\f51\fs20\ql which could make it difficult for us to stop the infringement of our patents or marketing of competing products in violation of\plain\cf1\f51\fs20\ql our proprietary rights generally. Proceedings to enforce our patent rights in countries outside of the United States could result in\plain\cf1\f51\fs20\ql substantial costs and divert our efforts and attention from other aspects of our business, could put our patents at risk of being\plain\cf1\f51\fs20\ql invalidated or interpreted narrowly and our patent applications at risk of not issuing, and could provoke third parties to assert\plain\cf1\f51\fs20\ql claims against us. We may not prevail in any lawsuits that we initiate and the damages or other remedies awarded, if any, may\plain\cf1\f51\fs20\ql not be commercially meaningful. Accordingly, our efforts to enforce our intellectual property rights around the world may be\plain\cf1\f51\fs20\ql inadequate to obtain a significant commercial advantage from the intellectual property that we develop or license.\par\pard\plain\sb264\cf1\f51\fs20\qc 54\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Security breaches and unauthorized use of our IT systems and information, or the IT systems or information in the possession\plain\cf1\f51\fs20\b\i\ql of our vendors, could damage the integrity of our clinical studies or compromise our ability to protect our intellectual\plain\cf1\f51\fs20\b\i\ql property.\par\pard\plain\sb132\cf1\f51\fs20\ql We are highly dependent on contract research organizations to carry out our clinical studies.\~\~A security breach, cyber-attack or\plain\cf1\f51\fs20\ql unauthorized access of our clinical data could cause significant risk to our business, and could compromise our ability to protect\plain\cf1\f51\fs20\ql our intellectual property. Cyber-attacks can include malware, computer viruses, hacking or other significant compromise of our\plain\cf1\f51\fs20\ql computer, communications and related systems. Although we take steps to manage and avoid these risks and to be prepared to\plain\cf1\f51\fs20\ql respond to attacks, our preventive and any remedial actions may not be successful. Likewise, although we believe our vendors\plain\cf1\f51\fs20\ql and service providers take steps to manage and avoid information security risks and respond to attacks, we may be vulnerable to\plain\cf1\f51\fs20\ql attacks against our vendors or service providers, and we may not have adequate contractual remedies against such vendors and\plain\cf1\f51\fs20\ql service providers in such event. Such attacks, whether successful or unsuccessful, could result in our incurring costs related to,\plain\cf1\f51\fs20\ql for example, rebuilding internal systems, defending against litigation, responding to regulatory inquiries or actions, paying\plain\cf1\f51\fs20\ql damages or fines, or taking other remedial steps with respect to third parties. Publicity about vulnerabilities and attempted or\plain\cf1\f51\fs20\ql successful incursions could damage the integrity of our studies or delay their completion. In addition, such attacks could\plain\cf1\f51\fs20\ql compromise our ability to protect our trade secrets and proprietary information from unauthorized access or misappropriation.\par\pard\plain\sb396\cf1\f51\fs20\b\ql Risks Related to Commercialization\par\pard\plain\sb132\cf1\f51\fs20\b\i\ql Our future commercial success depends upon attaining significant market acceptance of our product candidates, if approved,\plain\cf1\f51\fs20\b\i\ql among physicians, patients, third-party payors and others in the medical community.\par\pard\plain\sb132\cf1\f51\fs20\ql Even if we obtain marketing approval for vadadustat, AKB-5169 or any other product candidates that we may develop or acquire\plain\cf1\f51\fs20\ql in the future, these product candidates may not gain market acceptance among physicians, third-party payors, patients and others\plain\cf1\f51\fs20\ql in the medical community in the United States or in other countries. In addition, market acceptance of any approved product\plain\cf1\f51\fs20\ql depends on a number of other factors, including: \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the safety and efficacy of the product, as demonstrated in clinical trials, and in the post-marketing setting;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the prevalence of the disease treated by our product;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh878 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the clinical indications for which the product is approved and the product label approved by regulatory authorities,\plain\intbl\cf1\f51\fs20\ql including any warnings or limitations that may be required on the label or as a consequence of potential safety risks\plain\intbl\cf1\f51\fs20\ql associated with the product;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh878\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the claims we are able to make regarding the safety and efficacy of our products;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql acceptance by physicians and patients of the product as a safe and effective treatment and the willingness of the\plain\intbl\cf1\f51\fs20\ql target patient population to try new therapies and of physicians to prescribe new therapies;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the cost, safety and efficacy of the product in relation to alternative treatments;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the timing of product launch relative to competing products;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the availability of adequate coverage and reimbursement by third-party payors and governmental authorities;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql relative convenience and ease of administration;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the prevalence and severity of adverse side effects;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the effectiveness of our sales and marketing efforts; and\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the restrictions on the use of our products together with other medications, if any.\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}}\pard\plain\sb264\cf1\f51\fs20\ql Market acceptance of any of our product candidates, if approved, may also depend on factors specific to such candidates, such as\plain\cf1\f51\fs20\ql our ability to contract with dialysis providers. Two of the largest operators of dialysis clinics in the United States, DaVita, Inc.,\plain\cf1\f51\fs20\ql or DaVita, and Fresenius Medical Care, or Fresenius, account for more than half of the injectable rESA sales in the U.S. dialysis\plain\cf1\f51\fs20\ql market. We believe that it may be challenging to enter into supply agreements with certain dialysis clinics.\par\pard\plain\sb264\cf1\f51\fs20\ql Market acceptance is critical to our ability to generate significant revenue. In addition, any product candidate, if approved and\plain\cf1\f51\fs20\ql commercialized, may be accepted in only limited capacities or not at all. If any approved products are not accepted by the market\plain\cf1\f51\fs20\ql to the extent that we expect, we may not be able to generate significant revenue and our business would suffer.\par\pard\plain\sb264\cf1\f51\fs20\qc 55\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Our products may cause undesirable side effects or have other properties that delay or prevent their regulatory approval or\plain\cf1\f51\fs20\b\i\ql limit their commercial potential.\par\pard\plain\sb132\cf1\f51\fs20\ql Undesirable side effects caused by our products or even competing products in development that utilize a common mechanism of\plain\cf1\f51\fs20\ql action could cause us or regulatory authorities to interrupt, delay or halt clinical trials and could result in the denial of regulatory\plain\cf1\f51\fs20\ql approval by the FDA or other regulatory authorities and could lead to potential product liability claims.\par\pard\plain\sb264\cf1\f51\fs20\ql The patients in our clinical studies have CKD, a serious disease that increases the risk of cardiovascular disease including heart\plain\cf1\f51\fs20\ql attacks and stroke, and, ultimately may cause kidney failure.\~\~Many of patients with CKD are elderly with comorbidities making\plain\cf1\f51\fs20\ql them susceptible to significant health risks.\~\~Therefore, the likelihood of these patients having adverse events, including serious\plain\cf1\f51\fs20\ql adverse events, while participating in our studies is high.\~\~\par\pard\plain\sb264\cf1\f51\fs20\ql Serious adverse events deemed to be possibly or probably related to vadadustat could have a material adverse effect on the\plain\cf1\f51\fs20\ql development of our product candidates and our business as a whole. Our understanding of adverse events in future clinical trials\plain\cf1\f51\fs20\ql of our product candidates may change as we gather more information, and additional unexpected adverse events may be observed\plain\cf1\f51\fs20\ql in future clinical trials.\par\pard\plain\sb264\cf1\f51\fs20\ql If we or others identify undesirable side effects caused by our product candidates, either before or after receipt of marketing\plain\cf1\f51\fs20\ql approval, a number of potentially significant negative consequences could result, including: \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql our clinical trials may be put on hold;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql patient recruitment could be slowed, and enrolled patients may not want to complete the clinical trial;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql we may be unable to obtain regulatory approval for our product candidates or regulatory authorities may withdraw\plain\intbl\cf1\f51\fs20\ql approvals of product candidates;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql regulatory authorities may require additional warnings on the label;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql a medication guide outlining the risks of such side effects for distribution to patients may be required;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql we could be sued and held liable for harm caused to patients; and\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql our reputation may suffer.\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}}\pard\plain\sb264\cf1\f51\fs20\ql Any of these events could prevent us from achieving or maintaining market acceptance of our products and could substantially\plain\cf1\f51\fs20\ql increase commercialization costs.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql If we are unable to establish sales, marketing and distribution capabilities or to enter into additional agreements with third\plain\cf1\f51\fs20\b\i\ql parties to market and sell our product candidates, we may not be successful in commercializing our product candidates if and\plain\cf1\f51\fs20\b\i\ql when they are approved.\par\pard\plain\sb132\cf1\f51\fs20\ql We are currently collaborating with Otsuka to develop and commercialize vadadustat in the United States, Europe and certain\plain\cf1\f51\fs20\ql other regions and MTPC to develop and commercialize vadadustat in Japan. We do not have a sales or marketing infrastructure\plain\cf1\f51\fs20\ql and we have not yet sold, marketed or distributed any of our products. To achieve commercial success for any product for which\plain\cf1\f51\fs20\ql we obtain marketing approval, we will need to establish a sales and marketing organization or make arrangements for sales and\plain\cf1\f51\fs20\ql marketing services, either by establishing our own or entering into additional geographic collaborations.\par\pard\plain\sb264\cf1\f51\fs20\ql There are risks involved with establishing our own sales, marketing and distribution capabilities. For example, recruiting and\plain\cf1\f51\fs20\ql training a sales force are expensive and time consuming and could delay any product launch. If the commercial launch of a\plain\cf1\f51\fs20\ql product candidate for which we recruit a sales force and establish marketing capabilities is delayed or does not occur for any\plain\cf1\f51\fs20\ql reason, we would have prematurely or unnecessarily incurred these commercialization expenses. This may be costly and our\plain\cf1\f51\fs20\ql investment would be lost if we cannot retain or reposition our sales and marketing personnel.\par\pard\plain\sb264\cf1\f51\fs20\ql If we are unable to establish our own sales, marketing and distribution capabilities for the United States and Latin America and\plain\cf1\f51\fs20\ql have to enter into arrangements with third parties to perform these services, our profitability, if any, is likely to be lower than if\plain\cf1\f51\fs20\ql we were to market, sell and distribute any products that we develop ourselves. In addition, we may not be successful in entering\plain\cf1\f51\fs20\ql into arrangements with third parties to sell, market and distribute our product candidates or may be unable to do so on terms that\plain\cf1\f51\fs20\ql are favorable to us. We likely will have little control over such third parties, and any of them may fail to devote the necessary\plain\cf1\f51\fs20\ql resources and attention to sell and market our products effectively. If we do not establish sales, marketing and distribution\plain\cf1\f51\fs20\ql capabilities successfully, either on our own or in collaboration with third parties, we will not be successful in commercializing\plain\cf1\f51\fs20\ql our product candidates.\par\pard\plain\sb264\cf1\f51\fs20\qc 56\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql We have entered into collaboration agreements with Otsuka and MTPC which are key to our success.\~\~If either Otsuka or\plain\cf1\f51\fs20\b\i\ql MTPC fails to perform under these agreements, our future results could be materially harmed.\par\pard\plain\sb132\cf1\f51\fs20\ql In addition to certain substantial upfront payments and development milestones, our agreement with Otsuka for the United States\plain\cf1\f51\fs20\ql establishes a profit sharing arrangement with respect to net sales of vadadustat and our agreement with Otsuka for the European\plain\cf1\f51\fs20\ql Union and other regions provides us with royalty payments on net sales of vadadustat. Similarly, our agreement with MTPC\plain\cf1\f51\fs20\ql grants them the exclusive right to develop and commercialize vadadustat in Japan and certain Asian countries in exchange for\plain\cf1\f51\fs20\ql upfront, milestone, and royalty payments.\~\~We partnered with each company, in part, because they have a well-established\plain\cf1\f51\fs20\ql commercial presence and infrastructure in their territories, and we expect them to help us prepare for and execute on an optimal\plain\cf1\f51\fs20\ql launch of vadadustat in those geographies.\~\~If either of these companies fails to perform their obligations diligently under their\plain\cf1\f51\fs20\ql agreement with us, including failing to diligently commercialize vadadustat in their territories, our sales potential in these regions\plain\cf1\f51\fs20\ql may be materially harmed and we may not have an adequate remedy for such harm under our agreements with either company.\plain\cf1\f51\fs20\ql Furthermore, if a contractual dispute with either Otsuka or MTPC were to arise, it could result in costly litigation for the\plain\cf1\f51\fs20\ql Company and jeopardize important revenue streams, which could materially harm our financial condition.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Coverage and reimbursement may be limited or unavailable in certain market segments for our products, if approved, which\plain\cf1\f51\fs20\b\i\ql could make it difficult for us to sell our products profitably.\par\pard\plain\sb132\cf1\f51\fs20\ql Market acceptance and sales of any approved products will depend significantly on the availability of adequate coverage and\plain\cf1\f51\fs20\ql reimbursement from third-party payors and may be affected by existing and future healthcare reform measures. Government\plain\cf1\f51\fs20\ql authorities and third-party payors decide which drugs they will cover, as well as establish formularies or implement other\plain\cf1\f51\fs20\ql mechanisms to manage utilization of products, and determine reimbursement levels. Coverage and reimbursement by a\plain\cf1\f51\fs20\ql third-party payor may depend upon a number of factors, including the third-party payor\u8217?s determination that use of a\plain\cf1\f51\fs20\ql product is: \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql a covered benefit under its health plan;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql safe, effective and medically necessary;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql appropriate for the specific patient; and\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql cost-effective.\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}}\pard\plain\sb264\cf1\f51\fs20\ql Obtaining coverage and reimbursement approval for a product from a government or other third-party payor is a time consuming\plain\cf1\f51\fs20\ql and costly process that could require us to provide supporting scientific, clinical and cost-effectiveness data for the use of our\plain\cf1\f51\fs20\ql products to the payor. Additionally, we may be required to enter into contracts with third-party payors offering rebates or\plain\cf1\f51\fs20\ql discounts on our products in order to obtain favorable formulary status. We may not be able to agree upon commercially\plain\cf1\f51\fs20\ql reasonable terms with such third-party payors or provide data sufficient to obtain favorable coverage and reimbursement. We\plain\cf1\f51\fs20\ql cannot be sure that coverage or adequate reimbursement will be available for any of our product candidates. Even if we obtain\plain\cf1\f51\fs20\ql coverage for our product candidates, third-party payors may not establish adequate reimbursement amounts, which may reduce\plain\cf1\f51\fs20\ql the demand for our product, and prompt us to have to reduce pricing for the products. If reimbursement is not available or is\plain\cf1\f51\fs20\ql limited, we may not be able to commercialize certain of our products. In addition, in the United States third-party payors are\plain\cf1\f51\fs20\ql increasingly attempting to contain healthcare costs by limiting both coverage reimbursement levels for new drugs. As a result,\plain\cf1\f51\fs20\ql significant uncertainty exists as to whether and how much reimbursement third-party payors will provide for newly approved\plain\cf1\f51\fs20\ql drugs, which, in turn, will put downward pressure on the pricing of drugs.\par\pard\plain\sb264\cf1\f51\fs20\ql In addition, if vadadustat is used in an outpatient dialysis facility, such facilities often receive fixed reimbursement for a bundle\plain\cf1\f51\fs20\ql of dialysis services, including certain drugs and supplies used to treat patients with end-stage renal disease, or ESRD. For\plain\cf1\f51\fs20\ql example, Medicare payments to ESRD facilities for dialysis treatments are based on a prospective payment system with a\plain\cf1\f51\fs20\ql standard per treatment payment (subject to certain adjustments such as patient level-case-mix adjustment). The per treatment\plain\cf1\f51\fs20\ql payment covers a bundle of items and services routinely required for dialysis treatments furnished to Medicare beneficiaries in\plain\cf1\f51\fs20\ql Medicare-certified ESRD facilities or at home and includes the cost of certain routine drugs. At this time, we believe that\plain\cf1\f51\fs20\ql vadadustat, if approved, will likely be included in the bundle. We may be unable to sell vadadustat, if approved, to dialysis\plain\cf1\f51\fs20\ql providers on a profitable basis if third-party payors reduce their current levels of payment or if our costs of production increase\plain\cf1\f51\fs20\ql faster than increases in reimbursement levels. Patient and provider access to adequate coverage and reimbursement by government\plain\cf1\f51\fs20\ql and private insurance plans is central to the acceptance of any products for which we receive regulatory approval. If vadadustat is\plain\cf1\f51\fs20\ql not included in the bundle, the Vifor Agreement would not become effective.\~\~We would be required to enter into contracts with\plain\cf1\f51\fs20\ql third party payors and we would be subject to the risks and uncertainties described above.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Price controls may be imposed, which may adversely affect our future profitability.{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb132\cf1\f51\fs20\ql In some countries, particularly member states of the European Union, the pricing of prescription pharmaceuticals is subject to\plain\cf1\f51\fs20\ql governmental control. In these countries, pricing negotiations with governmental authorities can take considerable time after\plain\cf1\f51\fs20\ql receipt of marketing approval for a product. In addition, there can be considerable pressure by governments and other\plain\cf1\f51\fs20\ql stakeholders on prices and reimbursement levels, including as part of cost containment measures. Political, economic and\plain\cf1\f51\fs20\ql regulatory developments may further\par\pard\plain\sb264\cf1\f51\fs20\qc 57\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sb132\cf1\f51\fs20\ql complicate pricing negotiations, and pricing negotiations may continue after reimbursement has been obtained. Reference pricing\plain\cf1\f51\fs20\ql used by various European Union member states and parallel distribution, or arbitrage between low-priced and high-priced\plain\cf1\f51\fs20\ql member states, can further reduce prices, and even, in some instances, render commercialization in a market infeasible or\plain\cf1\f51\fs20\ql disadvantageous from a financial perspective. In some countries, we may be required to conduct a clinical trial or other studies\plain\cf1\f51\fs20\ql that compare the cost-effectiveness of our product candidates to other available products in order to obtain or maintain\plain\cf1\f51\fs20\ql reimbursement or pricing approval. Publication of discounts by third-party payors or government authorities may lead to further\plain\cf1\f51\fs20\ql pressure on the prices or reimbursement levels within the country of publication and other countries. If reimbursement of our\plain\cf1\f51\fs20\ql products is unavailable or limited in scope or amount, or if pricing is set at unsatisfactory levels, our business could be adversely\plain\cf1\f51\fs20\ql affected.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql The impact of recent healthcare reform and other changes in the healthcare industry and in healthcare spending is currently\plain\cf1\f51\fs20\b\i\ql unknown, and may adversely affect our business model\plain\cf1\f51\fs20\b\ql .\par\pard\plain\sb132\cf1\f51\fs20\ql Our revenue prospects could be affected by changes in healthcare spending and policy in the United States and abroad. We\plain\cf1\f51\fs20\ql operate in a highly regulated industry and new laws, regulations or judicial decisions, or new interpretations of existing laws or,\plain\cf1\f51\fs20\ql regulations related to healthcare availability or the method of delivery or payment for healthcare products and services could\plain\cf1\f51\fs20\ql negatively impact our business, operations and financial condition.\par\pard\plain\sb264\cf1\f51\fs20\ql The U.S. healthcare industry generally and U.S. government healthcare programs in particular are highly regulated and subject to\plain\cf1\f51\fs20\ql frequent and substantial changes. For example, in 2010, and as described above, the Healthcare Reform Act, which represented\plain\cf1\f51\fs20\ql one of the most significant healthcare reform measures in decades, was enacted. The full impact on our business of the\plain\cf1\f51\fs20\ql Healthcare Reform Act or its potential future repeal or amendment is uncertain.\par\pard\plain\sb264\cf1\f51\fs20\ql As a general matter, federal and state legislatures within the United States and governments in other countries will likely continue\plain\cf1\f51\fs20\ql to consider changes to existing healthcare legislation, and, in particular, we anticipate additional governmental reforms intended to\plain\cf1\f51\fs20\ql control drug costs. We cannot predict the reform initiatives that may be adopted in the future. Private health plans may also\plain\cf1\f51\fs20\ql increase efforts to manage utilization and control drug costs and prices. The continuing efforts of the government or private third\plain\cf1\f51\fs20\ql party payors to contain or reduce costs of healthcare may adversely affect: \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the demand for any drug products for which we may obtain regulatory approval;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql our ability to set a price that we believe is fair for our products;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql our ability to obtain coverage and reimbursement approval for a product;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql our ability to generate revenue and achieve or maintain profitability; and\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql the level of taxes that we are required to pay.\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}}\pard\plain\sb396\cf1\f51\fs20\b\i\ql Even prior to approval, we are subject to a complex regulatory scheme that requires Company resources to ensure\plain\cf1\f51\fs20\b\i\ql compliance. Failure to comply with applicable laws could subject the Company to government scrutiny or government\plain\cf1\f51\fs20\b\i\ql enforcement, potentially resulting in costly investigations and/or fines or sanctions, or impacting our relationship with key\plain\cf1\f51\fs20\b\i\ql regulatory agencies such as FDA or EMA.{\*\bkmkstart _cp_text_1_48_11737931}{\*\bkmkend _cp_text_1_48_11737931}{\*\bkmkstart _cp_text_1_49_11737931}{\*\bkmkend _cp_text_1_49_11737931}\par\pard\plain\sb132\cf1\f51\fs20\ql Even before we have obtained approval for vadadustat or any product, certain\plain\cf1\f51\fs20\ql laws apply to the Company or may otherwise\plain\cf1\f51\fs20\ql restrict its activities, including the following: \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql United States federal securities laws restricting the purchase or sale of any securities while in possession of\plain\intbl\cf1\f51\fs20\ql material, non-public information;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell{\*\bkmkstart _cp_text_1_50_11737931}{\*\bkmkend _cp_text_1_50_11737931}{\*\bkmkstart _cp_text_1_52_11737931}{\*\bkmkend _cp_text_1_52_11737931}\pard\plain\intbl\sb132\cf1\f51\fs20\ql laws and regulations governing the conduct of clinical and preclinical studies in the United States and in cou\plain\intbl\cf1\f51\fs20\ql ntries\plain\intbl\cf1\f51\fs20\ql in which we are conducting such studies;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh878 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql laws and regulations in the United States and in countries in which we are interacting with health care providers,\plain\intbl\cf1\f51\fs20\ql patients, patient organizations and other constituencies that prohibit promoting a drug prior to approval and/or\plain\intbl\cf1\f51\fs20\ql reimbursement;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh878\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh1125 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell{\*\bkmkstart _cp_text_1_54_11737931}{\*\bkmkend _cp_text_1_54_11737931}{\*\bkmkstart _cp_text_1_56_11737931}{\*\bkmkend _cp_text_1_56_11737931}\pard\plain\intbl\sb132\cf1\f51\fs20\ql laws, regulations and industry codes that vary from\plain\intbl\cf1\f51\fs20\ql country to country and govern Akebia\u8217?s relationships\plain\intbl\cf1\f51\fs20\ql with health care providers, patients, patient organizations, and other constituencies, and prohibit certain types of\plain\intbl\cf1\f51\fs20\ql gifts and entertainment, establish codes of conduct and, in some instances, require disclosure to, or approval by,\plain\intbl\cf1\f51\fs20\ql regulatory authorities for Akebia to engage in arrangements with such constituencies;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh1125\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh1372 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell{\*\bkmkstart _cp_text_1_58_11737931}{\*\bkmkend _cp_text_1_58_11737931}{\*\bkmkstart _cp_text_1_61_11737931}{\*\bkmkend _cp_text_1_61_11737931}\pard\plain\intbl\sb132\cf1\f51\fs20\ql anti-corruption and anti-bribery laws, including the F\plain\intbl\cf1\f51\fs20\ql oreign Corrupt Practices Act, or FCPA, the U.K. Bribery Act\plain\intbl\cf1\f51\fs20\ql and various other anti-corruption laws in countries outside of the United States. The FCPA generally prohibits\plain\intbl\cf1\f51\fs20\ql companies and their intermediaries, such as the CROs, contract manufacturing organizations,\plain\intbl\cf1\f51\fs20\ql and distributors with\plain\intbl\cf1\f51\fs20\ql which we do business outside the United States from making improper payments to foreign government officials for\plain\intbl\cf1\f51\fs20\ql the purposes of obtaining or keeping business and/or other benefits;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh1372\row}}}\pard\plain\sb264\cf1\f51\fs20\qc 58\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh1125 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\pard\plain\intbl\sb132\cf1\f51\fs20\ql data privacy laws existing in the European Union and other countries in which we operate, including the United\plain\intbl\cf1\f51\fs20\ql States\u8217? federal Health Insurance Portability and Accountability Act of 1996 (HIPAA), as amended by the\plain\intbl\cf1\f51\fs20\ql Health Information Technology for Economic and Clinical Health Act, or HITECH, and state privacy and data\plain\intbl\cf1\f51\fs20\ql protection laws, as well as state consumer protection laws; and\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh1125\row}}} \par\pard\plain {\trowd\cellx540\cellx1224\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell{\*\bkmkstart _cp_text_1_63_11737931}{\*\bkmkend _cp_text_1_63_11737931}\pard\plain\intbl\sb132\cf1\f51\fs20\ql international trade laws, which are laws that regulate the sale, purchase, import, export, re-export, transfer and\plain\intbl\cf1\f51\fs20\ql shipment of goods, products, materials, services and technology.\cell{ {\trowd\cellx540\cellx1224\cellx10800\trrh630\row}}}\pard\plain\sb396\cf1\f51\fs20\b\i\ql If our product candidates obtain marketing approval, we will be subject to healthcare laws, regulation and enforcement and\plain\cf1\f51\fs20\b\i\ql our failure to comply with those laws could have a material adverse effect on our results of operations and financial\plain\cf1\f51\fs20\b\i\ql conditions.\par\pard\plain\sb132\cf1\f51\fs20\ql If we obtain approval for any of our product candidates and begin commercializing them, our operations may be directly, or\plain\cf1\f51\fs20\ql indirectly through our customers, subject to additional healthcare regulation and enforcement by the federal government, states\plain\cf1\f51\fs20\ql and governments outside of the United States in which we conduct our business. In addition to the laws mentioned above, the\plain\cf1\f51\fs20\ql laws that may affect our ability to operate include: \par\pard\plain {\trowd\cellx540\cellx1224\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell{\*\bkmkstart _cp_blt_1_65_11737931}{\*\bkmkend _cp_blt_1_65_11737931}{\*\bkmkstart _cp_text_1_66_11737931}{\*\bkmkend _cp_text_1_66_11737931}\pard\plain\intbl\sb132\cf1\f51\fs20\ql the Federal Food, Drug & Cosmetic Act, or FD&C Act, which among other things, strictly regulates drug product\plain\intbl\cf1\f51\fs20\ql marketing and promotion and prohibits manufacturers from marketing such products for off-label use;\cell{ {\trowd\cellx540\cellx1224\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx540\cellx1224\cellx10800\trrh1125 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell{\*\bkmkstart _cp_text_1_69_11737931}{\*\bkmkend _cp_text_1_69_11737931}{\*\bkmkstart _cp_text_1_72_11737931}{\*\bkmkend _cp_text_1_72_11737931}{\*\bkmkstart _cp_text_1_74_11737931}{\*\bkmkend _cp_text_1_74_11737931}{\*\bkmkstart _cp_text_1_76_11737931}{\*\bkmkend _cp_text_1_76_11737931}{\*\bkmkstart _cp_text_1_79_11737931}{\*\bkmkend _cp_text_1_79_11737931}\pard\plain\intbl\sb132\cf1\f51\fs20\ql the federal anti-kickback law\plain\intbl\cf1\f51\fs20\ql , which prohibits, among other things, persons from soliciting, receiving or providing\plain\intbl\cf1\f51\fs20\ql remunera\plain\intbl\cf1\f51\fs20\ql tion, directly or indirectly, to induce the referral for an\plain\intbl\cf1\f51\fs20\ql item or service or the purchasing or ordering of a\plain\intbl\cf1\f51\fs20\ql good or service, for which payment may be made\plain\intbl\cf1\f51\fs20\ql under federal healthcare programs such as Medicare and\plain\intbl\cf1\f51\fs20\ql Medicaid;\cell{ {\trowd\cellx540\cellx1224\cellx10800\trrh1125\row}}} \par\pard\plain {\trowd\cellx540\cellx1224\cellx10800\trrh878 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell{\*\bkmkstart _cp_blt_2_82_11737931}{\*\bkmkend _cp_blt_2_82_11737931}{\*\bkmkstart _cp_text_1_87_11737931}{\*\bkmkend _cp_text_1_87_11737931}{\*\bkmkstart _cp_text_1_89_11737931}{\*\bkmkend _cp_text_1_89_11737931}{\*\bkmkstart _cp_text_1_91_11737931}{\*\bkmkend _cp_text_1_91_11737931}\pard\plain\intbl\sb132\cf1\f51\fs20\ql federal false claims laws which p\plain\intbl\cf1\f51\fs20\ql rohibit, among other things, individuals or entities from knowingly presenting, or\plain\intbl\cf1\f51\fs20\ql causing to be presented, information or\plain\intbl\cf1\f51\fs20\ql claims for payment from Medicare, Medicaid, or other third-party payers\plain\intbl\cf1\f51\fs20\ql that are false or fraudulent;\cell{ {\trowd\cellx540\cellx1224\cellx10800\trrh878\row}}} \par\pard\plain {\trowd\cellx540\cellx1224\cellx10800\trrh878 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell{\*\bkmkstart _cp_blt_2_92_11737931}{\*\bkmkend _cp_blt_2_92_11737931}{\*\bkmkstart _cp_blt_1_94_11737931}{\*\bkmkend _cp_blt_1_94_11737931}{\*\bkmkstart _cp_text_1_95_11737931}{\*\bkmkend _cp_text_1_95_11737931}\pard\plain\intbl\sb132\cf1\f51\fs20\ql federal laws that require pharmaceutical manufacturers to report certain calculated product prices to the\plain\intbl\cf1\f51\fs20\ql government or provide certain discounts or rebates to government authorities or private entities, often as a\plain\intbl\cf1\f51\fs20\ql condition of reimbursement under government healthcare programs;\cell{ {\trowd\cellx540\cellx1224\cellx10800\trrh878\row}}} \par\pard\plain {\trowd\cellx540\cellx1224\cellx10800\trrh878 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell{\*\bkmkstart _cp_blt_1_96_11737931}{\*\bkmkend _cp_blt_1_96_11737931}{\*\bkmkstart _cp_text_1_97_11737931}{\*\bkmkend _cp_text_1_97_11737931}\pard\plain\intbl\sb132\cf1\f51\fs20\ql the so-called \u8220?federal sunshine\u8221? law (also known as \u8220?open payments\u8221?) which requires\plain\intbl\cf1\f51\fs20\ql pharmaceutical and medical device manufacturers to report certain financial interactions to the federal government\plain\intbl\cf1\f51\fs20\ql for re-disclosure to the public;\~\~\cell{ {\trowd\cellx540\cellx1224\cellx10800\trrh878\row}}} \par\pard\plain {\trowd\cellx540\cellx1224\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell{\*\bkmkstart _cp_text_1_99_11737931}{\*\bkmkend _cp_text_1_99_11737931}{\*\bkmkstart _cp_text_1_101_11737931}{\*\bkmkend _cp_text_1_101_11737931}\pard\plain\intbl\sb132\cf1\f51\fs20\ql the federal law known as HIPAA, which, in addition to privacy protections,\plain\intbl\cf1\f51\fs20\ql prohibits executing a scheme to\plain\intbl\cf1\f51\fs20\ql defraud any healthcare benefit program or making false statements relating to healthcare matters;\cell{ {\trowd\cellx540\cellx1224\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx540\cellx1224\cellx10800\trrh1125 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell{\*\bkmkstart _cp_blt_1_102_11737931}{\*\bkmkend _cp_blt_1_102_11737931}{\*\bkmkstart _cp_text_1_103_11737931}{\*\bkmkend _cp_text_1_103_11737931}\pard\plain\intbl\sb132\cf1\f51\fs20\ql state law equivalents of the above federal laws, such as anti-kickback and false claims laws which may apply to\plain\intbl\cf1\f51\fs20\ql items or services reimbursed by any third-party payor, including commercial insurers, and state gift ban and\plain\intbl\cf1\f51\fs20\ql transparency laws, many of which state laws differ from each other in significant ways and often are not\plain\intbl\cf1\f51\fs20\ql preempted by federal laws, thus complicating compliance efforts; and\cell{ {\trowd\cellx540\cellx1224\cellx10800\trrh1125\row}}} \par\pard\plain {\trowd\cellx540\cellx1224\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell{\*\bkmkstart _cp_blt_1_104_11737931}{\*\bkmkend _cp_blt_1_104_11737931}\pard\plain\intbl\sb132\cf1\f51\fs20\ql state laws restricting interactions with healthcare providers and other members of the healthcare community or\plain\intbl\cf1\f51\fs20\ql requiring pharmaceutical manufacturers to implement certain compliance standards.\cell{ {\trowd\cellx540\cellx1224\cellx10800\trrh630\row}}}\pard\plain\sb264\cf1\f51\fs20\ql Because of the breadth of these laws and the narrowness of the statutory exceptions and safe harbors available, it is possible that\plain\cf1\f51\fs20\ql some of our business activities could be subject to challenge under one or more of such laws. In addition, recent healthcare\plain\cf1\f51\fs20\ql reforms have strengthened these laws. For example, the Healthcare Reform Act, among other things, amended the intent\plain\cf1\f51\fs20\ql requirement of the federal anti-kickback law. A person or entity no longer needs to have actual knowledge of the statute or\plain\cf1\f51\fs20\ql specific intent to violate the law. The Healthcare Reform Act also amended the False Claims Act, such that violations of the\plain\cf1\f51\fs20\ql anti-kickback statute are now deemed violations of the False Claims Act.\par\pard\plain\sb264\cf1\f51\fs20\ql If our operations are found to be in violation of any of such laws or any other governmental regulations that apply to us, we may\plain\cf1\f51\fs20\ql be subject to, on a corporate or individual basis, penalties, including civil and criminal penalties, damages, fines, the curtailment\plain\cf1\f51\fs20\ql or restructuring of our operations, the exclusion from participation in federal and state healthcare programs and even\plain\cf1\f51\fs20\ql imprisonment, any of which could materially adversely affect our ability to operate our business and our financial results. In\plain\cf1\f51\fs20\ql addition, the cost of implementing sufficient systems, controls, and processes to ensure compliance with all of the aforementioned\plain\cf1\f51\fs20\ql laws could be significant.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql We face substantial competition, which may result in others discovering, developing or commercializing products before, or\plain\cf1\f51\fs20\b\i\ql more successfully than, we do.{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb132\cf1\f51\fs20\ql The development and commercialization of new drug products is highly competitive. Our future success depends on our ability to\plain\cf1\f51\fs20\ql demonstrate and maintain a competitive advantage with respect to the development and commercialization of our product\plain\cf1\f51\fs20\ql candidates.\par\pard\plain\sb264\cf1\f51\fs20\qc 59\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sb132\cf1\f51\fs20\ql Our objective is to develop and commercialize new products with superior efficacy, convenience, tolerability and/or safety. In\plain\cf1\f51\fs20\ql many cases, the products that we commercialize will compete with existing, market-leading products.\par\pard\plain\sb264\cf1\f51\fs20\ql If vadadustat is approved and launched commercially, competing drugs may include EPOGEN\plain\cf1\f51\fs15\ql\super \u174?\plain\cf1\f51\fs20\ql and Aranesp\plain\cf1\f51\fs15\ql\super \u174?\plain\cf1\f51\fs20\ql ,\plain\cf1\f51\fs20\ql commercialized by Amgen, Procrit\plain\cf1\f51\fs15\ql\super \u174?\plain\cf1\f51\fs20\ql and Eprex\plain\cf1\f51\fs15\ql\super \u174?\plain\cf1\f51\fs20\ql , commercialized by Johnson\~& Johnson, and Mircera\plain\cf1\f51\fs15\ql\super \u174?\plain\cf1\f51\fs20\ql ,\plain\cf1\f51\fs20\ql commercialized by Roche Holding Ltd., or Roche. We may face competition from potential new anemia therapies. There are\plain\cf1\f51\fs20\ql several other HIF product candidates in various stages of active development for anemia indications that may be in direct\plain\cf1\f51\fs20\ql competition with vadadustat if and when they are approved and launched commercially. These candidates are being developed by\plain\cf1\f51\fs20\ql such companies as FibroGen, in collaboration with AstraZeneca PLC in the United States and China and with Astellas Pharma\plain\cf1\f51\fs20\ql Inc. in Europe and Asia, Japan Tobacco International, GlaxoSmithKline plc and Bayer HealthCare AG. FibroGen is currently in\plain\cf1\f51\fs20\ql Phase 3 clinical development of its product candidate, roxadustat, and GlaxoSmithKline plc recently commenced Phase 3 studies\plain\cf1\f51\fs20\ql of its product candidate, daprodustat. Some of these product candidates may enter certain markets as early as 2017. In addition,\plain\cf1\f51\fs20\ql certain companies are developing potential new therapies for renal-related diseases that could potentially reduce rESA utilization\plain\cf1\f51\fs20\ql and thus limit the market for vadadustat if and when it is approved and launched commercially. Other new therapies are in\plain\cf1\f51\fs20\ql development for the treatment of conditions inclusive of renal anemia that may impact the market for anemia-targeted treatment.\par\pard\plain\sb264\cf1\f51\fs20\ql Since rESAs are biologic products, the introduction of biosimilars into the rESA market in the United States will constitute\plain\cf1\f51\fs20\ql additional competition for vadadustat if we are able to obtain approval for and commercially launch our product. A biosimilar\plain\cf1\f51\fs20\ql product is a follow-on version of an existing, branded biologic product. The patents for the existing, branded product must expire\plain\cf1\f51\fs20\ql in a given market before biosimilars may enter that market without risk of being sued for patent infringement. In addition, an\plain\cf1\f51\fs20\ql application for a biosimilar product cannot be approved by the FDA until 12 years after the existing, branded product was\plain\cf1\f51\fs20\ql approved under a Biologics License Application, or BLA. The patents for epoetin alfa, an rESA, expired in 2004 in the European\plain\cf1\f51\fs20\ql Union, and the remaining patents expired between 2012 and 2015 in the United States. Several biosimilar versions of rESAs are\plain\cf1\f51\fs20\ql available for sale in the European Union and biosimilar versions of rESAs are currently being studied in clinical trials in the\plain\cf1\f51\fs20\ql United States.\par\pard\plain\sb264\cf1\f51\fs20\ql Many of our potential competitors have significantly greater financial, manufacturing, marketing, drug development, technical and\plain\cf1\f51\fs20\ql human resources than we do. Large pharmaceutical companies, in particular, have extensive experience in clinical testing,\plain\cf1\f51\fs20\ql obtaining regulatory approvals, recruiting patients and manufacturing pharmaceutical products. Large and established companies\plain\cf1\f51\fs20\ql such as Amgen and Roche, among others, compete in the market for drug products to treat anemia. In particular, these companies\plain\cf1\f51\fs20\ql have greater experience and expertise in conducting pre-clinical testing and clinical trials, obtaining regulatory approvals to\plain\cf1\f51\fs20\ql market products, manufacturing such products on a broad scale and marketing approved products. These companies also have\plain\cf1\f51\fs20\ql significantly greater research and marketing capabilities than we do and may also have products that have been approved or are\plain\cf1\f51\fs20\ql in late stages of development, and have collaborative arrangements in our target markets with leading companies and research\plain\cf1\f51\fs20\ql institutions. Established pharmaceutical companies may also invest heavily to accelerate discovery and development of novel\plain\cf1\f51\fs20\ql compounds or to in-license novel compounds that could make the product that we develop obsolete. As a result of all of these\plain\cf1\f51\fs20\ql factors, our competitors may succeed in obtaining patent protection and/or FDA approval or discovering, developing and\plain\cf1\f51\fs20\ql commercializing competitive products before, or more effectively than, we do. If we are not able to compete effectively against\plain\cf1\f51\fs20\ql potential competitors, our business will not grow and our financial condition and operations will suffer.\par\pard\plain\sb396\cf1\f51\fs20\b\ql Risks Related to our Business and Industry\par\pard\plain\sb132\cf1\f51\fs20\b\i\ql If we fail to attract and keep senior management and key personnel, we may be unable to successfully develop our products,\plain\cf1\f51\fs20\b\i\ql conduct our clinical trials and commercialize our product candidates.\par\pard\plain\sb132\cf1\f51\fs20\ql Recruiting and retaining qualified scientific, clinical, medical, manufacturing and sales and marketing personnel will also be\plain\cf1\f51\fs20\ql critical to our success. We are highly dependent on certain members of our senior management. The loss of the services of our\plain\cf1\f51\fs20\ql executives, senior managers or other key employees could impede the achievement of our research, development and\plain\cf1\f51\fs20\ql commercialization objectives and seriously harm our ability to successfully implement our business strategy. Furthermore,\plain\cf1\f51\fs20\ql replacing executives and other key employees may be difficult and may take an extended period of time because of the limited\plain\cf1\f51\fs20\ql number of individuals in our industry with the breadth of skills and experience required to successfully develop, gain regulatory\plain\cf1\f51\fs20\ql approval of and commercialize products. We may be unable to hire, train, retain or motivate these key personnel on acceptable\plain\cf1\f51\fs20\ql terms given the intense competition among numerous biopharmaceutical companies for similar personnel.\par\pard\plain\sb264\cf1\f51\fs20\ql We also experience competition for the hiring of personnel from universities and research institutions. In addition, we rely on\plain\cf1\f51\fs20\ql consultants and advisors, including scientific and clinical advisors, to assist us in formulating and executing our research and\plain\cf1\f51\fs20\ql development and commercialization strategy. Our consultants and advisors may become employed by companies other than us\plain\cf1\f51\fs20\ql and may have commitments under consulting or advisory contracts with other entities that may limit their availability to us. If we\plain\cf1\f51\fs20\ql are unable to continue to attract and retain high quality personnel, our ability to grow and pursue our business strategy will be\plain\cf1\f51\fs20\ql limited.\par\pard\plain\sb264\cf1\f51\fs20\qc 60\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Our employees, independent contractors, principal investigators, CROs, consultants and vendors may engage in misconduct or\plain\cf1\f51\fs20\b\i\ql other improper activities, including non-compliance with regulatory standards and requirements and insider trading.\par\pard\plain\sb132\cf1\f51\fs20\ql We are exposed to the risk that our employees, independent contractors, principal investigators, CROs, consultants and vendors\plain\cf1\f51\fs20\ql may engage in fraudulent conduct or other illegal activity. Misconduct by these parties could include intentional, reckless and/or\plain\cf1\f51\fs20\ql negligent conduct or unauthorized activities that violate applicable laws, including (1)\~FDA and other healthcare\plain\cf1\f51\fs20\ql authorities\u8217? regulations, including those laws that require the reporting of true, complete and accurate information to\plain\cf1\f51\fs20\ql regulatory authorities, and those prohibiting the promotion of unapproved drugs or approved drugs for an unapproved use,\plain\cf1\f51\fs20\ql (2)\~quality standards, including Good Laboratory Practices (GLP), GCP and GMP, (3)\~federal and state healthcare fraud and abuse\plain\cf1\f51\fs20\ql laws and regulations, (4)\~anti-bribery and anti-corruption laws, such as the FCPA and the U.K. Bribery Act, that prohibit the\plain\cf1\f51\fs20\ql making of improper payments to foreign officials or individuals for the purposes of obtaining any business advantage, (5) laws\plain\cf1\f51\fs20\ql that require the reporting of true and accurate financial information and data, and (6) securities laws and regulations. Specifically,\plain\cf1\f51\fs20\ql sales, marketing and business arrangements in the healthcare industry are subject to extensive laws and regulations intended to\plain\cf1\f51\fs20\ql prevent fraud, kickbacks, self-dealing and other abusive practices. These laws and regulations may restrict or prohibit a wide\plain\cf1\f51\fs20\ql range of pricing, discounting, marketing and promotion, sales commission, customer incentive programs and other business\plain\cf1\f51\fs20\ql arrangements. It is not always possible to identify and deter misconduct by employees and third parties, and the precautions we\plain\cf1\f51\fs20\ql take to detect and prevent this activity may not be effective in controlling unknown or unmanaged risks or losses or in protecting\plain\cf1\f51\fs20\ql us from governmental investigations or other actions or lawsuits stemming from a failure to be in compliance with such laws or\plain\cf1\f51\fs20\ql regulations. If any such actions are instituted against us, and we are not successful in defending ourselves or asserting our rights,\plain\cf1\f51\fs20\ql or if any such action is instituted against our employees, consultants, vendors or principal investigators, those actions could have\plain\cf1\f51\fs20\ql a significant impact on our business, including the imposition of civil, criminal and administrative penalties, damages, monetary\plain\cf1\f51\fs20\ql fines, possible exclusion from participation in Medicare, Medicaid and other federal healthcare programs, contractual damages,\plain\cf1\f51\fs20\ql reputational harm, diminished profits and future earnings, curtailment of our operations, and imprisonment, any of which could\plain\cf1\f51\fs20\ql adversely affect our ability to operate our business and our results of operations.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql We may encounter difficulties in managing our growth and expanding our operations successfully\par\pard\plain\sb132\cf1\f51\fs20\ql As we seek to advance our product candidates through clinical trials and commercialization, we will need to expand our clinical,\plain\cf1\f51\fs20\ql medical, regulatory, manufacturing, marketing and sales capabilities or contract with third parties to provide these capabilities for\plain\cf1\f51\fs20\ql us. We have recently entered into a number of strategic collaborations for the development and commercialization of vadadustat.\plain\cf1\f51\fs20\ql As our operations expand, we expect that we will need to manage additional relationships with various strategic collaborators,\plain\cf1\f51\fs20\ql suppliers and other third parties. Future growth will impose significant added responsibilities on members of management. Our\plain\cf1\f51\fs20\ql future financial performance and our ability to commercialize vadadustat, if approved, and any other product candidates and to\plain\cf1\f51\fs20\ql compete effectively will depend, in part, on our ability to manage any future growth effectively. To that end, we must be able to\plain\cf1\f51\fs20\ql manage our development efforts and clinical trials effectively and hire, train, integrate and retain additional personnel. We may\plain\cf1\f51\fs20\ql not be able to accomplish these tasks, and our failure to accomplish any of them could prevent us from successfully growing our\plain\cf1\f51\fs20\ql company.\~\~\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql If product liability lawsuits are brought against us, we may incur substantial liabilities and may be required to limit\plain\cf1\f51\fs20\b\i\ql commercialization of our product candidates.\par\pard\plain\sb132\cf1\f51\fs20\ql We face an inherent risk of product liability as a result of the clinical testing of our product candidates and will face an even\plain\cf1\f51\fs20\ql greater risk if we commercialize any products. For example, we may be sued if any product we develop allegedly causes injury\plain\cf1\f51\fs20\ql or is found to be otherwise unsuitable during product testing, manufacturing, marketing or sale. Any such product liability claims\plain\cf1\f51\fs20\ql may include allegations of defects in manufacturing, defects in design, a failure to warn of dangers inherent in the product,\plain\cf1\f51\fs20\ql negligence, strict liability and breach of warranties. Claims could also be asserted under state consumer protection acts. If we\plain\cf1\f51\fs20\ql cannot successfully defend ourselves against product liability claims, we may incur substantial liabilities or be required to limit\plain\cf1\f51\fs20\ql commercialization of our product candidates. Even a successful defense would require significant financial and management\plain\cf1\f51\fs20\ql resources. Regardless of the merits or eventual outcome, product liability claims may result in: \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql decreased demand for any product candidates or products that we may develop;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql injury to our reputation and significant negative media attention;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql withdrawal of clinical trial participants;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql significant costs to defend the related litigation;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql a diversion of management\u8217?s time and our resources;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql substantial monetary awards to study participants or patients;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql product recalls or withdrawals, or labeling, marketing or promotional restrictions;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql loss of revenue;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}}\pard\plain\sb264\cf1\f51\fs20\qc 61\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\pard\plain\intbl\sb132\cf1\f51\fs20\ql the inability to commercialize any product candidates that we may develop; and\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql a decline in our stock price.\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}}\pard\plain\sb264\cf1\f51\fs20\ql Failure to obtain and retain sufficient product liability insurance at an acceptable cost to protect against potential product liability\plain\cf1\f51\fs20\ql claims could prevent or inhibit the commercialization of products we develop. We currently carry product liability insurance that\plain\cf1\f51\fs20\ql we believe is appropriate for our stage of development and may need to obtain higher levels prior to marketing any of our\plain\cf1\f51\fs20\ql product candidates. Although we maintain product liability insurance, any claim that may be brought against us could result in a\plain\cf1\f51\fs20\ql court judgment or settlement in an amount that is not covered, in whole or in part, by our insurance or that is in excess of the\plain\cf1\f51\fs20\ql limits of our insurance coverage. Our insurance policies also have various exclusions, and we may be subject to a product\plain\cf1\f51\fs20\ql liability claim for which we have no coverage. We will have to pay any amounts awarded by a court or negotiated in a\plain\cf1\f51\fs20\ql settlement that exceed our coverage limitations or that are not covered by our insurance, and we may not have, or be able to\plain\cf1\f51\fs20\ql obtain, sufficient capital to pay such amounts.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql If we fail to comply with environmental, health and safety laws and regulations, we could become subject to fines or penalties\plain\cf1\f51\fs20\b\i\ql or incur costs that could harm our business.\par\pard\plain\sb132\cf1\f51\fs20\ql We are subject to numerous environmental, health and safety laws and regulations, including those governing laboratory\plain\cf1\f51\fs20\ql procedures and the handling, use, storage, treatment and disposal of hazardous materials and wastes. Our operations involve the\plain\cf1\f51\fs20\ql use of hazardous and flammable materials, including chemicals and biological materials. Our operations also produce hazardous\plain\cf1\f51\fs20\ql waste products. We generally contract with third parties for the use and disposal of these materials and wastes. We cannot\plain\cf1\f51\fs20\ql eliminate the risk of contamination or injury from these materials. In the event of contamination or injury resulting from the use\plain\cf1\f51\fs20\ql of hazardous materials by our employees or consultants, we could be held liable for any resulting damages, and any liability\plain\cf1\f51\fs20\ql could exceed our resources. We also could incur significant costs associated with civil or criminal fines and penalties for failure\plain\cf1\f51\fs20\ql to comply with such laws and regulations.\par\pard\plain\sb264\cf1\f51\fs20\ql Although we maintain workers\u8217? compensation insurance to cover us for costs and expenses we may incur due to injuries\plain\cf1\f51\fs20\ql to our employees resulting from the use of hazardous materials, this insurance may not provide adequate coverage against\plain\cf1\f51\fs20\ql potential liabilities. We do not maintain insurance for environmental liability or toxic tort claims that may be asserted against us\plain\cf1\f51\fs20\ql in connection with our storage or disposal of biological, hazardous or radioactive materials.\par\pard\plain\sb264\cf1\f51\fs20\ql In addition, we may incur substantial costs in order to comply with current or future environmental, health and safety laws and\plain\cf1\f51\fs20\ql regulations. These current or future laws and regulations may impair our research, development or production efforts. Our failure\plain\cf1\f51\fs20\ql to comply with these laws and regulations also may result in substantial fines, penalties or other sanctions.\par\pard\plain\sb396\cf1\f51\fs20\b\ql Risks Related to our Common Stock\par\pard\plain\sb132\cf1\f51\fs20\b\i\ql We are an \u8220?emerging growth company\u8221? as defined in the Jumpstart Our Business Startups Act of 2012. As a\plain\cf1\f51\fs20\b\i\ql result, we intend to continue to take advantage of certain reduced disclosure requirements.\par\pard\plain\sb132\cf1\f51\fs20\ql We are an \u8220?emerging growth company\u8221? as defined in the Jumpstart Our Business Startups Act of 2012, or the\plain\cf1\f51\fs20\ql JOBS Act. For as long as we continue to be an emerging growth company, we may take advantage of exemptions from various\plain\cf1\f51\fs20\ql reporting requirements that are applicable to other public companies that are not emerging growth companies. These exemptions\plain\cf1\f51\fs20\ql include: \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql not being required to comply with the auditor attestation requirements in the assessment of our internal control over\plain\intbl\cf1\f51\fs20\ql financial reporting;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql reduced disclosure obligations regarding executive compensation; and\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and obtaining\plain\intbl\cf1\f51\fs20\ql shareholder approval of any golden parachute payments not previously approved.\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}}\pard\plain\sb264\cf1\f51\fs20\ql Investors may find our common stock less attractive if we continue to rely on these exemptions. If some investors find our\plain\cf1\f51\fs20\ql common stock less attractive as a result, there may be a less active trading market for our common stock and our stock price\plain\cf1\f51\fs20\ql may be more volatile. In addition, the JOBS Act provides that an emerging growth company can take advantage of an extended\plain\cf1\f51\fs20\ql transition period for complying with new or revised accounting standards. This allows an emerging growth company to delay the\plain\cf1\f51\fs20\ql adoption of these accounting standards until they would otherwise apply to private companies. We have irrevocably elected not to\plain\cf1\f51\fs20\ql avail ourselves of this exemption and, therefore, we will be subject to the same new or revised accounting standards as other\plain\cf1\f51\fs20\ql public companies that are not emerging growth companies.{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb264\cf1\f51\fs20\ql We could be an emerging growth company for up to five years from our initial public offering in March 2014, although\plain\cf1\f51\fs20\ql circumstances could cause us to lose that status earlier, including (1) if the market value of our common stock held by\plain\cf1\f51\fs20\ql non-affiliates exceeds $700\~million as of any June\~30 before that time or (2) if we have total annual gross revenue of $1\~billion\plain\cf1\f51\fs20\ql or more during any fiscal year before that time, in which cases we would no longer be an emerging growth company as of the\plain\cf1\f51\fs20\ql following December\~31, or (3) if\par\pard\plain\sb264\cf1\f51\fs20\qc 62\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sb264\cf1\f51\fs20\ql we issue more than $1\~billion in non-convertible debt during any three-year period before that time, we would cease to be an\plain\cf1\f51\fs20\ql emerging growth company immediately.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Our stock price has been and may continue to be volatile, and, as a result you may not be able to resell your shares at or\plain\cf1\f51\fs20\b\i\ql above the public offering price.\par\pard\plain\sb132\cf1\f51\fs20\ql Our stock price has been and may continue to be volatile. Since our initial public offering in March\~2014, the price of our\plain\cf1\f51\fs20\ql common stock as reported on The NASDAQ Global Market has ranged from a low of $5.91 on August 25, 2015 to a high of\plain\cf1\f51\fs20\ql $31.00 on June 20, 2014. The market price of shares of our common stock could be subject to wide fluctuations in response to\plain\cf1\f51\fs20\ql many risk factors listed in this section, and others beyond our control.\par\pard\plain\sb264\cf1\f51\fs20\ql In addition, the stock market has recently experienced significant volatility, particularly with respect to pharmaceutical,\plain\cf1\f51\fs20\ql biotechnology and other life sciences company stocks. The volatility of pharmaceutical, biotechnology and other life sciences\plain\cf1\f51\fs20\ql company stocks often does not relate to the operating performance of the companies represented by the stock. As we operate in a\plain\cf1\f51\fs20\ql single industry, we are especially vulnerable to the factors listed above to the extent that they affect our industry, markets or\plain\cf1\f51\fs20\ql products. In the past, securities class action litigation has often been initiated against companies following periods of volatility in\plain\cf1\f51\fs20\ql their stock price, and such an action was filed against us but has since been dismissed. This type of litigation could result in\plain\cf1\f51\fs20\ql substantial costs and divert our management\u8217?s attention and resources, and could also require us to make substantial\plain\cf1\f51\fs20\ql payments to satisfy judgments or to settle litigation.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Provisions in our charter documents and Delaware law may have anti-takeover effects that could discourage an acquisition of\plain\cf1\f51\fs20\b\i\ql us by others, even if an acquisition would be beneficial to our stockholders, and may prevent attempts by our stockholders to\plain\cf1\f51\fs20\b\i\ql replace or remove our current management.\par\pard\plain\sb132\cf1\f51\fs20\ql Provisions in our Ninth Amended and Restated Certificate of Incorporation and Amended and Restated By-Laws contain\plain\cf1\f51\fs20\ql provisions that may have the effect of discouraging, delaying or preventing a change in control of us or changes in our\plain\cf1\f51\fs20\ql management. These provisions could also limit the price that investors might be willing to pay in the future for shares of our\plain\cf1\f51\fs20\ql common stock, thereby depressing the market price of our common stock. In addition, because our Board of Directors is\plain\cf1\f51\fs20\ql responsible for appointing the members of our management team, these provisions may frustrate or prevent any attempts by our\plain\cf1\f51\fs20\ql stockholders to replace or remove our current management by making it more difficult for stockholders to replace members of\plain\cf1\f51\fs20\ql our Board of Directors. Among other things, these provisions: \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql authorize \u8220?blank check\u8221? preferred stock, which could be issued by our Board of Directors without\plain\intbl\cf1\f51\fs20\ql stockholder approval and may contain voting, liquidation, dividend and other rights superior to our common stock;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql create a classified Board of Directors whose members serve staggered three-year terms;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql specify that special meetings of our stockholders can be called only by our Board of Directors pursuant to a\plain\intbl\cf1\f51\fs20\ql resolution adopted by a majority of the total number of directors;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql prohibit stockholder action by written consent;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql establish an advance notice procedure for stockholder approvals to be brought before an annual meeting of our\plain\intbl\cf1\f51\fs20\ql stockholders, including proposed nominations of persons for election to our Board of Directors;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh382 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql provide that our directors may be removed only for cause;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh382\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql provide that vacancies on our Board of Directors may be filled only by a majority of directors then in office, even\plain\intbl\cf1\f51\fs20\ql though less than a quorum;\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh630 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql require a supermajority vote of the holders of our common stock or the majority vote of our Board of Directors to\plain\intbl\cf1\f51\fs20\ql amend our Amended and Restated By-Laws; and\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh630\row}}} \par\pard\plain {\trowd\cellx432\cellx1116\cellx10800\trrh878 \pard\plain\intbl\sb132\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql \u8226?\cell\pard\plain\intbl\sb132\cf1\f51\fs20\ql require a supermajority vote of the holders of our common stock to amend the classification of our Board of\plain\intbl\cf1\f51\fs20\ql Directors into three classes and to amend certain other provisions of our Amended and Restated Certificate of\plain\intbl\cf1\f51\fs20\ql Incorporation.\cell{ {\trowd\cellx432\cellx1116\cellx10800\trrh878\row}}}\pard\plain\sb264\cf1\f51\fs20\ql These provisions, alone or together, could delay or prevent hostile takeovers and changes in control or changes in our\plain\cf1\f51\fs20\ql management.\par\pard\plain\sb264\cf1\f51\fs20\ql Moreover, because we are incorporated in Delaware, we are governed by the provisions of Section\~203 of the Delaware General\plain\cf1\f51\fs20\ql Corporation Law, which prohibits a person who owns in excess of 15% of our outstanding voting stock from merging or\plain\cf1\f51\fs20\ql combining with us for a period of three years after the date of the transaction in which the person acquired in excess of 15% of\plain\cf1\f51\fs20\ql our outstanding voting stock, unless the merger or combination is approved in a prescribed manner.\par\pard\plain\sb264\cf1\f51\fs20\ql Any provision of our Amended and Restated Certificate of Incorporation, our Amended and Restated By-Laws or Delaware law\plain\cf1\f51\fs20\ql that has the effect of delaying or deterring a change in control could limit the opportunity for our stockholders to receive a\plain\cf1\f51\fs20\ql premium for their shares of our common stock, and could also affect the price that some investors are willing to pay for our\plain\cf1\f51\fs20\ql common stock.\par\pard\plain\sb264\cf1\f51\fs20\qc 63\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Our ability to use net operating losses to offset future taxable income may be subject to certain limitations.\par\pard\plain\sb132\cf1\f51\fs20\ql In general, under Section\~382 of the Internal Revenue Code of 1986, as amended, or the Code, a corporation that undergoes an\plain\cf1\f51\fs20\ql \u8220?ownership change\u8221? is subject to limitations on its ability to utilize its pre-change net operating losses, or NOLs, to\plain\cf1\f51\fs20\ql offset future taxable income. Our existing NOLs may be subject to substantial limitations arising from previous ownership\plain\cf1\f51\fs20\ql changes and our ability to utilize NOLs could be further limited by Section\~382 of the Code. Future changes in our stock\plain\cf1\f51\fs20\ql ownership, many of which are outside of our control, could result in an ownership change under Section\~382 of the Code. Our\plain\cf1\f51\fs20\ql NOLs may also be impaired under state law. Accordingly, we may not be able to utilize a material portion of our NOLs.\plain\cf1\f51\fs20\ql Furthermore, our ability to utilize our NOLs is conditioned upon our attaining profitability and generating U.S. federal taxable\plain\cf1\f51\fs20\ql income. As described above under \u8220?\u8212?Risks related to our financial position and need for additional capital,\u8221?\plain\cf1\f51\fs20\ql we have incurred significant net losses since our inception and anticipate that we will continue to incur significant losses for the\plain\cf1\f51\fs20\ql foreseeable future; thus, we do not know whether or when we will generate the U.S. federal taxable income necessary to utilize\plain\cf1\f51\fs20\ql our NOLs. A full valuation allowance has been provided for the entire amount of our NOLs.\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql Our Amended and Restated Certificate of Incorporation designates the state or federal courts located in the State of Delaware\plain\cf1\f51\fs20\b\i\ql as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders, which\plain\cf1\f51\fs20\b\i\ql could limit our stockholders\u8217? ability to obtain a favorable judicial forum for disputes with us or our directors, officers\plain\cf1\f51\fs20\b\i\ql or employees.\par\pard\plain\sb132\cf1\f51\fs20\ql Our Amended and Restated Certificate of Incorporation provides that, subject to limited exceptions, the state and federal courts\plain\cf1\f51\fs20\ql located in the State of Delaware will be the sole and exclusive forum for (1)\~any derivative action or proceeding brought on our\plain\cf1\f51\fs20\ql behalf, (2)\~any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers or other employees to\plain\cf1\f51\fs20\ql us or our stockholders, (3)\~any action asserting a claim against us arising pursuant to any provision of the Delaware General\plain\cf1\f51\fs20\ql Corporation Law, our Amended and Restated Certificate of Incorporation or our Amended and Restated By-Laws, or (4)\~any\plain\cf1\f51\fs20\ql other action asserting a claim against us that is governed by the internal affairs doctrine. Any person or entity purchasing or\plain\cf1\f51\fs20\ql otherwise acquiring any interest in shares of our capital stock shall be deemed to have notice of and to have consented to the\plain\cf1\f51\fs20\ql provisions of our Amended and Restated Certificate of Incorporation described above. This choice of forum provision may limit a\plain\cf1\f51\fs20\ql stockholder\u8217?s ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors,\plain\cf1\f51\fs20\ql officers or other employees, which may discourage such lawsuits against us and our directors, officers and employees.\plain\cf1\f51\fs20\ql Alternatively, if a court were to find these provisions of our Amended and Restated Certificate of Incorporation inapplicable to,\plain\cf1\f51\fs20\ql or unenforceable with respect to, one or more of the specified types of actions or proceedings, we may incur additional costs\plain\cf1\f51\fs20\ql associated with resolving such matters in other jurisdictions, which could adversely affect our business and financial condition.{\*\bkmkstart item_1_3_7}{\*\bkmkend item_1_3_7}{\*\bkmkstart item_2_unregistered_sales_of_equ}{\*\bkmkend item_2_unregistered_sales_of_equ}\par\pard\plain\sb396\cf1\f51\fs20\b\ql Item\~2. Unregistered Sales of Equity Securities and Use of Proceeds\par\pard\plain\sb132\cf1\f51\fs20\b\ql Recent Sales of Unregistered Securities\par\pard\plain\sb132\cf1\f51\fs20\ql During the quarter ended June 30, 2017, we did not have any sales of unregistered securities.{\*\bkmkstart item_1_3_8}{\*\bkmkend item_1_3_8}{\*\bkmkstart item_3_defaults_upon_senior_secu}{\*\bkmkend item_3_defaults_upon_senior_secu}\par\pard\plain\sb396\cf1\f51\fs20\b\ql Item\~3. Defaults upon Senior Securities\par\pard\plain\sb132\cf1\f51\fs20\ql Not applicable.{\*\bkmkstart item_1_3_9}{\*\bkmkend item_1_3_9}{\*\bkmkstart item_4_mine_safety_disclosures_1}{\*\bkmkend item_4_mine_safety_disclosures_1}\par\pard\plain\sb396\cf1\f51\fs20\b\ql Item\~4. Mine Safety Disclosures\par\pard\plain\sb132\cf1\f51\fs20\ql Not applicable.{\*\bkmkstart item_1_3_10}{\*\bkmkend item_1_3_10}{\*\bkmkstart item_5_or_information_11737931}{\*\bkmkend item_5_or_information_11737931}\par\pard\plain\sb396\cf1\f51\fs20\b\ql Item\~\plain\cf1\f51\fs20\b\ql 5. Other Information\par\pard\plain\sb132\cf1\f51\fs20\ql The following disclosure is provided in accordance with and in satisfaction of the requirements of Item\~2.02 \u8220?\~\plain\cf1\f51\fs20\i\ql Results of\plain\cf1\f51\fs20\i\ql Operations and Financial Condition\~\plain\cf1\f51\fs20\ql \u8221? of Form\~8-K:\par\pard\plain\sb264\cf1\f51\fs20\ql On August 8, 2017, Akebia announced its financial results for the quarter ended June 30, 2017 and commented on certain\plain\cf1\f51\fs20\ql corporate accomplishments and plans. The full text of the press release issued in connection with the announcement is furnished\plain\cf1\f51\fs20\ql as Exhibit\~99.1 hereto.\par\pard\plain\sb132\cf1\f51\fs20\ql The information furnished in Item\~5 (including Exhibit\~99.1) shall not be deemed \u8220?filed\u8221? for purposes of Section\~18\plain\cf1\f51\fs20\ql of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in\plain\cf1\f51\fs20\ql any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference\plain\cf1\f51\fs20\ql in such a filing.\par\pard\plain\sb132\cf1\f51\fs24\ql \~\par\pard\plain\sb264\cf1\f51\fs20\qc 64\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart item_1_3_11}{\*\bkmkend item_1_3_11}{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}{\*\bkmkstart item_6_exhibits_11737931}{\*\bkmkend item_6_exhibits_11737931}\par\pard\plain\cf1\f51\fs20\b\ql Item\~6. Exhibits.\par\pard\plain\cf1\f51\fs20\ql \~ \par\pard\plain {\trowd\clvertalb\cellx770\clvertalb\cellx890\clvertalb\cellx10800\trrh220 \pard\plain\intbl\sa22\cf1\f51\fs16\b\ql Exhibits\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell{ {\trowd\clvertalb\cellx770\clvertalb\cellx890\clvertalb\cellx10800\trrh220\row}}} {\trowd\clvertalc\cellx770\clvertalc\cellx10800\trrh148 \pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell{ {\trowd\clvertalc\cellx770\clvertalc\cellx10800\trrh148\row}}} {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh248 \pard\plain\intbl\cf1\f51\fs20\ql \~\~\~\~4.1#\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_2" }{\*\fldrslt\cf3\f51\fs20\ql Investment Agreement between Akebia Therapeutics, Inc. and Vifor (International) Ltd., dated May 12, 2017.}}\cell{ {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh248\row}}} {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh248 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh248\row}}} {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh495 \pard\plain\intbl\cf1\f51\fs20\ql \~\~10.1#\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_3" }{\*\fldrslt\cf3\f51\fs20\ql Collaboration and License Agreement between Akebia Therapeutics, Inc. and Otsuka Pharmaceutical Co. Ltd., dated}}\plain\intbl\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_3" }{\*\fldrslt\cf3\f51\fs20\ql April\~25, 2017.}}\cell{ {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh495\row}}} {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh248 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh248\row}}} {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh248 \pard\plain\intbl\cf1\f51\fs20\ql \~\~10.2#\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_4" }{\*\fldrslt\cf3\f51\fs20\ql License Agreement between Akebia Therapeutics, Inc. and Vifor (International) Ltd., dated May 12, 2017.}}\cell{ {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh248\row}}} {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh148 \pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell{ {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh148\row}}} {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh495 \pard\plain\intbl\cf1\f51\fs20\ql \~\~31.1\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\~\cell\pard\plain\intbl\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_5" }{\*\fldrslt\cf3\f51\fs20\ql Certification of Principal Executive Officer Required Under Rule 13a-14(a) of the Securities Exchange Act of 1934,}}\plain\intbl\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_5" }{\*\fldrslt\cf3\f51\fs20\ql as amended.}}\cell{ {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh495\row}}} {\trowd\clvertalc\cellx770\clvertalc\cellx10800\trrh148 \pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell{ {\trowd\clvertalc\cellx770\clvertalc\cellx10800\trrh148\row}}} {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh495 \pard\plain\intbl\cf1\f51\fs20\ql \~\~31.2\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\~\cell\pard\plain\intbl\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_6" }{\*\fldrslt\cf3\f51\fs20\ql Certification of Principal Financial Officer Required Under Rule 13a-14(a) of the Securities Exchange Act of 1934, as}}\plain\intbl\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_6" }{\*\fldrslt\cf3\f51\fs20\ql amended.}}\cell{ {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh495\row}}} {\trowd\clvertalc\cellx770\clvertalc\cellx10800\trrh148 \pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell{ {\trowd\clvertalc\cellx770\clvertalc\cellx10800\trrh148\row}}} {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh495 \pard\plain\intbl\cf1\f51\fs20\ql \~\~32.1\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\~\cell\pard\plain\intbl\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_7" }{\*\fldrslt\cf3\f51\fs20\ql Certification of Principal Executive Officer and Principal Financial Officer Required Under Rule 13a-14(b) of the}}\plain\intbl\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_7" }{\*\fldrslt\cf3\f51\fs20\ql Securities Exchange Act of 1934, as amended, and 18 U.S.C. 1350.}}\cell{ {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh495\row}}} {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh148 \pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell{ {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh148\row}}} {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh248 \pard\plain\intbl\cf1\f51\fs20\ql \~\~99.1\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\~\cell\pard\plain\intbl\ul{\field{\*\fldinst HYPERLINK \\l "doc_1_8" }{\*\fldrslt\cf3\f51\fs20\ql Press Release issued by Akebia Therapeutics, Inc. on August 8, 2017 (furnished herewith).}}\cell{ {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh248\row}}} {\trowd\clvertalc\cellx770\clvertalc\cellx10800\trrh148 \pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell{ {\trowd\clvertalc\cellx770\clvertalc\cellx10800\trrh148\row}}} {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh248 \pard\plain\intbl\cf1\f51\fs20\ql 101.INS\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\ql XBRL Instance Document\cell{ {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh248\row}}} {\trowd\clvertalc\cellx770\clvertalc\cellx10800\trrh148 \pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell{ {\trowd\clvertalc\cellx770\clvertalc\cellx10800\trrh148\row}}} {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh248 \pard\plain\intbl\cf1\f51\fs20\ql 101.SCH\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\ql XBRL Taxonomy Extension Schema Document\cell{ {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh248\row}}} {\trowd\clvertalc\cellx770\clvertalc\cellx10800\trrh149 \pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell{ {\trowd\clvertalc\cellx770\clvertalc\cellx10800\trrh149\row}}} {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh248 \pard\plain\intbl\cf1\f51\fs20\ql 101.CAL\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\ql XBRL Taxonomy Extension Calculation Linkbase Document\cell{ {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh248\row}}} {\trowd\clvertalc\cellx770\clvertalc\cellx10800\trrh149 \pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell{ {\trowd\clvertalc\cellx770\clvertalc\cellx10800\trrh149\row}}} {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh248 \pard\plain\intbl\cf1\f51\fs20\ql 101.DEF\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\ql XBRL Taxonomy Extension Definition Linkbase Document\cell{ {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh248\row}}} {\trowd\clvertalc\cellx770\clvertalc\cellx10800\trrh149 \pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell{ {\trowd\clvertalc\cellx770\clvertalc\cellx10800\trrh149\row}}} {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh248 \pard\plain\intbl\cf1\f51\fs20\ql 101.LAB\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\ql XBRL Taxonomy Extension Labels Linkbase Document\cell{ {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh248\row}}} {\trowd\clvertalc\cellx770\clvertalc\cellx10800\trrh149 \pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell{ {\trowd\clvertalc\cellx770\clvertalc\cellx10800\trrh149\row}}} {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh248 \pard\plain\intbl\cf1\f51\fs20\ql 101.PRE\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\ql XBRL Taxonomy Extension Presentation Linkbase Document\cell{ {\trowd\cellx770\clvertalb\cellx890\cellx10800\trrh248\row}}}\pard\plain\cf1\f51\fs24\ql \~ \par\pard\plain {\trowd\cellx431\cellx10800\trrh292 \pard\plain\intbl\sb44\cf1\f51\fs20\b\ql #\cell\pard\plain\intbl\sb44\cf1\f51\fs20\ql Indicates portions of the exhibit (indicated by asterisks) have been omitted pursuant to a request for confidential treatment\cell{ {\trowd\cellx431\cellx10800\trrh292\row}}}\pard\plain\li88\cf1\f51\fs20\ql \~\par\pard\plain\li88\cf1\f51\fs20\ql \~\par\pard\plain\sb264\cf1\f51\fs20\qc 65\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart part_1_2_3}{\*\bkmkend part_1_2_3}{\*\bkmkstart _aeioulastrenderedpagebreakaeiou}{\*\bkmkend _aeioulastrenderedpagebreakaeiou}{\*\bkmkstart signatures_11737931}{\*\bkmkend signatures_11737931}\par\pard\plain\cf1\f51\fs20\b\ql SIGNATURES\par\pard\plain\sb132\cf1\f51\fs20\ql Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its\plain\cf1\f51\fs20\ql behalf by the undersigned thereunto duly authorized.\par\pard\plain\cf1\f51\fs20\ql \~ \par\pard\plain {\trowd\cellx5905\clvertalb\cellx6010\cellx10799\trrh248 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\b\ql AKEBIA THERAPEUTICS, INC.\cell{ {\trowd\cellx5905\clvertalb\cellx6010\cellx10799\trrh248\row}}} {\trowd\cellx5905\clvertalb\cellx6010\cellx6582\clvertalb\cellx7154\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql \~\cell{ {\trowd\cellx5905\clvertalb\cellx6010\cellx6582\clvertalb\cellx7154\cellx10800\trrh297\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\cellx5905\clbrdrb\brdrs\brdrcf7\clvertalb\cellx6010\clbrdrb\brdrs\brdrcf7\cellx6582\clbrdrb\brdrs\brdrcf7\clvertalb\cellx7154\clbrdrb\brdrs\brdrcf1\cellx10800\trrh248 \pard\plain\intbl\cf1\f51\fs20\ql Date: August 8, 2017\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql By:\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql /s/ John P. Butler\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\cellx5905\clbrdrb\brdrs\brdrcf7\clvertalb\cellx6010\clbrdrb\brdrs\brdrcf7\cellx6582\clbrdrb\brdrs\brdrcf7\clvertalb\cellx7154\clbrdrb\brdrs\brdrcf1\cellx10800\trrh248\row}}} {\trowd\cellx5905\clvertalb\cellx6010\cellx6582\clvertalb\cellx7154\clbrdrt\brdrs\brdrcf1\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql John P. Butler\cell{ {\trowd\cellx5905\clvertalb\cellx6010\cellx6582\clvertalb\cellx7154\clbrdrt\brdrs\brdrcf1\cellx10800\trrh264\row}}} {\trowd\cellx5905\clvertalb\cellx6010\cellx6582\clvertalb\cellx7154\cellx10800\trrh248 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\i\ql Chief Executive Officer and President\cell{ {\trowd\cellx5905\clvertalb\cellx6010\cellx6582\clvertalb\cellx7154\cellx10800\trrh248\row}}} {\trowd\cellx5905\clvertalb\cellx6010\cellx6582\clvertalb\cellx7154\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql \~\cell{ {\trowd\cellx5905\clvertalb\cellx6010\cellx6582\clvertalb\cellx7154\cellx10800\trrh297\row}}} {\trowd\cellx5905\clvertalb\cellx6010\cellx6582\clvertalb\cellx7154\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql \~\cell{ {\trowd\cellx5905\clvertalb\cellx6010\cellx6582\clvertalb\cellx7154\cellx10800\trrh297\row}}} {\trowd\cellx10800\trrh495 \pard\plain\intbl\cf1\f51\fs20\ql Under the requirements of the Securities and Exchange Act of 1934, this report was signed by the following persons on behalf of\plain\intbl\cf1\f51\fs20\ql the Registrant and in the capacities and on the date indicated.\cell{ {\trowd\cellx10800\trrh495\row}}} {\trowd\cellx5905\clvertalb\cellx6010\cellx6582\clvertalb\cellx7154\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql \~\cell{ {\trowd\cellx5905\clvertalb\cellx6010\cellx6582\clvertalb\cellx7154\cellx10800\trrh297\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\cellx5905\clbrdrb\brdrs\brdrcf7\clvertalb\cellx6010\clbrdrb\brdrs\brdrcf7\cellx6582\clbrdrb\brdrs\brdrcf7\clvertalb\cellx7154\clbrdrb\brdrs\brdrcf1\cellx10800\trrh248 \pard\plain\intbl\cf1\f51\fs20\ql Date: August 8, 2017\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql By:\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql /s/ John P. Butler\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\cellx5905\clbrdrb\brdrs\brdrcf7\clvertalb\cellx6010\clbrdrb\brdrs\brdrcf7\cellx6582\clbrdrb\brdrs\brdrcf7\clvertalb\cellx7154\clbrdrb\brdrs\brdrcf1\cellx10800\trrh248\row}}} {\trowd\cellx5905\clvertalb\cellx6010\cellx6582\clvertalb\cellx7154\clbrdrt\brdrs\brdrcf1\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql John P. Butler\cell{ {\trowd\cellx5905\clvertalb\cellx6010\cellx6582\clvertalb\cellx7154\clbrdrt\brdrs\brdrcf1\cellx10800\trrh264\row}}} {\trowd\cellx5905\clvertalb\cellx6010\cellx6582\clvertalb\cellx7154\cellx10800\trrh248 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\i\ql Chief Executive Officer and President\cell{ {\trowd\cellx5905\clvertalb\cellx6010\cellx6582\clvertalb\cellx7154\cellx10800\trrh248\row}}} {\trowd\cellx5905\clvertalb\cellx6010\cellx6582\clvertalb\cellx7154\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql \~\cell{ {\trowd\cellx5905\clvertalb\cellx6010\cellx6582\clvertalb\cellx7154\cellx10800\trrh297\row}}} {\trowd\cellx5905\clvertalb\cellx6010\cellx6582\clvertalb\cellx7154\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql \~\cell{ {\trowd\cellx5905\clvertalb\cellx6010\cellx6582\clvertalb\cellx7154\cellx10800\trrh297\row}}} {\trowd\clbrdrb\brdrs\brdrcf7\cellx5905\clbrdrb\brdrs\brdrcf7\clvertalb\cellx6010\clbrdrb\brdrs\brdrcf7\cellx6582\clbrdrb\brdrs\brdrcf7\clvertalb\cellx7154\clbrdrb\brdrs\brdrcf1\cellx10800\trrh248 \pard\plain\intbl\cf1\f51\fs20\ql Date: August 8, 2017\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql By:\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql /s/ Jason A. Amello\cell{ {\trowd\clbrdrb\brdrs\brdrcf7\cellx5905\clbrdrb\brdrs\brdrcf7\clvertalb\cellx6010\clbrdrb\brdrs\brdrcf7\cellx6582\clbrdrb\brdrs\brdrcf7\clvertalb\cellx7154\clbrdrb\brdrs\brdrcf1\cellx10800\trrh248\row}}} {\trowd\cellx5905\clvertalb\cellx6010\cellx6582\clvertalb\cellx7154\clbrdrt\brdrs\brdrcf1\cellx10800\trrh264 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Jason A. Amello\cell{ {\trowd\cellx5905\clvertalb\cellx6010\cellx6582\clvertalb\cellx7154\clbrdrt\brdrs\brdrcf1\cellx10800\trrh264\row}}} {\trowd\cellx5905\clvertalb\cellx6010\cellx6582\clvertalb\cellx7154\cellx10800\trrh495 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\i\ql Senior Vice President, Chief Financial\plain\intbl\cf1\f51\fs20\i\ql Officer and Treasurer\cell{ {\trowd\cellx5905\clvertalb\cellx6010\cellx6582\clvertalb\cellx7154\cellx10800\trrh495\row}}}\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\sb264\cf1\f51\fs20\qc 66 \page{\*\bkmkstart doc_1_2}{\*\bkmkend doc_1_2}\par\pard\plain\cf1\f51\fs24\qr Exhibit 4.1\par\pard\plain\cf1\f51\fs20\qr \~\par\pard\plain\sa330\cf1\f51\fs24\qc CONFIDENTIAL\par\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs24\b\qc INVESTMENT AGREEMENT\par\pard\plain\cf1\f51\fs30\ql \~\par\pard\plain\cf1\f51\fs24\b\qc By and Between\par\pard\plain\cf1\f51\fs30\ql \~\par\pard\plain\cf1\f51\fs24\b\qc VIFOR (INTERNATIONAL) LTD.\par\pard\plain\cf1\f51\fs30\ql \~\par\pard\plain\cf1\f51\fs24\b\qc AND\par\pard\plain\cf1\f51\fs30\ql \~\par\pard\plain\cf1\f51\fs24\b\qc AKEBIA THERAPEUTICS, INC.\par\pard\plain\cf1\f51\fs30\ql \~\par\pard\plain\cf1\f51\fs24\qc Dated as of May 12, 2017\par\pard\plain\cf1\f51\fs20\qj \~\par\pard\plain\sa264\fi1826\cf1\f51\fs20\ql \~\par\pard\plain\sb264\cf1\f51\fs16\ql [***]\plain\cf1\f51\fs16\b\ql Portions of this exhibit have been redacted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed\plain\cf1\f51\fs16\b\ql separately with the Commission.\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sa264\cf1\f51\fs24\b\qc TABLE OF CONTENTS \par\pard\plain {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs24\b\qr Page\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh248 \pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh248\row}}} {\trowd\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql ARTICLE I Definitions.\cell\pard\plain\intbl\cf1\f51\fs24\qr 1\cell{ {\trowd\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~1.1.\cell\pard\plain\intbl\cf1\f51\fs24\ql Defined Terms\cell\pard\plain\intbl\cf1\f51\fs24\qr 1\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~1.2.\cell\pard\plain\intbl\cf1\f51\fs24\ql Additional Defined Terms\cell\pard\plain\intbl\cf1\f51\fs24\qr 4\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql ARTICLE II Purchase and Sale of Securities\cell\pard\plain\intbl\cf1\f51\fs24\qr 4\cell{ {\trowd\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~2.1.\cell\pard\plain\intbl\cf1\f51\fs24\ql Purchase and Sale of Securities\cell\pard\plain\intbl\cf1\f51\fs24\qr 4\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql ARTICLE III Closing; Deliveries.\cell\pard\plain\intbl\cf1\f51\fs24\qr 4\cell{ {\trowd\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~3.1.\cell\pard\plain\intbl\cf1\f51\fs24\ql Closing\cell\pard\plain\intbl\cf1\f51\fs24\qr 4\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~3.2.\cell\pard\plain\intbl\cf1\f51\fs24\ql Deliveries by the Company\cell\pard\plain\intbl\cf1\f51\fs24\qr 4\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~3.3.\cell\pard\plain\intbl\cf1\f51\fs24\ql Deliveries by the Investor\cell\pard\plain\intbl\cf1\f51\fs24\qr 5\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql ARTICLE IV Representations and Warranties of the Company.\cell\pard\plain\intbl\cf1\f51\fs24\qr 5\cell{ {\trowd\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~4.1.\cell\pard\plain\intbl\cf1\f51\fs24\ql Organization, Corporate Power and Authority\cell\pard\plain\intbl\cf1\f51\fs24\qr 5\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~4.2.\cell\pard\plain\intbl\cf1\f51\fs24\ql Authorization\cell\pard\plain\intbl\cf1\f51\fs24\qr 5\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~4.3.\cell\pard\plain\intbl\cf1\f51\fs24\ql No Conflicts\cell\pard\plain\intbl\cf1\f62\fs22\qr 5\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~4.4.\cell\pard\plain\intbl\cf1\f51\fs24\ql No Governmental Authority or Third Party Consents\cell\pard\plain\intbl\cf1\f51\fs24\qr 6\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~4.5.\cell\pard\plain\intbl\cf1\f51\fs24\ql Capitalization\cell\pard\plain\intbl\cf1\f51\fs24\qr 6\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~4.6.\cell\pard\plain\intbl\cf1\f51\fs24\ql Valid Issuance of Shares\cell\pard\plain\intbl\cf1\f51\fs24\qr 6\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~4.7.\cell\pard\plain\intbl\cf1\f51\fs24\ql Company SEC Documents; Financial Statements\cell\pard\plain\intbl\cf1\f51\fs24\qr 6\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~4.8.\cell\pard\plain\intbl\cf1\f51\fs24\ql Litigation.\cell\pard\plain\intbl\cf1\f51\fs24\qr 7\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~4.9.\cell\pard\plain\intbl\cf1\f51\fs24\ql Investment Company\cell\pard\plain\intbl\cf1\f51\fs24\qr 7\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~4.10.\cell\pard\plain\intbl\cf1\f51\fs24\ql No General Solicitation\cell\pard\plain\intbl\cf1\f51\fs24\qr 7\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql ARTICLE V Representations and Warranties of the Investor.\cell\pard\plain\intbl\cf1\f51\fs24\qr 7\cell{ {\trowd\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~5.1.\cell\pard\plain\intbl\cf1\f51\fs24\ql Organization; Good Standing\cell\pard\plain\intbl\cf1\f51\fs24\qr 7\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~5.2.\cell\pard\plain\intbl\cf1\f51\fs24\ql Authorization\cell\pard\plain\intbl\cf1\f51\fs24\qr 8\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~5.3.\cell\pard\plain\intbl\cf1\f51\fs24\ql No Conflicts\cell\pard\plain\intbl\cf1\f51\fs24\qr 8\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~5.4.\cell\pard\plain\intbl\cf1\f51\fs24\ql No Governmental Authority or Third Party Consents\cell\pard\plain\intbl\cf1\f51\fs24\qr 8\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~5.5.\cell\pard\plain\intbl\cf1\f51\fs24\ql Purchase Entirely for Own Account\cell\pard\plain\intbl\cf1\f51\fs24\qr 8\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~5.6.\cell\pard\plain\intbl\cf1\f51\fs24\ql Disclosure of Information\cell\pard\plain\intbl\cf1\f51\fs24\qr 8\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~5.7.\cell\pard\plain\intbl\cf1\f51\fs24\ql Investment Experience and Accredited Investor Status\cell\pard\plain\intbl\cf1\f51\fs24\qr 8\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~5.8.\cell\pard\plain\intbl\cf1\f51\fs24\ql Acquiring Person\cell\pard\plain\intbl\cf1\f51\fs24\qr 9\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}}\pard\plain\sb264\cf1\f51\fs18\qc i\par\pard\plain\cf1\f51\fs16\ql [***]\plain\cf1\f51\fs16\b\ql Portions of this exhibit have been redacted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed\plain\cf1\f51\fs16\b\ql separately with the Commission.\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page \par\pard\plain {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~5.9.\cell\pard\plain\intbl\cf1\f51\fs24\ql Restricted Securities\cell\pard\plain\intbl\cf1\f51\fs24\qr 9\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~5.10.\cell\pard\plain\intbl\cf1\f51\fs24\ql Legends\cell\pard\plain\intbl\cf1\f51\fs24\qr 9\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql ARTICLE VI Additional Covenants and Agreements.\cell\pard\plain\intbl\cf1\f51\fs24\qr 9\cell{ {\trowd\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~6.1.\cell\pard\plain\intbl\cf1\f51\fs24\ql Lock-Up\cell\pard\plain\intbl\cf1\f51\fs24\qr 9\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~6.2.\cell\pard\plain\intbl\cf1\f51\fs24\ql Additional Agreements of Investor\cell\pard\plain\intbl\cf1\f51\fs24\qr 10\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~6.3.\cell\pard\plain\intbl\cf1\f51\fs24\ql Form D; Blue Sky Filings\cell\pard\plain\intbl\cf1\f51\fs24\qr 11\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~6.4.\cell\pard\plain\intbl\cf1\f51\fs24\ql Public Disclosure\cell\pard\plain\intbl\cf1\f51\fs24\qr 12\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~6.5.\cell\pard\plain\intbl\cf1\f51\fs24\ql Rule 144\cell\pard\plain\intbl\cf1\f51\fs24\qr 12\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql ARTICLE VII Miscellaneous.\cell\pard\plain\intbl\cf1\f51\fs24\qr 12\cell{ {\trowd\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~7.1.\cell\pard\plain\intbl\cf1\f51\fs24\ql Governing Law; Submission to Jurisdiction\cell\pard\plain\intbl\cf1\f51\fs24\qr 12\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~7.2.\cell\pard\plain\intbl\cf1\f51\fs24\ql Waiver\cell\pard\plain\intbl\cf1\f51\fs24\qr 12\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~7.3.\cell\pard\plain\intbl\cf1\f51\fs24\ql Notices\cell\pard\plain\intbl\cf1\f51\fs24\qr 12\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~7.4.\cell\pard\plain\intbl\cf1\f51\fs24\ql Specific Performance\cell\pard\plain\intbl\cf1\f51\fs24\qr 13\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~7.5.\cell\pard\plain\intbl\cf1\f51\fs24\ql Entire Agreement\cell\pard\plain\intbl\cf1\f51\fs24\qr 13\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~7.6.\cell\pard\plain\intbl\cf1\f51\fs24\ql Amendments\cell\pard\plain\intbl\cf1\f51\fs24\qr 14\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~7.7.\cell\pard\plain\intbl\cf1\f51\fs24\ql Headings; Nouns and Pronouns; Section References\cell\pard\plain\intbl\cf1\f51\fs24\qr 14\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~7.8.\cell\pard\plain\intbl\cf1\f51\fs24\ql Severability\cell\pard\plain\intbl\cf1\f51\fs24\qr 14\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~7.9.\cell\pard\plain\intbl\cf1\f51\fs24\ql Assignment\cell\pard\plain\intbl\cf1\f51\fs24\qr 14\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~7.10.\cell\pard\plain\intbl\cf1\f51\fs24\ql Successors and Assigns\cell\pard\plain\intbl\cf1\f51\fs24\qr 14\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~7.11.\cell\pard\plain\intbl\cf1\f51\fs24\ql Counterparts\cell\pard\plain\intbl\cf1\f51\fs24\qr 14\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~7.12.\cell\pard\plain\intbl\cf1\f51\fs24\ql Third Party Beneficiaries\cell\pard\plain\intbl\cf1\f51\fs24\qr 14\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~7.13.\cell\pard\plain\intbl\cf1\f51\fs24\ql No Strict Construction\cell\pard\plain\intbl\cf1\f51\fs24\qr 14\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~7.14.\cell\pard\plain\intbl\cf1\f51\fs24\ql Survival of Warranties\cell\pard\plain\intbl\cf1\f51\fs24\qr 14\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~7.15.\cell\pard\plain\intbl\cf1\f51\fs24\ql Remedies\cell\pard\plain\intbl\cf1\f51\fs24\qr 15\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~7.16.\cell\pard\plain\intbl\cf1\f51\fs24\ql Expenses\cell\pard\plain\intbl\cf1\f51\fs24\qr 15\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh124 \pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs10\qr \~\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh124\row}}} {\trowd\cellx1092\cellx9719\cellx10800\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql \~\~\~\~7.17.\cell\pard\plain\intbl\cf1\f51\fs24\ql Term\cell\pard\plain\intbl\cf1\f51\fs24\qr 15\cell{ {\trowd\cellx1092\cellx9719\cellx10800\trrh297\row}}}\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs24\ql Exhibit A \u8211? Form of Officer\u8217?s Certificate\par\pard\plain\cf1\f51\fs24\ql Exhibit B \u8211? Form of Opinion of Counsel\par\pard\plain\sb264\cf1\f51\fs20\qj \~\par\pard\plain\sb264\cf1\f51\fs18\qc ii\par\pard\plain\cf1\f51\fs16\ql [***]\plain\cf1\f51\fs16\b\ql Portions of this exhibit have been redacted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed\plain\cf1\f51\fs16\b\ql separately with the Commission.\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\sa330\cf1\f51\fs24\b\qc INVESTMENT AGREEMENT\par\pard\plain\fi1826\cf1\f51\fs24\ql THIS INVESTMENT AGREEMENT (this \u8220?\plain\cf1\f51\fs24\b\ql Agreement\plain\cf1\f51\fs24\ql \u8221?) is dated as of May\plain\cf1\f51\fs24\ql 12, 2017, by and between Vifor (International) Ltd. (together with its permitted successors and assigns, the\plain\cf1\f51\fs24\ql \u8220?\plain\cf1\f51\fs24\b\ql Investor\plain\cf1\f51\fs24\ql \u8221?), a corporation established in accordance with Swiss laws and registered in the\plain\cf1\f51\fs24\ql commercial registry under CH-107.360.718, with its premises at Rechenstrasse 37, 9014 St. Gallen,\plain\cf1\f51\fs24\ql Switzerland, and Akebia Therapeutics, Inc. (together with its permitted successors and assigns, the\plain\cf1\f51\fs24\ql \u8220?\plain\cf1\f51\fs24\b\ql Company\plain\cf1\f51\fs24\ql \u8221?), a Delaware corporation, with its principal place of business at 245 First Street,\plain\sa264\cf1\f51\fs24\ql Suite 1100, Cambridge, Massachusetts 02142.\par\pard\plain\fi1826\cf1\f51\fs24\ql WHEREAS, pursuant to the terms and subject to the conditions set forth in this Agreement,\plain\cf1\f51\fs24\ql the Company desires to issue and sell to the Investor, and the Investor desires to subscribe for and purchase\plain\cf1\f51\fs24\ql from the Company, certain shares of common stock, par value $0.00001 per share, of the Company (the\plain\cf1\f51\fs24\ql \u8220?\plain\cf1\f51\fs24\b\ql Common Stock\plain\sa264\cf1\f51\fs24\ql \u8221?); and\par\pard\plain\fi1826\cf1\f51\fs24\ql WHEREAS, in partial consideration for Investor\u8217?s willingness to enter into this\plain\sa264\cf1\f51\fs24\ql Agreement, the Company and Investor are entering into the License Agreement;\par\pard\plain\fi1826\cf1\f51\fs24\ql NOW, THEREFORE, in consideration of the following mutual promises and obligations,\plain\cf1\f51\fs24\ql and for good and valuable consideration, the adequacy and sufficiency of which are hereby acknowledged,\plain\sa264\cf1\f51\fs24\ql the Investor and the Company agree as follows:{\*\bkmkstart _toc451309614_11737931}{\*\bkmkend _toc451309614_11737931}{\*\bkmkstart _toc451405733_11737931}{\*\bkmkend _toc451405733_11737931}{\*\bkmkstart _toc451406041_11737931}{\*\bkmkend _toc451406041_11737931}{\*\bkmkstart _toc451407056_11737931}{\*\bkmkend _toc451407056_11737931}{\*\bkmkstart _toc477949048_11737931}{\*\bkmkend _toc477949048_11737931}\par\pard\plain\cf1\f51\fs24\b\qc ARTICLE I \par\pard\plain\fs16\pard\plain\sa264\cf1\f51\fs24\b\qc Definitions.{\*\bkmkstart _toc451309615_11737931}{\*\bkmkend _toc451309615_11737931}{\*\bkmkstart _toc451405734_11737931}{\*\bkmkend _toc451405734_11737931}{\*\bkmkstart _toc451406042_11737931}{\*\bkmkend _toc451406042_11737931}{\*\bkmkstart _toc451407057_11737931}{\*\bkmkend _toc451407057_11737931}{\*\bkmkstart _toc477949049_11737931}{\*\bkmkend _toc477949049_11737931}{\*\bkmkstart _ref451473846_11737931}{\*\bkmkend _ref451473846_11737931}\par\pard\plain\fi902\cf1\f51\fs24\ql 1.1.\plain\cf1\f51\fs24\ql Defined Terms\plain\cf1\f51\fs24\ql .\~\~Capitalized terms used herein but not defined shall have the respective\plain\cf1\f51\fs24\ql meanings ascribed to them in the License Agreement. When used in this Agreement, the following terms\plain\sa264\cf1\f51\fs24\ql shall have the respective meanings specified therefor below:\par\pard\plain\fi1826\cf1\f51\fs24\ql \u8220?\plain\cf1\f51\fs24\b\ql Affiliate\u8221?\plain\cf1\f51\fs24\ql shall mean, with respect to any Person, another Person that\plain\cf1\f51\fs24\ql controls, is controlled by, controlling or is under common control with such Person, with\plain\cf1\f51\fs24\ql \u8220?control\u8221? meaning direct or indirect Beneficial Ownership of at least 50% of the voting stock\plain\cf1\f51\fs24\ql of, or at least a 50% interest in the income of, the applicable entity.\~\~Notwithstanding the foregoing,\plain\cf1\f51\fs24\ql \u8220?Affiliates\u8221? will not include with respect to the Investor, FMC or any member of the FMC\plain\sa264\cf1\f51\fs24\ql Group.\par\pard\plain\fi1826\cf1\f51\fs24\ql \u8220?\plain\cf1\f51\fs24\b\ql Agreement\u8221?\plain\cf1\f51\fs24\ql shall have the meaning set forth in the Preamble, including all\plain\sa264\cf1\f51\fs24\ql Exhibits attached hereto.\par\pard\plain\fi1826\cf1\f51\fs24\ql \u8220?\plain\cf1\f51\fs24\b\ql Beneficial Ownership\plain\cf1\f51\fs24\ql \u8221? shall mean, with respect to any security, the\plain\cf1\f51\fs24\ql ownership of such security by any \u8220?beneficial owner,\u8221? as such term is defined in Rule 13d-3\plain\cf1\f51\fs24\ql and Rule 13d-5 under the Exchange Act, except that, in calculating the beneficial ownership of any\plain\cf1\f51\fs24\ql particular \u8220?person\u8221? (as that term is used in Section 13(d)(3) of the Exchange Act), such\plain\cf1\f51\fs24\ql \u8220?person\u8221? will be deemed to have beneficial ownership of all securities that such\plain\cf1\f51\fs24\ql \u8220?person\u8221? has the right to acquire by conversion or exercise of other securities (including\plain\cf1\f51\fs24\ql derivative securities, whether such securities are settled in cash or stock), whether such right is currently\plain\cf1\f51\fs24\ql exercisable or is exercisable only after the passage of time. The terms \u8220?Beneficially Own,\u8221?\plain\sa264\cf1\f51\fs24\ql \u8220?Beneficially Owned\u8221? and \u8220?Beneficial Owner\u8221? shall have correlative meaning.\par\pard\plain\sb264\cf1\f51\fs18\qc 1\par\pard\plain\cf1\f51\fs16\ql [***]\plain\cf1\f51\fs16\b\ql Portions of this exhibit have been redacted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed\plain\cf1\f51\fs16\b\ql separately with the Commission.\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\fi1826\cf1\f51\fs24\li1661\ql \u8220?\plain\cf1\f51\fs24\b\ql Business Day\u8221?\plain\cf1\f51\fs24\ql shall mean any day (other than a Saturday or Sunday) on\plain\sa264\cf1\f51\fs24\ql which the banks in Cambridge, Massachusetts and in Zurich, Switzerland are open for business.\par\pard\plain\fi1826\cf1\f51\fs24\ql \u8220?\plain\cf1\f51\fs24\b\ql Company SEC Documents\plain\cf1\f51\fs24\ql \u8221? shall mean, for the year in which the\plain\cf1\f51\fs24\ql applicable Closing occurs (i) the most recently filed annual report on Form 10-K, (ii) any Current Reports\plain\cf1\f51\fs24\ql on Form 8-K filed by the Company with the SEC since the first day of the then-current fiscal year, (iii) the\plain\cf1\f51\fs24\ql quarterly reports on Form 10-Q filed by the Company with the SEC since the filing date of the Form 10-K\plain\cf1\f51\fs24\ql referred to above, (iv) the Company\u8217?s most recently filed definitive proxy statement for the annual\plain\cf1\f51\fs24\ql meeting of stockholders, and (v) all other statements, reports, schedules, forms and other documents filed by\plain\sa264\cf1\f51\fs24\ql the Company with the SEC since the last day of the prior fiscal year, and all amendments thereto.\par\pard\plain\fi1826\cf1\f51\fs24\ql \u8220?\plain\cf1\f51\fs24\b\ql Database Lock\plain\cf1\f51\fs24\ql \u8221? shall mean when the clinical trial database for the [***] is\plain\sa264\cf1\f51\fs24\ql locked to further modifications (including additions, deletions or alterations of data).\par\pard\plain\fi1826\cf1\f51\fs24\ql \u8220?\plain\cf1\f51\fs24\b\ql DOJ\u8221?\plain\sa264\cf1\f51\fs24\ql shall mean the U.S. Department of Justice.\par\pard\plain\fi1826\cf1\f51\fs24\ql \u8220?\plain\cf1\f51\fs24\b\ql FTC\u8221?\plain\sa264\cf1\f51\fs24\ql shall mean the U.S. Federal Trade Commission.\par\pard\plain\fi1826\cf1\f51\fs24\b\ql \u8220?Global Phase 3 DD-CKD Program\u8221?\plain\cf1\f51\fs24\ql means the Phase 3 global clinical\plain\cf1\f51\fs24\ql studies for the treatment of anemia in dialysis patients with chronic kidney disease, known informally as the\plain\cf1\f51\fs24\ql INNO\plain\cf1\f51\fs22\ql\sub 2\plain\cf1\f51\fs24\ql VATE studies, consisting of a conversion study and a correction study, and known formally as the\plain\cf1\f51\fs24\ql \u8220?Phase 3, Randomized, Open-Label, Active-Controlled Study Evaluating the Efficacy and Safety of\plain\cf1\f51\fs24\ql Oral Vadadustat for the Maintenance Treatment of Anemia in Subjects with Dialysis-Dependent Chronic\plain\cf1\f51\fs24\ql Kidney Disease (INNO\plain\cf1\f51\fs22\ql\sub 2\plain\cf1\f51\fs24\ql VATE \u8211? Conversion)\u8221? (AKB-6548-CI-0017) and the \u8220?Phase\plain\cf1\f51\fs24\ql 3, Randomized, Open-Label, Active-Controlled Study Evaluating the Efficacy and Safety of Oral\plain\cf1\f51\fs24\ql Vadadustat for the Correction of Anemia in Subjects with Incident Dialysis-Dependent Chronic Kidney\plain\cf1\f51\fs24\ql Disease (INNO\plain\cf1\f51\fs22\ql\sub 2\plain\sa264\cf1\f51\fs24\ql VATE \u8211? Correction)\u8221? (AKB-6548-CI-0016).\par\pard\plain\fi1826\cf1\f51\fs24\ql \u8220?\plain\cf1\f51\fs24\b\ql Governmental Authority\u8221?\plain\cf1\f51\fs24\ql shall mean any court, agency, department,\plain\sa264\cf1\f51\fs24\ql authority or other instrumentality of any national, state, county, city or other political subdivision.\par\pard\plain\fi1826\cf1\f51\fs24\ql \u8220?\plain\cf1\f51\fs24\b\ql Law\u8221?\plain\cf1\f51\fs24\ql or \u8220?\plain\cf1\f51\fs24\b\ql Laws\u8221?\plain\cf1\f51\fs24\ql shall mean any applicable law (including\plain\cf1\f51\fs24\ql common law), statute, rule, regulation, order, judgment or ordinance of any Governmental Authority,\plain\sa264\cf1\f51\fs24\ql including those concerning environmental, health, regulatory and safety matters.\par\pard\plain\fi1826\cf1\f51\fs24\ql \u8220?\plain\cf1\f51\fs24\b\ql License Agreement\u8221?\plain\cf1\f51\fs24\ql shall mean the License Agreement, of even date\plain\sa264\cf1\f51\fs24\ql herewith, between the Investor and the Company.{\*\bkmkstart _toc451405735_11737931}{\*\bkmkend _toc451405735_11737931}\par\pard\plain\fi1826\cf1\f51\fs24\ql \u8220?\plain\cf1\f51\fs24\b\ql Lock-Up Period\plain\cf1\f51\fs24\ql \u8221? shall mean the period beginning on the date of this\plain\sa264\cf1\f51\fs24\ql Agreement and extending until the earliest of (i) [***], (ii) [***] or (iii) [***].\par\pard\plain\fi1826\cf1\f51\fs24\ql \u8220?\plain\cf1\f51\fs24\b\ql Material Adverse Effect\plain\cf1\f51\fs24\ql \u8221? means any change, event or occurrence that has\plain\cf1\f51\fs24\ql had or is reasonably likely to have (i)\~a material adverse effect on the business, condition (financial or\plain\cf1\f51\fs24\ql other), assets, liabilities or results of operations of the Company and its subsidiaries, taken as a whole, or\plain\sa264\cf1\f51\fs24\ql (ii)\~a material adverse effect on the Company\u8217?s ability to timely perform its obligations\par\pard\plain\sb264\cf1\f51\fs18\qc 2\par\pard\plain\cf1\f51\fs16\ql [***]\plain\cf1\f51\fs16\b\ql Portions of this exhibit have been redacted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed\plain\cf1\f51\fs16\b\ql separately with the Commission.\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\cf1\f51\fs24\ql under, or timely consummate any of the transactions contemplated by, this Agreement,\plain\cf1\f51\fs24\i\ql except\plain\cf1\f51\fs24\ql to the extent\plain\cf1\f51\fs24\ql that any such change, event or occurrence results from or arises out of changes occurring in general legal,\plain\cf1\f51\fs24\ql regulatory, political, economic or business conditions or changes in GAAP or interpretations thereof\plain\cf1\f51\fs24\ql occurring after such date that, in each case, generally affect the biotechnology or biopharmaceutical\plain\cf1\f51\fs24\ql industries and have not had or would not be reasonably likely to have a disproportionate effect on the\plain\cf1\f51\fs24\ql Company and its subsidiaries compared to other participants in the biotechnology or biopharmaceutical\plain\sa264\cf1\f51\fs24\ql industries.\par\pard\plain\fi1826\cf1\f51\fs24\ql \u8220?\plain\cf1\f51\fs24\b\ql NASDAQ\u8221?\plain\sa264\cf1\f51\fs24\ql shall mean The Nasdaq Global Market LLC.\par\pard\plain\fi1826\cf1\f51\fs24\ql \u8220?\plain\cf1\f51\fs24\b\ql Organizational Documents\u8221?\plain\cf1\f51\fs24\ql shall mean (i) the Ninth Amended and\plain\cf1\f51\fs24\ql Restated Certificate of Incorporation of the Company, as amended through the date of this Agreement and\plain\sa264\cf1\f51\fs24\ql (ii) the Amended and Restated Bylaws of the Company, as amended through the date of this Agreement.\par\pard\plain\fi1826\cf1\f51\fs24\ql \u8220?\plain\cf1\f51\fs24\b\ql Person\u8221?\plain\cf1\f51\fs24\ql shall mean any individual, partnership, limited liability company,\plain\cf1\f51\fs24\ql firm, corporation, trust, joint venture, unincorporated organization, Governmental Authority or other entity,\plain\sa264\cf1\f51\fs24\ql as well as any \u8220?group\u8221? within the meaning of Rule 13d-5 of the Exchange Act.\par\pard\plain\fi1826\cf1\f51\fs24\ql \u8220?\plain\cf1\f51\fs24\b\ql Price Per Share\plain\sa264\cf1\f51\fs24\ql \u8221? shall equal $14.00.\par\pard\plain\fi1826\cf1\f51\fs24\ql \u8220?\plain\cf1\f51\fs24\b\ql Public Offering\plain\cf1\f51\fs24\ql \u8221? shall mean a public offering and sale of Common Stock\plain\sa264\cf1\f51\fs24\ql pursuant to an effective registration statement under the Securities Act.\par\pard\plain\fi1826\cf1\f51\fs24\ql \u8220?\plain\cf1\f51\fs24\b\ql Sale Transaction\plain\cf1\f51\fs24\ql \u8221? shall mean a transaction between the Company and a\plain\cf1\f51\fs24\ql Third Party (i) involving the direct or indirect acquisition by such Third Party of [***]% or more of the\plain\cf1\f51\fs24\ql Company\u8217?s outstanding shares of Common Stock or consolidated assets (including assets held by\plain\cf1\f51\fs24\ql subsidiaries),\plain\cf1\f51\fs24\i\ql excluding\plain\cf1\f51\fs24\ql a transaction in which (a) [***] or (b) [***], or (ii) involving the sale of\plain\cf1\f51\fs24\ql substantially all of the Company\u8217?s rights with respect to\plain\cf1\f51\fs24\i\ql vadadustat\plain\sa264\cf1\f51\fs24\ql .\par\pard\plain\fi1826\cf1\f51\fs24\ql \u8220?\plain\cf1\f51\fs24\b\ql SEC\plain\sa264\cf1\f51\fs24\ql \u8221? shall mean the United States Securities and Exchange Commission.\par\pard\plain\fi1826\cf1\f51\fs24\ql \u8220?\plain\cf1\f51\fs24\b\ql Securities Act\plain\sa264\cf1\f51\fs24\ql \u8221? shall mean the Securities Act of 1933, as amended.\par\pard\plain\fi1826\cf1\f51\fs24\ql \u8220?\plain\cf1\f51\fs24\b\ql Third Party\u8221?\plain\cf1\f51\fs24\ql shall mean any Person other than a Governmental Authority,\plain\sa264\cf1\f51\fs24\ql the Investor, the Company or any Affiliate of the Investor or the Company.\par\pard\plain\fi1826\cf1\f51\fs24\ql \u8220?\plain\cf1\f51\fs24\b\ql Transaction\u8221?\plain\cf1\f51\fs24\ql shall mean the issuance and sale of the Shares by the\plain\sa264\cf1\f51\fs24\ql Company, and the purchase of the Shares by the Investor at the Closing.\par\pard\plain\sb264\cf1\f51\fs18\qc 3\par\pard\plain\cf1\f51\fs16\ql [***]\plain\cf1\f51\fs16\b\ql Portions of this exhibit have been redacted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed\plain\cf1\f51\fs16\b\ql separately with the Commission.\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _toc477949050_11737931}{\*\bkmkend _toc477949050_11737931}\par\pard\plain\fi902\cf1\f51\fs24\li830\ql 1.2.\plain\cf1\f51\fs24\ql Additional Defined Terms\plain\cf1\f51\fs24\ql .\~\~In addition to the terms defined in\plain\cf1\f51\fs24\ql Section 1.1\plain\cf1\f51\fs24\ql , the following terms\plain\sa264\cf1\f51\fs24\ql shall have the respective meanings assigned thereto in the sections indicated below: \par\pard\plain {\trowd\clvertalc\cellx3752\clvertalc\cellx7580\trrh66 \pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\f0\fs16\ql \~\cell{ {\trowd\clvertalc\cellx3752\clvertalc\cellx7580\trrh66\row}}} {\trowd\cellx3752\cellx7580\trrh432 \pard\plain\intbl\sa132\cf1\f51\fs24\b\qc Defined Term\cell\pard\plain\intbl\sa132\cf1\f51\fs24\b\qc Section\cell{ {\trowd\cellx3752\cellx7580\trrh432\row}}} {\trowd\cellx3752\cellx7580\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql Common Stock\cell\pard\plain\intbl\cf1\f51\fs24\ql Recitals\cell{ {\trowd\cellx3752\cellx7580\trrh297\row}}} {\trowd\cellx3752\cellx7580\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql Company\cell\pard\plain\intbl\cf1\f51\fs24\ql Preamble\cell{ {\trowd\cellx3752\cellx7580\trrh297\row}}} {\trowd\cellx3752\cellx7580\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql Exchange Act\cell\pard\plain\intbl\cf1\f51\fs24\ql Section 4.7(a)\cell{ {\trowd\cellx3752\cellx7580\trrh297\row}}} {\trowd\cellx3752\cellx7580\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql Closing\cell\pard\plain\intbl\cf1\f51\fs24\ql Section 2.1\cell{ {\trowd\cellx3752\cellx7580\trrh297\row}}} {\trowd\cellx3752\cellx7580\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql Closing Date\cell\pard\plain\intbl\cf1\f51\fs24\ql Section 3.1\cell{ {\trowd\cellx3752\cellx7580\trrh297\row}}} {\trowd\cellx3752\cellx7580\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql Investor\cell\pard\plain\intbl\cf1\f51\fs24\ql Preamble\cell{ {\trowd\cellx3752\cellx7580\trrh297\row}}} {\trowd\cellx3752\cellx7580\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql Irrevocable Proxy\cell\pard\plain\intbl\cf1\f51\fs24\ql Section 6.2(b)(ii)\cell{ {\trowd\cellx3752\cellx7580\trrh297\row}}} {\trowd\cellx3752\cellx7580\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql Modified Clause\cell\pard\plain\intbl\cf1\f51\fs24\ql Section 7.8\cell{ {\trowd\cellx3752\cellx7580\trrh297\row}}} {\trowd\cellx3752\cellx7580\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql Rule 144\cell\pard\plain\intbl\cf1\f51\fs24\ql Section 5.9\cell{ {\trowd\cellx3752\cellx7580\trrh297\row}}} {\trowd\cellx3752\cellx7580\trrh297 \pard\plain\intbl\cf1\f51\fs24\ql Shares\cell\pard\plain\intbl\cf1\f51\fs24\ql Section 2.1\cell{ {\trowd\cellx3752\cellx7580\trrh297\row}}} {\trowd\cellx3752\cellx7580\trrh248 \pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{ {\trowd\cellx3752\cellx7580\trrh248\row}}}{\*\bkmkstart _toc451309617_11737931}{\*\bkmkend _toc451309617_11737931}{\*\bkmkstart _toc451405737_11737931}{\*\bkmkend _toc451405737_11737931}{\*\bkmkstart _toc451406044_11737931}{\*\bkmkend _toc451406044_11737931}{\*\bkmkstart _toc451407058_11737931}{\*\bkmkend _toc451407058_11737931}{\*\bkmkstart _toc477949051_11737931}{\*\bkmkend _toc477949051_11737931}\pard\plain\cf1\f51\fs24\b\qc ARTICLE II \par\pard\plain\fs16\pard\plain\sa264\cf1\f51\fs24\b\qc Purchase and Sale of Securities{\*\bkmkstart _toc451309618_11737931}{\*\bkmkend _toc451309618_11737931}{\*\bkmkstart _toc451405738_11737931}{\*\bkmkend _toc451405738_11737931}{\*\bkmkstart _toc451406045_11737931}{\*\bkmkend _toc451406045_11737931}{\*\bkmkstart _toc451407059_11737931}{\*\bkmkend _toc451407059_11737931}{\*\bkmkstart _toc477949052_11737931}{\*\bkmkend _toc477949052_11737931}{\*\bkmkstart _ref451464960_11737931}{\*\bkmkend _ref451464960_11737931}{\*\bkmkstart _ref476728504_11737931}{\*\bkmkend _ref476728504_11737931}\par\pard\plain\fi902\cf1\f51\fs24\ql 2.1.\plain\cf1\f51\fs24\ql Purchase and Sale of Securities\plain\cf1\f51\fs24\ql .\~\~Subject to the terms and conditions of this Agreement, at the\plain\cf1\f51\fs24\ql closing (the \u8220?\plain\cf1\f51\fs24\b\ql Closing\plain\cf1\f51\fs24\ql \u8221?) the Company shall issue and sell to the Investor, free and clear of all\plain\cf1\f51\fs24\ql liens, other than any liens arising as a result of any action by the Investor, and the Investor shall purchase\plain\cf1\f51\fs24\ql from the Company, 3,571,429 shares of Common Stock (the \u8220?\plain\cf1\f51\fs24\b\ql Shares\plain\cf1\f51\fs24\ql \u8221?) at the Price Per Share,\plain\cf1\f51\fs24\ql representing an aggregate purchase price of U.S. $50,000,000 (the \u8220?\plain\cf1\f51\fs24\b\ql Purchase Price\plain\sa264\cf1\f51\fs24\ql \u8221?).{\*\bkmkstart _toc451309619_11737931}{\*\bkmkend _toc451309619_11737931}{\*\bkmkstart _toc451405739_11737931}{\*\bkmkend _toc451405739_11737931}{\*\bkmkstart _toc451406046_11737931}{\*\bkmkend _toc451406046_11737931}{\*\bkmkstart _toc451407060_11737931}{\*\bkmkend _toc451407060_11737931}{\*\bkmkstart _toc477949053_11737931}{\*\bkmkend _toc477949053_11737931}\par\pard\plain\cf1\f51\fs24\b\qc ARTICLE III \par\pard\plain\fs16\pard\plain\sa264\cf1\f51\fs24\b\qc Closing; Deliveries.{\*\bkmkstart _toc451309620_11737931}{\*\bkmkend _toc451309620_11737931}{\*\bkmkstart _toc451405740_11737931}{\*\bkmkend _toc451405740_11737931}{\*\bkmkstart _toc451406047_11737931}{\*\bkmkend _toc451406047_11737931}{\*\bkmkstart _toc451407061_11737931}{\*\bkmkend _toc451407061_11737931}{\*\bkmkstart _toc477949054_11737931}{\*\bkmkend _toc477949054_11737931}{\*\bkmkstart _ref451310738_11737931}{\*\bkmkend _ref451310738_11737931}{\*\bkmkstart _ref451476234_11737931}{\*\bkmkend _ref451476234_11737931}\par\pard\plain\fi902\cf1\f51\fs24\ql 3.1.\plain\cf1\f51\fs24\ql Closing\plain\cf1\f51\fs24\ql .\~\~The Closing shall take place by electronic exchange of documents upon execution by\plain\cf1\f51\fs24\ql all Parties of this Agreement (the date of such Closing, the \u8220?\plain\cf1\f51\fs24\b\ql Closing Date\plain\sa264\cf1\f51\fs24\ql \u8221?).{\*\bkmkstart _toc451309621_11737931}{\*\bkmkend _toc451309621_11737931}{\*\bkmkstart _toc451405741_11737931}{\*\bkmkend _toc451405741_11737931}{\*\bkmkstart _toc451406048_11737931}{\*\bkmkend _toc451406048_11737931}{\*\bkmkstart _toc451407062_11737931}{\*\bkmkend _toc451407062_11737931}{\*\bkmkstart _toc477949055_11737931}{\*\bkmkend _toc477949055_11737931}{\*\bkmkstart _ref451464419_11737931}{\*\bkmkend _ref451464419_11737931}\par\pard\plain\fi902\cf1\f51\fs24\ql 3.2.\plain\cf1\f51\fs24\ql Deliveries by the Company\plain\cf1\f51\fs24\ql . At the Closing, simultaneously with the execution of this\plain\cf1\f51\fs24\ql Agreement, the Company shall deliver to the Investor the Shares, registered in the name of the Investor, by\plain\cf1\f51\fs24\ql instructing its transfer agent to register such issuance in book-entry form at the time of issuance and by\plain\cf1\f51\fs24\ql causing its transfer agent to deliver a statement evidencing such issuance as soon as practicable following\plain\cf1\f51\fs24\ql the Closing.\~\~The Company shall also deliver at the Closing: (i) a certificate of the Secretary of the\plain\cf1\f51\fs24\ql Company dated as of the Closing Date certifying (A) that attached thereto is a true and complete copy of\plain\cf1\f51\fs24\ql the Amended and Restated Bylaws of the Company as in effect at the time of the actions by the Board of\plain\cf1\f51\fs24\ql Directors of the Company referred to in clause (B) below, and on the Closing Date; (B) that attached thereto\plain\cf1\f51\fs24\ql is a true and complete copy of all resolutions adopted by the Board of Directors of the Company authorizing\plain\cf1\f51\fs24\ql the execution, delivery and performance of this Agreement and the Transaction and that all such resolutions\plain\cf1\f51\fs24\ql are in full force and effect and are all the resolutions adopted in connection with the transactions\plain\cf1\f51\fs24\ql contemplated hereby as of the Closing Date; (C) that attached thereto is a true and complete copy of the\plain\sa264\cf1\f51\fs24\ql Company\u8217?s Ninth Amended Restated Certificate of Incorporation as in effect at the time of\par\pard\plain\sb264\cf1\f51\fs18\qc 4\par\pard\plain\cf1\f51\fs16\ql [***]\plain\cf1\f51\fs16\b\ql Portions of this exhibit have been redacted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed\plain\cf1\f51\fs16\b\ql separately with the Commission.\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\cf1\f51\fs24\ql the actions by the Board of Directors of the Company referred to in clause (B) above, and on the Closing\plain\cf1\f51\fs24\ql Date; and (D) as to the incumbency and specimen signature of any officer of the Company executing this\plain\cf1\f51\fs24\ql Agreement on behalf of the Company and (ii) an opinion of counsel to the Company substantially in the\plain\cf1\f51\fs24\ql form attached hereto as\plain\cf1\f51\fs24\ql Exhibit B\plain\cf1\f51\fs24\ql and (iii) a certificate of the Chief Executive Officer of the Company\plain\cf1\f51\fs24\ql substantially in the form attached hereto as\plain\cf1\f51\fs24\ql Exhibit A\plain\sa264\cf1\f51\fs24\ql .{\*\bkmkstart _toc451309622_11737931}{\*\bkmkend _toc451309622_11737931}{\*\bkmkstart _toc451405742_11737931}{\*\bkmkend _toc451405742_11737931}{\*\bkmkstart _toc451406049_11737931}{\*\bkmkend _toc451406049_11737931}{\*\bkmkstart _toc451407063_11737931}{\*\bkmkend _toc451407063_11737931}{\*\bkmkstart _toc477949056_11737931}{\*\bkmkend _toc477949056_11737931}\par\pard\plain\fi902\cf1\f51\fs24\ql 3.3.\plain\cf1\f51\fs24\ql Deliveries by the Investor\plain\cf1\f51\fs24\ql . At the Closing, the Investor shall deliver, or cause to be delivered, to\plain\cf1\f51\fs24\ql the Company the Purchase Price by wire transfer of immediately available United States funds to an account\plain\cf1\f51\fs24\ql designated by the Company.\~\~The Company shall notify the Investor in writing of the wiring instructions for\plain\sa264\cf1\f51\fs24\ql such account not less than [***] before the Closing Date.\~\~{\*\bkmkstart _toc451309623_11737931}{\*\bkmkend _toc451309623_11737931}{\*\bkmkstart _toc451405743_11737931}{\*\bkmkend _toc451405743_11737931}{\*\bkmkstart _toc451406050_11737931}{\*\bkmkend _toc451406050_11737931}{\*\bkmkstart _toc451407064_11737931}{\*\bkmkend _toc451407064_11737931}{\*\bkmkstart _ref451464653_11737931}{\*\bkmkend _ref451464653_11737931}{\*\bkmkstart _toc477949057_11737931}{\*\bkmkend _toc477949057_11737931}\par\pard\plain\cf1\f51\fs24\b\qc ARTICLE IV \par\pard\plain\fs16\pard\plain\sa264\cf1\f51\fs24\b\qc Representations and Warranties of the Company.\par\pard\plain\sa264\fi902\cf1\f51\fs24\ql The Company hereby represents and warrants to the Investor as of the date of this Agreement that:{\*\bkmkstart _toc451309624_11737931}{\*\bkmkend _toc451309624_11737931}{\*\bkmkstart _toc451405744_11737931}{\*\bkmkend _toc451405744_11737931}{\*\bkmkstart _toc451406051_11737931}{\*\bkmkend _toc451406051_11737931}{\*\bkmkstart _toc451407065_11737931}{\*\bkmkend _toc451407065_11737931}{\*\bkmkstart _toc477949058_11737931}{\*\bkmkend _toc477949058_11737931}\par\pard\plain\fi902\cf1\f51\fs24\ql 4.1.\plain\cf1\f51\fs24\ql Organization, Corporate Power and Authority\plain\cf1\f51\fs24\ql . The Company is a corporation duly incorporated,\plain\cf1\f51\fs24\ql validly existing and in good standing under the laws of the jurisdiction of its incorporation, with the\plain\cf1\f51\fs24\ql requisite power and authority to own and use its properties and assets and to carry on its business as\plain\cf1\f51\fs24\ql currently conducted. The Company has all requisite corporate power and corporate authority to own, lease\plain\cf1\f51\fs24\ql and operate its properties and assets, to carry on its business as described in the Company SEC Documents\plain\cf1\f51\fs24\ql and as contemplated to be conducted by this Agreement. The Company has and will have all requisite power\plain\cf1\f51\fs24\ql and corporate authority to enter into this Agreement and to perform its obligations under and to carry out\plain\sa264\cf1\f51\fs24\ql the Transaction.{\*\bkmkstart _toc451309627_11737931}{\*\bkmkend _toc451309627_11737931}{\*\bkmkstart _toc451405747_11737931}{\*\bkmkend _toc451405747_11737931}{\*\bkmkstart _toc451406054_11737931}{\*\bkmkend _toc451406054_11737931}{\*\bkmkstart _toc451407068_11737931}{\*\bkmkend _toc451407068_11737931}{\*\bkmkstart _toc477949059_11737931}{\*\bkmkend _toc477949059_11737931}\par\pard\plain\fi902\cf1\f51\fs24\ql 4.2.\plain\cf1\f51\fs24\ql Authorization\plain\sa264\cf1\f51\fs24\ql .\par\pard\plain\fi1826\cf1\f51\fs24\ql (a)All requisite corporate action required by applicable Law for the authorization, execution\plain\cf1\f51\fs24\ql and delivery by the Company of this Agreement, and the performance of all obligations of the Company\plain\cf1\f51\fs24\ql hereunder and thereunder, including the authorization, issuance and delivery of the Closing Shares, has been\plain\sa264\cf1\f51\fs24\ql taken.\par\pard\plain\fi1826\cf1\f51\fs24\ql (b)This Agreement has been duly executed and delivered by the Company and, upon the\plain\cf1\f51\fs24\ql due execution and delivery thereof by the Investor, will constitute valid and legally binding obligations of\plain\cf1\f51\fs24\ql the Company, enforceable against the Company in accordance with their respective terms (except as such\plain\cf1\f51\fs24\ql enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other\plain\cf1\f51\fs24\ql Laws of general application relating to or affecting enforcement of creditors\u8217? rights and (ii) rules of\plain\cf1\f51\fs24\ql Law governing specific performance, injunctive relief or other equitable remedies and limitations of public\plain\sa264\cf1\f51\fs24\ql policy).{\*\bkmkstart _toc451309629_11737931}{\*\bkmkend _toc451309629_11737931}{\*\bkmkstart _toc451405749_11737931}{\*\bkmkend _toc451405749_11737931}{\*\bkmkstart _toc451406056_11737931}{\*\bkmkend _toc451406056_11737931}{\*\bkmkstart _toc451407070_11737931}{\*\bkmkend _toc451407070_11737931}{\*\bkmkstart _toc477949060_11737931}{\*\bkmkend _toc477949060_11737931}\par\pard\plain\fi902\cf1\f51\fs24\ql 4.3.\plain\cf1\f51\fs24\ql No Conflicts\plain\cf1\f51\fs24\ql .\~\~The execution, delivery and performance of this Agreement, and compliance with\plain\cf1\f51\fs24\ql the provisions hereof and thereof by the Company do not and shall not: (a) violate any provision of\plain\cf1\f51\fs24\ql applicable Law or any ruling, writ, injunction, order, permit, judgment or decree of any Governmental\plain\cf1\f51\fs24\ql Authority, (b) constitute a breach of, or default under (or an event which, with notice or lapse of time or\plain\cf1\f51\fs24\ql both, would become a default under) or conflict with, or give rise to any right of termination, cancellation or\plain\sa264\cf1\f51\fs24\ql acceleration of, any agreement, arrangement or instrument,\par\pard\plain\sb264\cf1\f51\fs18\qc 5\par\pard\plain\cf1\f51\fs16\ql [***]\plain\cf1\f51\fs16\b\ql Portions of this exhibit have been redacted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed\plain\cf1\f51\fs16\b\ql separately with the Commission.\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\cf1\f51\fs24\ql whether written or oral, by which the Company is bound or (c) violate or conflict with any of the provisions\plain\cf1\f51\fs24\ql of the Company\u8217?s Organizational Documents, except in each case as would not have a Material\plain\sa264\cf1\f51\fs24\ql Adverse Effect.{\*\bkmkstart _toc477949061_11737931}{\*\bkmkend _toc477949061_11737931}\par\pard\plain\fi902\cf1\f51\fs24\ql 4.4.\plain\cf1\f51\fs24\ql No Governmental Authority or Third Party Consents\plain\cf1\f51\fs24\ql .\~\~No consent, approval, authorization or\plain\cf1\f51\fs24\ql other order of or filing with any Governmental Authority is required to be obtained by the Company in\plain\cf1\f51\fs24\ql connection with the authorization, execution and delivery of this Agreement or with the issuance and sale of\plain\cf1\f51\fs24\ql the Shares at the Initial Closing, except the filing of a Current Report on Form 8-K and a Notice of Sale of\plain\cf1\f51\fs24\ql Securities on Form D with the Securities and Exchange Commission to the extent required by applicable\plain\sa264\cf1\f51\fs24\ql Law.{\*\bkmkstart _toc477949062_11737931}{\*\bkmkend _toc477949062_11737931}\par\pard\plain\fi902\cf1\f51\fs24\ql 4.5.\plain\cf1\f51\fs24\ql Capitalization\plain\cf1\f51\fs24\ql .\~\~The authorized capitalization of the Company consists of 175,000,000 shares of\plain\cf1\f51\fs24\ql Common Stock, of which 38,891,483 shares were issued and outstanding as of May 5, 2017, and 25,000,000\plain\cf1\f51\fs24\ql shares of preferred stock, $0.00001 par value, of which no shares are issued and outstanding.\~\~The sale and\plain\cf1\f51\fs24\ql issuance of the Shares will not obligate the Company to issue shares of Common Stock or other securities to\plain\cf1\f51\fs24\ql any other person and will not result in a right of any holder of securities issued by the Company to adjust\plain\cf1\f51\fs24\ql the exercise, conversion, or exchange price or ratio under any such securities.\~\~Other than as set forth in the\plain\cf1\f51\fs24\ql Company SEC Documents, the Company is not a party to any stockholders, voting or similar agreement\plain\sa264\cf1\f51\fs24\ql with any other person.{\*\bkmkstart _toc451309631_11737931}{\*\bkmkend _toc451309631_11737931}{\*\bkmkstart _toc451405751_11737931}{\*\bkmkend _toc451405751_11737931}{\*\bkmkstart _toc451406058_11737931}{\*\bkmkend _toc451406058_11737931}{\*\bkmkstart _toc451407072_11737931}{\*\bkmkend _toc451407072_11737931}{\*\bkmkstart _toc477949063_11737931}{\*\bkmkend _toc477949063_11737931}\par\pard\plain\fi902\cf1\f51\fs24\ql 4.6.\plain\cf1\f51\fs24\ql Valid Issuance of Shares\plain\cf1\f51\fs24\ql .\~\~When issued and delivered in accordance with the terms hereof\plain\cf1\f51\fs24\ql against payment therefor, the Shares shall be validly issued, fully paid and nonassessable, free from any\plain\cf1\f51\fs24\ql liens, encumbrances or restrictions on transfer, including preemptive rights, rights of first refusal or other\plain\cf1\f51\fs24\ql similar rights, other than as arising pursuant to this Agreement, as a result of any action by the Investor or\plain\cf1\f51\fs24\ql under federal or state securities Laws.\~\~Assuming the accuracy of the representations and warranties of the\plain\cf1\f51\fs24\ql Investor in this Agreement, the Shares will be issued in compliance with all applicable federal and state\plain\sa264\cf1\f51\fs24\ql securities Laws.{\*\bkmkstart _toc451309634_11737931}{\*\bkmkend _toc451309634_11737931}{\*\bkmkstart _toc451405754_11737931}{\*\bkmkend _toc451405754_11737931}{\*\bkmkstart _toc451406061_11737931}{\*\bkmkend _toc451406061_11737931}{\*\bkmkstart _toc451407075_11737931}{\*\bkmkend _toc451407075_11737931}{\*\bkmkstart _toc477949064_11737931}{\*\bkmkend _toc477949064_11737931}\par\pard\plain\fi902\cf1\f51\fs24\ql 4.7.\plain\cf1\f51\fs24\ql Company SEC Documents; Financial Statements\plain\sa264\cf1\f51\fs24\ql .{\*\bkmkstart _ref451406129_11737931}{\*\bkmkend _ref451406129_11737931}\par\pard\plain\fi1826\cf1\f51\fs24\ql (a)During the one year preceding the date of this Agreement, the Company has filed all\plain\cf1\f51\fs24\ql required reports, schedules, forms, statements and other documents (including exhibits and all other\plain\cf1\f51\fs24\ql information incorporated therein), and any required amendments to any of the foregoing, with the SEC.\~\~As\plain\cf1\f51\fs24\ql of their respective filing dates (or date of amendment, if amended), each of the Company SEC Documents\plain\cf1\f51\fs24\ql (i) complied as to form in all material respects with the requirements of the Securities Exchange Act of\plain\cf1\f51\fs24\ql 1934, as amended (the \u8220?\plain\cf1\f51\fs24\b\ql Exchange Act\plain\cf1\f51\fs24\ql \u8221?) (as the case may be), and the rules and regulations of\plain\cf1\f51\fs24\ql the SEC promulgated thereunder applicable to such Company SEC Documents, and (ii) contained no untrue\plain\cf1\f51\fs24\ql statement of a material fact or omitted to state a material fact required to be stated therein or necessary in\plain\cf1\f51\fs24\ql order to make the statements therein, in light of the circumstances under which they were made, not\plain\sa264\cf1\f51\fs24\ql misleading.{\*\bkmkstart _ref451406141_11737931}{\*\bkmkend _ref451406141_11737931}\par\pard\plain\fi1826\cf1\f51\fs24\ql (b)When filed, the financial statements of the Company included in its most recently filed\plain\cf1\f51\fs24\ql Annual Report on Form 10-K and, if the Annual Report on Form 10-K is not the Company\u8217?s most\plain\cf1\f51\fs24\ql recently filed periodic report, in its most recently filed quarterly report on Form 10-Q, complied as to form\plain\cf1\f51\fs24\ql in all material respects with the published rules and regulations of the SEC applicable with respect thereto,\plain\cf1\f51\fs24\ql were prepared in accordance with United States generally accepted accounting principles applied on a\plain\sa264\cf1\f51\fs24\ql consistent basis during the periods involved (except as\par\pard\plain\sb264\cf1\f51\fs18\qc 6\par\pard\plain\cf1\f51\fs16\ql [***]\plain\cf1\f51\fs16\b\ql Portions of this exhibit have been redacted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed\plain\cf1\f51\fs16\b\ql separately with the Commission.\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\cf1\f51\fs24\ql may be indicated in the notes thereto or, in the case of unaudited financial statements, as permitted by Form\plain\cf1\f51\fs24\ql 10-Q, Form 8-K or any successor form under the Exchange Act, and except that the unaudited financial\plain\cf1\f51\fs24\ql statements may not contain footnotes and are subject to normal and recurring year-end adjustments that will\plain\cf1\f51\fs24\ql not, individually or in the aggregate, be material in amount) and fairly present in all material respects the\plain\cf1\f51\fs24\ql financial position of the Company and its consolidated subsidiaries as of the dates thereof and the results of\plain\sa264\cf1\f51\fs24\ql its operations and cash flows for the periods then ended.\par\pard\plain\fi1826\cf1\f51\fs24\ql (c)From January 1, 2017 to the date hereof, (i) there have been no events, occurrences or\plain\cf1\f51\fs24\ql developments that have had or would reasonably be expected to have, either individually or in the aggregate,\plain\cf1\f51\fs24\ql a Material Adverse Effect and (ii)\~the Company has not incurred any liabilities other than (A)\~trade payables,\plain\cf1\f51\fs24\ql accrued expenses and other liabilities incurred in the ordinary course of business consistent with past\plain\cf1\f51\fs24\ql practice, (B)\~liabilities not required to be reflected in the Company\u8217?s financial statements pursuant to\plain\cf1\f51\fs24\ql GAAP or disclosed in filings made with the Commission and (C) liabilities that would not, individually or\plain\sa264\cf1\f51\fs24\ql in the aggregate, reasonably be expected to have a Material Adverse Effect.\~\~{\*\bkmkstart _toc477949065_11737931}{\*\bkmkend _toc477949065_11737931}{\*\bkmkstart _toc451309639_11737931}{\*\bkmkend _toc451309639_11737931}{\*\bkmkstart _toc451405759_11737931}{\*\bkmkend _toc451405759_11737931}{\*\bkmkstart _toc451406066_11737931}{\*\bkmkend _toc451406066_11737931}{\*\bkmkstart _toc451407080_11737931}{\*\bkmkend _toc451407080_11737931}\par\pard\plain\fi902\cf1\f51\fs24\ql 4.8.\plain\cf1\f51\fs24\ql Litigation\plain\cf1\f51\fs24\ql .\~\~There is no action, suit, proceeding or investigation pending, or to the knowledge of\plain\cf1\f51\fs24\ql the Company, threatened which (i)\~would reasonably be expected to materially adversely affect or\plain\cf1\f51\fs24\ql successfully challenge the legality, validity or enforceability of this Agreement or (ii)\~except as specifically\plain\cf1\f51\fs24\ql disclosed in the Company SEC Documents, would, if there were an unfavorable decision, individually or in\plain\cf1\f51\fs24\ql the aggregate, have or reasonably be expected to result in a Material Adverse Effect. Except as disclosed in\plain\cf1\f51\fs24\ql the Company SEC Documents, neither the Company nor, to the knowledge of the Company, any director or\plain\cf1\f51\fs24\ql officer thereof is or has been since January 1, 2016 the subject of any action, suit, proceeding or\plain\cf1\f51\fs24\ql investigation involving a claim of violation of or liability under federal or state securities laws or a claim of\plain\sa264\cf1\f51\fs24\ql breach of fiduciary duty relating to actions taken at the Company.{\*\bkmkstart _toc477949066_11737931}{\*\bkmkend _toc477949066_11737931}\par\pard\plain\fi902\cf1\f51\fs24\ql 4.9.\plain\cf1\f51\fs24\ql Investment Company\plain\cf1\f51\fs24\ql .\~\~The Company is not, and is not an Affiliate of, and immediately after\plain\cf1\f51\fs24\ql receipt of payment for the Shares, will not be or be an Affiliate of, an \u8220?investment company\u8221?\plain\sa264\cf1\f51\fs24\ql within the meaning of the Investment Company Act of 1940, as amended.{\*\bkmkstart _toc451309640_11737931}{\*\bkmkend _toc451309640_11737931}{\*\bkmkstart _toc451405760_11737931}{\*\bkmkend _toc451405760_11737931}{\*\bkmkstart _toc451406067_11737931}{\*\bkmkend _toc451406067_11737931}{\*\bkmkstart _toc451407081_11737931}{\*\bkmkend _toc451407081_11737931}{\*\bkmkstart _toc477949067_11737931}{\*\bkmkend _toc477949067_11737931}\par\pard\plain\fi902\cf1\f51\fs24\ql 4.10.\plain\cf1\f51\fs24\ql No General Solicitation\plain\cf1\f51\fs24\ql .\~\~Neither the Company nor any Person acting on behalf of the\plain\cf1\f51\fs24\ql Company has offered or sold any of the Shares by any form of general solicitation or general advertising\plain\cf1\f51\fs24\ql (within the meaning of Regulation D of the Securities Act). The Company has offered the Shares for sale\plain\sa264\cf1\f51\fs24\ql only to the Investor.{\*\bkmkstart _toc451309645_11737931}{\*\bkmkend _toc451309645_11737931}{\*\bkmkstart _toc451405765_11737931}{\*\bkmkend _toc451405765_11737931}{\*\bkmkstart _toc451406072_11737931}{\*\bkmkend _toc451406072_11737931}{\*\bkmkstart _toc451407086_11737931}{\*\bkmkend _toc451407086_11737931}{\*\bkmkstart _ref451467127_11737931}{\*\bkmkend _ref451467127_11737931}{\*\bkmkstart _toc477949068_11737931}{\*\bkmkend _toc477949068_11737931}\par\pard\plain\cf1\f51\fs24\b\qc ARTICLE V \par\pard\plain\fs16\pard\plain\sa264\cf1\f51\fs24\b\qc Representations and Warranties of the Investor.\par\pard\plain\sa264\fi902\cf1\f51\fs24\ql The Investor hereby represents and warrants to the Company as of the date of this Agreement that:{\*\bkmkstart _toc451309646_11737931}{\*\bkmkend _toc451309646_11737931}{\*\bkmkstart _toc451405766_11737931}{\*\bkmkend _toc451405766_11737931}{\*\bkmkstart _toc451406073_11737931}{\*\bkmkend _toc451406073_11737931}{\*\bkmkstart _toc451407087_11737931}{\*\bkmkend _toc451407087_11737931}{\*\bkmkstart _toc477949069_11737931}{\*\bkmkend _toc477949069_11737931}\par\pard\plain\fi902\cf1\f51\fs24\ql 5.1.\plain\cf1\f51\fs24\ql Organization; Good Standing\plain\cf1\f51\fs24\ql .\~\~The Investor is a company duly organized, validly existing and in\plain\cf1\f51\fs24\ql good standing under the laws of its jurisdiction of formation.\~\~The Investor has and will have all requisite\plain\cf1\f51\fs24\ql power and authority to enter into this Agreement and to perform its obligations under and to carry out the\plain\sa264\cf1\f51\fs24\ql Transaction.\par\pard\plain\sb264\cf1\f51\fs18\qc 7\par\pard\plain\cf1\f51\fs16\ql [***]\plain\cf1\f51\fs16\b\ql Portions of this exhibit have been redacted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed\plain\cf1\f51\fs16\b\ql separately with the Commission.\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _toc451309647_11737931}{\*\bkmkend _toc451309647_11737931}{\*\bkmkstart _toc451405767_11737931}{\*\bkmkend _toc451405767_11737931}{\*\bkmkstart _toc451406074_11737931}{\*\bkmkend _toc451406074_11737931}{\*\bkmkstart _toc451407088_11737931}{\*\bkmkend _toc451407088_11737931}{\*\bkmkstart _toc477949070_11737931}{\*\bkmkend _toc477949070_11737931}\par\pard\plain\fi902\cf1\f51\fs24\li830\ql 5.2.\plain\cf1\f51\fs24\ql Authorization\plain\cf1\f51\fs24\ql .\~\~All requisite action required by applicable Law for the authorization, execution\plain\cf1\f51\fs24\ql and delivery by the Investor of this Agreement, and the performance of all of its obligations hereunder and\plain\cf1\f51\fs24\ql thereunder, including the subscription for and purchase of the Shares, has been taken.\~\~This Agreement has\plain\cf1\f51\fs24\ql been duly executed and delivered by the Investor and, upon the due execution and delivery thereof by the\plain\cf1\f51\fs24\ql Company, will constitute valid and legally binding obligations of the Investor, enforceable against the\plain\cf1\f51\fs24\ql Investor in accordance with their respective terms (except as such enforceability may be limited by (a)\plain\cf1\f51\fs24\ql applicable bankruptcy, insolvency, reorganization, moratorium or other Laws of general application relating\plain\cf1\f51\fs24\ql to or affecting enforcement of creditors\u8217? rights and (b) rules of Law governing specific performance,\plain\sa264\cf1\f51\fs24\ql injunctive relief or other equitable remedies and limitations of public policy).{\*\bkmkstart _toc451309648_11737931}{\*\bkmkend _toc451309648_11737931}{\*\bkmkstart _toc451405768_11737931}{\*\bkmkend _toc451405768_11737931}{\*\bkmkstart _toc451406075_11737931}{\*\bkmkend _toc451406075_11737931}{\*\bkmkstart _toc451407089_11737931}{\*\bkmkend _toc451407089_11737931}{\*\bkmkstart _toc477949071_11737931}{\*\bkmkend _toc477949071_11737931}\par\pard\plain\fi902\cf1\f51\fs24\ql 5.3.\plain\cf1\f51\fs24\ql No Conflicts\plain\cf1\f51\fs24\ql .\~\~The execution, delivery and performance of this Agreement and compliance with\plain\cf1\f51\fs24\ql the provisions thereof by the Investor do not and shall not: (a) violate any provision of applicable Law or\plain\cf1\f51\fs24\ql any ruling, writ, injunction, order, permit, judgment or decree of any Governmental Authority, (b) constitute\plain\cf1\f51\fs24\ql a breach of, or default under (or an event which, with notice or lapse of time or both, would become a\plain\cf1\f51\fs24\ql default under) or conflict with, or give rise to any right of termination, cancellation or acceleration of, any\plain\cf1\f51\fs24\ql agreement, arrangement or instrument, whether written or oral, by which the Investor is bound, or (c) violate\plain\cf1\f51\fs24\ql or conflict with any of the provisions of the Investor\u8217?s organizational documents (including any\plain\cf1\f51\fs24\ql articles or memoranda of organization or association, charter, bylaws or similar documents), except as would\plain\cf1\f51\fs24\ql not have a material adverse effect on the Investor\u8217?s ability to perform its obligations or consummate\plain\sa264\cf1\f51\fs24\ql the Transaction in accordance with the terms of this Agreement.{\*\bkmkstart _toc451309649_11737931}{\*\bkmkend _toc451309649_11737931}{\*\bkmkstart _toc451405769_11737931}{\*\bkmkend _toc451405769_11737931}{\*\bkmkstart _toc451406076_11737931}{\*\bkmkend _toc451406076_11737931}{\*\bkmkstart _toc451407090_11737931}{\*\bkmkend _toc451407090_11737931}{\*\bkmkstart _toc477949072_11737931}{\*\bkmkend _toc477949072_11737931}\par\pard\plain\fi902\cf1\f51\fs24\ql 5.4.\plain\cf1\f51\fs24\ql No Governmental Authority or Third Party Consents\plain\cf1\f51\fs24\ql .\~\~No consent, approval, authorization or\plain\cf1\f51\fs24\ql other order of any Governmental Authority or other Third Party is required to be obtained by the Investor in\plain\cf1\f51\fs24\ql connection with the authorization, execution and delivery this Agreement or with the subscription for and\plain\sa264\cf1\f51\fs24\ql purchase of the Shares.{\*\bkmkstart _toc451309650_11737931}{\*\bkmkend _toc451309650_11737931}{\*\bkmkstart _toc451405770_11737931}{\*\bkmkend _toc451405770_11737931}{\*\bkmkstart _toc451406077_11737931}{\*\bkmkend _toc451406077_11737931}{\*\bkmkstart _toc451407091_11737931}{\*\bkmkend _toc451407091_11737931}{\*\bkmkstart _toc477949073_11737931}{\*\bkmkend _toc477949073_11737931}\par\pard\plain\fi902\cf1\f51\fs24\ql 5.5.\plain\cf1\f51\fs24\ql Purchase Entirely for Own Account\plain\cf1\f51\fs24\ql .\~\~The Shares shall be acquired for investment for the\plain\cf1\f51\fs24\ql Investor\u8217?s own account, not as a nominee or agent, and not with a view to the resale or distribution\plain\cf1\f51\fs24\ql of any part thereof, and the Investor has no, and will have no, intention of selling, granting any participation\plain\cf1\f51\fs24\ql or otherwise distributing the Shares.\~\~The Investor does not have and will not have as of the Closing any\plain\cf1\f51\fs24\ql contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant participation to a\plain\sa264\cf1\f51\fs24\ql Person any of the Shares.{\*\bkmkstart _toc451309651_11737931}{\*\bkmkend _toc451309651_11737931}{\*\bkmkstart _toc451405771_11737931}{\*\bkmkend _toc451405771_11737931}{\*\bkmkstart _toc451406078_11737931}{\*\bkmkend _toc451406078_11737931}{\*\bkmkstart _toc451407092_11737931}{\*\bkmkend _toc451407092_11737931}{\*\bkmkstart _toc477949074_11737931}{\*\bkmkend _toc477949074_11737931}\par\pard\plain\fi902\cf1\f51\fs24\ql 5.6.\plain\cf1\f51\fs24\ql Disclosure of Information\plain\cf1\f51\fs24\ql .\~\~The Investor has received all the information from the Company and\plain\cf1\f51\fs24\ql its management that the Investor considers necessary or appropriate for deciding whether to purchase the\plain\cf1\f51\fs24\ql Shares hereunder.\~\~The Investor further represents that it has had an opportunity to ask questions and receive\plain\cf1\f51\fs24\ql answers from the Company regarding the Company, its financial condition, results of operations and\plain\cf1\f51\fs24\ql prospects and the terms and conditions of the offering of the Shares sufficient to enable it to evaluate its\plain\sa264\cf1\f51\fs24\ql investment.{\*\bkmkstart _toc451309652_11737931}{\*\bkmkend _toc451309652_11737931}{\*\bkmkstart _toc451405772_11737931}{\*\bkmkend _toc451405772_11737931}{\*\bkmkstart _toc451406079_11737931}{\*\bkmkend _toc451406079_11737931}{\*\bkmkstart _toc451407093_11737931}{\*\bkmkend _toc451407093_11737931}{\*\bkmkstart _toc477949075_11737931}{\*\bkmkend _toc477949075_11737931}\par\pard\plain\fi902\cf1\f51\fs24\ql 5.7.\plain\cf1\f51\fs24\ql Investment Experience and Accredited Investor Status\plain\cf1\f51\fs24\ql .\~\~The Investor is an \u8220?accredited\plain\cf1\f51\fs24\ql investor\u8221? (as defined in Regulation D under the Securities Act).\~\~The Investor has such knowledge\plain\cf1\f51\fs24\ql and experience in financial or business matters that it is capable of evaluating the merits and risks of the\plain\sa264\cf1\f51\fs24\ql investment in the Shares to be purchased hereunder.\par\pard\plain\sb264\cf1\f51\fs18\qc 8\par\pard\plain\cf1\f51\fs16\ql [***]\plain\cf1\f51\fs16\b\ql Portions of this exhibit have been redacted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed\plain\cf1\f51\fs16\b\ql separately with the Commission.\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page{\*\bkmkstart _toc451309653_11737931}{\*\bkmkend _toc451309653_11737931}{\*\bkmkstart _toc451405773_11737931}{\*\bkmkend _toc451405773_11737931}{\*\bkmkstart _toc451406080_11737931}{\*\bkmkend _toc451406080_11737931}{\*\bkmkstart _toc451407094_11737931}{\*\bkmkend _toc451407094_11737931}{\*\bkmkstart _toc477949076_11737931}{\*\bkmkend _toc477949076_11737931}\par\pard\plain\fi902\cf1\f51\fs24\li830\ql 5.8.\plain\cf1\f51\fs24\ql Acquiring Person\plain\cf1\f51\fs24\ql .\~\~Neither the Investor nor any of its Affiliates Beneficially Owns any\plain\cf1\f51\fs24\ql securities of the Company, except for securities that may be owned by employee benefit plans of the\plain\sa264\cf1\f51\fs24\ql Investor or any of its Affiliates.{\*\bkmkstart _toc451309654_11737931}{\*\bkmkend _toc451309654_11737931}{\*\bkmkstart _toc451405774_11737931}{\*\bkmkend _toc451405774_11737931}{\*\bkmkstart _toc451406081_11737931}{\*\bkmkend _toc451406081_11737931}{\*\bkmkstart _toc451407095_11737931}{\*\bkmkend _toc451407095_11737931}{\*\bkmkstart _toc477949077_11737931}{\*\bkmkend _toc477949077_11737931}{\*\bkmkstart _ref451406173_11737931}{\*\bkmkend _ref451406173_11737931}\par\pard\plain\fi902\cf1\f51\fs24\ql 5.9.\plain\cf1\f51\fs24\ql Restricted Securities\plain\cf1\f51\fs24\ql .\~\~The Investor understands that the Shares, when issued, shall be\plain\cf1\f51\fs24\ql \u8220?restricted securities\u8221? under the federal securities Laws inasmuch as they are being acquired\plain\cf1\f51\fs24\ql from the Company in a transaction not involving a Public Offering and that under such Laws the Shares\plain\cf1\f51\fs24\ql may be resold without registration under the Securities Act only in certain limited circumstances.\~\~The\plain\cf1\f51\fs24\ql Investor represents that it is familiar with Rule 144 of the Securities Act (\u8220?\plain\cf1\f51\fs24\b\ql Rule 144\plain\cf1\f51\fs24\ql \u8221?), as\plain\sa264\cf1\f51\fs24\ql presently in effect.{\*\bkmkstart _toc451309655_11737931}{\*\bkmkend _toc451309655_11737931}{\*\bkmkstart _toc451405775_11737931}{\*\bkmkend _toc451405775_11737931}{\*\bkmkstart _toc451406082_11737931}{\*\bkmkend _toc451406082_11737931}{\*\bkmkstart _toc451407096_11737931}{\*\bkmkend _toc451407096_11737931}{\*\bkmkstart _toc477949078_11737931}{\*\bkmkend _toc477949078_11737931}{\*\bkmkstart _ref451473613_11737931}{\*\bkmkend _ref451473613_11737931}\par\pard\plain\fi902\cf1\f51\fs24\ql 5.10.\plain\cf1\f51\fs24\ql Legends\plain\cf1\f51\fs24\ql .\~\~The Investor understands that any certificates representing the Shares shall bear the\plain\sa264\cf1\f51\fs24\ql following legends:{\*\bkmkstart _ref451473587_11737931}{\*\bkmkend _ref451473587_11737931}\par\pard\plain\fi1826\cf1\f51\fs24\ql (a)\u8220?These securities have not been registered under the Securities Act of 1933.\~\~They\plain\cf1\f51\fs24\ql may not be sold, offered for sale, pledged or hypothecated in the absence of a registration statement in\plain\cf1\f51\fs24\ql effect with respect to the securities under the Securities Act or an opinion of counsel (which counsel shall\plain\cf1\f51\fs24\ql be reasonably satisfactory to the Company) that such registration is not required or unless sold pursuant to\plain\sa264\cf1\f51\fs24\ql Rule 144 of the Securities Act.\u8221?; and{\*\bkmkstart _ref451473594_11737931}{\*\bkmkend _ref451473594_11737931}\par\pard\plain\fi1826\cf1\f51\fs24\ql (b)\u8220?The securities represented by this certificate are subject to and shall be\plain\cf1\f51\fs24\ql transferable only upon the terms and conditions of an Investment Agreement dated as of May 12, 2017, by\plain\cf1\f51\fs24\ql and between Akebia Therapeutics, Inc. and Vifor (INTERNATIoNAL) LTD., a copy of which is on file\plain\sa264\cf1\f51\fs24\ql with the Secretary of Akebia Therapeutics, Inc.\u8221?{\*\bkmkstart _toc451309665_11737931}{\*\bkmkend _toc451309665_11737931}{\*\bkmkstart _toc451405785_11737931}{\*\bkmkend _toc451405785_11737931}{\*\bkmkstart _toc451406092_11737931}{\*\bkmkend _toc451406092_11737931}{\*\bkmkstart _toc451407106_11737931}{\*\bkmkend _toc451407106_11737931}{\*\bkmkstart _ref454296351_11737931}{\*\bkmkend _ref454296351_11737931}{\*\bkmkstart _toc477949079_11737931}{\*\bkmkend _toc477949079_11737931}\par\pard\plain\cf1\f51\fs24\b\qc ARTICLE VI \par\pard\plain\fs16\pard\plain\sa264\cf1\f51\fs24\b\qc Additional Covenants and Agreements.{\*\bkmkstart _toc451405795_11737931}{\*\bkmkend _toc451405795_11737931}{\*\bkmkstart _toc451406096_11737931}{\*\bkmkend _toc451406096_11737931}{\*\bkmkstart _toc451407110_11737931}{\*\bkmkend _toc451407110_11737931}{\*\bkmkstart _toc477949080_11737931}{\*\bkmkend _toc477949080_11737931}{\*\bkmkstart _ref451467280_11737931}{\*\bkmkend _ref451467280_11737931}{\*\bkmkstart _ref454195884_11737931}{\*\bkmkend _ref454195884_11737931}{\*\bkmkstart _toc451309668_11737931}{\*\bkmkend _toc451309668_11737931}\par\pard\plain\fi902\cf1\f51\fs24\ql 6.1.\plain\cf1\f51\fs24\ql Lock-Up\plain\sa264\cf1\f51\fs24\ql .\~\~\par\pard\plain\fi1826\cf1\f51\fs24\ql (a)During the Lock-Up Period, except in the case of a transfer to an Affiliate that agrees to\plain\cf1\f51\fs24\ql bound by the same restrictions as the Investor described in this ARTICLE VI, the Investor shall not (i)\plain\cf1\f51\fs24\ql transfer, offer, pledge, sell, contract to sell, or otherwise dispose of, directly or indirectly any option or\plain\cf1\f51\fs24\ql contract to purchase, purchase any option or contract to sell, or otherwise dispose of, directly or indirectly\plain\cf1\f51\fs24\ql and shares of Common Stock or any securities convertible into, exercisable for, or exchangeable for shares\plain\cf1\f51\fs24\ql of Common Stock, or (ii) enter into any swap or other arrangement that transfers to another, in whole or in\plain\cf1\f51\fs24\ql part, any of the economic consequences of ownership of the Common Stock, whether any such transaction is\plain\sa264\cf1\f51\fs24\ql to be settled by delivery of securities, cash or otherwise.\par\pard\plain\fi1826\cf1\f51\fs24\ql (b)Following the expiration of the Lock-Up Period, the Investor may transfer any Shares\plain\cf1\f51\fs24\ql only as follows: (i) in a Public Offering, (ii) in accordance with Rule 144 (including the volume limitations\plain\sa264\cf1\f51\fs24\ql contained in clause (e) thereof, regardless of whether such limitations would\par\pard\plain\sb264\cf1\f51\fs18\qc 9\par\pard\plain\cf1\f51\fs16\ql [***]\plain\cf1\f51\fs16\b\ql Portions of this exhibit have been redacted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed\plain\cf1\f51\fs16\b\ql separately with the Commission.\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par \page\par\pard\plain\cf1\f51\fs24\ql then be applicable to any such transfer), (iii) pursuant to a tender offer initiated by the Company, (iv) in a\plain\cf1\f51\fs24\ql privately negotiated transaction (other than [***]) so long as the transferee agrees to be bound by the same\plain\cf1\f51\fs24\ql restrictions as the Investor described in this ARTICLE VI or (v) in any transaction between the Company\plain\cf1\f51\fs24\ql and a Third Party (including a third party tender offer o