What changed in this filing

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Item 1. Financial Statements

2023-11-06 compared with 2023-08-07 · 100 added, 69 removed, 408 unchanged (29% of the section changed)

3 unchanged sentences

(In thousands, except share and per share data)

September 30,

Current assets:

21 unchanged sentences

Preferred stock, $ 0.00001 par value;

10,000,000 shares authorized and no shares issued or outstanding at June 30, 2023 and December 31, 2022

10,000,000 shares authorized and no shares issued or outstanding at September 30, 2023 and December 31, 2022

Common stock, $ 0.00001 par value;

200,000,000 and 100,000,000 shares authorized at June 30, 2023 and December 31, 2022, respectively;

70,769,702 and 66,688,647 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively

200,000,000 and 100,000,000 shares authorized at September 30, 2023 and December 31, 2022, respectively;

70,818,954 and 66,688,647 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively

Additional paid‑in capital

8 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Contract research

31 unchanged sentences

Balance at June 30, 2023

Issuance of common stock in connection with exercise of stock options and vesting of restricted stock units

Unrealized loss on marketable securities

Stock-based compensation expense

Balance at September 30, 2023

Comprehensive

10 unchanged sentences

Balance at June 30, 2022

Issuance of common stock in connection with vesting of restricted stock units

Unrealized loss on marketable securities

Stock-based compensation expense

Balance at September 30, 2022

The accompanying notes are an integral part of these condensed consolidated financial statements.

2 unchanged sentences

(In thousands)

Six Months Ended

Nine Months Ended

September 30,

Cash flows from operating activities :

37 unchanged sentences

The Company’s condensed consolidated financial statements have been prepared on the basis of continuity of operations, realization of assets and the satisfaction of liabilities in the ordinary course of business.

As of June 30, 2023, the Company had cash, cash equivalents and marketable securities of $ 210.8 million and an accumulated deficit of $ 740.0 million.

As of September 30, 2023, the Company had cash, cash equivalents and marketable securities of $ 187.0 million and an accumulated deficit of $ 769.3 million.

Since inception, the Company has incurred net losses and negative cash flows from its operations.

13 unchanged sentences

Unaudited Interim Financial Information

The accompanying condensed consolidated balance sheet as of June 30, 2023, the condensed consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2023 and 2022, the condensed consolidated statement of stockholders’ equity for the three and six months ended June 30, 2023 and 2022, and the condensed consolidated statements of cash flows for the six months ended June 30, 2023 and 2022 are unaudited.

The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited annual financial statements contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 23, 2023 and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company’s financial position as of June 30, 2023, the results of its operations and comprehensive loss for the three and six months ended June 30, 2023 and 2022, its changes in stockholders’ equity for the three and six months ended June 30, 2023 and 2022 and its cash flows for the six months ended June 30, 2023 and 2022.

The accompanying condensed consolidated balance sheet as of September 30, 2023, the condensed consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2023 and 2022, the condensed consolidated statement of stockholders’ equity for the three and nine months ended September 30, 2023 and 2022, and the condensed consolidated statements of cash flows for the nine months ended September 30, 2023 and 2022 are unaudited.

The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited annual financial statements contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 23, 2023 and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company’s financial position as of September 30, 2023, the results of its operations and comprehensive loss for the three and nine months ended September 30, 2023 and 2022, its changes in stockholders’ equity for the three and nine months ended September 30, 2023 and 2022 and its cash flows for the nine months ended September 30, 2023 and 2022.

The condensed consolidated balance sheet data as of December 31, 2022 was derived from audited financial statements but does not include all disclosures required by generally accepted accounting principles in the United States (“GAAP”).

The financial data and other information disclosed in these notes related to the three and six months ended June 30, 2023 and 2022 are unaudited.

The results for the three and six months ended June 30, 2023 are not necessarily indicative of results to be expected for the year ending December 31, 2023, any other interim periods, or any future year or period.

The financial data and other information disclosed in these notes related to the three and nine months ended September 30, 2023 and 2022 are unaudited.

The results for the three and nine months ended September 30, 2023 are not necessarily indicative of results to be expected for the year ending December 31, 2023, any other interim periods, or any future year or period.

The unaudited interim financial statements of the Company included herein have been prepared, pursuant to the rules and regulations of the SEC.

31 unchanged sentences

Significant assumptions used in the Company’s estimates include the probability of achieving regulatory milestones and commencing commercialization, which are based on an asset’s current stage of development and a review of existing clinical data.

Probability of success assumptions ranged between 10 % and 41 % at June 30, 2023.

Probability of success assumptions ranged between 17 % and 41 % at September 30, 2023.

Additionally, estimated future sales levels and the risk-adjusted discount rate applied to the potential payments are also significant assumptions used in calculating the fair value.

20 unchanged sentences

In September 2019, the Company announced the completion of a strategic review and its decision to refocus its resources on its immuno-inflammatory development programs and to actively seek partners for its commercial products.

As of June 30, 2023 and December 31, 2022, the Company had $ 2.2 million in accrued expenses reported as discontinued operations in the Company’s consolidated balance sheet.

As of September 30, 2023 and December 31, 2022, the Company had $ 2.2 million in accrued expenses reported as discontinued operations in the Company’s consolidated balance sheet.

Fair Value of Financial Assets and Liabilities

The following tables present information about the fair value measurements of the Company’s financial assets and liabilities which are measured at fair value on a recurring and non-recurring basis, and indicate the level of the fair value hierarchy utilized to determine such fair values:

June 30, 2023

September 30, 2023

(In thousands)

9 unchanged sentences

Total liabilities

As of June 30, 2023 and December 31, 2022, the Company’s cash equivalents consisted of a money market fund, which was valued based upon Level 1 inputs.

The Company’s marketable securities as of June 30, 2023 consisted of commercial paper, treasury bills, and corporate debt, asset-backed debt and U.S.

As of September 30, 2023, the Company’s cash equivalents consisted of a money market fund and treasury bills, which were valued based upon Level 1 inputs.

As of December 31, 2022, the Company’s cash equivalents consisted of a money market fund, which was valued based upon Level 1 inputs.

The Company’s marketable securities as of September 30, 2023 consisted of commercial paper, treasury bills, and corporate debt, asset-backed debt, foreign government agency debt and U.S.

government and government agency debt securities, which were all valued based upon Level 2 inputs.

3 unchanged sentences

These quoted prices are obtained by the Company with the assistance of a third-party pricing service based on available trade, bid and other observable market data for identical securities.

During the three and six months ended June 30, 2023 and 2022, there were no transfers into or out of Level 3.

The overall $ 2.3 million decrease in the fair value of the contingent consideration liability during the six months ended June 30, 2023 was primarily due to the removal of estimated sales levels from zunsemetinib (ATI-450) for moderate to severe hidradenitis suppurativa following the Company’s decision to cease pursuing this indication.

This decrease was partially offset by lower discount rates, resulting from lower risk-free rates and changes in credit spreads being applied to potential payments relative to prior periods, as well as the passage of time.

As of June 30, 2023 and December 31, 2022, the fair value of the Company’s available-for-sale marketable securities by type of security was as follows:

June 30, 2023

During the three and nine months ended September 30, 2023 and 2022, there were no transfers into or out of Level 3.

The overall $ 0.6 million decrease in the fair value of the contingent consideration liability during the nine months ended September 30, 2023 was primarily due to the removal of estimated sales levels from zunsemetinib (ATI-450) for moderate to severe hidradenitis suppurativa following the Company’s decision to cease pursuing this indication, as well as higher discount rates resulting from higher risk-free rates and changes in credit spreads being applied to potential payments relative to prior periods.

This decrease was partially offset by an increase in the probability of success of ATI-2138, as well as the passage of time.

As of September 30, 2023 and December 31, 2022, the fair value of the Company’s available-for-sale marketable securities by type of security was as follows:

September 30, 2023

(In thousands)

4 unchanged sentences

Asset-backed debt securities (2)

Foreign government agency debt securities (3)

government and government agency debt securities (4)

2 unchanged sentences

(2) Included in Asset-backed debt securities is $ 11.3 million with maturity dates between two and four years .

(3) Included in Foreign government agency debt securities is $ 4.6 million with a maturity date between one and two years .

(4) Included in U.S.

14 unchanged sentences

Property and equipment, net consisted of the following:

September 30,

(In thousands)

6 unchanged sentences

Property and equipment, net

Depreciation expense was $ 0.2 million for each of the three months ended June 30, 2023 and 2022, and $ 0.4 million for each of the six months ended June 30, 2023 and 2022.

Depreciation expense was $ 0.2 million for each of the three months ended September 30, 2023 and 2022, and $ 0.6 million for each of the nine months ended September 30, 2023 and 2022.

Intangible Assets

1 unchanged sentence

Accumulated Amortization

September 30,

(In thousands, except years)

2 unchanged sentences

Total intangible assets

Amortization expense was $ 19 thousand for each of the three months ended June 30, 2023 and 2022, and $ 38 thousand for each of the six months ended June 30, 2023 and 2022.

As of June 30, 2023, estimated future amortization expense was as follows:

Amortization expense was $ 19 thousand for each of the three months ended September 30, 2023 and 2022, and $ 56 thousand for each of the nine months ended September 30, 2023 and 2022.

As of September 30, 2023, estimated future amortization expense was as follows:

(In thousands)

1 unchanged sentence

Accrued expenses consisted of the following:

September 30,

(In thousands)

1 unchanged sentence

Research and development expenses

Licensing expenses

Total accrued expenses

1 unchanged sentence

Preferred Stock

As of June 30, 2023 and December 31, 2022, the Company’s amended and restated certificate of incorporation (the “Charter”) authorized the Company to issue 10,000,000 shares of undesignated preferred stock.

There were no shares of preferred stock outstanding as of June 30, 2023 or December 31, 2022.

As of September 30, 2023 and December 31, 2022, the Company’s amended and restated certificate of incorporation (the “Charter”) authorized the Company to issue 10,000,000 shares of undesignated preferred stock.

There were no shares of preferred stock outstanding as of September 30, 2023 or December 31, 2022.

On June 1, 2023, at the 2023 Annual Meeting of Stockholders, the Company’s stockholders approved an amendment to the Charter to increase the authorized number of shares of common stock from 100,000,000 shares to 200,000,000 shares.

On June 1, 2023, the Company filed a Certificate of Amendment to the Charter with the Secretary of State of the State of Delaware, which became effective upon filing.

As of June 30, 2023 and December 31, 2022, the Company’s Charter authorized the Company to issue 200,000,000 and 100,000,000 shares, respectively, of $ 0.00001 par value common stock.

There were 70,769,702 and 66,688,647 shares of common stock issued and outstanding as of June 30, 2023 and December 31, 2022, respectively.

As of September 30, 2023 and December 31, 2022, the Company’s Charter authorized the Company to issue 200,000,000 and 100,000,000 shares, respectively, of $ 0.00001 par value common stock.

There were 70,818,954 and 66,688,647 shares of common stock issued and outstanding as of September 30, 2023 and December 31, 2022, respectively.

Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders.

Common stockholders are entitled to receive dividends, as may be declared by the board of directors, if any, subject to any preferential dividend rights of any series of preferred stock that may be outstanding.

No dividends have been declared through June 30, 2023.

No dividends have been declared through September 30, 2023.

Sales of Common Stock Pursuant to At-The-Market Facility

In April 2023, the Company sold 3.4 million shares of its common stock for aggregate gross proceeds of $ 27.5 million, pursuant to a sales agreement with SVB Securities LLC and Cantor Fitzgerald & Co., as sales agents, dated February 23, 2023.

February 23, 2023.

The Company paid selling commissions of $ 0.8 million in connection with the sale.

11 unchanged sentences

As of January 1, 2023, the number of shares of common stock that may be issued under the 2015 Plan was automatically increased by 2,667,545 shares.

As of June 30, 2023, 3,035,430 shares remained available for grant under the 2015 Plan.

The Company had 6,177,197 stock options and 1,720,040 RSUs outstanding as of June 30, 2023 under the 2015 Plan.

As of September 30, 2023, 2,890,919 shares remained available for grant under the 2015 Plan.

The Company had 6,295,647 stock options and 1,707,190 RSUs outstanding as of September 30, 2023 under the 2015 Plan.

2017 Inducement Plan

1 unchanged sentence

The 2017 Inducement Plan is a non-stockholder approved stock plan adopted pursuant to the “inducement exception” provided under Nasdaq listing rules.

The Company had 370,600 stock options outstanding as of June 30, 2023 under the 2017 Inducement Plan.

The Company had 370,600 stock options outstanding as of September 30, 2023 under the 2017 Inducement Plan.

All shares of common stock that were eligible for issuance under the 2017 Inducement Plan after October 1, 2018, including any shares underlying any awards that expire or are otherwise terminated, reacquired to satisfy tax withholding obligations, settled in cash or repurchased by the Company in the future that would have been eligible for re-issuance under the 2017 Inducement Plan, were retired.

1 unchanged sentence

Upon the 2015 Plan becoming effective, no further grants can be made under the 2012 Plan.

The Company had 466,497 stock options outstanding as of June 30, 2023 under the 2012 Plan.

The Company had 456,208 stock options outstanding as of September 30, 2023 under the 2012 Plan.

Stock Option Valuation

The weighted average assumptions the Company used to estimate the fair value of stock options granted during the six months ended June 30, 2023 and 2022 were as follows:

Six Months Ended

The weighted average assumptions the Company used to estimate the fair value of stock options granted during the nine months ended September 30, 2023 and 2022 were as follows:

Nine Months Ended

September 30,

Risk-free interest rate

5 unchanged sentences

Stock Options

The following table summarizes stock option activity for the six months ended June 30, 2023:

The following table summarizes stock option activity for the nine months ended September 30, 2023:

(In thousands, except share and per share data and years)

1 unchanged sentence

Forfeited and cancelled

Outstanding as of June 30, 2023

Options vested and expected to vest as of June 30, 2023

Options exercisable as of June 30, 2023

The weighted average grant date fair value of stock options granted during the six months ended June 30, 2023 was $ 11.42 per share.

Outstanding as of September 30, 2023

Options vested and expected to vest as of September 30, 2023

Options exercisable as of September 30, 2023

The weighted average grant date fair value of stock options granted during the nine months ended September 30, 2023 was $ 11.04 per share.

Restricted Stock Units

The following table summarizes RSU activity for the six months ended June 30, 2023:

The following table summarizes RSU activity for the nine months ended September 30, 2023:

(In thousands, except share and per share data)

1 unchanged sentence

Forfeited and cancelled

Outstanding as of June 30, 2023

Outstanding as of September 30, 2023

Stock-Based Compensation

1 unchanged sentence

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(In thousands)

3 unchanged sentences

Total stock-based compensation expense

As of June 30, 2023, the Company had unrecognized stock-based compensation expense for stock options and

RSUs of $ 38.2 million and $ 23.8 million, respectively, which is expected to be recognized over weighted average periods of 3.1 years and 3.0 years, respectively.

As of September 30, 2023, the Company had unrecognized stock-based compensation expense for stock options and RSUs of $ 35.6 million and $ 21.7 million, respectively, which is expected to be recognized over weighted average periods of 2.9 years and 2.8 years, respectively.

Net Loss per Share

1 unchanged sentence

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(In thousands, except for share and per share data)

3 unchanged sentences

Therefore, the weighted average number of shares of common stock outstanding used to calculate both basic and diluted net loss per share is the same.

The following table presents potential shares of common stock excluded from the calculation of diluted net loss per share for the six months ended June 30, 2023 and 2022.

All share amounts presented in the table below represent the total number outstanding as of June 30, 2023 and 2022.

The following table presents potential shares of common stock excluded from the calculation of diluted net loss per share for the nine months ended September 30, 2023 and 2022.

All share amounts presented in the table below represent the total number outstanding as of September 30, 2023 and 2022.

September 30,

Options to purchase common stock

3 unchanged sentences

Agreements for Office and Laboratory Space

The Company has a sublease agreement pursuant to which it subleases 33,019 square feet of office space for its headquarters in Wayne, Pennsylvania.

The sublease has a term that runs through October 2023.

The Company had a sublease agreement pursuant to which it subleased 33,019 square feet of office space for its headquarters in Wayne, Pennsylvania.

The sublease expired on October 31, 2023.

In December 2020, the Company entered into a sub-sublease agreement under which it sub-subleased 8,115 square feet to a third party.

The sub-sublease was terminated in December 2022.

In May 2023, the Company entered into a new lease agreement pursuant to which it leases 11,564 square feet of office space for its headquarters in Wayne, Pennsylvania.

The lease commenced on November 1, 2023 and has a term that runs through March 2029.

In February 2019, the Company entered into a sublease agreement pursuant to which it subleases 20,433 square feet of office and laboratory space in St.

3 unchanged sentences

Supplemental balance sheet information related to operating leases is as follows:

September 30,

(In thousands)

4 unchanged sentences

Total operating lease liabilities

Amortization expense related to operating lease right-of-use assets and accretion of operating lease liabilities totaled $ 0.2 million and $ 0.3 million for the three months ended June 30, 2023 and 2022, respectively, and $ 0.4 million and $ 0.5 million for the six months ended June 30, 2023 and 2022, respectively.

Amortization expense related to operating lease right-of-use assets and accretion of operating lease liabilities totaled $ 0.2 million and $ 0.3 million for the three months ended September 30, 2023 and 2022, respectively, and $ 0.7 million and $ 0.8 million for the nine months ended September 30, 2023 and 2022, respectively.

Agreements Related to Intellectual Property

4 unchanged sentences

A portion of consideration received from Pediatrix is payable to the former Confluence equity holders as described below.

No revenue under this agreement was recorded during the three and six months ended June 30, 2023.

License Agreement – Eli Lilly and Company

2 unchanged sentences

The patents and patent applications relate to the use of baricitinib, Lilly’s JAK inhibitor, to treat alopecia areata.

Under the license agreement, Lilly has agreed to pay the Company an upfront payment, regulatory and commercial milestone payments, anniversary payments, and a low single-digit royalty calculated as a percentage of Lilly’s net sales of baricitinib for the treatment of alopecia areata.

Under the license agreement, Lilly has agreed to pay the Company an upfront payment, regulatory and commercial milestone payments, anniversary payments, and a low single-

digit royalty calculated as a percentage of Lilly’s net sales of baricitinib for the treatment of alopecia areata.

The Company has separate contractual obligations under which the Company has agreed to pay to third parties an amount equal to any regulatory and commercial milestone payments it receives under the Lilly license agreement, as well as a portion of the upfront consideration and a portion of the royalties it may receive under the license agreement.

The Company recorded licensing revenue under this agreement of $ 0.9 million and $ 2.3 million during the three and six months ended June 30, 2023, respectively.

Of these amounts, $ 0.6 million and $ 1.6 million were paid to third parties during the three and six months ended June 30, 2023, respectively, and recorded as licensing expense.

The Company recorded licensing revenue under this agreement of $ 8.3 million and $ 10.7 million during the three and nine months ended September 30, 2023, respectively.

Of these amounts, $ 7.3 million and $ 9.0 million were payable to third parties during the three and nine months ended September 30, 2023, respectively, and recorded as licensing expense.

The Company recorded licensing revenue under this agreement of $ 17.6 million for each of the three and nine months ended September 30, 2022.

Of this amount, $ 7.3 million was payable to third parties and recorded as licensing expense.

Asset Purchase Agreement – EPI Health, LLC

1 unchanged sentence

EPI Health agreed to pay the Company a high single-digit royalty calculated as a percentage of net sales on a country-by-country basis until the date that the patent rights related to RHOFADE have expired or, if later, ten years from the date of the first commercial sale of RHOFADE in such country.

The Company recorded royalty income under the asset purchase agreement of $ 0.1 million and $ 0.3 million during the three months ended June 30, 2023 and 2022, respectively, and $ 0.3 million and $ 0.5 million during the six months ended June 30, 2023 and 2022, respectively.

EPI Health has also agreed to pay the Company potential sales

milestone payments of up to $ 20.0 million in the aggregate upon the achievement of specified levels of net sales of products covered by the asset purchase agreement, and 25 % of any upfront, license, milestone, maintenance or fixed payment received by EPI Health in connection with any license or sublicense of the assets transferred in the disposition in any territory outside of the United States, subject to specified exceptions.

EPI Health also agreed to pay the Company potential sales milestone payments of up to $ 20.0 million in the aggregate upon the achievement of specified levels of net sales of products covered by the asset purchase agreement, and 25 % of any upfront, license, milestone, maintenance or fixed payment received by EPI Health in connection with any license or sublicense of the assets transferred in the disposition in any territory outside of the United States, subject to specified exceptions.

On July 17, 2023, EPI Health filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code.

As a result of the bankruptcy filing, the Company recorded an allowance for doubtful accounts related to amounts due from EPI Health resulting in $ 1.0 million of bad debt expense for the three and six months ended June 30, 2023.

Through the bankruptcy process, EPI Health and its parent company, Novan, Inc., sold the RHOFADE assets to a third party.

Under the sale agreement, the Company’s asset purchase agreement with EPI Health was not assumed by the buyer, and as a result, the buyer is not obligated to continue to pay the Company royalties or milestones on future sales of RHOFADE, nor is the buyer obligated to cure the outstanding amounts in default by EPI Health.

The sale was approved by the bankruptcy court on September 12, 2023.

As a result of the bankruptcy proceedings, the Company recorded an allowance for doubtful accounts resulting in $ 0.3 million of bad debt expense for the three months ended September 30, 2023, and $ 1.3 million of bad debt expense for the nine months ended September 30, 2023, representing all amounts that were due and outstanding by EPI Health.

Agreement and Plan of Merger – Confluence

3 unchanged sentences

In addition to the payments described above, if the Company sells, licenses or transfers any of the intellectual property acquired from Confluence pursuant to the Confluence Agreement to a third party, the Company will be obligated to pay the former Confluence equity holders a portion of any consideration received from such sale, license or transfer in specified circumstances.

As of June 30, 2023 and December 31, 2022, the balance of the Company’s contingent consideration liability was $ 30.8 million and $ 33.1 million, respectively (see Note 3).

The Company did no t record a federal or state income tax benefit for losses incurred during the three and six months ended June 30, 2023 and 2022.

As of September 30, 2023 and December 31, 2022, the balance of the Company’s contingent consideration liability was $ 32.5 million and $ 33.1 million, respectively (see Note 3).

The Company did no t record a federal or state income tax benefit for losses incurred during the three and nine months ended September 30, 2023 and 2022.

The Company concluded that it is more likely than not that its deferred tax assets will not be realized which resulted in recording a full valuation allowance during those periods.

6 unchanged sentences

The Company does not report balance sheet information by segment since it is not reviewed by the chief operating decision maker, and all of the Company’s tangible assets are held in the United States.

The Company’s results of operations by segment for the three and six months ended June 30, 2023 and 2022 are summarized in the tables below:

The Company’s results of operations by segment for the three and nine months ended September 30, 2023 and 2022 are summarized in the tables below:

(In thousands)

Three Months Ended June 30, 2023

Three Months Ended September 30, 2023

Total revenue

5 unchanged sentences

(In thousands)

Three Months Ended June 30, 2022

Three Months Ended September 30, 2022

Total revenue

5 unchanged sentences

(In thousands)

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

Total revenue

5 unchanged sentences

(In thousands)

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

Total revenue

5 unchanged sentences

Intersegment Revenue

Revenue for the contract research segment included $ 4.0 million and $ 3.2 million for services performed on behalf of the therapeutics segment for the three months ended June 30, 2023 and 2022, respectively, and $ 8.0 million and $ 6.1 million for the six months ended June 30, 2023 and 2022, respectively.

Revenue for the contract research segment included $ 4.1 million and $ 3.2 million for services performed on behalf of the therapeutics segment for the three months ended September 30, 2023 and 2022, respectively, and $ 12.1 million and $ 9.3 million for the nine months ended September 30, 2023 and 2022, respectively.

All intersegment revenue has been eliminated in the Company’s condensed consolidated statement of operations.

7 unchanged sentences

in the same court against the same defendants.

On November 6, 2019, the court consolidated the Rosi and Fulcher actions (together, the

“Consolidated Securities Action”) and appointed Fulcher “lead plaintiff” for the putative class.

On November 6, 2019, the court consolidated the Rosi and Fulcher actions (together, the “Consolidated Securities Action”) and appointed Fulcher “lead plaintiff” for the putative class.

The parties signed and filed a settlement agreement in July 2021.

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements