What changed in this filing

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Item 1. Financial Statements

2021-05-12 compared with 2020-11-16 · 158 added, 244 removed, 199 unchanged (67% of the section changed)

2 unchanged sentences

Condensed Balance Sheets

In thousands, except share and per share data)

September 30, 2020

In thousands, except share data)

March 31, 2021

December 31, 2020

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Restricted cash

Liabilities, convertible preferred stock, and stockholders’ deficit

Liabilities and stockholders’ equity

Current liabilities:

Current portion of capital lease obligations

Current portion of equipment loan payable

Current portion of long-term debt

Equipment loan payable

Accounts payable

1 unchanged sentence

Total current liabilities

Equipment loan payable, net of current portion

Long-term debt, net of current portion

Warrant liability

Deferred rent

1 unchanged sentence

Commitments and contingencies (Note 8)

Series A convertible preferred stock, $ 0.0001 par value;

45,000,000 and 30,000,000 shares authorized and 5,670,184 and 4,443,259 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively (liquidation value of $ 51,033 at September 30, 2020)

Stockholders’ deficit:

Stockholders’ equity:

Common stock, $ 0.0001 par value;

65,000,000 and 50,000,000 shares authorized and 1,124,616 and 1,099,270 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively

200,000,000 shares authorized at March 31, 2021 and December 31, 2020;

10,660,181 shares issued and outstanding at March 31, 2021;

10,634,245 shares issued and outstanding at December 31, 2020

Additional paid-in capital

Accumulated deficit

Total stockholders’ deficit

Total liabilities, convertible preferred stock, and stockholders’ deficit

Total stockholders’ equity

Total liabilities and stockholders’ equity

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

2 unchanged sentences

In thousands, except share and per share data)

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

Operating expenses:

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Loss from operations

Other expenses:

Change in fair value of warrant liability

Interest expense, net

Total other expenses

Per share information:

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IMMUNOME, INC.

Condensed Statements of C hanges in Convertible Preferred Stock and Stockholders’ Deficit

Condensed Statements of Changes in Convertible Preferred Stock and Stockholders’ Equity (Deficit )

In thousands, except share data)

Convertible preferred stock

Stockholders’ deficit

Balance at June 30, 2020

Series A convertible preferred stock issuance costs

Share-based compensation expense

Exercise of stock options

Balance at September 30, 2020

Balance at December 31, 2019

Sale of Series A convertible preferred stock and warrants with a fair value of $1,522, net of $ 49 of issuance costs

Stockholders’ equity

Balance at January 1, 2021

Share-based compensation expense

Exercise of common stock warrants

Exercise of stock options

Balance at September 30, 2020

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

IMMUNOME, INC.

Condensed Statements of Changes in Convertible Preferred Stock and Stockholders’ Deficit

In thousands, except share data)

Balance at March 31, 2021

Convertible preferred stock

Stockholders’ deficit

Balance at June 30, 2019

Share-based compensation expense

Balance at September 30, 2019

Balance at December 31, 2018

Balance at January 1, 2020

Sale of Series A convertible preferred stock

Share-based compensation expense

Exercise of stock options

Balance at September 30, 2019

Balance at March 31, 2020

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

2 unchanged sentences

In thousands)

Nine Months Ended September 30,

Three Months Ended March 31,

Cash flows from operating activities:

2 unchanged sentences

Share-based compensation

Change in fair value of warrant liability

Deferred rent

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Cash flows from financing activities:

Proceeds from convertible promissory notes

Proceeds from sale of Series A convertible preferred stock

Proceeds from exercise of stock options

Proceeds from long-term debt

Proceeds from the sale of Series A convertible preferred stock

Payment of IPO costs

Payment of Series A convertible preferred stock issuance costs

Proceeds from exercise of common stock warrants

Payment of equipment loan payable

1 unchanged sentence

Net cash provided by financing activities

Net increase (decrease) in cash and restricted cash

Cash and restricted cash at beginning of period

Cash and restricted cash at end of period

Net decrease in cash and restricted cash

Cash and restricted cash at beginning of year

Cash and restricted cash at end of year

Supplemental disclosures of cash flow information:

Cash paid for interest

Supplemental disclosures of non-cash investing and financing activities:

Fair value of liability-classified warrants issued in connection with Series A convertible preferred stock

Series A convertible preferred stock and warrants issuance costs in accounts payable

IPO costs included in accounts payable and accrued expenses and other current liabilities

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

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Immunome, Inc.

(“Immunome” or the “Company”) was incorporated as a Pennsylvania corporation on March 2, 2006 and was converted to a Delaware corporation on December 2, 2015.

The Company is a biotechnology company focused on identifying novel cancer and infectious disease immunotherapies utilizing a patented process to immortalize human B cells.

(the Company or Immunome) was incorporated as a Pennsylvania corporation on March 2, 2006 and was converted to a Delaware corporation on December 2, 2015.

The Company is a biopharmaceutical company utilizing our proprietary human memory B cell platform to discover and develop first-in-class antibody therapeutics designed to change the way diseases are currently being treated.

The Company’s primary focus areas are oncology and infectious disease, including COVID-19.

Since its inception, the Company has devoted substantially all of its resources to research and development, raising capital, building its management team and building its intellectual property portfolio.

The Company is subject to risks and uncertainties common to early-stage companies in the biotechnology industry including, but not limited to, technical risks associated with the successful research, development and manufacturing of product candidates, development by competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with government regulations and the ability to secure additional capital to fund operations.

Current and future programs will require significant research and development efforts, including extensive preclinical and clinical testing and regulatory approval prior to commercialization.

These efforts require significant amounts of additional capital, adequate personnel and infrastructure.

Even if the Company’s development efforts are successful, it is uncertain when, if ever, the Company will realize significant revenue from product sales.

Initial public offering

The Company is subject to risks and uncertainties common to early-stage companies in the biotechnology industry including, but not limited to;

technical risks associated with the successful research, development and manufacturing of product candidates, uncertain results of preclinical and clinical testing, development by competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with government regulations and regulatory approval of product candidates and the ability to secure additional capital to fund operations.

The Company has incurred net losses since inception, including net losses of $ 3.9 million and $ 2.7 million for the three months ended March 31, 2021 and 2020, respectively, and it expects to generate losses from operations for the foreseeable future primarily due to research and development costs for its potential product candidates.

As of March 31, 2021, the Company had an accumulated deficit of $ 58.3 million.

The Company expects to generate operating losses and negative operating cash flows for the foreseeable future.

On October 6, 2020, the Company closed its initial public offering (IPO), in which the Company issued and sold 3,250,000 shares of its common stock at a public offering price of $ 12.00 per share.

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The Company received net proceeds of $ 41.7 million after deducting underwriting discounts and commissions of $ 3.1 million but before deducting other offering expenses.

The Company’s common stock is listed on the Nasdaq Capital Market under the trading symbol “IMNM.” In addition, upon the closing of the IPO on October 6, 2020, (i) all of the Company’s outstanding shares of convertible preferred stock converted into 5,670,184 shares of common stock and (ii) all of the Company’s outstanding warrants to purchase convertible preferred stock converted into warrants to purchase common stock.

On October 6, 2020, the Company filed an amended and restated certificate of incorporation to, among other things, increase the number of shares of common stock, $ 0.0001 par value per share, authorized for issuance to 200,000,000 and authorize the Company’s board of directors to issue up to 10,000,000 shares of “blank check” preferred stock, $ 0.0001 par value per share.

As of September 30, 2020, the Company capitalized $ 2.5 million of deferred IPO costs, which are included in other assets on the condensed balance sheet, and which will be reclassified to additional paid-in capital upon the closing of the IPO.

The Company has incurred net losses since inception, including net losses of $ 13.8 million for the nine months ended September 30, 2020, and it expects to generate losses from operations for the foreseeable future primarily due to research and development for its potential product candidates.

As of September 30, 2020, the Company had an accumulated deficit of $ 50.3 million.

Prior to the IPO, the Company has funded its operations with proceeds from the issuance of debt and the sale of preferred stock.

The Company expects to generate operating losses and negative operating cash flows for the foreseeable future.

The Company expects that its cash as of September 30, 2020 and proceeds from its IPO will be sufficient to fund its operations for at least the next twelve months from the date these financial statements are issued and, therefore, the conditions raising substantial doubt in prior periods have been alleviated.

The Company has sufficient cash to fund its operations into the first quarter of 2022 and will need additional financing thereafter to support its continuing operations

and pursue its growth strategy.

Until such time as the Company can generate significant revenue from product sales, if ever, it expects to finance its operations through a combination of equity offerings, debt financings, collaborations, strategic alliances and licensing arrangements.

To the extent that the Company raises additional capital through the sale of equity or convertible debt securities, stockholders’ ownership interest will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of stockholders.

Debt financing and preferred equity financing, if available, may involve agreements that include covenants limiting or restricting the Company’s ability to take specific actions, such as incurring additional debt, making acquisitions or capital expenditures or declaring dividends.

If the Company raises additional funds through collaborations, strategic alliances or marketing, distribution or licensing arrangements with third parties, it may have to relinquish valuable rights to technologies, future revenue streams, research programs or drug candidates, or grant licenses on terms that may not be favorable.

If the Company is unable to raise additional funds through equity or debt financings or other arrangements when needed, it may be required to delay, limit, reduce or terminate our research, product development or future commercialization efforts, or grant rights to develop and market product candidates that the Company would otherwise prefer to develop and market.

The Company may be unable to raise additional funds or enter into such other agreements when needed on favorable terms, or at all.

The inability to raise capital as and when needed would have a negative impact on the Company’s financial condition and its ability to pursue its business strategy.

The Company expects that its cash as of March 31, 2021 as well as an additional $ 27.0 million received from a private offering of the Company’s common stock in April 2021 (see Note 12, Subsequent Events) will be sufficient to fund the Company’s operations through fiscal year 2022.

Beyond that date, the Company will need additional financing to support its continuing operations and pursue its growth strategy.

If the Company cannot obtain the necessary funding, it will need to delay, scale back or eliminate some or all of its research and development programs or enter into collaborations with third parties to commercialize potential products or technologies that it might otherwise seek to develop or commercialize independently;

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or cease operations.

If the Company engages in collaborations, it may receive lower consideration upon commercialization of such products than if it had not entered into such arrangements or if it entered into such arrangements at later stages in the product development process.

Additionally, volatility in the capital markets and general economic conditions in the United States may be a significant obstacle to raising the required funds.

Our ability to continue as a going concern is dependent on our ability to raise capital to fund our future business plans.

Operations of the Company are subject to certain risks and uncertainties including various internal and external factors that will affect whether and when the Company’s product candidates become approved products and how significant their market share will be, some of which are outside of the Company’s control.

The length of time and cost of developing and commercializing these product candidates and/or failure of them at any stage of the drug approval process will materially affect the Company’s financial condition and future operations.

Operations of the Company are subject to certain risks and uncertainties including various internal and external factors that will affect whether and when the Company’s product candidates become approved drugs and how significant their market share will be, some of which are outside of the Company’s control.

The length of time and cost of

developing and commercializing these product candidates and/or failure of them at any stage of the drug approval process will materially affect the Company’s financial condition and future operations.

On March 11, 2020, the World Health Organization characterized the novel COVID 19 virus as a global pandemic.

Although there is significant uncertainty as to the likely effects this disease may have in the future, to date there has not yet been a significant impact to the Company’s operations or financial statements.

Although there is significant uncertainty as to the likely effects this disease may have in the future, to date there has not been a significant impact to the Company’s operations or financial results.

Summary of significant accounting policies

Basis of presentation

The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted (“GAAP”) in the United States.

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted (GAAP) in the United States.

Any reference in these notes to applicable guidance is meant to refer to GAAP as found in the Accounting Standards Codification (ASC) and Accounting Standards Updates (ASU) promulgated by the Financial Accounting Standards Board (FASB).

Unaudited interim results

These unaudited condensed financial statements and accompanying notes should be read in conjunction with the Company’s annual financial statements and the notes thereto included in the Company’s IPO prospectus filed with the Securities and Exchange Commission on October 5, 2020.

The accompanying condensed financial statements as of September 30, 2020 and for the three and nine months ended September 30, 2020 and 2019 are unaudited but include all adjustments that management believes to be necessary for a fair presentation of the periods presented.

These unaudited condensed financial statements and accompanying notes should be read in conjunction with the Company’s annual financial statements and the notes thereto included in the Company’s Form 10-K filed with the Securities and Exchange Commission on March 25, 2021.

The accompanying condensed financial statements as of March 31, 2021 and for the three months ended March 31, 2021 and 2020 are unaudited but include all adjustments that management believes to be necessary for a fair presentation of the periods presented.

Interim results are not necessarily indicative of results for a full year.

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The Company’s board of directors approved a one-for- six reverse stock split of its issued and outstanding common stock, stock options, convertible preferred stock and convertible preferred stock warrants legally effective as of September 22, 2020.

Accordingly, all convertible preferred shares and common stock shares, per share amounts, and additional paid-in capital amounts for all periods presented in the accompanying financial statements and notes thereto have been retroactively adjusted, where applicable, to reflect the reverse stock split.

Accordingly, all convertible preferred shares and common shares, common stock warrants, per share amounts, and additional paid-in capital amounts for all periods presented in the accompanying financial statements and notes thereto have been retroactively adjusted, where applicable, to reflect the reverse stock split.

Use of estimates

1 unchanged sentence

The Company bases its estimates and assumptions on historical experience when available and on various factors that it believes to be reasonable under the circumstances.

Significant estimates and assumptions reflected in these financial statements include, but are not limited to, the fair value of the Company’s common stock in connection with share-based compensation arrangements and the fair value of the Company’s liability-classified warrants.

Significant estimates and assumptions reflected in these condensed financial statements include, but are not limited to, the fair value of the Company’s common stock in connection with share-based compensation arrangements.

Actual results could differ from these estimates.

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Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the assets or liability and are developed based on the best information available in the circumstances.

ASC 820 identifies fair value as the price that would be received to sell an asset or paid to transfer a liability, in an orderly transaction between market participants at the measurement date.

ASC 820 identifies fair value as the price that would be received to sell an asset or paid to transfer a liability, in an orderly transaction between market

participants at the measurement date.

As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a three-tiered value hierarchy that distinguishes between the following:

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A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

Equity issuance costs

The Company capitalized incremental legal, professional, accounting and other third-party fees that were directly associated with the IPO as other noncurrent assets until the IPO was consummated.

After consummation of the IPO in October 2020, these costs were recorded in stockholders’ equity as a reduction of additional paid-in-capital generated as a result of the IPO.

As of March 31, 2021 and December 31, 2020, there were no deferred offering costs.

Government contract funding

1 unchanged sentence

Department of Defense expense reimbursement contract as contra-research and development expenses in the condensed statements of operations.

Warrant liability

The Company issued warrants to purchase shares of Series A convertible preferred stock in connection with the June 2020 Series A convertible preferred stock sale.

The warrants were classified as a liability on the condensed balance sheet at September 30, 2020 as the underlying Series A convertible preferred stock is contingently redeemable and outside of the Company’s control (see Note 11, Warrants to acquire shares of Series A convertible preferred stock).

The fair value of the warrants on the date of issuance was recorded as a reduction of the carrying value of the Series A convertible preferred stock and as a long-term liability in the condensed balance sheet.

The warrants will be

subsequently remeasured to fair value at each balance sheet date.

Changes in the fair value of the warrants are recognized as other income or expense in the statements of operations.

The change in fair value of the warrants during the three and nine months ended September 30, 2020 was $ 5.5 million.

The Company used the Black Scholes option pricing model, which incorporated assumptions and estimates, to value the Series A convertible preferred stock warrants.

Estimates and assumptions impacting the fair value measurement of the warrants included the fair value per share of the underlying Series A convertible preferred stock, the remaining contractual term of the warrants, risk-free interest rate, expected dividend yield and expected volatility of the price of the underlying Series A convertible preferred stock.

The Company historically determined the fair value per share of the underlying Series A convertible preferred stock by taking into consideration the most recent sales of its Series A convertible preferred stock, results obtained from third party valuations and additional factors that were deemed relevant.

As of September 30, 2020, the Company utilized the $ 12.00 per share IPO price to value the Series A convertible preferred stock warrants.

The Company historically had been a private company and lacked company specific historical and implied volatility information of its stock.

Therefore, it estimated the expected stock volatility based on the historical volatility of publicly traded peer companies for a term equal to the remaining contractual term of the warrants at the time.

The risk-free interest rate was determined by reference to the U.S.

Treasury yield curve for time periods approximately equal to the remaining contractual term of the warrants.

Expected dividend yield was determined based on the fact that the Company had never paid cash dividends and did not expect to pay any cash dividends in the foreseeable future.

Research and development costs

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Research and development costs consist of costs incurred in performing research and development activities, including salaries and bonuses, share-based compensation, employee benefits, facilities costs, laboratory supplies, depreciation and amortization, preclinical expenses, consulting and other contracted services.

Additionally, under the terms of the license agreements to which the Company is a party, the Company is obligated to make future payments should certain development and regulatory milestones be achieved.

No such costs have been incurred for the three or nine months ended September 30, 2020 and 2019.

Costs for certain research and development activities are recognized based on the terms of the individual arrangements, which may differ from the pattern of costs incurred, and are reflected in the condensed financial statements as a prepaid or accrued expense.

Additionally, under the terms of the license agreements, the Company is obligated to make future payments should certain development and regulatory milestones be achieved.

No such costs have been incurred for the three months ended March 31, 2021 and 2020.

Costs for certain research and development activities are recognized based on the terms of the individual arrangements, which may differ from the pattern of costs incurred, and are reflected in the financial statements as a prepaid or accrued expense.

Net loss per share

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Diluted net loss per share of common stock is computed by adjusting net loss to reallocate undistributed earnings based on the potential impact of dilutive securities.

Diluted net loss per share of common stock is computed by dividing the diluted net loss by the weighted average number of common shares outstanding for the period, including potential dilutive common shares assuming the dilutive effect of common stock equivalents.

The following potentially dilutive securities outstanding as of September 30, 2020 and 2019 have been excluded from the computation of diluted weighted-average shares of common stock outstanding, as they would be anti-dilutive:

As of September 30,

Diluted net loss per share of common stock is computed by dividing the diluted net loss by the weighted average number of common shares

outstanding for the period, including potential dilutive common shares assuming the dilutive effect of common stock equivalents.

The following potentially dilutive securities outstanding as of March 31, 2021 and 2020 have been excluded from the computation of diluted weighted-average shares of common stock outstanding, as they would be anti-dilutive:

Three Months Ended March 31,

Stock options (1)

Convertible preferred stock warrants (1)

Common stock warrants (1)

Convertible preferred stock (1)

(1) Represents common stock equivalents.

The Company’s Series A convertible preferred stock contractually entitles the holders of such shares to participate in dividends but does not contractually require the holders of such shares to participate in losses of the Company.

Accordingly, in periods in which the Company reports a net loss, such losses are not allocated to participating securities.

Prior to its conversion, the Company’s Series A convertible preferred stock contractually entitles the holders of such shares to participate in dividends but does not contractually require the holders of such shares to participate in losses of the Company.

Accordingly, in periods in which the Company reported a net loss, such losses were not allocated to participating securities.

In periods in which the Company reports a net loss per share of common stock, diluted net loss per share of common stock is the same as basic net loss per share of common stock since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive.

The Company reported a net loss per share of common stock for the three and nine months ended September 30, 2020 and 2019.

The Company reported a net loss per share of common stock for the three months ended March 31, 2021 and 2020.

Segment and geographic information

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The Company views its operations as and manages its business in one operating segment operating exclusively in the United States.

Fair value measurements

The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis in the condensed balance sheet as of September 30, 2020 (in thousands):

Quoted Prices

Significant Other

In Active Markets

September 30, 2020

Inputs (Level 2)

Warrant liability

Total liabilities measured and recorded at fair value

The Company did no t transfer any financial instruments into or out of Level 3 classification during the three or nine months ended September 30, 2020.

See Note 11, Warrants to acquire shares of Series A convertible preferred stock for a summary of the inputs used to calculate the warrant liability.

A reconciliation of the change in the fair value of the warrant liability for the nine months ended September 30, 2020 is as follows (in thousands):

Using Significant

Balance, December 31, 2019

Issuance of warrants on June 2, 2020

Change in fair value of warrant liability

Warrant liability, September 30, 2020

Department of Defense (DoD) expense reimbursement contract

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Food and Drug Administration (FDA).

The amount of funding being made available to the Company under this expense reimbursement contract is $ 13.3 million which, based on the Company’s anticipated expenditures, is expected to be received through mid-2021.

The Company recorded contra-research and development expense in the amount of $ 0.6 million for each of the three and nine months ended September 30, 2020 in the condensed statements of operations.

As of September 30, 2020, the Company had an expense reimbursement receivable balance of $ 0.3 million due from the DoD in prepaid expenses and other current assets on the condensed balance sheet.

The Company recorded contra-research and development expense in the amount of $ 4.0 million for the three months ended March 31, 2021 in the condensed statements of operations.

There was no contra-research and development expense for the three months ended March 31, 2020.

As of March 31, 2021, the Company had an expense reimbursement receivable balance of $ 2.6 million due from the DoD in prepaid expenses and other current assets on the condensed balance sheet.

Costs that have been reimbursed by the DoD but not yet expensed by the Company are recorded as a deferred research obligation liability for the period.

As of March 31, 2021, the Company has a deferred research obligation liability of $ 0.7 million.

Accrued expenses

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(in thousands)

September 30, 2020

March 31, 2021

December 31, 2020

Deferred research obligations

Compensation and related benefits

Research and development, and other

Professional fees, contractors and other

Convertible promissory notes

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These notes were scheduled to mature on February 2, 2020, if not converted or otherwise settled prior to maturity.

Upon completion a qualified equity financing event, as defined in the notes, the notes automatically convert into shares of the stock sold in such qualified financing and at a price equal to 80 % of the subscription price.

In the event that the Company were to sell additional shares of Series A Preferred prior to a qualified financing event, the notes will automatically convert into shares of Series A Preferred at a discount to the $ 9.00 per share subscription price.

Upon completion of a qualified equity financing event, as defined in the notes, the notes automatically convert into shares of the stock sold in such qualified financing and at a price equal to 80 % of the subscription price.

Upon the sale of additional shares of Series A Preferred prior to a qualified financing event, the notes automatically convert into shares of Series A Preferred at a discount to the $ 9.00 per share subscription price.

The discount is equal to 1 % for each month that has lapsed from the initial note issuance date to the date in which the extended sale of Series A Preferred is consummated.

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Equipment loan payables

During 2016 through 2018, the Company entered into various equipment financing agreements (the Agreements) to purchase laboratory equipment.

The Company entered into various equipment financing agreements (the Agreements) to purchase laboratory equipment.

The Agreements provide for 36 to 38 monthly payments ranging from $ 1,000 to $ 8,000 .

Interest rates for the Agreements range from 9.03 % to 12.08 %.

Interest expense related to the equipment financing agreements was $ 10,000 and $ 11,000 for the three months ended September 30, 2020 and 2019, respectively, and $ 20,000 and $ 38,000 for the nine months ended September 30, 2020 and 2019, respectively.

Future payments for the Agreements are as follows as of September 30, 2020 (in thousands):

Years ending December 31,

2020 (represents three remaining months)

Interest expense related to the equipment financing agreements was $ 2,000 and $ 8,000 for the three months ended March 31, 2021 and 2020, respectively.

Future payments for the Agreements are as follows as of March 31, 2021 (in thousands):

Year ending December 31,

2021 (represents remaining nine months in 2021)

Less amounts representing interest

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On April 30, 2020, the Company entered into a loan agreement with Silicon Valley Bank as the lender (Lender) for a loan in an aggregate principal amount of $ 0.5 million (the Loan) pursuant to the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and implemented by the U.S.

Small Business Administration.

The Loan matures in two years and bears interest at a rate of 1 % per year, with all payments deferred through the six-month anniversary of the date of the Loan.

Principal and interest are payable monthly commencing on October 30, 2020 and may be prepaid by the Company at any time prior to maturity without penalty.

Interest expense for the nine months ended September 30, 2020 was de minimis.

The Company may apply for forgiveness of amounts due under the Loan, with the amount of potential loan forgiveness to be calculated in accordance with the requirements of the PPP based on payroll costs, any mortgage interest payments, any covered rent payments and any covered utilities payments during the 8-week period after the origination date of the Loan.

The Company is using the proceeds of the Loan for payroll and other qualifying expenses.

Small Business Administration (SBA).

The Company used the proceeds of the Loan for payroll and other qualifying expenses.

Under the terms of the Loan, the Company may apply for forgiveness of amounts due under the Loan, with the amount of potential

loan forgiveness to be calculated in accordance with the requirements of the PPP based on payroll costs, any mortgage interest payments, any covered rent payments and any covered utilities payments during the 8 or 24-week period after the origination date of the Loan.

The Loan matures in two year s and bears interest at a rate of 1 % per year, with all payments deferred through the six-month anniversary of the date of the Loan or until a conclusion has been reached as to whether the Loan will be forgiven.

In January 2021, the Company applied to the SBA for forgiveness and is awaiting a decision.

While the Company believes that its use of the Loan proceeds will meet the conditions of forgiveness of the Loan, it cannot be assured that actions taken could cause the Company to be ineligible for forgiveness of the Loan, in whole or in part.

Proceeds received are recorded as long-term debt.

In the event the debt is forgiven in a future period, the Company will recognize a gain on extinguishment in the statement of operations.

The following table sets forth the Company’s future principal payments as of September 30, 2020 (in thousands):

Interest expense for each of the three months ended March 31, 2021 and 2020 was de minimis.

The following table sets forth the Company’s future principal payments as of March 31, 2021 (in thousands):

Years ending December 31,

2020 (represents three remaining months)

2021 (represents remaining nine months in 2021)

Less current portion of long-term debt

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Operating leases

In May 2017, the Company entered into a 62-month office and laboratory space lease for approximately 11,000 square feet of space in Exton, Pennsylvania.

The Company has an option to extend the lease for two additional five-year terms or to early terminate the lease at the end of the 38th month of the lease.

In May 2017, the Company entered into a 62 month office and laboratory space lease commencing on July 1, 2017 for approximately 11,000 square feet of space in Exton, Pennsylvania.

The Company has an option to extend the lease for two additional five-year terms.

The lease is subject to fixed rate escalation increases and the landlord waived the Company’s rent obligation for the first two months of the lease.

Deferred rent is $ 11,000 and $ 18,000 as of September 30, 2020 and December 31, 2019, respectively, and is being amortized as a reduction in rent expense over the term of the lease.

Deferred rent is $ 15,000 and $ 16,000 as of March 31, 2021 and December 31, 2020, respectively, and is being amortized as a reduction in rent expense over the term of the lease.

The Company recognizes rent expense on a straight-line basis over the expected lease term.

Future minimum lease payments for the Company’s facility are as follows as of September 30, 2020 (in thousands):

Future minimum lease payments for the Company’s operating leases are as follows as of March 31, 2021 (in thousands):

Years ending December 31,

2020 (represents three remaining months)

Rent expense was $ 0.1 million and $ 0.1 million for the three months ended September 30, 2020 and 2019, respectively, and $ 0.2 million and $ 0.2 million for the nine months ended September 30, 2020 and 2019, respectively.

Capital leases

During 2016 and 2017, the Company entered into multiple capital leases for laboratory equipment.

The leases provide for 36 to 38 monthly payments ranging from $ 2,000 to $ 32,000 .

Interest rates for the leases range from 9.43 % to 11.35 %.

Interest expense related to the leases was $ 7,000 and $ 34,000 for the nine months ended September 30, 2020 and 2019, respectively.

The leases ended in July 2020.

2021 (represents remaining nine months in 2021)

Rent expense was $ 0.1 million for each of the three months ended March 31, 2021 and 2020, respectively.

In August 2020, the Company entered into a one-year operating lease for laboratory equipment that expires in July 2021 and has fixed monthly payments of $ 18,000 .

Employment agreements

The Company entered into employment offer letter agreements (the Employment Agreements) with key personnel providing for compensation and severance in certain circumstances, as defined in the respective Employment Agreements.

The Employment Agreements may be terminated by either the Company or the employees in accordance with the Employment Agreements and provide for annual pay increases and bonuses at the discretion of the Board of Directors.

The Employment Agreements may be terminated by either the Company or the employees in accordance with the respective Employment Agreements and provide for annual pay increases and bonuses at the discretion of the Board of Directors.

Employee benefit plan

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The Company assumes all administrative costs of the 401(k) Plan and makes matching contributions as defined in the 401(k) Plan document.

Convertible preferred stock and stockholders’ deficit

Series A convertible preferred stock

In November 2019, the Company issued 821,657 shares of Series A Preferred in connection with the conversion of the promissory notes of $ 6.8 million (see Note 6).

In June 2020, the Company sold an additional 1,226,925 shares of Series A Preferred at $ 9.00

per share for $ 11.0 million in gross proceeds and incurred $ 27,000 of related issuance costs.

In addition to the shares of Series A Preferred, the Company issued warrants to purchase 1,035,196 shares of the Company’s Series A Preferred.

The warrants are exercisable at any time and have an exercise price of $ 9.00 per share and will terminate at the earlier of (i) three years from the date of issuance, (ii) upon liquidation or deemed liquidation of the Company and (iii) upon the Company’s securities trading at $ 27.00 per share for at least 10 days out of a consecutive 20 day trading period beginning after the first anniversary of an initial public offering of the Company’s common stock.

The Company allocated $ 1.5 million of the gross proceeds from the June 2020 sale of the Series A Preferred to the warrant liability (see Note 11, Warrants to acquire shares of Series A convertible preferred stock), which represents the fair value of the warrants as of the date of grant.

The Series A convertible preferred stock has the following key terms:

Dividends — The holders of Series A Preferred shall be entitled to receive, when, as, and if declared by the Board of Directors, such dividends as may be declared from time to time by the Board of Directors.

No cash dividends shall be declared and/or paid with respect to common stock until all declared but unpaid dividends on the preferred stock have been paid in full.

Additionally, in the event that the Company declares, pays or sets aside any dividends on shares of common stock, the holders of Series A Preferred participate in such dividends on an as-converted basis.

No dividends had been declared through September 30, 2020.

Voting Rights — Holders of preferred stock have voting rights equal to the number of shares of common stock on a converted basis and have certain protective voting rights as a class.

Liquidation — In the event of any liquidation, dissolution, or winding up of the Company, either voluntary or involuntary, or any deemed liquidation event, each holder of Series A Preferred shall be entitled to receive, prior and in preference to any distribution of any of the assets of the Company to the holders of common stock by reason of their ownership thereof, in respect of each share of Series A Preferred owned by such holder, an amount per share equal to the greater of the following:

(i) the sum of (A) $ 9.00 , being the original purchase price for such share (as adjusted for any stock splits, stock dividends, reverse stock splits, stock combinations, and other similar capitalization changes) plus (B) any dividends declared but unpaid thereon or (ii) such amount per share of Series A Preferred as would have been payable had all shares of Series A Preferred been converted into common stock immediately prior to such liquidation, dissolution or deemed liquidation event.

Conversion Rights — The Series A Preferred is convertible at any time at the option of the holder into shares of common stock at a conversion price equal to $ 9.00 per share.

Upon an event specified by vote or consent by the requisite holders or upon a public offering meeting the criteria specified in the certificate, the shares of Series A Preferred will be automatically converted into shares of common stock.

The conversion price is subject to adjustment for certain events, including traditional dilutive events as well as weighted average down-round protection.

Redemption — Upon the occurrence of a deemed liquidation event which does not result in the dissolution of the Company, as defined in the Company’s articles of incorporation, the Series A Preferred may be redeemed at the greater of (i) the original issuance price plus any declared but unpaid dividends and (ii) the estimated fair value of the Company’s common stock into which the Series A Preferred would convert into immediately prior to redemption.

The Company classifies Series A Preferred as temporary equity in the accompanying balance sheets as certain deemed liquidation events are outside the Company’s control.

Future Tranche Right Feature — In connection with the Company’s initial offering of its Series A Preferred in 2015, a future milestone closing provision (the Future Milestone) was included requiring the Company to sell, on the same terms and conditions as the initial offering, an aggregate of $ 3.5 million of additional Series A Preferred upon achievement of certain development and strategic milestones, as defined in the purchase agreement and at $ 9.00 per share, or 388,888 shares of Series A Preferred.

The Future Milestone was not achieved as of September 30, 2020, and the Company’s obligations to sell the shares terminated upon completion of the Company’s IPO.

The Company determined that the Future Tranche Right did not meet the definition of a freestanding financial instrument as it was not legally detachable.

The Future Tranche Right was also evaluated as an embedded derivative and

the Company determined it did not meet the definition of a derivative instrument for which bifurcation would be required.

As discussed in Note 1, all of the Company’s outstanding Series A Preferred converted into 5,670,184 shares of common stock upon the closing of the IPO on October 6, 2020.

The Company made matching contributions of $ 39,000 and $ 16,000 to the 401(k) Plan for the three months ended March 31, 2021 and 2020, respectively.

Legal proceedings

The Company is not a party to any litigation and does not have contingency reserves established for any litigation liabilities.

At each reporting date, the Company evaluates whether a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies.

Common stock and convertible preferred stock

The holders of common stock are entitled to one vote for each share of common stock.

Subject to the approval of the majority of Series A Preferred stockholders, and payment in full of all preferential dividends to which the holders of the Series A Preferred are entitled, the holders of common stock shall be entitled to receive dividends out of funds legally available.

In the event of any voluntary or involuntary liquidation, dissolution, or winding up of the Company, after the payment or provision for payment of all debts and liabilities of the Company and all preferential amounts to which the holders of Series A Preferred are entitled with respect to the distribution of assets in liquidation, the holders of common stock shall be entitled to share ratably in the remaining assets of the Company available for distribution.

At September 30, 2020, the Company had reserved 10,146,643 shares of common stock for conversion of Series A Preferred and warrants and exercise of stock options.

Warrants to acquire shares of Series A convertible preferred stock

Liability-classified warrants consist of 1,035,196 warrants to acquire shares of Series A convertible preferred stock issued in connection with the June 2020 sale of the Company’s Series A convertible preferred stock.

These warrants are liability-classified as the underlying Series A convertible preferred stock is contingently redeemable and outside of the Company’s control.

The warrants become exercisable for shares of the Company’s common stock upon completion of an IPO.

The fair value of the warrants was estimated using a Black-Scholes pricing model with the following inputs:

September 30, 2020

Volatility rate

Risk-free interest rate

Expected term (in years)

Strike price (per share)

Fair value of Series A convertible preferred stock

Subject to the approval of the majority of shareholders, the holders of common stock shall be entitled to receive dividends out of funds legally available.

In the event of any voluntary or involuntary liquidation, dissolution, or winding up of the Company, the holders of common stock shall be entitled to share ratably in the remaining assets of the Company available for distribution.

In October 2020, the Company closed the IPO in which the Company issued and sold 3,757,500 shares of its common stock at a public offering price of $ 12.00 per share, including 487,500 shares of the Company’s common stock sold pursuant to the underwriters’ option to purchase additional shares.

The Company received net proceeds of $ 41.7 million after deducting underwriting discounts and commissions of $ 3.1 million but before deducting other offering expenses.

The Company’s common stock is listed on the Nasdaq Capital Market under the trading symbol “IMNM.” On October 6, 2020, the Company filed an amended and restated certificate of incorporation to, among other things, increase the number of shares of common stock, $ 0.0001 par value per share, authorized for issuance to 200,000,000 and authorize the Company’s board of directors to issue up to 10,000,000 shares of “blank check” preferred stock, $ 0.0001 par value per share.

Series A convertible preferred stock

Prior to the IPO, all of the Company’s convertible preferred stock was classified outside of stockholders’ deficit because the shares contained certain redemption features that were not solely within the control of the Company.

At the time of issuance, the redeemable convertible preferred stock was recorded at its issuance price, less issuance costs.

During the year ended December 31, 2019, the Company sold 512,826 shares of its Series A Preferred at $ 9.00 per share in exchange for $ 4.6 million in gross proceeds and incurred $ 35,000 of related issuance costs and issued 821,657 shares of Series A Preferred in connection with the conversion of the promissory notes of $ 6.8 million (see Note 5, Convertible Promissory Notes).

In 2020, the Company completed the sale of an additional 1,226,925 shares of Series A Preferred at $ 9.00 per share, resulting in gross cash proceeds of $ 11.0 million, which includes 4,722 shares issued in January 2020 for gross receipts of $ 45,000 .

During the three months ended March 31, 2020, the Company received $ 1.0 million in advanced payments for shares of Series A Preferred that would be sold in June 2020.

In addition to the shares of Series A Preferred, the Company issued 1,035,196 warrants to purchase shares of the Company’s Series A Preferred with a fair value of $ 1.5 million.

The warrants were exercisable at any time and had an exercise price of $ 9.00 per share and were to terminate at the earlier of (i) three years from the date of issuance, (ii) upon liquidation of the Company and (iii) upon the Company’s securities trading at $ 27.00 per share for at least 10 days out of a consecutive 20 -day trading period beginning after the first anniversary of the IPO.

In connection with the Company’s sale of its Series A Preferred in 2015, a future milestone closing provision (the Future Milestone) was included requiring the Company to sell, on the same terms and conditions as the initial offering, an aggregate of $ 3.5 million of additional Series A Preferred upon achievement of certain development and strategic milestones, as defined in the purchase agreement and at $ 9.00 per share, or 388,888 shares of Series A Preferred.

The Future Milestone was not achieved and the Company’s obligations under this right terminated upon completion of the Company’s IPO.

The Company determined that the future tranche right related to the Future Milestone did not meet the definition of a freestanding financial instrument as it was not legally detachable.

The future tranche right was also evaluated as an embedded derivative and the Company determined it did not meet the definition of a derivative instrument for which bifurcation would be required.

In connection with the IPO, all of the Series A Preferred converted into 5,670,184 shares of common stock and all of the outstanding warrants to purchase convertible preferred stock converted into warrants to purchase common stock.

Warrants to acquire shares of common stock

At March 31, 2021 there were 1,023,530 warrants outstanding to acquire shares of the Company’s common stock.

The warrants were issued in connection with the June 2020 sale of the Company’s Series A convertible preferred stock and originally entitled the holders to acquire shares of the Company’s Series A convertible preferred stock.

These warrants were originally liability-classified as the underlying Series A convertible preferred stock was contingently redeemable and outside of the Company’s control.

The warrants had a grant date fair value of $ 1.5 million and a warrant liability was recorded in the balance sheet upon issuance.

Upon completion of the IPO on October 6, 2020, the warrants became exercisable for shares of the Company’s common stock and the $ 7.1 million warrant liability was reclassified to additional paid-in capital.

During the three months ended March 31, 2021, 11,666 warrants were exercised at a price of $ 9.00 per warrant for gross proceeds of $ 0.1 million and 11,666 shares of the Company’s common stock were issued.

Share-based compensation

2 unchanged sentences

2018 Equity Incentive Plan (the 2018 Plan and collectively with the 2008 Plan, the Plans).

At the time that the 2008 Plan was terminated, there were 388,748 shares of the Company’s common stock available for grant that were transferred to the 2018 Plan.

Any additional shares that become available for grant under the 2008 Plan after June 18, 2018 are automatically transferred to and made available for grant under the 2018 Plan.

On September 24, 2020, the Plans were terminated and replaced with the 2020 Equity Incentive Plan (the 2020 Plan).

The remaining 298,277 shares available for grant under the Plans will be available for issuance under the 2020 Plan and an additional 1,701,723 shares were authorized under the 2020 Plan.

At the time that the 2008 Plan was terminated, there were 388,748 shares available for grant that were transferred to the 2018 Plan.

Any additional shares that become available for grant under the 2008 Plan are automatically transferred to and made available for grant under the 2018 Plan.

On September 24, 2020, the 2018 Plan was terminated and replaced with the 2020 Equity Incentive Plan (the 2020 Plan).

The remaining 298,277 shares available for grant under the 2018 Plan are available for issuance under the 2020 Plan and an additional 1,701,723 shares were authorized under the 2020 Plan.

The Company also adopted the 2020 Employee Stock Purchase Plan (the ESPP Plan) on September 18, 2020 which provides for the grant of purchase rights to purchase shares of the Company’s common stock to eligible employees, as defined by the ESPP Plan.

The maximum number of shares of common stock that may be issued under the ESPP Plan will not exceed 125,000 shares of common stock, plus the number of shares of common stock that are automatically added on January 1st of each calendar year for a period of up to ten years , commencing on the first January 1 following the year in which an IPO occurs and ending on, and including, January 1, 2030, in an amount equal

to the lesser of (i) 1 % of the total number of shares of common stock outstanding on December 31st of the preceding calendar year, and (ii) 1,000,000 shares of common stock.

No awards have been granted under the ESPP Plan as of September 30, 2020.

The maximum number of shares of common stock that may be issued under the ESPP Plan will not exceed 125,000 shares of common stock, plus the number of shares of common stock that are automatically added on January 1st of each calendar year for a period of up to ten years , commencing on the first January 1st following the year in which an IPO occurs and ending on, and including, January 1, 2030, in an amount equal to the lesser of (i) 1 % of the total number of shares of common stock outstanding on December 31st of the preceding calendar year, and (ii) 1,000,000 shares of common stock.

No awards have been granted under the ESPP Plan as of March 31, 2021.

The 2020 Plan and the ESPP Plan are administered by the board of directors.

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Vesting periods for awards under the Plans and the 2020 Plan are determined at the discretion of the board of directors.

Incentive stock options and non-statutory stock options granted to employees, officers, members of the board of directors and consultants of the Company typically vest over two to four years .

Incentive stock options and non-

statutory stock options granted to employees, officers, members of the board of directors and consultants of the Company typically vest over two to four years .

Certain options provide for accelerated vesting if there is a change in control, as defined in the Plans and the 2020 Plan.

Share-based compensation expense recorded as research and development and general and administrative expenses in the condensed statements of operations is as follows (in thousands):

Three Months Ended September 30,

Nine Months Ended September 30,

Share-based compensation expense recorded as research and development and general and administrative expenses in the condensed statements of operations is as follows:

Three Months Ended March 31,

In thousands)

1 unchanged sentence

Research and development

Unrecognized compensation cost related to unvested options was $ 1.5 million as of September 30, 2020 and will be recognized over an estimated weighted average period of 2.82 years.

Unrecognized compensation cost related to unvested options was $ 7.3 million as of March 31, 2021 and will be recognized over an estimated weighted average period of 3.61 years.

Stock options

The weighted average assumptions used in the Black-Scholes option-pricing model for stock options granted were:

Nine Months Ended September 30,

Three Months Ended March 31,

Expected volatility

Risk-free interest rate

Expected life (in years)

Expected term (in years)

Expected dividend yield

Fair value of common stock

A summary of option activity during the nine months ended September 30, 2020 is as follows:

A summary of option activity during the three months ended March 31, 2021 is as follows:

exercise price

Outstanding at January 1, 2021

Outstanding at September 30, 2020

Exercisable at September 30, 2020

Vested or expected to vest at September 30, 2020

The weighted-average grant date fair value per share of stock options granted during the nine months ended September 30, 2020 and 2019 was $ 0.87 and $ 0.24 , respectively.

The aggregate intrinsic value of stock options

exercised during the nine months ended September 30, 2020 was $ 0.3 million.

The aggregate intrinsic value of stock options outstanding at September 30, 2020 is $ 14.5 million.

In August 2020, the Company granted a total of 92,169 stock options to two of its officers, which option awards included both performance-based and service-based vesting conditions.

Outstanding at March 31, 2021

Exercisable at March 31, 2021

Vested or expected to vest at March 31, 2021

The weighted-average grant date fair value per share of stock options granted during the three months ended March 31, 2021 and 2020 was $ 22.46 and $ 0.22 , respectively.

The aggregate intrinsic value of stock options exercised during the three months ended March 31, 2021 was $ 0.4 million.

The aggregate intrinsic value of stock options outstanding at March 31, 2021 is $ 45.1 million.

In August 2020, the Company granted stock options exercisable for a total of up to 92,169 shares of common stock to two of its officers, which option awards included both performance-based and service-based vesting conditions.

These option awards were subsequently modified in September 2020 to eliminate the performance-based criteria.

2 unchanged sentences

Since the performance condition was not considered probable of being achieved prior to the modification, no share-based compensation expense was recorded prior to the modification.

At the time of the modification, the fair value of these options awards was recalculated at $ 8.69 per option, and the resulting share-based compensation expense of $ 0.8 million will be recognized ratably over the requisite service period to the Company.

At the time of the modification, the fair value of these options awards was recalculated at $ 8.69 per option.

Related party transactions

1 unchanged sentence

The Company has entered into license agreements with certain stockholders of the Company.

Expenses with these related parties were de minimis and $ 0.1 million for the three months ended September 30, 2020 and 2019, respectively, and de minimis and $ 0.2 million for the nine months ended September 30, 2020 and 2019, respectively.

There were no amounts owed to these related parties as of September 30, 2020 and December 31, 2019.

Convertible promissory notes

During the nine months ended September 30, 2019, the Company received $ 6.8 million upon issuing convertible promissory notes, of which $ 3.8 million was from several of its existing preferred stock investors.

All of the convertible promissory notes were converted into shares of Series A Preferred (see Note 6).

Expenses with these related parties were de minimis for each of the three months ended March 31, 2021 and 2020, respectively.

There were no amounts owed to these related parties as of March 31, 2021 and December 31, 2020.

Broadband services agreement

During November 2015, the Company entered into a Master Services Agreement (MSA) with BCM Advisory Partners LLC, Broadband Capital Partners LLC and Broadband Advisory (collectively, Broadband) pursuant to which Broadband agreed to provide corporate finance, strategic planning, and management services to the Company.

The Company issued shares of common stock to Broadband and, starting May 1, 2016, is required to pay Broadband a cash fee of $ 20,000 per month for Broadband’s advisory services.

The Company recorded $ 0.1 million and $ 0.1 million during the three months ended September 30, 2020 and 2019, respectively, and $ 0.2 million and $ 0.2 million during the nine months ended September 30, 2020 and 2019, respectively, related to the Broadband MSA which is included in general and administrative expenses in the statements of operations.

In November 2015, the Company entered into a management services agreement (MSA) with BCM Advisory Partners LLC and Broadband Capital Partners LLC (Broadband Capital), as subsequently amended and/or restated in July 2016, January 2017, June 2018, March 2020 and August 2020.

Under the Broadband MSA, the Company engages Broadband Capital as a consultant for advice in connection with senior management matters related to the Company’s business, administration and policies in exchange for a cash fee to Broadband Capital of $ 20,000 per month.

The Broadband MSA expires in June 2021.

Pursuant to the Broadband MSA, the Company previously issued an aggregate of 827,640 shares of its common stock to Broadband Advisory and has no further obligation to issue additional shares under the Broadband MSA.

The Company recorded $ 0.1 million during each of the three months ended March 31, 2021 and 2020, related to the Broadband MSA which is included in general and administrative expenses in the condensed statements of operations.

Subsequent events

On October 6, 2020, the Company closed its IPO in which the Company issued and sold 3,250,000 shares of its common stock at a public offering price of $ 12.00 per share.

On October 13, 2020, the underwriters exercised their option to purchase an additional 487,500 shares of the Company’s common stock at a purchase price of $ 12.00 per share.

The Company received net proceeds of $ 41.7 million after deducting underwriting discounts and commissions of $ 3.1 million but before deducting other offering expenses.

On April 28, 2021, the Company sold 1,000,000 shares of the Company’s common stock in a private placement at a price of $ 27.00 per share for gross proceeds of $ 27.0 million.

In connection with the private placement, the Company also issued Series B Warrants (the Series B Warrants) to purchase 500,000 shares of common stock.

The Series B Warrants are exercisable at any time, have an exercise price of $ 45.00 per share and will terminate at the earlier of (i) three year s from the date of issuance and (ii) upon liquidation or deemed liquidation of the Company.

The Series B Warrants are callable by the Company in certain circumstances.

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