What changed in this filing

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Item 1. Financial Statements

2020-11-04 compared with 2020-08-06 · 279 added, 164 removed, 351 unchanged (56% of the section changed)

3 unchanged sentences

(in thousands, except per share data)

June 30, 2020

September 30, 2020

December 31, 2019

2 unchanged sentences

Marketable securities

Accounts receivable

Accounts receivable, net

Prepaid expenses

2 unchanged sentences

Marketable securities

Accounts receivable

Accounts receivable, net

Property and equipment, net

16 unchanged sentences

10,000 shares authorized, and no shares issued

and outstanding at June 30, 2020 and December 31, 2019

and outstanding at September 30, 2020 and December 31, 2019

Common stock;

$ 0.0001 par value;

100,000 shares authorized at June 30, 2020

100,000 shares authorized at September 30, 2020

and December 31, 2019;

37,404 and 36,992 shares issued and outstanding at

June 30, 2020 and December 31, 2019, respectively

September 30, 2020 and December 31, 2019, respectively

Additional paid-in capital

5 unchanged sentences

REGENXBIO INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(in thousands, except per share data)

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

License and royalty revenue

4 unchanged sentences

General and administrative

Other operating expenses (income)

Provision for credit losses and other

Total operating expenses

Loss from operations

Income (loss) from operations

Other Income (Loss)

Interest income from licensing

Investment income

Total other income

Loss before income taxes

Investment income (loss)

Total other income (loss)

Income (loss) before income taxes

Income Tax Benefit

Other Comprehensive Income

Unrealized gain on available-for-sale securities, net

Total other comprehensive income

Comprehensive loss

Basic and diluted net loss per share

Weighted-average basic and diluted common shares outstanding

Net income (loss)

Other Comprehensive Income (Loss)

Unrealized gain (loss) on available-for-sale securities, net

Total other comprehensive income (loss)

Comprehensive income (loss)

Net income (loss) per share:

Weighted-average common shares outstanding:

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

2 unchanged sentences

(in thousands)

Three Months Ended June 30, 2020

Three Months Ended September 30, 2020

Comprehensive

Stockholders’

Income (Loss)

Balances at March 31, 2020

Balances at June 30, 2020

Exercise of stock options

Issuance of common stock under employee

stock purchase plan

Stock-based compensation expense

Unrealized gain on available-for-sale securities, net

Balances at June 30, 2020

Three Months Ended June 30, 2019

Unrealized loss on available-for-sale securities, net

Balances at September 30, 2020

Three Months Ended September 30, 2019

Comprehensive

Stockholders’

Income (Loss)

Balances at March 31, 2019

Balances at June 30, 2019

Exercise of stock options

Issuance of common stock under employee

stock purchase plan

Stock-based compensation expense

Unrealized gain on available-for-sale securities, net

Balances at June 30, 2019

Six Months Ended June 30, 2020

Unrealized loss on available-for-sale securities, net

Balances at September 30, 2019

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

REGENXBIO INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands)

Nine Months Ended September 30, 2020

Comprehensive

6 unchanged sentences

Unrealized gain on available-for-sale securities, net

Balances at June 30, 2020

Six Months Ended June 30, 2019

Balances at September 30, 2020

Nine Months Ended September 30, 2019

Comprehensive

9 unchanged sentences

Unrealized gain on available-for-sale securities, net

Balances at June 30, 2019

Balances at September 30, 2019

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

2 unchanged sentences

(in thousands)

Six Months Ended June 30,

Nine Months Ended September 30,

Cash flows from operating activities

1 unchanged sentence

Stock-based compensation expense

Net amortization of premiums and accretion of discounts on marketable

debt securities

Depreciation and amortization

Net realized gains on sales and maturities of marketable securities

Unrealized losses (gains) on marketable equity securities

Provision for credit losses

Net amortization of premiums (accretion of discounts) on marketable

debt securities

Net realized and unrealized losses (gains) on marketable securities

Imputed interest income from licensing

22 unchanged sentences

Net cash provided by financing activities

Net increase (decrease) in cash and cash equivalents and restricted cash

Net increase in cash and cash equivalents and restricted cash

Cash and cash equivalents and restricted cash

2 unchanged sentences

Supplemental disclosures of non-cash investing and financing activities

Additions to property and equipment through accounts payable and accrued expenses

Non-cash additions to property and equipment through tenant improvement allowance

Non-cash consideration received for licenses granted

9 unchanged sentences

Liquidity and Risks

As of June 30, 2020, the Company had generated an accumulated deficit of $ 251.6 million since inception.

As of September 30, 2020, the Company had generated an accumulated deficit of $ 242.8 million since inception.

As the Company has incurred cumulative losses since inception, transition to recurring profitability is dependent upon achieving a level of revenues adequate to support the Company’s cost structure, which depends heavily on the successful development, approval and commercialization of its product candidates.

The Company may never achieve recurring profitability, and unless and until it does, the Company will continue to need to raise additional capital, to the extent possible.

As of June 30, 2020, the Company had cash, cash equivalents and marketable securities of $ 339.2 million, which management believes is sufficient to fund operations for at least the next 12 months from the date these consolidated financial statements were issued.

As of September 30, 2020, the Company had cash, cash equivalents and marketable securities of $ 289.8 million, which management believes is sufficient to fund operations for at least the next 12 months from the date these consolidated financial statements were issued.

The Company is subject to risks common to companies in the biotechnology industry, including, but not limited to, development by the Company or its competitors of technological innovations, risks of failure of clinical trials, dependence on key personnel, protection of proprietary technology, compliance with government regulations and ability to transition from clinical manufacturing to the commercial production of products.

16 unchanged sentences

expected business and operational changes, sensitivity and volatility associated with the assumptions used in developing estimates and whether historical trends are expected to be representative of future trends.

The estimation process often may yield a range of potentially reasonable estimates of the ultimate future outcomes and management must select an amount that falls within that range of reasonable estimates.

may result in actual results differing materially from those estimated amounts used in the preparation of the consolidated financial statements.

The estimation process often may yield a range of potentially reasonable estimates of

the ultimate future outcomes and management must select an amount that falls within that range of reasonable estimates.

This process may result in actual results differing materially from those estimated amounts used in the preparation of the consolidated financial statements.

Significant estimates are used in the following areas, among others:

license and royalty revenue, stock-based compensation expense, accrued research and development expenses and other accrued liabilities, income taxes and the fair value of financial instruments.

license and royalty revenue, the allowance for credit losses, stock-based compensation expense, accrued research and development expenses and other accrued liabilities, income taxes and the fair value of financial instruments.

The Company is actively monitoring the impact of the COVID-19 pandemic on its business, results of operations and financial condition.

7 unchanged sentences

The following table provides a reconciliation of cash and cash equivalents and restricted cash as reported on the consolidated balance sheets to the total of these amounts as reported at the end of the period in the consolidated statements of cash flows (in thousands):

June 30, 2020

June 30, 2019

September 30, 2020

September 30, 2019

Cash and cash equivalents

7 unchanged sentences

The present value discount is recognized as a reduction of revenue in the period in which the accounts receivable are initially recorded and is accreted as interest income from licensing over the term of the receivables.

Accounts receivable are stated net of an allowance for doubtful accounts, if deemed necessary based on the Company’s evaluation of collectability and potential credit losses.

Accounts receivable are stated net of an allowance for credit losses, if deemed necessary based on the Company’s evaluation of collectability and potential credit losses.

Management assesses the collectability of its accounts receivable using the specific identification of account balances, and considers the credit quality and financial condition of its significant customers, historical information regarding credit losses and the Company’s evaluation of current and expected future economic conditions.

If necessary, an allowance for doubtful accounts is recorded against accounts receivable such that the carrying value of accounts receivable reflects the net amount expected to be collected.

The Company did no t record an allowance for doubtful accounts as of June 30, 2020 and December 31, 2019.

If necessary, an allowance for credit losses is recorded against accounts receivable such that the carrying value of accounts receivable reflects the net amount expected to be collected.

Accounts receivable balances are written off against the allowance for credit losses when the potential for collectability is considered remote.

Please refer to Note 7 for further information regarding the allowance for credit losses related to accounts receivable.

Marketable Securities

13 unchanged sentences

In determining whether a credit loss exists related to impaired available-for-sale debt securities, the Company considers, among other factors, the extent of the unrealized loss relative to the amortized cost basis, the credit rating of the issuer and any recent changes thereto, current and expected future economic conditions, and any adverse events or other changes in circumstances that have occurred which may indicate a potential credit loss.

The Company did no t record an allowance for credit losses on its available-for-sale debt securities as of June 30, 2020.

The Company did no t record an allowance for credit losses on its available-for-sale debt securities as of September 30, 2020.

Fair Value of Financial Instruments

14 unchanged sentences

Please refer to Note 4 for further information on the fair value measurement of the Company’s financial instruments.

Net Loss Per Share

Basic net loss per share is calculated by dividing net loss applicable to common stockholders by the weighted-average common shares outstanding during the period, without consideration for common stock equivalents.

Diluted net loss per share is calculated by adjusting the weighted-average common shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury-stock method.

Net Income (Loss) Per Share

Basic net income (loss) per share is calculated by dividing net income (loss) applicable to common stockholders by the weighted-average common shares outstanding during the period, without consideration for common stock equivalents.

Diluted net income (loss) per share is calculated by adjusting the weighted-average common shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury-stock method.

Contingently convertible shares in which conversion is based on non-market-priced contingencies are excluded from the calculations of both basic and diluted net income (loss) per share until the contingency has been fully met.

For purposes of the diluted net loss per share calculation, common stock equivalents are excluded from the calculation of diluted net loss per share if their effect would be anti-dilutive.

For purposes of the diluted net income (loss) per share calculation, common stock equivalents are excluded from the calculation of diluted net income (loss) per share if their effect would be anti-dilutive.

Recent Accounting Pronouncements

18 unchanged sentences

The Company has various cloud-based software applications accounted for as service contracts, the most significant of which is the Company’s enterprise resource planning (ERP) system for which implementation was in progress on the adoption date of this standard.

The adoption of this standard resulted in the capitalization of certain costs during the six months ended June 30, 2020 related to the implementation of the ERP system and other cloud-based software applications which would have been expensed as incurred prior to the adoption of this standard.

The adoption of this standard resulted in the capitalization of certain costs during the three and nine months ended September 30, 2020 related to the implementation of the ERP system and other cloud-based software applications which would have been expensed as incurred prior to the adoption of this standard.

The adoption of this standard did not have a material impact on the Company’s financial position or results of operations.

5 unchanged sentences

The following tables present a summary of the Company’s marketable securities, which consist of available-for-sale debt securities and equity securities (in thousands):

June 30, 2020

September 30, 2020

government and federal agency securities

7 unchanged sentences

Equity securities

As of June 30, 2020 and December 31, 2019, no available-for-sale debt securities had remaining maturities greater than three years.

As of September 30, 2020 and December 31, 2019, no available-for-sale debt securities had remaining maturities greater than three years.

The amortized cost of marketable debt securities is adjusted for amortization of premiums and accretion of discounts to maturity, or to the earliest call date for callable debt securities purchased at a premium.

As of June 30, 2020 and December 31, 2019, the balance in the Company’s accumulated other comprehensive income consisted solely of net unrealized gains and losses on available-for-sale debt securities, net of income tax effects and reclassification adjustments for realized gains and losses.

During the three and six months ended June 30, 2020, the Company recognized net unrealized gains on available-for-sale debt securities of $ 1.3 million and $ 0.6 million, respectively, and income tax expense of zero in other comprehensive income for the period.

The Company recognized net realized gains (losses) of less than $( 0.1 ) million and less than $ 0.1 million on the sale or maturity of available-for-sale debt securities during the three and six months ended June 30, 2020, which were reclassified out of accumulated other comprehensive income during the period and were included in investment income in the consolidated statements of operations and comprehensive loss.

During the three and six months ended June 30, 2019, the Company recognized net unrealized gains on available-for-sale debt securities of $ 0.8 million and $ 1.8 million, respectively, and income tax expense of $ 0.3 million and $ 0.7 million, respectively, in other comprehensive income for the period.

The Company recognized net realized gains of zero and less than $ 0.1 million on the sale or maturity of available-for-sale debt securities during the three and six months ended June 30, 2019, which were reclassified out of accumulated other comprehensive income during the period and were included in investment income in the consolidated statements of operations and comprehensive loss.

As of September 30, 2020 and December 31, 2019, the balance in the Company’s accumulated other comprehensive income consisted solely of net unrealized gains and losses on available-for-sale debt securities, net of income tax effects and reclassification adjustments for realized gains and losses.

During the three and nine months ended September 30, 2020, the Company recognized net unrealized gains (losses) on available-for-sale debt securities of $( 0.5 ) million and $ 0.1 million, respectively, and income tax expense of zero in other comprehensive income (loss) for the period.

The Company recognized net realized gains of less than $ 0.1 million and $ 0.1 million on the sale or maturity of available-for-sale debt securities during the three and nine months ended September 30, 2020, respectively, which were reclassified out of accumulated other comprehensive income during the period and were included in investment income (loss) in the consolidated statements of operations and comprehensive income (loss).

During the three and nine months ended September 30, 2019, the Company recognized net unrealized gains (losses) on available-for-sale debt securities of $( 0.1 ) million and $ 1.7 million, respectively, and income tax benefit (expense) of less than $ 0.1 million and $( 0.6 ) million, respectively, in other comprehensive income (loss) for the period.

The Company recognized net realized gains of less than $ 0.1 million on the sale or maturity of available-for-sale debt securities during the three and nine months ended September 30, 2019, which were reclassified out of accumulated other comprehensive income during the period and were included in investment income (loss) in the consolidated statements of operations and comprehensive income (loss).

The following tables present the fair values and unrealized losses of available-for-sale debt securities held by the Company in an unrealized loss position for less than 12 months and 12 months or greater (in thousands):

1 unchanged sentence

12 Months or Greater

June 30, 2020

September 30, 2020

Corporate bonds

5 unchanged sentences

Corporate bonds

As of June 30, 2020, available-for-sale debt securities held by the Company which were in an unrealized loss position consisted of 11 investment grade security positions.

The Company has the intent and ability to hold such securities until recovery, and due to the credit quality of the issuers and low severity of each unrealized loss position relative to its amortized cost basis, the Company has not identified any credit losses associated with its available-for-sale debt securities.

The Company did no t recognize any impairment or credit losses on available-for-sale debt securities during the three and six months ended June 30, 2020.

Marketable equity securities held by the Company as of June 30 , 2020 and December 31, 2019 consist ed solely of common stock of Prevail Therapeutics Inc.

As of September 30, 2020, available-for-sale debt securities held by the Company which were in an unrealized loss position consisted of five investment grade security positions.

The Company has the intent and ability to hold such securities until recovery, and due to the credit quality of the issuers and low severity of each unrealized loss position relative to its amortized cost basis, the Company did not identify any credit losses associated with its available-for-sale debt securities.

The Company did no t recognize any impairment or credit losses on available-for-sale debt securities during the three and nine months ended September 30, 2020.

Marketable equity securities held by the Company as of September 30 , 2020 and December 31, 2019 consist ed solely of common stock of Prevail Therapeutics Inc.

The Company acquired the securities as consideration for a commercial license to the NAV Technology Platform granted to Prevail in August 2017.

2 unchanged sentences

Upon Prevail’s IPO in June 2019, the securities were reclassified to marketable securities and are measured at fair value.

During the three and six months ended June 30 , 2020, the Company recognized net realized and unrealized gains (losses) of $ 4.4 million and $ ( 0.7 ) million, respectively, related to its marketable equity securities of Prevail .

During the three and six months ended June 30, 2019, the Company recognized unrealized gains of $ 31.7 million and did no t recognize any realized gains or losses related to its marketable equity securities of Prevail.

During the three and nine months ended September 30 , 2020, the Company recognized net realized and unrealized losses of $ 7.5 million and $ 8.3 million, respectively, related to its marketable equity securities of Prevail .

During the three and nine months ended September 30, 2019, the Company recognized unrealized gains (losses) of $ ( 2.2 ) million and $ 29.4 million , respectively, and did no t recognize any realized gains or losses related to its marketable equity securities of Prevail.

Fair Value of Financial Instruments

1 unchanged sentence

The following tables present the fair value of cash equivalents and marketable securities in accordance with the hierarchy discussed in Note 2 (in thousands):

June 30, 2020

September 30, 2020

Cash equivalents:

21 unchanged sentences

Accounts receivable which contain non-current portions are recorded at their present values using a discount rate that is based on prevailing market rates and the credit profile of the licensee on the date the amounts are initially recorded.

Management does not believe there have been any significant changes in market conditions or credit quality that would cause the discount rates initially used to be significantly different from those that would be used as of June 30, 2020 to determine the present value of the receivables.

Management does not believe there have been any significant changes in market conditions or credit quality that would cause the discount rates initially used to be significantly different from those that would be used as of September 30, 2020 to determine the present value of the receivables.

Accordingly, management estimates that the carrying value of its non-current accounts receivable approximates the fair value of those instruments.

Non-marketable equity securities are measured at cost less impairment, adjusted for observable price changes for identical or similar investments of the same issuer.

As of June 30, 2020, non-marketable equity securities had a carrying value of $ 1.1 million and were included in other assets on the consolidated balance sheet.

As of September 30, 2020, non-marketable equity securities had a carrying value of $ 1.1 million and were included in other assets on the consolidated balance sheet.

As of December 31, 2019, the Company did no t hold any non-marketable equity securities.

No remeasurements or impairment losses were recorded on non-marketable equity securities during the three and six months ended June 30, 2020 and 2019.

No remeasurements or impairment losses were recorded on non-marketable equity securities during the three and nine months ended September 30, 2020 and 2019.

Property and Equipment, Net

Property and equipment, net consists of the following (in thousands):

June 30, 2020

September 30, 2020

December 31, 2019

Lab equipment

Laboratory and manufacturing equipment

Computer equipment and software

4 unchanged sentences

Property and equipment, net

9804 Medical Center Drive

In November 2018, the Company entered into an operating lease, as amended in April 2019 and November 2019, for approximately 177,000 square feet of office, laboratory and manufacturing facilities in a new building to be constructed at 9804 Medical Center Drive in Rockville, Maryland (the 9804 Medical Center Drive Lease).

The new facility will serve as the Company’s future corporate, research and manufacturing headquarters.

The initial construction of the building was performed by the landlord, and the lease commenced in September 2020 upon the delivery of leased premises to the Company to make additional improvements to the building.

Monthly payments under the lease begin in September 2021 and escalate annually in accordance with the lease agreement.

The lease expires in September 2036 , subject to extension and termination options held by the Company.

The Company has the option to extend the term of the lease for up to 10 additional years and the option to terminate the lease, with payment of an early termination fee, after 12 years from the delivery of the leased premises to the Company.

The Company’s extension and termination options under the 9804 Medical Center Drive Lease have been excluded from the measurement of the right-of-use assets and lease liabilities for the lease as they were not reasonably certain of exercise.

As required by the lease agreement, the Company has provided the landlord with an irrevocable letter of credit of $ 1.1 million which the landlord may draw upon in the event of any uncured default by the Company under the terms of the lease.

Pursuant to the 9804 Medical Center Drive Lease, the Company received a $ 19.5 million tenant improvement allowance from the landlord to perform improvements to the leased premises.

The tenant improvement allowance has been recorded as a reduction of the right-of-use assets for the lease and is amortized on a straight-line basis as a reduction of lease expense over the term of the lease.

As of September 30, 2020, the Company had unreimbursed amounts remaining under the tenant improvement allowance of $ 17.2 million, which were deemed in-substance lease payments and recorded as a reduction of the lease liability.

As of September 30, 2020, the Company had recorded property and equipment of $ 17.3 million related to the buildout of the facility at 9804 Medical Center Drive, which have not yet been placed in service.

The Company recorded the right-of-use assets and lease liabilities related to the 9804 Medical Center Drive Lease upon its commencement in September 2020.

As of September 30, 2020, the Company had recorded right-of-use assets of $ 50.6 million and lease liabilities of $ 52.5 million related to the 9804 Medical Center Drive Lease.

9712 Medical Center Drive

In March 2015, the Company entered into an operating lease for office space at 9712 Medical Center Drive in Rockville, Maryland (the 9712 Medical Center Drive Lease).

The lease term commenced in April 2015.

Monthly payments under the lease began in October 2015 and escalate annually in accordance with the lease agreement.

In September 2015, November 2015, July 2017 and April 2018, the Company amended the 9712 Medical Center Drive Lease to include additional office and laboratory space at 9714 Medical Center Drive, and ultimately extend the term of the lease to September 2021.

The Company had options to extend the term of the 9712 Medical Center Drive Lease for up to six additional years.

Additionally, upon the commencement of the 9804 Medical Center Drive Lease in September 2020, the Company had the option to terminate the 9712 Medical Center Drive Lease with six months’ notice.

The Company’s extension and termination options under the 9712 Medical Center Drive Lease were excluded from the measurement of the right-of-use assets and lease liabilities for the lease as they were not reasonably certain of exercise.

The Company received a $ 0.4 million tenant improvement allowance from the landlord which has been recorded as a reduction of the right-of-use assets for the lease and is amortized on a straight-line basis as a reduction of lease expense over the term of the lease.

In October 2020, the Company amended the 9712 Medical Center Drive Lease to extend the term of the lease to February 2027.

Pursuant to the amendment, the Company has an option to extend the term of the lease for three additional years, as well as an option to extend the lease term to be coterminous with the 9804 Medical Center Drive Lease, which expires in September 2036.

Total additional lease payments under the 9712 Medical Center Drive Lease as a result of the October 2020 amendment were $ 8.8 million, excluding any lease payments contingent upon the Company’s option to extend the term of the lease.

9600 Blackwell Road

In January 2016, the Company entered into an operating lease for its corporate headquarters at 9600 Blackwell Road in Rockville, Maryland (the Blackwell Road Lease).

The lease commenced in February 2016 and expires in September 2023 .

In November 2017, the Blackwell Road Lease was amended to include additional office space for the remainder of the lease term.

Monthly payments under the lease began in September 2016 and escalate annually in accordance with the lease agreement.

The Company received a $ 0.8 million tenant improvement allowance from the landlord which has been recorded as a reduction of the right-of-use assets for the lease and is amortized on a straight-line basis as a reduction of lease expense over the term of the lease.

The Company had an option to extend the term of the Blackwell Road Lease for up to five additional years and the option to terminate the lease, with payment of an early termination fee, after 67 months from the lease commencement date.

During the three months ended September 30, 2020, the Company reassessed the term of the Blackwell Road Lease and determined that as of September 30, 2020, it was reasonably certain that the Company will exercise its termination option under the lease.

Accordingly, the measurement of the right-of-use assets and lease liabilities for the Blackwell Road Lease were reduced by $ 0.7 million during the three months ended September 30, 2020, to reflect the payment of the early termination fee and the revised lease term through September 2021.

In November 2020, the Company exercised its termination option under the Blackwell Road Lease.

As a result of the termination, the lease will expire in September 2021 and the Company is obligated to pay an early termination fee of $ 0.4 million.

400 Madison Avenue

In May 2016, the Company entered into an operating lease for office space at 400 Madison Avenue in New York, New York (the 400 Madison Lease).

The lease commenced in July 2016 and monthly payments under the lease began in October 2016 and escalate annually in accordance with the lease agreement.

In May 2019, the 400 Madison Lease was amended to include additional office space and extend the term of the lease from October 2020 to April 2027.

The Company received a $ 0.7 million tenant improvement allowance from the landlord which has been recorded as a reduction of the right-of-use assets for the lease and is amortized on a straight-line basis as a reduction of lease expense over the term of the lease.

As required by the lease agreement, the Company has provided the landlord with an irrevocable letter of credit of $ 0.2 million which the landlord may draw upon in the event of any uncured default by the Company under the terms of the lease.

The Company leases additional office and laboratory facilities, laboratory equipment and other equipment under operating leases with various expiration dates through 2028 , including leases which have been executed but have not yet commenced.

Operating Lease Information

All of the Company’s leases are classified as operating leases.

The following table summarizes the Company’s lease costs and supplemental cash flow information related to its operating leases (in thousands):

Three Months Ended

Nine Months Ended

September 30, 2020

Operating lease cost

Variable lease cost

Total lease cost

Cash paid for amounts included in operating lease liabilities

Right-of-use assets acquired through operating lease liabilities

Right-of-use assets acquired through operating lease liabilities for the three and nine months ended September 30, 2020 include a reduction of $ 0.7 million related to the Company’s change in estimate regarding the exercise of its termination rights under the Blackwell Road Lease.

Short-term lease expense for the three and nine months ended September 30, 2020 was not material and is included in operating lease cost in the table above.

Variable lease cost under the Company’s operating leases includes items such as common area maintenance, utilities, taxes and other charges.

The weighted-average remaining lease term and weighted-average discount rate of the Company’s operating leases were as follows:

September 30, 2020

Weighted-average remaining lease term (years)

Weighted-average discount rate

The following table presents a reconciliation of the undiscounted future minimum lease payments remaining the Company’s operating leases to the amounts reported as operating lease liabilities on the consolidated balance sheet as of September 30, 2020 (in thousands):

September 30, 2020

Undiscounted future minimum lease payments:

2020 (remainder of year)

Total undiscounted future minimum lease payments

Amount representing imputed interest

Tenant improvement allowance not yet received

Total operating lease liabilities

Current portion of operating lease liabilities

Operating lease liabilities, non-current

The table above excludes future minimum lease payments for leases which were executed but had not yet commenced as of September 30, 2020, the total of which were not material.

License and Royalty Revenue

As of June 30, 2020, the Company’s NAV Technology Platform was being applied by NAV Technology Licensees in one commercial product, Zolgensma, and in the development of more than 20 product candidates.

As of September 30, 2020, the Company’s NAV Technology Platform was being applied by NAV Technology Licensees in one commercial product, Zolgensma, and in the development of more than 20 product candidates.

Consideration to the Company under its license agreements may include:

4 unchanged sentences

Sales-based milestones are excluded from the transaction price of each license agreement and recognized as royalty revenue in the period of achievement.

As of June 30, 2020, the Company’s license agreements, excluding additional licenses that could be granted upon the exercise of options by licensees, contained unachieved milestones which could result in aggregate milestone payments to the Company of up to $ 293.4 million, including (i) $ 0.3 million upon the submission of preclinical regulatory filings, (ii) $ 26.6 million upon the commencement of various stages of clinical trials, (iii) $ 26.0 million upon the submission of regulatory approval filings, (iv) $ 103.5 million upon the approval of commercial products by regulatory agencies and (v) $ 137.0 million upon the achievement of specified sales targets for licensed products.

As of September 30, 2020, the Company’s license agreements, excluding additional licenses that could be granted upon the exercise of options by licensees, contained unachieved milestones which could result in aggregate milestone payments to the Company of up to $ 213.4 million, including (i) $ 0.3 million upon the submission of preclinical regulatory filings, (ii) $ 26.6 million upon the commencement of various stages of clinical trials, (iii) $ 26.0 million upon the submission of regulatory approval filings, (iv) $ 103.5 million upon the approval of commercial products by regulatory agencies and (v) $ 57.0 million upon the achievement of specified sales targets for licensed products.

To the extent the milestone payments are realized by the Company, the Company will be obligated to pay sublicense fees to licensors based on a specified percentage of the fees earned by the Company.

The achievement of milestones by licensees is highly dependent on the successful development and commercialization of licensed products and it is at least reasonably possible that some or all of the milestone fees will not be realized by the Company.

The following tables present changes in the balances of the Company’s receivables, contract assets and contract liabilities during the periods presented (in thousands):

End of Period

Three Months Ended June 30, 2020

Receivables and contract assets:

Accounts receivable, current and non-current

Contract assets

Contract liabilities:

Deferred revenue, current and non-current

End of Period

Six Months Ended June 30, 2020

Receivables and contract assets:

Accounts receivable, current and non-current

Contract assets

Contract liabilities:

Deferred revenue, current and non-current

End of Period

Three Months Ended June 30, 2019

Receivables and contract assets:

Accounts Receivable, Contract Assets and Deferred Revenue

The following table presents changes in the balances of the Company’s receivables, contract assets and deferred revenue, as well as other information regarding revenue recognized during the periods presented (in thousands):

Three Months Ended September 30,

Nine Months Ended September 30,

Accounts receivable, current and non-current:

Balance, beginning of period

Balance, end of period

Contract assets:

Contract liabilities:

Balance, beginning of period

Balance, end of period

Deferred revenue, current and non-current:

End of Period

Six Months Ended June 30, 2019

Receivables and contract assets:

Accounts receivable, current and non-current

Balance, beginning of period

Balance, end of period

Revenue recognized during the period from:

Amounts included in deferred revenue at beginning of period

Performance obligations satisfied in previous periods

Additions to accounts receivable during the periods presented consisted primarily of royalties on net sales of Zolgenmsa, billed and unbilled receivables recorded for the achievement of milestones by licensees during the period, receivables recorded related to new licenses granted by the Company, and interest income recognized related to significant financing components.

Deductions to accounts receivable during the periods presented primarily consisted of amounts collected from licensees and increases in the allowance for credit losses.

Additions to contract assets during the periods presented consisted of development milestones deemed probable of achievement by licensees during the periods.

Deductions to contract assets during the periods presented consisted of the achievement of such milestones and billing of the associated milestone payments by the Company.

Accounts receivable, net consisted of the following (in thousands):

September 30, 2020

December 31, 2019

Current accounts receivable:

Billed to customers

Allowance for credit losses

Current accounts receivable, net

Non-current accounts receivable:

Allowance for credit losses

Non-current accounts receivable, net

Total accounts receivable, net

The following table presents the changes in the allowance for credit losses related to accounts receivable and contract assets for the nine months ended September 30, 2020 (in thousands):

Accounts Receivable

Contract Assets

Contract liabilities:

Deferred revenue, current and non-current

Additions to accounts receivable during the three and six months ended June 30, 2020 primarily consisted of royalties on net sales of Zolgensma of $ 11.9 million and $ 21.9 million, respectively, receivables recorded related to new licenses granted by the Company, amounts billed upon the achievement of development milestones by licensees during the periods, and interest income recognized during the periods related to significant financing components.

Additions to accounts receivable during the three and six months ended June 30, 2019 primarily consisted of receivables recorded related to new licenses granted by the Company, amounts billed upon the achievement of development milestones by licensees during the periods, and interest income recognized during the periods related to significant financing components.

Deductions to accounts receivable during the three and six months ended June 30, 2020 and 2019 primarily consisted of amounts collected from licensees during the periods.

The changes in the balances of contract assets during the three and six months ended June 30, 2020 and 2019 consist of development milestones deemed probable of achievement by licensees during the period, offset by the subsequent achievement of such milestones and billing of the associated milestone payments by the Company.

As of June 30, 2020, the Company had recorded deferred revenue of $ 4.5 million which represents consideration received from licensees for performance obligations that have not yet been satisfied by the Company.

These performance obligations will be satisfied, and underlying revenue will be recognized, upon the exercise or expiration of the options or performance of the research and development services.

The Company did no t recognize any revenue during the three and six months ended June 30, 2020 that was included in deferred revenue at the beginning of the period.

During the three and six months ended June 30, 2019, the Company recognized $ 0.6 million of revenue that was included in deferred revenue at the beginning of the period as a result of options exercised by licensees during the period.

During the three and six months ended June 30, 2020, the Company recognized revenue of $ 16.4 million and $ 26.8 million, respectively, from performance obligations satisfied in prior periods as a result of changes in the transaction prices of its license agreements as well as royalties on sales of licensed products and sublicense fees.

During the three and six months ended June 30, 2019, the Company recognized revenue of $ 4.2 million and $ 5.0 million, respectively, from performance obligations satisfied in prior periods as a result of changes in the transaction prices of its licenses agreements as well as royalties on sales of licensed products and sublicense fees.

Changes in transaction prices during the periods were primarily attributable to development milestones achieved or deemed probable of achievement during the period that were previously not considered probable of achievement.

As of June 30, 2020, the Company had recorded total current and non-current accounts receivable of $ 46.5 million, of which $ 30.0 million had been billed to customers and $ 16.5 million was billable to customers in future periods.

As of December 31, 2019, the Company had recorded total current and non-current accounts receivable of $ 42.3 million, of which $ 0.4 million had been billed to customers and $ 41.9 million was billable to customers in future periods.

Based on the Company’s evaluation of the credit quality and financial condition of its significant customers, history of collections and evaluation of current and future expected economic conditions, no credit losses were recognized on accounts receivable or contract assets during the three and six months ended June 30, 2020.

Balance at December 31, 2019

Provision for credit losses

Balance at September 30, 2020

The Company’s allowance for credit losses as of September 30, 2020 was related solely to accounts receivable from Abeona Therapeutics Inc.

Please refer to the section below, Abeona Therapeutics Inc., for further information regarding amounts due from Abeona and the associated allowance for credit losses.

The Company’s provision for credit losses for the three and nine months ended September 30, 2020 was $ 7.7 million and was related solely to changes in estimates regarding the allowance for credit losses associated with the accounts receivable from Abeona.

No provision for credit losses was recorded for the three or nine months ended September 30, 2019.

As of September 30, 2020, the Company had recorded deferred revenue of $ 4.3 million which represents consideration received from licensees for performance obligations that have not yet been satisfied by the Company.

Unsatisfied performance obligations consist of (i) options granted to licensees that provide material rights to the licensee to acquire additional licenses from the Company, which will be satisfied upon the exercise or expiration of the options and (ii) research and development services to be performed by the Company related to licensed products, which will be satisfied as the research and development services are performed.

Revenue recognized from performance obligations satisfied in previous periods was primarily attributable to royalty and sublicense revenues as well as changes in transaction prices of the Company’s license agreements during the periods.

Changes in transaction prices were primarily attributable to development milestones achieved or deemed probable of achievement during the periods, which were previously not considered probable of achievement.

AveXis March 2014 License

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Under the March 2014 License, the Company granted AveXis an exclusive, worldwide commercial license, with rights to sublicense, to the NAV Technology Platform, as well as other certain rights, for the treatment of spinal muscular atrophy (SMA) in humans by in vivo gene therapy.

AveXis launched commercial sales of Zolgensma in the second quarter of 2019, which is a licensed product under the March 2014 License.

Upon the commencement of commercial sales in the second quarter of 2019, the Company began recognizing royalty revenue on net sales of Zolgensma.

AveXis launched commercial sales of Zolgensma, a licensed product under the March 2014 License, in the second quarter of 2019, upon which the Company began recognizing royalty revenue on net sales of the licensed product.

Pursuant to the March 2014 License, AveXis was obligated to pay a sales-based milestone fee of $ 80.0 million to the Company upon the achievement of $ 1.0 billion in cumulative net sales of licensed products.

AveXis achieved cumulative net sales of Zolgensma of $ 1.0 billion in third quarter of 2020, upon which the Company recognized revenue of $80.0 million related to the sales-based milestone fee.

The $ 80.0 milestone fee was recorded as accounts receivable as of September 30, 2020, and the Company received payment of the $ 80.0 million milestone fee from AveXis in October 2020.

The Company recognized the following amounts under the March 2014 License with AveXis (in thousands):

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

License revenue

Zolgensma royalty revenue

Royalties on net sales of Zolgensma

Achievement of sales-based milestone for Zolgensma

Total license and royalty revenue

Interest income from licensing

As of June 30, 2020, the Company had recorded $ 12.1 million of accounts receivable from AveXis under the March 2014 License, of which $ 11.9 million were included in current assets and $ 0.2 million were included in non-current assets.

As of December 31, 2019, the Company had recorded $ 11.0 million of accounts receivable from AveXis under the March 2014 License, of which $ 10.8 million were included in current assets and $ 0.2 million were included in non-current assets.

As of September 30, 2020, the Company had recorded total accounts receivable of $ 98.9 million from AveXis under the March 2014 License, of which $ 98.8 million were included in current assets and $ 0.1 million were included in non-current assets.

As of December 31, 2019, the Company had recorded total accounts receivable of $ 11.0 million from AveXis under the March 2014 License, of which $ 10.8 million were included in current assets and $ 0.2 million were included in non-current assets.

Abeona Therapeutics Inc.

Accounts receivable as of June 30, 2020 and December 31, 2019 included $ 28.8 million and $ 26.3 million, respectively, related to the license agreement entered into in November 2018 between the Company and Abeona Therapeutics Inc.

(Abeona), as amended in November 2019 (the November 2018 License) for the development and commercialization of treatments for various diseases, all of which were included in current assets.

In November 2018, the Company entered into a license agreement with Abeona, as amended in November 2019 (the November 2018 License), for the development and commercialization of various diseases using the NAV Technology Platform.

Pursuant to the November 2018 License, Abeona was required to pay a license fee of $ 8.0 million to the Company no later than April 1, 2020.

Abeona failed to make this payment, and in April 2020, the Company delivered to Abeona a written demand for payment and breach notice.

Abeona failed to make this payment, and in April 2020, the Company delivered to Abeona a notice of its breach of the license agreement and written demand for payment.

Upon expiration of the applicable cure period in May 2020, the license agreement was terminated.

As a result of the termination, Abeona was required to pay a $ 20.0 million license fee to the Company within 15 days of the termination date, which otherwise would have been due to the Company in November 2020.

As of July 31, 2020, the Company had not received any portion of the $ 28.0 million in license fees due from Abeona under the license agreement.

As of October 30, 2020, the Company had not received any portion of the $ 28.0 million in license fees due from Abeona under the license agreement.

Unpaid balances due under the November 2018 License accrue interest at 1.5 % per month.

The Company recognized interest income from licensing of $ 0.8 million during the three and six months ended June 30, 2020 related to the unpaid license fees from Abeona under the November 2018 License, which is included in the $ 28.8 million of accounts receivable due from Abeona recorded as of June 30, 2020.

Subsequent to the termination of the November 2018 License, Abeona filed a claim in arbitration alleging that the Company had breached certain responsibilities to communicate with Abeona regarding the Company’s prosecution of licensed patents under the November 2018 License.

During the three and nine months ended September 30, 2020, the Company recognized interest income from licensing of $ 1.3 million and $ 2.1 million, respectively, related to the unpaid license fees from Abeona under the November 2018 License.

Total accounts receivable from Abeona recorded as of September 30, 2020 was $ 30.1 million, consisting of the unpaid license fees and associated accrued interest.

In May 2020, subsequent to the termination of the November 2018 License, Abeona filed a claim in arbitration alleging that the Company had breached certain responsibilities to communicate with Abeona regarding the Company’s prosecution of licensed patents under the November 2018 License.

The Company disputes Abeona’s claim and has filed a counterclaim in arbitration demanding payment of the $ 28.0 million of unpaid fees from Abeona, plus accrued interest.

As of June 30, 2020, the Company had not recorded any liabilities related to this matter as, based on its evaluation of the merits of Abeona’s claims, the Company believes its risk of loss is remote.

Additionally, the Company evaluated the collectability of the $ 28.8 million due from Abeona and determined that no allowance for doubtful accounts should be recorded as of June 30, 2020, as the Company intends to enforce the collection of all amounts due from Abeona and, based on its evaluation of the merits of Abeona’s claims, the Company expects to receive payment in full upon the completion of arbitration.

However, the duration of the arbitration and timing of payment from Abeona are unpredictable.

In accordance with its interest accrual policy, the Company will continue to accrue interest income on the unpaid balance due from Abeona under the November 2018 License until payment has been received or is otherwise no longer expected to be collected.

Based on its evaluation of the merits of Abeona’s claims, the Company had not recorded any liabilities related these claims as of September 30, 2020, and the Company currently expects that its demand for payment in full will be upheld in arbitration.

The Company intends to enforce the full collection of all amounts due from Abeona upon completion of arbitration, which is currently scheduled to occur in March 2021.

However, the duration and outcome of arbitration and timing of payment from Abeona are unpredictable and uncertain at this time.

While the Company currently expects its demand for payment in full will be upheld in arbitration, the Company assessed the collectability of the $ 30.1 million due from Abeona as of September 30, 2020 as it relates to credit risk.

In performing this assessment, the Company evaluated Abeona’s credit profile and financial condition, as well its expectations regarding Abeona’s future cash flows and ability to satisfy this obligation upon the completion of arbitration in 2021.

Additionally, the Company considered Abeona’s continued failure to remit payment to the Company, as well as events which occurred during the three months ended September 30, 2020 impacting Abeona’s business and credit profile, specifically the departure of key members of Abeona’s management and board of directors and subsequent decline in market capitalization.

As a result of this analysis, the Company recorded an allowance for credit losses of $ 7.7 million as of September 30, 2020 related to the accounts receivable due from Abeona.

However, management intends to enforce the full collection of all amounts due from Abeona upon the completion of arbitration.

In accordance with the Company’s interest accrual policy, the Company will cease the recognition of interest income accrued under the license agreement subsequent to the recognition of the allowance for credit losses unless and until such amounts are deemed to be collectable.

Stock-based Compensation

In January 2020, the Board of Directors authorized an additional 1,479,696 shares to be issued under the 2015 Equity Incentive Plan (the 2015 Plan).

As of June 30, 2020, the total number of shares of common stock authorized for issuance under the 2015 Plan and the 2014 Stock Plan (the 2014 Plan) was 12,412,917 , of which 2,309,229 remained available for future grants under the 2015 Plan.

As of September 30, 2020, the total number of shares of common stock authorized for issuance under the 2015 Plan and the 2014 Stock Plan (the 2014 Plan) was 12,412,917 , of which 2,321,306 remained available for future grants under the 2015 Plan.

Stock-based Compensation Expense

The Company’s stock-based compensation expense by award type was as follows (in thousands):

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Stock options

1 unchanged sentence

Employee stock purchase plan

As of June 30, 2020, the Company had $ 77.3 million of unrecognized stock-based compensation expense related to stock options and the 2015 Employee Stock Purchase Plan (the 2015 ESPP), which is expected to be recognized over a weighted-average period of 2.7 years.

The Company has recorded aggregate stock-based compensation expense in the consolidated statements of operations and comprehensive loss as follows (in thousands):

Three Months Ended June 30,

Six Months Ended June 30,

As of September 30, 2020, the Company had $ 68.6 million of unrecognized stock-based compensation expense related to stock options and the 2015 Employee Stock Purchase Plan (the 2015 ESPP), which is expected to be recognized over a weighted-average period of 2.5 years.

The Company has recorded aggregate stock-based compensation expense in the consolidated statements of operations and comprehensive income (loss) as follows (in thousands):

Three Months Ended September 30,

Nine Months Ended September 30,

Research and development

4 unchanged sentences

Cancelled or forfeited

Outstanding at June 30, 2020

Exercisable at June 30, 2020

Vested and expected to vest at June 30, 2020

Outstanding at September 30, 2020

Exercisable at September 30, 2020

Vested and expected to vest at September 30, 2020

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the fair value of the common stock for the options that were in the money at the dates reported.

The weighted-average grant date fair value per share of options granted during the six months ended June 30, 2020 was $ 24.35 .

During the six months ended June 30, 2020, the total number of stock options exercised was 281,468 , resulting in total proceeds of $ 4.0 million.

The total intrinsic value of options exercised during the six months ended June 30, 2020 was $ 7.5 million.

The weighted-average grant date fair value per share of options granted during the nine months ended September 30, 2020 was $ 24.08 .

During the nine months ended September 30, 2020, the total number of stock options exercised was 356,302 , resulting in total proceeds of $ 4.2 million.

The total intrinsic value of options exercised during the nine months ended September 30, 2020 was $ 9.4 million.

Employee Stock Purchase Plan

In January 2020, the Board of Directors authorized an additional 369,924 shares to be issued under the 2015 ESPP.

As of June 30, 2020, the total number of shares of common stock authorized for issuance under the 2015 ESPP was 623,924 , of which 486,068 remained available for future issuance.

During the six months ended June 30, 2020, 17,442 shares of common stock were issued under the 2015 ESPP.

As of September 30, 2020, the total number of shares of common stock authorized for issuance under the 2015 ESPP was 623,924 , of which 448,011 remained available for future issuance.

During the nine months ended September 30, 2020, 55,499 shares of common stock were issued under the 2015 ESPP.

The Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets.

Based on the Company’s history of operating losses, including a three-year cumulative loss position as of June 30, 2020 and December 31, 2019, the Company concluded that it is more likely than not that the benefit of its deferred tax assets will not be realized.

Accordingly, the Company provided a full valuation allowance for its net deferred tax assets as of June 30, 2020 and December 31, 2019.

Based on the Company’s history of operating losses, including three-year cumulative loss positions as of September 30, 2020 and December 31, 2019, the Company concluded that it is more likely than not that the benefit of its deferred tax assets will not be realized.

Accordingly, the Company provided a full valuation allowance for its net deferred tax assets as of September 30, 2020 and December 31, 2019.

In response to the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security Act (the CARES Act) was signed into law in March 2020.

1 unchanged sentence

Also included in the CARES Act was a change to the TCJA related to qualified improvement property, retroactively allowing for a 15 -year recovery period and bonus depreciation.

As a result of this change, the Company recorded current income tax benefit of $ 0.5 million during the three and six months ended June 30, 2020 related to a reduction of state taxes associated with additional depreciation deductions allowed for the 2018 tax year.

Overall, the enactment of the CARES Act, including the change for qualified improvement property, did not result in any material adjustments to the Company’s income tax provision for the three and six months ended June 30, 2020, or to the Company’s net deferred tax assets as of June 30, 2020.

As a result of this change, the Company recorded current income tax benefit of $ 0.5 million during the nine months ended September 30, 2020 related to a reduction of state taxes associated with additional depreciation deductions allowed for the 2018 tax year.

Overall, the enactment of the CARES Act, including the change for qualified improvement property, did not result in any material adjustments to the Company’s income tax provision for the three and nine months ended September 30, 2020, or to the Company’s net deferred tax assets as of September 30, 2020.

Related Party Transactions

1 unchanged sentence

Effective January 2019, the Company entered into a new professional services agreement with FOXKISER with similar terms and conditions as the previous agreements.

The agreement was amended effective June 2019 to expand the scope of services provided and increase the monthly fee, and the amended agreement expires in December 2020.

Expenses incurred under the agreements with FOXKISER for the three and six months ended June 30, 2020 were $ 1.2 million and $ 2.4 million, respectively.

Expenses incurred under the agreements with FOXKISER for the three and six months ended June 30, 2019 were $ 0.9 million and $ 1.7 million, respectively.

Expenses incurred under the agreements with FOXKISER were recorded as research and development expenses in the consolidated statements of operations and comprehensive loss.

Net Loss Per Share

Since the Company incurred net losses for the three and six months ended June 30, 2020 and 2019, common stock equivalents were excluded from the calculation of diluted net loss per share as their effect would be anti-dilutive.

The agreement was amended effective June 2019 to expand the scope of services provided and increase the monthly fee.

Effective August 2020, the agreement was further amended to extend the term of the agreement by two years through December 2022.

The agreement may be terminated by either party with six months’ advance written notice.

Expenses incurred under the agreements with FOXKISER for the three and nine months ended September 30, 2020 were $ 1.2 million and $ 3.6 million, respectively.

Expenses incurred under the agreements with FOXKISER for the three and nine months ended September 30, 2019 were $ 1.2 million and $ 2.9 million, respectively.

Expenses incurred under the agreements with FOXKISER were recorded as research and development expenses in the consolidated statements of operations and comprehensive income (loss).

Net Income (Loss) Per Share

The computations of basic and diluted net income (loss) per share were as follows (in thousands, except per share data):

Three Months Ended September 30,

Nine Months Ended September 30,

Basic net income (loss) per share:

Net income (loss)

Shares used in computation:

Weighted-average common shares outstanding

Basic net income (loss) per share

Diluted net income (loss) per share:

Net income (loss)

Shares used in computation:

Weighted-average common shares outstanding

Stock options

Employee stock purchase plan

Weighted-average diluted common shares

Diluted net income (loss) per share

For periods in which the Company incurred net losses, common stock equivalents were excluded from the calculation of diluted net loss per share as their effect would be anti-dilutive.

Accordingly, basic and diluted net loss per share were the same for such periods.

The following potentially dilutive common stock equivalents outstanding at the end of the period were excluded from the computations of weighted-average diluted common shares for the periods indicated as their effects would be anti-dilutive (in thousands):

Three and Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Stock options issued and outstanding

2 unchanged sentences

Supplemental Disclosures

Accrued expenses and other current liabilities consist of the following (in thousands):

June 30, 2020

Accrued expenses and other current liabilities consisted of the following (in thousands):

September 30, 2020

December 31, 2019

Accrued sublicense fees and royalties

Accrued personnel costs

Accrued external research and development expenses

Accrued sublicense fees and royalties

Accrued external general and administrative expenses

2 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