4 unchanged sentences
Financial Statements and Supplementary Data,” and our consolidated financial statements beginning on page F-1 of this report.
−Removed: TG Therapeutics is a fully-integrated, commercial stage biopharmaceutical company focused on the acquisition, development and commercialization of novel treatments for B-cell malignancies and autoimmune diseases.
−Removed: In addition to an active research pipeline including five investigational medicines across these therapeutic areas, we have received accelerated approval from the U.S.
−Removed: Food and Drug Administration (FDA) for UKONIQ (umbralisib), for the treatment of adult patients with relapsed or refractory marginal zone lymphoma who have received at least one prior anti-CD20-based regimen and relapsed or refractory follicular lymphoma who have received at least three prior lines of systemic therapies.
−Removed: Currently, we have two programs in Phase 3 development for the treatment of patients with relapsing forms of multiple sclerosis (RMS) and patients with chronic lymphocytic leukemia (CLL) and several investigational medicines in Phase 1 clinical development.
+Added: TG Therapeutics is a fully-integrated, commercial stage, biopharmaceutical company focused on the acquisition, development and commercialization of novel treatments for B-cell diseases.
+Added: In addition to a research pipeline including several investigational medicines, TG has received approval from the FDA for BRIUMVI (ublituximab-xiiy) for the treatment of adult patients with RMS, to include clinically isolated syndrome, relapsing-remitting disease, and active secondary progressive disease, in adults.
We also actively evaluate complementary products, technologies and companies for in-licensing, partnership, acquisition and/or investment opportunities.
−Removed: Following FDA approval of UKONIQ on February 5, 2021, we commenced commercial sales of UKONIQ in the US and began generating product revenue.
+Added: On February 5, 2021, we announced that the FDA granted accelerated approval of umbralisib, the Company’s PI3K delta inhibitor, then commercially referred to as UKONIQ, for the treatment of adult patients with relapsed or refractory MZL who have received at least one prior anti-CD20 based regimen and adult patients with relapsed or refractory FL who have received at least three prior lines of systemic therapy.
+Added: On April 15, 2022, we announced the voluntary withdrawal of UKONIQ from sale for the approved indications.
During the year ended December 31, 2022, our only sources of product revenues were from the sales of UKONIQ.
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Early Clinical Pipeline & Pre-Clinical
+Added: Our selling, general and administrative expenses consist primarily of expenses related to the commercial launch of our products, including salaries and related expenses for our commercialization team and commercial development activities.
+Added: Other selling, general and administrative expenses consist of executive, finance and other administrative personnel, recruitment expenses, professional fees and other corporate expenses, including investor relations, legal activities and facilities-related expenses.
+Added: Our results of operations include noncash compensation expenses as a result of the grants of restricted stock and stock options.
+Added: Compensation expense for awards of restricted stock and stock options granted to employees and directors represents the fair value of the award recorded over the respective vesting periods of the individual awards.
+Added: The expense is included in the respective categories of expense in the consolidated statements of operations.
+Added: We expect to continue to incur significant noncash compensation expenses.
+Added: We recognize all share-based payments to employees and non-employee directors (as compensation for service) as noncash compensation expense in the consolidated financial statements based on the fair values of such payments.
+Added: Stock-based compensation expense recognized each period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period.
+Added: Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.
RESULTS OF OPERATIONS
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Total other expense, net
−Removed: Total revenue for the year ended December 31, 2021 increased compared to the comparable periods ended December 31, 2020 and 2019, due to net product revenues from U.S.
−Removed: sales of our sole commercial product, UKONIQ, which was approved by the FDA on February 5, 2021.
+Added: Total revenue for the year ended December 31, 2022 decreased compared to the comparable period ended December 31, 2021 due to a decrease in net product revenues resulting from the voluntary withdrawal from the U.S.
+Added: market of our sole commercial product UKONIQ.
Cost of Product Revenue.
−Removed: Cost of product revenue consists primarily of freight and royalties on net sales of UKNOIQ owed to our licensing partner.
−Removed: During the year ended December 31, 2021, the cost of product revenue was $0.8 million.
−Removed: Based on our policy to expense costs associated with the manufacture of our products prior to regulatory approval, the manufacturing costs of UKONIQ units recognized as revenue during the year ended D ecember 31, 2021 were expensed as research and development expenses prior to receipt of FDA approval on February 5, 2021, and therefore are not included in costs of product revenue during the current period.
−Removed: We expect the cost of product revenues to remain low, as we sell through certain inventory that was expensed prior to FDA approval of UKONIQ in February 2021.
+Added: Cost of product revenue for the year ended December 31, 2022 decreased compared to the comparable period ended December 31, 2021 due to the stoppage of product sales resulting from the withdrawal from the U.S.
+Added: market of our sole commercial product UKONIQ.
+Added: During the year ended December 31, 2022 the cost of product revenue consists primarily of freight and royalties on net sales of UKONIQ owed to our licensing partner.
+Added: Based on our policy to expense costs associated with the manufacture of our products prior to regulatory approval, the manufacturing costs of UKONIQ units recognized as revenue during the year ended December 31, 2022 were expensed as research and development expenses prior to receipt of FDA approval on February 5, 2021, and therefore are not included in costs of product revenue during the current period.
Noncash Compensation Expense (Research and Development).
Noncash compensation expense (research and development) related to equity incentive grants totaled $13.2 million for the year ended December 31, 2022, as compared to $24.0 million during the comparable period in 2021.
−Removed: The increase in noncash compensation expense was primarily due to vesting of milestone-based grants, an increase in research and development personnel and the vesting of grants at a higher stock price during the year ended December 31, 2021.
+Added: The decrease in noncash compensation expense was primarily due to forfeitures of restricted stock during the year ended December 31, 2022, as well as an overall decreased headcount during the year ended December 31, 2022 compared to the year ended December 31, 2021.
Other Research and Development Expense .
−Removed: Other research and development expense increased for the year ended December 31, 2021 by approximately $46.6 million to $198.5 million as compared to the comparable period ended December 31, 2020.
−Removed: The increase in research and development expense is primarily attributable to increased manufacturing expense of approximately $34.4 million in preparation for commercialization and for our Phase 3 clinical trials.
−Removed: Additionally, an increase in personnel expense of $9.5 million associated with the buildout of our regulatory and late-stage development groups.
+Added: Other research and development expense decreased for the year ended December 31, 2022, by approximately $86.4 million to $112.1 million as compared to the prior year ended December 31, 2021.
+Added: The decrease in research and development expense is primarily attributable to reduced clinical trial related expenses, headcount, lower fees paid to consultants and outside service providers, license milestones and decreased manufacturing expense during the year ended December 31, 2022.
Noncash Compensation Expense (Selling, General and Administrative).
Noncash compensation expense (selling, general and administrative) related to equity incentive grants totaled $6.0 million for the year ended December 31, 2022, as compared to $37.2 million during the comparable period in 2021.
−Removed: The decrease in noncash compensation expense was primarily related to more milestone-based vesting of restricted stock granted to executive personnel occurring during the year ended December 31, 2020.
+Added: The decrease in noncash compensation expense was primarily due to forfeitures of restricted stock during the year ended December 31, 2022, as well as an overall decreased headcount during the year ended December 31, 2022 compared to the year ended December 31, 2021.
Other Selling, General and Administrative.
−Removed: Other selling, general and administrative expenses increased for the year ended December 31, 2021 by approximately $49.3 million to $90.9 million as compared to the comparable period ended December 31, 2020.
−Removed: The increase in selling, general and administrative expense is primarily attributable to increased personnel and other selling, general and administrative costs associated with execution of the launch of UKONIQ and planning for the potential launches of U2 in CLL and ublituximab in RMS.
+Added: Other selling, general and administrative expenses decreased for the year ended December 31, 2022, by approximately $26.8 million to $64.0 million as compared to the prior year ended December 31, 2021.
+Added: The decrease was due primarily to lower other selling, general and administrative costs, as a result of our withdrawal of UKONIQ and decreased headcount, during the period ended December 31, 2022.
Interest Expense.
Interest expense for the year ended December 31, 2022 was $10.2 million compared to $5.6 million for the comparable period ended December 31, 2021.
−Removed: The $0.7 million decrease is mainly due to an increase in interest expense related to administrative fees in connection with contract manufacturing costs during the year ended December 31, 2020.
+Added: The $4.6 million increase is mainly due to greater interest expense related to the Amended Loan Agreement entered into in December 2021.
Other Income.
Other income increased by $2.4 million to $4.7 million for the year ended December 31, 2022, as compared to $2.3 million for the year ended December 31, 2021.
−Removed: The increase is mainly due to greater interest income and an increase in the change in fair value of notes payable during the year ended December 31, 2021.
+Added: The increase is mainly due to greater interest income, as well as a research & development tax credit refund received by our Australian subsidiary during the year ended December 31, 2022.
Comparison of the Years Ended December 31, 2021 and 2020
1 unchanged sentence
(in thousands)
+Added: Product revenue, net
License Revenue
1 unchanged sentence
Costs and expenses:
+Added: Cost of product revenue
Research and development:
−Removed: Noncash stock expense associated with in-licensing agreements
Noncash compensation
3 unchanged sentences
Noncash compensation
−Removed: Other general and administrative
+Added: Other selling, general and administrative
Total general and administrative
2 unchanged sentences
Total other expense, net
−Removed: License revenue was approximately $0.2 million for each of the years ended December 31, 2020 and 2019.
−Removed: License revenue is related to the amortization of an upfront payment of $2.0 million associated with our license agreement with Ildong.
+Added: Total revenue for the year ended December 31, 2021 increased compared to the comparable periods ended December 31, 2020 due to net product revenues from U.S.
+Added: sales of our sole commercial product, UKONIQ, which was approved by the FDA on February 5, 2021.
+Added: Cost of Product Revenue.
+Added: Cost of product revenue consists primarily of freight and royalties on net sales of UKONIQ owed to our licensing partner.
+Added: During the year ended December 31, 2021, the cost of product revenue was $0.8 million.
+Added: Based on our policy to expense costs associated with the manufacture of our products prior to regulatory approval, the manufacturing costs of UKONIQ units recognized as revenue during the year ended D ecember 31, 2021 were expensed as research and development expenses prior to receipt of FDA approval on February 5, 2021, and therefore are not included in costs of product revenue during the current period.
Noncash Compensation Expense (Research and Development).
−Removed: Noncash compensation expense (research and development) related to equity incentive grants totaled $14.0 million for the year ended December 31, 2020, as compared to $5.8 million during the comparable
−Removed: period in 2019.
−Removed: The increase in noncash compensation expense was primarily due to an increase in research and development personnel and the vesting of grants with a higher stock price during the year ended December 31, 2020.
+Added: Noncash compensation expense (research and development) related to equity incentive grants totaled $24.0 million for the year ended December 31, 2021, as compared to $14.0 million during the comparable period in 2020.
+Added: The increase in noncash compensation expense was primarily due to vesting of milestone-based grants, an increase in research and development personnel and the vesting of grants at a higher stock price during the year ended December 31, 2021.
Other Research and Development Expense .
−Removed: Other research and development expense increased for the year ended December 31, 2020 by approximately $3.6 million to $151.9 million compared to the comparable period ended December 31, 2019.
−Removed: The increase in research and development expense is primarily attributable to the achievement of various license agreement milestones, offset by a decrease in manufacturing expense during the year ended December 31, 2020.
−Removed: Noncash Compensation Expense (General and Administrative).
−Removed: Noncash compensation expense (general and administrative) related to equity incentive grants totaled $66.3 million for the year ended December 31, 2020, as compared to $5.5 million during the comparable period in 2019.
−Removed: The increase in noncash compensation expense was primarily related to more milestone-based vesting of restricted stock granted to executive personnel occurring during the year ended December 31, 2020.
−Removed: Other General and Administrative.
−Removed: Other general and administrative expenses increased for the year ended December 31, 2020 by approximately $32.0 million to $41.5 million compared to the comparable period ended December 31, 2019.
−Removed: The increase was due primarily to commercial costs, including personnel, incurred in preparation for the launch of UKONIQ.
+Added: Other research and development expense increased for the year ended December 31, 2021 by approximately $46.6 million to $198.5 million as compared to the comparable period ended December 31, 2020.
+Added: The increase in research and development expense is primarily attributable to increased manufacturing expense of approximately $34.4 million in preparation for commercialization and for our Phase 3 clinical trials.
+Added: Additionally, an increase in personnel expense of $9.5 million associated with the buildout of our regulatory and late-stage development groups.
+Added: Noncash Compensation Expense (Selling, General and Administrative).
+Added: Noncash compensation expense (selling, general and administrative) related to equity incentive grants totaled $37.2 million for the year ended December 31, 2021, as compared to $66.3 million during the comparable period in 2020.
+Added: The decrease in noncash compensation expense was primarily related to more milestone-based vesting of restricted stock granted to executive personnel occurring during the year ended December 31, 2020.
+Added: Other Selling, General and Administrative.
+Added: Other selling, general and administrative expenses increased for the year ended December 31, 2021 by approximately $49.3 million to $90.9 million as compared to the comparable period ended December 31, 2020.
+Added: The increase in selling, general and administrative expense is primarily attributable to increased personnel and other selling, general and administrative costs associated with execution of the launch of UKONIQ and planning for the potential launches of U2 in CLL and BRIUMVI in RMS.
Interest Expense.
−Removed: Interest expense increased by $1.0 million to $6.3 million for the year ended December 31, 2020, as compared to expense of $5.3 million for year ended December 31, 2019.
−Removed: The increase is mainly due to interest expense related to administrative fees in connection with contract manufacturing costs during the year ended December 31, 2020.
+Added: Interest expense for the year ended December 31, 2021 was $5.6 million compared to $6.3 million for the comparable period ended December 31, 2020.
+Added: The $0.7 million decrease is mainly due to an increase in interest expense related to administrative fees in connection with contract manufacturing costs during the year ended December 31, 2020.
Other Income.
−Removed: Other income decreased by $1.0 million to $0.5 million for the year ended December 31, 2020, as compared to $1.5 million for the year ended December 31, 2019.
−Removed: The decrease in other income is mainly due to a decrease in interest income during the year ended December 31, 2020.
−Removed: We expect our other income to remain at a comparable level during 2021.
+Added: Other income increased by $1.9 million to $2.3 million for the year ended December 31, 2021, as compared to $0.5 million for the year ended December 31, 2020.
+Added: The increase is mainly due to greater interest income and an increase in the change in fair value of notes payable during the year ended December 31, 2021.
LIQUIDITY AND CAPITAL RESOURCES
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(Hercules) (see Note 6 for more information).
−Removed: In February of 2021, umbralisib, now referred to as UKONIQ, was granted accelerated approval in the United States for the treatment of adult patients with relapsed or refractory MZL who have received at least one prior anti-CD20 based regimen and adult patients with relapsed or refractory FL who have received at least three prior lines of systemic therapy.
−Removed: Commercial sales of UKONIQ commenced in the first quarter of 2021.
−Removed: We have generated limited revenues to date from product sales.
−Removed: Even with the commercialization of UKONIQ and the potential future commercialization of our other drug candidates, we may not become profitable.
−Removed: Our ability to achieve profitability depends on many factors, including our ability to generate revenue, our ability to obtain regulatory approvals for our drug candidates, our ability to successfully complete any post-approval regulatory obligations and our ability to successfully commercialize our drug candidates.
−Removed: We may continue to incur substantial operating losses even as we begin to generate revenues from product sales.
+Added: Since inception, we have incurred significant operating losses.
+Added: Substantially all our operating losses have resulted from costs incurred in connection with our research and development programs and from selling, general and administrative costs associated with our operations, including our commercialization activities.
+Added: As of December 31, 2022, we had not yet generated revenue from drug sales of BRIUMVI.
+Added: BRIUMVI first became commercially available in the United States in January of 2023.
+Added: Even with the commercialization of BRIUMVI and the future commercialization of our other drug candidates, we may not become profitable.
+Added: Our ability to achieve profitability depends on our ability to generate revenue and many other factors, including our ability to obtain regulatory approval for our drug candidates;
+Added: successfully complete any post-approval regulatory obligations;
+Added: and successfully commercialize our drug candidates alone or in partnership.
+Added: We may continue to incur substantial operating losses even if we begin to generate revenues from our drug candidates.
As of December 31, 2022, we had $174.1 million in cash and cash equivalents, and investment securities.
−Removed: We anticipate that our cash and cash equivalents, and investment securities as of December 31, 2021 will provide sufficient liquidity for more than a twelve-month period from the date of filing this Annual Report on Form 10-K.
−Removed: The actual amount of cash that we will need to operate is subject to many factors, including, but not limited to, the timing, design and conduct of clinical trials for our drug candidates.
−Removed: We are dependent upon significant future financing to provide the cash necessary to execute our current operations, including the commercialization of any of our drug candidates.
+Added: We anticipate that our cash, cash equivalents, and investment securities as of December 31, 2022, capital contractually available under our existing Amended Loan Agreement, and forecasted revenue, will provide sufficient liquidity for more than a twelve-month period from the date of filing this Annual Report on Form 10-K.
+Added: The actual amount of cash that we will need to operate is subject to many factors, including, but not limited to, our BRIUMVI commercialization efforts, preparations for the potential commercialization of our other drug candidates, and the timing, design and conduct of clinical trials for our drug candidates.
+Added: We are dependent upon significant future financing to provide the cash necessary to execute our ongoing and future operations, including the commercialization of any of our drug candidates.
Discussion of Cash Flows
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Net cash used in investing activities
−Removed: Net cash provided by financing activities
+Added: Net cash used in financing activities
Cash used in operating activities for the year ended December 31, 2022 was $176.2 million as compared to $295.6 million for the year ended December 31, 2021.
−Removed: The increase in cash used in operating activities was due primarily to increased expenditures associated with execution of the launch of UKONIQ, our scale-up for manufacturing, ongoing clinical development programs and paydown of accounts payable and accrued expenses.
−Removed: For the year ended December 31, 2021, net cash used in investing activities was $0.3 million as compared to cash used in investing activities of $24.5 million for the year ended December 31, 2020.
−Removed: The decrease in net cash used in investing activities was primarily due to greater investment in short-term securities during the year ended December 31, 2020.
−Removed: For the year ended December 31, 2021, net cash provided by financing activities was $41.4 million as compared to net cash provided by financing activities of $679.8 million for the year ended December 31, 2020.
−Removed: The decrease in net cash provided by financing activities related to net proceeds from the issuance of common stock as part of our ATM program and public offerings that took place during the year ended December 31, 2020.
−Removed: In May 2017, we filed a shelf registration statement on Form S-3 (the 2017 S-3), which was declared effective in June 2017.
−Removed: Under the 2017 S-3, we may sell up to a total of $300 million of securities.
−Removed: In connection with the 2017 S-3, we entered into an At-the-Market Issuance Sales Agreement (the 2017 ATM) with Jefferies LLC, Cantor Fitzgerald & Co., FBR Capital Markets & Co., SunTrust Robinson Humphrey, Inc., Raymond James & Associates, Inc., Ladenburg Thalmann & Co.
−Removed: Wainwright & Co., LLC (each a 2017 Agent and collectively, the 2017 Agents), relating to the sale of shares of our common stock.
−Removed: Under the 2017 ATM we paid the 2017 Agents a commission rate of up to 3.0% of the gross proceeds from the sale of any shares of common stock.
−Removed: During the year ended December 31, 2019, we sold a total of 13,620,165 shares of common stock under the 2017 ATM for aggregate total gross proceeds of approximately $99.3 million at an average selling price of $7.29 per share, resulting in net proceeds of approximately $97.5 million after deducting commissions and other transactions costs.
+Added: The decrease in cash used in operating activities was due primarily to greater expenditures associated with our license milestone payments and clinical trial expenses during the year ended December 31, 2021.
+Added: For the year ended December 31, 2022, net cash used in investing activities was $20.0 million as compared to $0.3 million for the year ended December 31, 2021.
+Added: The increase in net cash used in investing activities was primarily due to greater investment in short-term securities during the year ended December 31, 2022.
+Added: For the year ended December 31, 2022, net cash used in financing activities was $0.4 million as compared to net cash provided by financing activities of $41.4 million for the year ended December 31, 2021.
+Added: The decrease in net cash provided by financing activities was primarily attributable to proceeds from debt financings that took place during the year ended December 31, 2021.
On September 5, 2019, we filed an automatic “shelf registration” statement on Form S-3 (the 2019 WKSI Shelf) as a “well-known seasoned issuer” as defined in Rule 405 under the Securities Act, which registered an unlimited and indeterminate amount of debt or equity securities for future issuance and sale.
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During the year ended December 31, 2021, we sold a total of 72,000 shares of common stock under the 2021 ATM for aggregate total gross proceeds of approximately $2.5 million at an average selling price of $34.25 per share, resulting in net proceeds of approximately $2.4 million after deducting commissions and other transactions costs.
+Added: On September 2, 2022, we filed an automatic “shelf registration” statement on Form S-3 (the 2022 WKSI Shelf) as a “well-known seasoned issuer” as defined in Rule 405 under the Securities Act, which registered an unlimited and indeterminate amount of debt or equity securities for future issuance and sale.
+Added: The 2022 WKSI Shelf was declared effective in September 2022.
+Added: In connection with the 2022 WKSI Shelf, we entered into an At-the-Market Issuance Sales Agreement (the 2022 ATM) with Cantor Fitzgerald & Co.
+Added: Riley Securities, Inc.
+Added: (each a 2022 Agent and collectively, the 2022 Agents), relating to the sale of shares of our common stock.
+Added: Under the 2022 ATM, we will pay the 2022 Agents a commission rate of up to 3.0% of the gross proceeds from the sale of any shares of common stock.
+Added: The 2022 ATM has replaced the 2021 ATM as the only active ATM program.
+Added: We had no activity on the 2021 ATM or 2022 ATM during the year ended December 31, 2022.
The 2022 WKSI Shelf is currently our only active shelf registration statement.
We may offer any combination of the securities registered under the 2022 WKSI Shelf from time to time in response to market conditions or other circumstances if we believe such a plan of financing is in the best interests of our stockholders.
−Removed: We believe that the 2019 WKSI Shelf provides us with the flexibility to raise additional capital to finance our operations as needed.
+Added: We may need to file additional shelf registration statements in the future to provide us with the flexibility to raise additional capital to finance our operations as needed.
Equity Financings
−Removed: On March 1, 2019, we completed a public offering of 4,100,000 shares of our common stock (plus a 30-day underwriter overallotment option to purchase up to an additional 615,000 shares of common stock, which was exercised) at a price of $5.87 per share.
−Removed: Proceeds from this offering, including the overallotment, after underwriting discounts and offering expenses were approximately $27.5 million.
−Removed: On December 22, 2019, we completed a securities purchase agreement with an institutional investor in which we agreed to sell 5,434,783 shares of our common stock at a price of $9.20 per share.
−Removed: Net proceeds from this offering were approximately $50.0 million.
In May 2020, we completed an underwritten public offering of 8,500,000 shares of our common stock (plus an underwriter option to purchase up to an additional 1,275,000 shares of common stock, which was exercised) at a price of $18 per share.
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We began to occupy this new space in April 2016, with rental payments beginning in the third quarter of 2016.
−Removed: At January 1, 2020, we recognized a lease liability and corresponding right of use (ROU) asset based on the present value of the remaining lease payments for all of our leased office spaces, the majority of which is comprised of our New York City office space.
−Removed: The present values of our lease liability and corresponding ROU asset are $11.3 million and $8.6 million, respectively, as of December 31, 2021.
−Removed: Our leases have remaining lease terms of 2 years to 10 years.
−Removed: One lease has a renewal option to extend the lease for an additional term of two years.
−Removed: Under the Office Agreement, we agreed to pay FBIO our portion of the build-out costs, which have been allocated to us at the 45% rate mentioned above.
−Removed: The allocated build-out costs have been recorded in Leasehold Interest, net on the Company’s consolidated balance sheets and will be amortized over the 15-year term of the Office Agreement.
−Removed: The initial commitment period of the 45% rate was for a period of three (3) years.
−Removed: We and FBIO currently determine actual office space utilization annually and if our utilization differs from the amount we have been billed, we will either receive credits or be assessed incremental utilization charges.
−Removed: As of December 31, 2021, the allocation rate is 63% and will be evaluated again in August 2022 for the following rent year.
−Removed: Also, in connection with this lease, in October 2014 we pledged $0.6 million to secure a line of credit as a security deposit for the Office Agreement, which has been recorded as restricted cash in the accompanying consolidated balance sheets.
−Removed: Additional collateral of $0.6 million was pledged in April 2018 to increase the letter of credit for the office space.
−Removed: In October 2019, we finalized a five-year lease for office space in New Jersey (the NJ Lease).
−Removed: We approximate an average annual rental obligation of $0.3 million under the NJ Lease.
−Removed: We took possession of this space in October 2019, with rental payments beginning in November 2019.
−Removed: In October 2021, we finalized a five-year lease for office space in North Carolina (the NC Lease).
−Removed: We approximate an average annual rental obligation of $0.2 million under the NC Lease.
−Removed: We took possession of this space in February 2022, with rental payments beginning in April 2022.
+Added: Also in connection with this lease, we have pledged $1.3 million to secure a line of credit as a security deposit for the Office Agreement, which has been recorded as restricted cash in the accompanying condensed consolidated balance sheets.
Total rental expense was approximately $2.7 million, $2.2 million and 2.7 million for the years ended December 31, 2022, 2021 and 2020, respectively.
35 unchanged sentences
however, these estimates are neither predictive nor indicative of the future performance of our stock.
−Removed: For purposes of the calculation, we assumed that no dividends would be
−Removed: paid during the life of the options and warrants.
+Added: For purposes of the calculation, we assumed that no dividends would be paid during the life of the options and warrants.
The estimates utilized in the Black-Scholes calculation involve inherent uncertainties and the application of management judgment.
In addition, because some of the options, restricted stock and warrants issued to employees, consultants and other third parties vest upon the achievement of certain milestones, the total expense is uncertain.
−Removed: Compensation expense for such awards that vest upon the achievement of milestones is recognized when the achievement of such milestones becomes probable.
+Added: Compensation expense for such awards that vest upon the achievement of milestones is recognized when the achievement of such milestones occurs.
Accrued Research and Development Expenses.
19 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.