|
•
|
|
$1.5 million of higher employee-related costs that were primarily attributable to new employees that were hired in connection with our strategic operating plans; and
|
|
•
|
|
$0.3 million of higher share-based compensation costs that were primarily due to the 2021 RSUs.
|
Such increases were partially offset by $1.2 million and $0.1 million of lower external spending for our Vista and ongoing XLRP Phase 1/2 trials, respectively. The decline in the Vista expenses was primarily due to a year-over-year reduction in manufacturing activities for clinical trial materials. The decrease of $1.0 million in ACHM expenses was primarily due to reduced site activity as our two clinical studies have progressed to a point where they are no longer processing new site activations or enrolling new study participants. Additionally, there was a nominal decrease in research and development expenses in connection with XLRS program.
General and administrative and other expenses
The table below summarizes our general and administrative and other expenses for the periods indicated.
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|
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|
|
|
|
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|
|
|
|
|
|
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|
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|
Six Months
Ended December 31,
|
|
|
Increase
|
|
|
% Increase
|
|
In thousands
|
|
2021
|
|
|
2020
|
|
|
(Decrease)
|
|
|
(Decrease)
|
|
Employee-related costs
|
|
$
|
2,588
|
|
|
$
|
2,434
|
|
|
$
|
154
|
|
|
|
6
|
%
|
Share-based compensation
|
|
|
866
|
|
|
|
684
|
|
|
|
182
|
|
|
|
27
|
%
|
Legal and professional fees
|
|
|
586
|
|
|
|
909
|
|
|
|
(323
|
)
|
|
|
(36
|
)%
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Other
|
|
|
4,049
|
|
|
|
2,713
|
|
|
|
1,336
|
|
|
|
49
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total general and administrative and other expenses
|
|
$
|
8,089
|
|
|
$
|
6,740
|
|
|
$
|
1,349
|
|
|
|
20
|
%
|
|
|
|
|
|
|
|
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General and administrative and other expenses for the six months ended December 31, 2021 and 2020 were $8.1 million and $6.7 million, respectively, an increase of $1.3 million, or 20%. Such increase was primarily due to: (i) compensation for new employees; (ii) incremental share-based compensation costs for the 2021 RSUs; and (iii) higher operating and business development costs pertaining to our recurring operations as we execute our strategic plans. Lower legal fees during the six months ended December 31, 2021 were due to reduced use of external legal counsel. Total general and administrative and other expenses for the six months ended December 31, 2021 were consistent with those for the six months ended June 30, 2021.
Liquidity and Capital Resources
We have incurred cumulative losses and negative cash flows from operations since our inception and, as of December 31, 2021, we had an accumulated deficit of $275.5 million. It will be several years, if ever, before we have a product candidate ready for commercialization. We expect that our research and development expenses and general and administrative and other expenses will continue to increase and, as a result, we anticipate that we will require additional capital to fund our operations, which we may raise through a combination of equity offerings, debt financings, other third-party funding, marketing and distribution arrangements and other collaborations, strategic alliances and licensing arrangements.
Most recently, we received: (i) net proceeds of $143,000 in November 2021 from selling our common stock through an
offering” program that is described in Note 7 to the Unaudited Condensed Financial Statements included in this Quarterly Report on Form
10-Q;
(ii) $9.9 million of loan proceeds, net of debt discounts, in May 2021; and (iii) net proceeds of $69.3 million in February 2021 from the underwritten public offering that is described in Note 7 to the Unaudited Condensed Financial Statements included in this Quarterly Report
on Form 10-Q.
Among other things, the May 2021 loan proceeds are expected to partially fund certain equipment and shared building fit out costs, as well as new employee hires, in connection with our lease and operation of a cGMP
manufacturing and quality control facility in Alachua, Florida. Importantly, through a tenant improvement allowance and tiered rental rates, we have structured our third-party leasing costs for this facility in a way that will not significantly impact our cash runway until the fiscal year ending June 30, 2024. Additional information regarding our long-term loan agreement and new manufacturing and quality control facility can be found in Notes 5 and 8, respectively, to the Unaudited Condensed Financial Statements included in this Quarterly Report
on Form 10-Q.
We are closely monitoring ongoing developments in connection with
the COVID-19 pandemic,
which may negatively impact our projected cash position and access to capital. We will continue to assess our cash position and, if circumstances warrant, make appropriate adjustments to our operating plan.
Cash in excess of immediate requirements is invested in accordance with our investment policy, which primarily seeks to maintain adequate liquidity and preserve capital by generally limiting investments to certificates of deposit and investment-grade debt securities that mature within twelve months. As of December 31, 2021, our cash and cash equivalents were held in bank accounts and money market funds.
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