The following discussion of our financial condition and results of operations
should be read in conjunction with the Condensed Consolidated Financial
Statements and the related notes appearing elsewhere in this report. Some of the
information contained in this discussion and analysis and set forth elsewhere in
this report, including information with respect to our plans and strategy for
our business, includes forward-looking statements, based on current expectations
and related to future events and our future financial and operational
performance, that involve risks and uncertainties. You should review the section
titled "Risk Factors" in Part II, Item 1A of this Quarterly Report on Form 10-Q,
or Form 10-Q, for a discussion of important factors that could cause actual
results to differ materially from the results described in or implied by the
forward-looking statements contained in the following discussion and analysis.
As used throughout this report, the terms "the Company," "we," "us," and "our"
refer to the business of Curis, Inc. and its wholly owned subsidiaries, except
where the context otherwise requires, and the term "Curis" refers to Curis, Inc.
Overview
We are a biotechnology company focused on the development of first-in-class and
innovative therapeutics for the treatment of cancer. Our clinical stage drug
candidates are:

•CA-4948, which is being tested in a Phase 1 dose escalating clinical trial in
patients with non-Hodgkin lymphomas, including those with Myeloid
Differentiation Primary Response 88, or MYD88 alterations. We reported
preliminary clinical data from the study in December 2019. We are also
conducting a separate Phase 1 trial for acute myeloid leukemia and
myelodysplastic syndromes and announced in July 2020 that the first patient had
been dosed. We are planning a combination study of CA-4948 and ibrutinib, a BTK
inhibitor, in non-Hodgkin lymphomas with planned enrollment commencing in the
second half of 2020.
•CI-8993, a monoclonal antibody designed to antagonize the V-domain Ig
suppressor of T cell activation, or VISTA signaling pathway. In June 2020, we
announced the U.S. Food and Drug Administration, or FDA, had cleared our
Investigational New Drug, or IND, application for CI-8993. We plan to begin
clinical testing in a Phase 1a/1b trial in patients with solid tumors in the
second half of 2020.
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•Fimepinostat, which has been granted Orphan Drug Designation and Fast Track
Designation for the treatment of DLBCL by the FDA in April 2015 and May 2018,
respectively. We began enrollment in a Phase 1 combination study with venetoclax
in DLBCL patients, including patients with translocations in both MYC and the
BCL2 gene, also referred to as double-hit lymphoma, or high-grade B-cell
lymphoma, or HGBL. In March 2020, we announced that although we observed no
significant drug-drug interaction in our Phase 1 study of fimepinostat in
combination with venetoclax, we did not see an efficacy signal that would
warrant continuation of the study. Accordingly, no further patients will be
enrolled in this study. We are currently evaluating future studies for
fimepinostat.
Our pipeline includes CA-170 for which we announced initial data from a clinical
study in patients with mesothelioma in conjunction with the Society of
lmmunotherapy of Cancer conference in November 2019. Based on this data, no
further patients will be enrolled in the study. We are currently evaluating
future studies for CA-170.
Our pipeline also includes CA-327, which is a pre-IND, stage oncology drug
candidate.
We are party to a collaboration with Genentech Inc., or Genentech, a member of
the Roche Group, under which F. Hoffmann-La Roche Ltd, or Roche and Genentech
are commercializing Erivedge® (vismodegib), a first-in-class orally administered
small molecule Hedgehog signaling pathway inhibitor. Erivedge is approved for
the treatment of advanced basal cell carcinoma, or BCC.
In January 2015, we entered into a collaboration agreement focused on
immuno-oncology and selected precision oncology targets with Aurigene Discovery
Technologies Limited, or Aurigene, which was amended in September 2016 and
February 2020. As of June 30, 2020, we have licensed four programs under the
Aurigene collaboration.

1.IRAK4 Program - a precision oncology program of small molecule inhibitors of
IRAK4. The development candidate is CA-4948, an orally available small molecule
inhibitor of IRAK4.
2.PD1/VISTA Program - an immuno-oncology program of small molecule antagonists
of PD1 and VISTA immune checkpoint pathways. The development candidate is
CA-170, an orally available small molecule antagonist of VISTA and PDL1.
3.PD1/TIM3 Program - an immuno-oncology program of small molecule antagonists of
PD1 and TIM3 immune checkpoint pathways. The development candidate is CA-327, an
orally available small molecule antagonist of PDL1 and TIM3.
4.In March 2018, we exercised our option to license a fourth program, which is
an immuno-oncology program.
In addition, we are party to an option and license agreement with ImmuNext,
Inc., or ImmuNext. Pursuant to the terms of the option and license agreement, we
have an option, exercisable for a specified period as set forth in the option
and license agreement to obtain an exclusive license to develop and
commercialize certain VISTA antagonizing compounds, including ImmuNext's lead
compound, CI-8993, and products containing these compounds in the field of
oncology.
Based on our clinical development plans for our pipeline, we intend to
predominantly focus our available resources on the continued development of
CA-4948, in collaboration with Aurigene, and CI-8993, in collaboration with
ImmuNext, in the near term.
As of June 30, 2020, we believe our $23.6 million of existing cash, cash
equivalents and investments should enable us to maintain our planned operations
into the first half of 2021. We have based this assessment on assumptions that
may prove to be wrong, and we could exhaust our available capital resources
sooner than we expect. Based on our available cash resources, recurring losses
and cash outflows from operations since inception, an expectation of continuing
operating losses and cash outflows from operations for the foreseeable future
and the need to raise additional capital to finance our future operations, we
concluded we do not have sufficient cash on hand to support current operations
within the next 12 months from the date of filing this Quarterly Report on Form
10-Q. These factors raise substantial doubt regarding our ability to continue as
a going concern. We expect to finance our operations through our common stock
purchase agreement with Aspire Capital Fund LLC, or Aspire Capital, and
potential future sales of common stock through our at-the-market sales agreement
with JonesTrading Institutional Services LLC, or JonesTrading, or other
potential equity financings, debt financings or other capital sources. However,
we may not be successful in securing additional financing on acceptable terms,
or at all. Furthermore, high volatility in the capital markets resulting from
the COVID-19 pandemic has had, and could continue to have, a negative impact on
the price of our common stock, and could adversely impact our ability to raise
additional funds. If sufficient funds are not available, we will have to delay,
reduce the scope of, or eliminate some of our research and development programs,
including related clinical trials and operating expenses, potentially delaying
the time to market for or preventing the marketing of any of our product
candidates, which could adversely affect our business prospects and our ability
to continue our operations, and would have a negative impact on our financial
condition and ability to pursue our business strategies. In addition, in light
of our limited cash resources, we may seek to engage in one or more strategic
alternatives, such as a strategic partnership with one or more parties, the
licensing, sale or divestiture of some of our assets or proprietary technologies
or the sale of our company, but
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there can be no assurance that we would be able to enter into such a transaction
or transactions on a timely basis or on terms favorable to us, or at all.
COVID-19 Pandemic
In December 2019, an outbreak of respiratory illness caused by a strain of novel
coronavirus, COVID-19, began in China. That outbreak has led to millions of
confirmed cases worldwide, including in the Unites States and other countries
where we are conducting clinical trials or activities in support thereof. The
World Health Organization declared the outbreak a global public health emergency
on January 30, 2020 and declared it a pandemic on March 11, 2020. In addition to
those who have been directly affected, billions more have been affected by
governmental efforts around the world to slow the spread of the outbreak. The
outbreak and government measures taken in response have also had a significant
impact, both direct and indirect, on businesses and commerce.
We have enrolled, and will seek to enroll, cancer patients in our clinical
trials at sites located both in the United States and internationally, including
in Germany. Many of our clinical trial sites have imposed restrictions on entry
as a result of the COVID-19 pandemic, which have had and may continue to have a
negative impact on our ability to conduct our clinical trials. We have had and
may continue to face difficulties recruiting and retaining patients in our
ongoing and planned clinical trials to the extent patients are affected by the
virus or are fearful of visiting or traveling to our clinical trial sites
because of the outbreak. For example, all of our clinical trial sites for our
ongoing Phase 1 clinical trial for CA-4948 in patients with non-Hodgkin
lymphomas, including those with MYD88 alterations, are at large academic
research hospitals that have imposed restrictions on entry which, have in some
instances prohibited and could potentially prohibit in the future, clinical
trial monitors and patients from entering the trial sites. We are actively
working with our clinical trial sites, to follow FDA guidelines for conducting
clinical trials during the COVID-19 pandemic, including performing remote
monitoring to the extent possible and to arrange for the shipment of medicine
directly from the clinical trial site to patients who are enrolled in our
trials, if required, however, there is no assurance such arrangements will be
successful. As a result, further enrollment in our ongoing clinical trial for
CA-4948 in patients with non-Hodgkin lymphomas, including those with MYD88
alterations, may be delayed and patients currently enrolled in the trial may
cease treatment due to the restrictions described above or fear of visiting or
inability to visit our trial sites or other necessary medical facilities. In
addition, we do not currently know the duration or to what degree medical
facilities, including our clinical trial sites, will continue to be impacted by
the pandemic. As a result, enrollment in this trial has been slower than
expected and the timeline of this clinical trial may be delayed. In addition, in
July 2020 we commenced enrollment for our planned Phase 1 clinical trial in
CA-4948 in patients with acute myeloid leukemia and myelodysplastic syndromes.
Clinical trial sites for this study have also imposed and may continue to impose
restrictions similar to those described above. As a result, enrollment in this
trial has been slower than expected and we may not be able to enroll this trial
on its planned timeline, which would cause a delay in the overall timeline for
this trial. Similarly, we have not initiated our planned Phase 1 clinical trial
for CI-8993, and initiation and enrollment of this study may be delayed due to
the factors discussed above.
We and our collaborators, third-party contract manufacturers, contract research
organizations and clinical sites may experience delays or disruptions in supply
and release of product candidates and/or procuring items that are essential for
our research and development activities, including, for example, raw materials
used in the manufacturing of our product candidates, basic medical and
laboratory supplies used in our clinical trials or preclinical studies, or
animals that are used for preclinical testing, in each case, for which there may
be shortages because of ongoing efforts to address the outbreak. While we
believe that we currently have sufficient supply of our product candidates to
continue our ongoing clinical trials, some of our product candidates, or
materials contained therein, come from facilities located in areas impacted by
COVID-19, including India, China, and Europe. In addition, any disruptions could
impact the supply, manufacturing or distribution of Erivedge, and sales of
Erivedge may be negatively impacted by a decrease in new prescriptions as a
result of a decline in patient medical visits due to the COVID-19 pandemic,
which could negatively impact the amount and timing of any royalty revenue we
may receive from Genentech related to Erivedge.
We are also experiencing delays in closing down our clinical trial sites related
to our fimepinostat and CA-170 trials due to restrictions on non-essential
workers imposed at those sites in response to COVID-19, which has delayed the
winding down of these trials and may result in additional costs and expenses.
Additionally, the pandemic has already caused significant disruptions in the
financial markets, and may continue to cause such disruptions, which could
impact our ability to raise additional funds. We cannot be certain what the
overall impact of the COVID-19 pandemic will be on our business and it has had
and may continue to have an adverse effect on our business, financial condition,
results of operations, and prospects.
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Our Collaborations and License Agreements
For information regarding our collaboration and license agreements, refer to
Note 9, Research and Development Collaborations, in the accompanying Notes to
the Condensed Consolidated Financial Statements included in Item 1 of Part I of
this Quarterly Report on Form 10-Q and Note 10, Research and Development
Collaborations, in Item 8 of our Annual Report on Form 10-K for the year ended
December 31, 2019 as filed with the Securities and Exchange Commission, or SEC
on March 19, 2020.
Liquidity
Since our inception, we have funded our operations primarily through private and
public placements of our equity securities, license fees, contingent cash
payments, research and development funding from our corporate collaborators,
debt financings and the monetization of certain royalty rights. We have never
been profitable on an annual basis and have an accumulated deficit of $1.0
billion as of June 30, 2020. For the six months ended June 30, 2020 we incurred
a loss of $16.4 million and used $14.1 million of cash in operations. We expect
that our cash, cash equivalents and short term investments as of June 30, 2020
should enable us to maintain our planned operations into the first half of
2021. We have based this assessment on assumptions that may prove to be wrong,
and we could exhaust our available capital resources sooner than we expect.
Based on our available cash resources, we do not have sufficient cash on hand to
support current operations within the next 12 months from the date of filing
this Quarterly Report on Form 10-Q. See "Funding Requirements" and Note 1 to the
Condensed Consolidated Financial Statements appearing in this Quarterly Report
on Form 10-Q for a further discussion of our liquidity and the conditions and
events that raise substantial doubt regarding our ability to continue as a going
concern.
We will need to generate significant revenues to achieve profitability, and do
not expect to achieve profitability in the foreseeable future, if at all. See
"--Liquidity and Capital Resources--Funding Requirements" and Note 1 to the
Condensed Consolidated Financial Statements appearing in this Quarterly Report
on Form 10-Q for a further discussion of our liquidity and the conditions and
events that raise substantial doubt regarding our ability to continue as a going
concern.
Key Drivers
We believe that near term key drivers to our success will include:

•our ability to successfully plan, finance and complete current and planned
clinical trials for CA-4948 and CI-8993 as well as for such clinical trials to
generate favorable data;
•our ability to raise the substantial additional financing required to fund our
operations through our common stock purchase agreement with Aspire Capital and
potential future sales of common stock through our at-the-market sales agreement
with JonesTrading or other potential financing.
In the longer term, a key driver to our success will be our ability, and the
ability of any current or future collaborator or licensee, to successfully
develop and commercialize drug candidates.
Financial Operations Overview

General. Our future operating results will largely depend on the progress of
drug candidates currently in our research and development pipeline. The results
of our operations will vary significantly from year to year and quarter to
quarter and depend on, among other factors, the cost and outcome of any
preclinical development or clinical trials then being conducted. For a
discussion of our liquidity and funding requirements, see "- Liquidity" and "-
Liquidity and Capital Resources - Funding Requirements".
Liability Related to the Sale of Future Royalties. In connection with the
termination and repayment in full of our prior loan with HealthCare Royalty
Partners, III, L.P., or HealthCare Royalty, we and Curis Royalty entered into
the royalty interest purchase agreement, or Oberland Purchase Agreement, with
entities managed by Oberland Capital Management, LLC, or the Purchasers. Upon
closing of the Oberland Purchase Agreement, Curis Royalty received an upfront
purchase price of $65.0 million from the Purchasers, approximately $33.8 million
of which was used to pay off the remaining loan principal to HealthCare Royalty,
and $3.7 million of which was used to pay transaction costs, including $3.4
million to HealthCare Royalty in accrued and unpaid interest and prepayment fees
under the loan, resulting in net proceeds of $27.5 million. Curis Royalty will
also be entitled to receive milestone payments of (i) $17.2 million if the
Purchasers and Curis Royalty receive aggregate royalty payments pursuant to the
Oberland Purchase Agreement in excess of $18.0 million during the calendar year
2021, subject to certain exceptions, and (ii) $53.5 million if the Purchasers
receive payments pursuant to the Oberland Purchase Agreement in excess of $117.0
million on or prior to December 31, 2026, which milestone payments may each be
paid, at the option of the Purchasers, in a lump sum in cash or out of the
Purchaser's portion of future payments under the Oberland
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Purchase Agreement. For a discussion of the Oberland Purchase Agreement, see
"Liquidity and Capital Resources - Royalty Interest Purchase Agreement".
Revenue. We do not expect to generate any revenues from our direct sale of
products for several years, if ever. Substantially all of our revenues to date
have been derived from license fees, research and development payments, and
other amounts that we have received from our strategic collaborators and
licensees, including royalty payments. Since the first quarter of 2012, we have
recognized royalty revenues related to Genentech's sales of Erivedge and we
expect to continue to recognize royalty revenue in future quarters from
Genentech's sales of Erivedge in the U.S. and Roche's sales of Erivedge outside
of the U.S. However, a portion of our royalty and royalty related revenues under
our collaboration with Genentech will be paid to the Purchasers, pursuant to the
Oberland Purchase Agreement. The Oberland Purchase Agreement will terminate upon
the earlier to occur of (i) the date on which Curis Royalty's rights to receive
a portion of certain royalty and royalty related payments, excluding a portion
of non U.S. royalties retained by Curis Royalty, referred to as the Purchased
Receivables, owed by Genentech under the Genentech collaboration agreement have
terminated in their entirety and (ii) the date on which payment in full of the
price, referred to as the Put/Call Price, equal to a percentage, beginning at a
low triple digit percentage and increasing over time up to a low mid triple
digit percentage of the sum of the upfront purchase price and any portion of the
milestone payments paid in a lump sum by the Purchasers, if any, minus certain
payments previously received by the Purchasers with respect to the Purchased
Receivables, is received by the Purchasers pursuant to the Purchasers' exercise
of their put option or Curis Royalty's exercise of its call right as described
in Note 8, Liability Related to the Sale of Future Royalties, in the
accompanying Notes to the Condensed Consolidated Financial Statements included
in Item 1 of Part I of this Quarterly Report on Form 10-Q.
We could receive additional milestone payments from Genentech, provided that
contractually specified development and regulatory objectives are met. Also, we
could receive milestone payments from the Purchasers, provided that
contractually specified royalty payment amounts are met within applicable time
periods. Our only source of revenues and/or cash flows from operations for the
foreseeable future will be royalty payments that are contingent upon the
continued commercialization of Erivedge under our existing collaboration with
Genentech, and contingent cash payments for the achievement of clinical,
development and regulatory objectives, if any, that are met under such
collaboration. Our receipt of additional payments under our existing
collaboration with Genentech cannot be assured, nor can we predict the timing of
any such payments, as the case may be.
Cost of Royalty Revenues. Cost of royalty revenues consists of all expenses
incurred that are associated with royalty revenues that we record as revenues in
our Condensed Consolidated Statements of Operations and Comprehensive Loss.
These costs currently consist of payments we are obligated to make to university
licensors on royalties that Curis Royalty receives from Genentech on net sales
of Erivedge. In all territories other than Australia, our obligation is equal to
5% of the royalty payments that we receive from Genentech for a period of 10
years from the first commercial sale of Erivedge, which occurred in February
2012 in the U.S. In addition, for royalties that Curis Royalty receives from
Roche's sales of Erivedge in Australia, we were obligated to make payments to
university licensors of 2% of Roche's direct net sales in Australia until
expiration of the patent in April 2019. Following April 2019, the amount we are
obligated to pay has decreased to 5% of the royalty payments that Curis Royalty
receives from Genentech.
Research and Development. Research and development expense consists of costs
incurred to develop our drug candidates. These expenses consist primarily of:

•salaries and related expenses for personnel, including stock based compensation
expense;
•costs of conducting clinical trials, including amounts paid to clinical
centers, clinical research organizations and consultants, among others;
•other outside service costs, including costs of contract manufacturing;
•sublicense payments;
•the costs of supplies and reagents;
•occupancy and depreciation charges;
•certain payments that we make to Aurigene under our collaboration agreement,
including, for example, option exercise fees and milestone payments; and
•payments that we are obligated to make to certain third party university
licensors upon our receipt of payments from Genentech related to the achievement
of clinical development and regulatory objectives under our collaboration
agreement.
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We expense research and development costs as incurred. We are currently
incurring research and development costs under our Hedgehog signaling pathway
inhibitor collaboration with Genentech related to the maintenance of third-party
licenses to certain background technologies.
Research and development activities are central to our business model. Product
candidates in later stages of clinical development generally have higher
development costs than those in earlier stages, primarily due to the increased
size and duration of later stage clinical trials. As a result, we expect that
our research and development expenses will increase substantially over the next
several years as we conduct our clinical trials of CA-4948 and CI-8993; prepare
regulatory filings for our product candidates; continue to develop additional
product candidates; and potentially advance our product candidates into later
stages of clinical development.
The successful development and commercialization of our product candidates is
highly uncertain. At this time, we cannot reasonably estimate or know the
nature, timing and costs of the efforts that will be necessary to complete the
preclinical and clinical development of any of our product candidates. This
uncertainty is due to the numerous risks and uncertainties associated with
product development and commercialization, including the uncertainty of:

•our ability to successfully enroll our current and future clinical trials and
our ability to initiate future clinical trials, which has been and may continue
to be negatively impacted by the COVID-19 pandemic and responsive measures
relating thereto;
•the scope, quality of data, rate of progress and cost of clinical trials and
other research and development activities undertaken by us or our collaborators;
•the results of future preclinical studies and clinical trials;
•the cost and timing of regulatory approvals and maintaining compliance with
regulatory requirements;
•the cost and timing of establishing sales, marketing and distribution
capabilities;
•the cost of establishing clinical and commercial supplies of our drug
candidates and any products that we may develop;
•the effect of competing technological and market developments; and
•the cost and effectiveness of filing, prosecuting, defending and enforcing any
patent claims and other intellectual property rights.
Any changes in the outcome of any of these variables with respect to the
development of our product candidates could mean a significant change in the
costs and timing associated with the development of these product candidates.
For example, if the FDA or another regulatory authority were to delay our
clinical trials or require us to conduct clinical trials or other testing beyond
those that we currently expect, or if we experience significant delays in
enrollment in any of our clinical trials, we could be required to expend
significant additional financial resources and time to complete clinical
development of that product candidate. We may never obtain regulatory approval
for any of our product candidates. Drug commercialization will take several
years and millions of dollars in development costs.
A further discussion of some of the risks and uncertainties associated with
completing our research and development programs on schedule, or at all, and
some consequences of failing to do so, are set forth under "Part II, Item 1A.
Risk Factors" of this Quarterly Report on Form 10-Q.
General and Administrative. General and administrative expense consists
primarily of salaries, stock based compensation expense and other related costs
for personnel in executive, finance, accounting, business development, legal,
information technology, corporate communications and human resource functions.
Other costs include facility costs not otherwise included in research and
development expense, insurance, and professional fees for legal, patent and
accounting services. Patent costs include certain patents covered under
collaborations, a portion of which is reimbursed by collaborators and a portion
of which is borne by us.
Critical Accounting Policies and Estimates
The preparation of our Condensed Consolidated Financial Statements in conformity
with accounting principles generally accepted in the U.S. requires that we make
estimates and assumptions that affect the reported amounts and disclosure of
certain assets and liabilities at our balance sheet date. Such estimates and
judgments include the carrying value of property and equipment and intangible
assets, revenue recognition, the value of certain liabilities, debt
classification and stock-based compensation. We base our estimates on historical
experience and on various other factors that we believe to be appropriate under
the circumstances, the results of which form the basis for making judgments
about the carrying value of assets and
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liabilities that are not readily apparent from other sources. Actual results may
differ from these estimates under different assumptions or conditions.
During the three months ended June 30, 2020, there were no material changes to
our critical accounting policies and estimates as reported in our Annual Report
on Form 10-K for the year ended December 31, 2019, which was filed with the SEC
on March 19, 2020.
Results of Operations
Three and Six Months Ended June 30, 2020 and June 30, 2019

The following table summarizes our results of operations for the three and six months ended June 30, 2020 and 2019:



                                            For the Three Months Ended                              Percentage               For the Six Months Ended                  Percentage
                                                     June 30,                                        Increase                        June 30,                           Increase
                                              2020                 2019                             (Decrease)   2020                     2019                   (Decrease)
                                                  (in thousands)                                                                  (in thousands)
Revenues, net:                          $       2,360           $  2,094               13  %       $   5,068            $     3,861                   31  %
Costs and expenses:
Cost of royalty revenues                          122                 89               37  %             247                    197                   25  %
Research and development                        5,282              5,620               (6) %          12,754                  9,694                   32  %
General and administrative                      2,386              2,526               (6) %           5,980                  5,669                    5  %
Other expense, net                              1,278              1,072               19  %           2,504                  5,398                  (54) %
Net loss                                $      (6,708)          $ (7,213)              (7) %       $ (16,417)           $   (17,097)                  (4) %

Revenues. Total revenues are summarized as follows:



                                     For the Three Months Ended                             Percentage               For the Six Months Ended                 Percentage
                                              June 30,                                       Increase                        June 30,                          Increase
                                        2020                2019                            (Decrease)    2020                   2019                  

(Decrease)
                                           (in thousands)                                                                 (in thousands)
Revenues, net:
Royalties                         $      2,446           $ 2,142               14  %       $    4,961            $   4,279                   16  %
Other revenue                                -                 -                 N/A              211                    -                     N/A
Contra revenue, net                        (86)              (48)              79  %             (104)                (418)                  75  %
Total revenues, net               $      2,360           $ 2,094               13  %       $    5,068            $   3,861                   31  %


Total revenues increased to $2.4 million for the three months ended June 30,
2020 as compared to $2.1 million for the same period in 2019, primarily related
to an increase in royalty revenues arising from Genentech and Roche's net sales
of Erivedge during the three months ended June 30, 2020 as compared to the prior
year period.
Total revenues increased to $5.1 million for the six months ended June 30, 2020
as compared to $3.9 million for the same period in 2019, primarily related to an
increase in royalty revenues arising from Genentech and Roche's net sales of
Erivedge during the six months ended June 30, 2020 as compared to the prior year
period. In addition to the revenues received from Genentech, we received a
milestone payment from a previously out-licensed technology in the first quarter
of 2020.
Cost of Royalty Revenues. Cost of royalty revenues increased by 37% for the
three months ended June 30, 2020 as compared to the same period in 2019. Cost of
royalty revenues increased by 25% for the six months ended June 30, 2020 as
compared to the same period in 2019. We are obligated to make payments to two
university licensors on royalties that Curis Royalty earns from Genentech on net
sales of Erivedge.
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Research and Development Expenses. The following table summarizes our research
and development expenses incurred during the periods indicated:

                                        For the Three Months Ended                             Percentage              For the Six Months Ended                 Percentage
                                                 June 30,                                       Increase                       June 30,                          Increase
                                           2020                2019                            (Decrease)   2020                   2019                   (Decrease)
                                              (in thousands)                                                                (in thousands)
Direct research and development      $      3,336           $ 3,578                           $   8,619            $   5,759
expenses                                                                          (7) %                                                        50  %
Employee related expenses                   1,434             1,465               (2) %           3,180                3,067                    4  %
Facilities, depreciation and other            512               577                                 955                  868
expenses                                                                         (11) %                                                        10  %
Total research and development
expenses                             $      5,282           $ 5,620               (6) %       $  12,754            $   9,694                   32  %



Research and development expenses were $5.3 million for the three months ended
June 30, 2020 as compared to $5.6 million in the same period in 2019, a decrease
of approximately $0.3 million, or 6%. Direct research and development expenses
decreased by $0.2 million for the three months ended June 30, 2020 as compared
to the same period in 2019. The decrease in direct research and development
expenses for the quarter is primarily attributable to reduced clinical trial
costs related to CA-170 and fimepinostat.

Research and development expenses were $12.8 million for the six months ended
June 30, 2020 as compared to $9.7 million in the same period in 2019, an
increase of approximately $3.1 million, or 32%. Direct research and development
expenses increased by $2.9 million, or 50%, for the six months ended June 30,
2020 as compared to the same period in 2019, primarily due to $1.6 million
related to our option and license agreement with ImmuNext and increased clinical
and manufacturing costs for CA-4948 and CI-8993.
We expect that a majority of our research and development expenses for the
foreseeable future will be incurred in connection with our efforts to advance
our programs, including clinical and preclinical development costs,
manufacturing, option exercise fees, and potential milestone payments upon
achievement of certain milestones.
General and Administrative Expenses. General and administrative expenses are
summarized as follows:

                                          For the Three Months Ended                              Percentage                For the Six Months Ended                 Percentage
                                                   June 30,                                        Increase                         June 30,                          Increase
                                             2020                2019                             (Decrease)    2020                   2019                    (Decrease)
                                                (in thousands)                                                                   (in thousands)
Personnel                              $        992           $   988                 -  %       $    2,108            $   2,023                     4  %

Legal services                                  233               389               (40) %            1,415                  976                    45  %
Professional and consulting services            257               405               (37) %              645                  858                   (25) %
Insurance costs                                 114               106                 8  %              220                  210                     5  %
Stock based compensation                        400               508               (21) %              855                  983                   (13) %
Other general and administrative
expenses                                        390               130               >100 %              737                  619                    19  %
Total general and administrative
expenses                               $      2,386           $ 2,526                (6) %       $    5,980            $   5,669                     5  %


General and administrative expenses were $2.4 million for the three months ended
June 30, 2020, as compared to $2.5 million in the same period in 2019, a
decrease of $0.1 million, or 6%. The decrease in general administrative expense
was driven primarily by lower stock-based compensation costs as well as lower
legal and professional services fees, partially offset by higher occupancy costs
during the three months ended June 30, 2020.
General and administrative expenses were $6.0 million for the six months ended
June 30, 2020, as compared to $5.7 million in the same period in 2019, an
increase of $0.3 million, or 5%. The increase in general administrative expense
was driven primarily by higher legal services during the period.
Other Expense. Other expense increased by $0.2 million, or 19% for the three
months ended June 30, 2020 as compared to the same period in 2019. Net other
expense for the second quarters of 2020 and 2019 primarily consisted of imputed
interest expense related to future royalty payments.
Other expense decreased by $2.9 million, or 54% for the six months ended June
30, 2020 as compared to the same period in 2019. Net other expense for the
second quarter of 2020 primarily consisted of $2.6 million of imputed interest
expense
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related to future royalty payments, whereas in 2019 the expense related to loss
on extinguishment of debt of $3.5 million and imputed interest expense of $1.4
million.
Liquidity and Capital Resources
We have financed our operations primarily through private and public placements
of our equity securities, license fees, contingent cash payments and research
and development funding from our corporate collaborators, debt financings, and
the monetization of certain royalty rights. See "Funding Requirements" and Note
1 to the Condensed Consolidated Financial Statements appearing in this Quarterly
Report on Form 10-Q for a further discussion of our liquidity and the conditions
and events that raise substantial doubt regarding our ability to continue as a
going concern.
At June 30, 2020, our principal sources of liquidity consisted of cash, cash
equivalents, and investments of $23.6 million, excluding our restricted
investments of $1.0 million. Our cash and cash equivalents are highly liquid
investments with a maturity of three months or less at date of purchase, and
consist of investments in money market funds with commercial banks and financial
institutions, as well as short term commercial paper and government obligations.
We maintain cash balances with financial institutions in excess of insured
limits.
Common Stock Purchase Agreement
In February 2020 we entered into a common stock purchase agreement, or the
purchase agreement, for the sale of up to $30.0 million of our common stock with
Aspire Capital Fund, LLC, or Aspire Capital. Under the terms of the purchase
agreement, Aspire Capital made an initial investment of $3.0 million through the
purchase of 2,693,965 shares of our common stock. In addition, Aspire Capital
committed to purchase up to an additional $27.0 million in shares of our common
stock, at our request from time to time during a 30-month period at prices based
on the market price at the time of each sale, subject to specified terms and
limitations. As consideration for Aspire Capital's obligation under the
agreement, we issued 646,551 shares of our common stock to Aspire Capital as a
commitment fee. We also entered into a registration rights agreement with Aspire
Capital in connection with our entry into the common stock purchase agreement
setting forth our obligation to maintain an effective registration statement
covering any shares of common stock sold or to be sold to Aspire Capital,
subject to the terms of the registration rights agreement.
Under the terms of the purchase agreement, we have the right to sell up to
150,000 shares of common stock per day to Aspire Capital, which total may be
increased by mutual agreement up to an additional 2,000,000 shares per day. The
extent to which we rely on Aspire Capital as a source of funding will depend on
a number of factors, including the prevailing market price of our common stock
and the extent to which we are able to secure working capital from other
sources. Pursuant to the terms of the purchase agreement, the aggregate number
of shares that we can sell to Aspire Capital under the purchase agreement may
exceed 6,645,034 shares of our common stock (which is equal to approximately
19.9% of the common stock outstanding on the date of the purchase agreement),
including the shares purchased by Aspire Capital and issued to Aspire Capital as
consideration in connection with entering into the purchase agreement, or the
Exchange Cap, only if (i) stockholder approval is obtained to issue more, in
which case the Exchange Cap does not apply, or (ii) stockholder approval is not
obtained and at any time the Exchange Cap is reached and at all times thereafter
the average price paid for all shares issued under the purchase agreement
(including the shares issued as consideration to Aspire Capital in connection
with entering into the purchase agreement) is equal to or greater than $1.34, or
the Minimum Price. In June 2020, our stockholders approved the issuance of up to
$27.0 million in additional shares of common stock to Aspire Capital, resulting
in the removal of the Exchange Cap.
Pursuant to the purchase agreement, we will control the timing and amount of the
further sale of our common stock to Aspire Capital. We plan to use the proceeds
for general corporate purposes, including research and development, clinical
trial activity and working capital. There are no restrictions on future
financings and there are no financial covenants, participation rights, rights of
first refusal, or penalties in the purchase agreement. We have the right to
terminate the purchase agreement at any time without any additional cost or
penalty.
At-the-Market Offering/Program
On July 2, 2015, we entered into a sales agreement with Cowen and Company, LLC,
or Cowen, pursuant to which we could sell from time to time up to $30.0 million
of our common stock through an "at-the-market" equity offering program, under
which Cowen was to act as sales agent. As of December 31, 2019, we sold an
aggregate of 420,796 shares of common stock pursuant to this sales agreement,
for net proceeds of $6.2 million. We terminated this sales agreement in March
2020.
On March 4, 2020, we entered into a Capital on Demand™ Sales Agreement, or the
sales agreement, with JonesTrading Institutional Services LLC, or JonesTrading,
to sell from time to time up to $30.0 million of our common stock through an
"at-the-market equity offering" program under which JonesTrading will act as
sales agent. Subject to the terms and conditions of the sales agreement,
JonesTrading may sell the common stock by methods deemed to be an
"at-the-market" offering as defined in Rule 415 promulgated under the Securities
Act of 1933, as amended, including sales made directly on the Nasdaq Global
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Market, on any other existing trading market for the common stock, or to or
through a market maker other than on an exchange. In addition, with our written
approval, JonesTrading may also sell the common stock by any other method
permitted by law, including in privately negotiated transactions. We are not
obligated to sell any of the common stock under this sales agreement. Either
JonesTrading or we may at any time suspend solicitations and offers under the
sales agreement upon notice to the other party. The aggregate compensation
payable to JonesTrading shall be equal to 3% of the gross proceeds from sales of
the common stock sold by JonesTrading pursuant to the sales agreement. In
addition, we agreed to reimburse a portion of the expenses of JonesTrading in
connection with the offering up to a maximum of $30.0 thousand. Each party
agreed in the sales agreement to provide indemnification and contribution
against certain liabilities, including liabilities under the Securities Act,
subject to the terms of the sales agreement. The shares to be sold under the
sales agreement may be issued and sold pursuant to the currently effective
universal shelf registration statement on Form S-3, which was filed with the SEC
on May 3, 2018 and declared effective on May 17, 2018 (File No. 333-224627), and
which we refer to as the universal shelf registration statement on Form S-3. We
have also filed with the SEC a prospectus supplement, dated March 6, 2020,
related to the sales agreement with JonesTrading, and offerings of our common
stock will only be made available by means of the prospectus supplement. We did
not sell shares of common stock under this sales agreement during the three and
six months ended June 30, 2020. As of June 30, 2020, we had not sold any shares
of common stock pursuant to this sales agreement.
Registered Direct Offering
In June 2020, we entered into a securities purchase agreement with certain
institutional investors, pursuant to which we issued and sold, in a registered
direct offering, an aggregate of 14,000,000 shares of our common stock at a
purchase price per share of $1.25. The aggregate gross proceeds were
$17.5 million, before deducting fees of approximately $1.0 million paid to the
placement agent and other estimated offering expenses of approximately
$0.5 million paid by us. JonesTrading acted as the exclusive placement agent for
the transaction and we offered the shares pursuant to our universal shelf
registration statement on Form S-3, and a prospectus supplement thereunder.
Compliance with Nasdaq Global Markets Listing Requirements
On April 13, 2020, we received a deficiency letter from Listing Qualifications
Department, or the Staff of the Nasdaq Stock Market, or Nasdaq notifying us that
our Market Value of Listed Securities, or MVLS, had closed for the last 30
consecutive business days below the minimum $50.0 million requirement for
continued listing on the Nasdaq Global Market pursuant to Nasdaq Listing Rule
5450(b)(2)(A), or the Minimum MVLS Requirement. The Staff also noted in its
letter that we are not in compliance with Nasdaq Listing Rule 5450(b)(3)(A),
which requires listed companies to have total assets and total revenue of at
least $50.0 million each for the most recently completed fiscal year or for two
of the three most recently completed fiscal years.
In accordance with Nasdaq Listing Rule 5810(c)(3)(C), we had 180 calendar days
from our receipt of the deficiency letter, or October 12, 2020, to regain
compliance with the Minimum MVLS Requirement, or the MVLS Compliance Period. In
order to regain compliance, our MVLS was required to close at $50.0 million or
more for a minimum of ten consecutive business days during the MVLS Compliance
Period. On July 6, 2020, we received a notice from Nasdaq indicating that we had
regained compliance with Listing Rule 5450(b)(2)(A) as of such date.
In addition, on April 24, 2020, we received a deficiency letter from the Staff
of Nasdaq notifying us that, for the last 30 consecutive business days, the bid
price for our common stock had closed below the minimum $1.00 per share
requirement for continued inclusion on the Nasdaq Global Market pursuant to
Nasdaq Listing Rule 5450(a)(1), or the Bid Price Rule. In accordance with Nasdaq
Listing Rule 5810(c)(3)(A), or the Compliance Period Rule, we had an initial
period of 180 calendar days to regain compliance. However, given the
extraordinary market conditions in the financial markets, Nasdaq had determined
to toll the compliance period for the bid price requirement through June 30,
2020. The compliance period resumed on July 1, 2020, and we had 180 calendar
days, or until December 28, 2020, or the Compliance Date, to regain compliance
with the Bid Price Rule by bid price for our common stock closing at $1.00 or
more for a minimum of 10 consecutive business days. On June 23, 2020, we
received a notice from Nasdaq indicating that we have regained compliance with
Listing Rule 5450(a)(1) as of such date.
Royalty Interest Purchase Agreement
On March 22, 2019, we and Curis Royalty entered into the Oberland Purchase
Agreement with the Purchasers. We sold to the Purchasers a portion of our rights
to receive royalties from Genentech on potential net sales of Erivedge.
As upfront consideration for the purchase of the royalty rights, at closing the
Purchasers paid to Curis Royalty $65.0 million less certain transaction
expenses. Curis Royalty will also be entitled to receive up to approximately
$70.7 million in milestone payments based on sales of Erivedge as follows: (i)
$17.2 million if the Purchasers and Curis Royalty receive aggregate royalty
payments pursuant to the Oberland Purchase Agreement in excess of $18.0 million
during the calendar year 2021, subject to certain exceptions and (ii) $53.5
million if the Purchasers receive payments pursuant to the Oberland Purchase
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Agreement in excess of $117.0 million on or prior to December 31, 2026. For
further discussion please refer to Note 8, Liability Related to the Sale of
Future Royalties.
Milestone Payments and Monetization of Royalty Rights
We have received aggregate milestone payments totaling $59.0 million under our
collaboration with Genentech since 2012. In addition, we began receiving royalty
revenues in 2012 in connection with Genentech's sales of Erivedge in the U.S.
and Roche's sales of Erivedge outside of the U.S. Erivedge royalty revenues
received after December 2012 were used to repay Curis Royalty's outstanding
principal and interest under the loans due to BioPharma-II and HealthCare
Royalty. A portion of Erivedge royalty and royalty related revenue payments will
be paid to the Purchasers pursuant to the Oberland Purchase Agreement. We also
remain entitled to receive any contingent payments upon achievement of clinical
development objectives and royalty payments related to sales of Erivedge
pursuant to our collaboration agreement with Genentech and certain contingent
payments upon achievement of contractually specified royalty revenue payment
amounts related to sales of Erivedge pursuant to the Oberland Purchase
Agreement. Upon receipt of any such payments, as well as on royalties received
in any territory other than Australia, we are required to make payments to
certain university licensors totaling 5% of these amounts. In addition, for
royalties that Curis Royalty receives from Roche's sales of Erivedge in
Australia, we were obligated to make payments to university licensors of 2% of
Roche's direct net sales in Australia until the expiration of the patent in
April 2019. Following April 2019, the amount we are obligated to pay has
decreased to 5% of the royalty payments that Curis Royalty receives from
Genentech.
CARES Act PPP Loan
On April 21, 2020, we entered into a promissory note evidencing an unsecured
$0.9 million loan, which we refer to as the PPP Loan, under the Paycheck
Protection Program, or the PPP, of the Coronavirus Aid, Relief, and Economic
Security Act, or the CARES Act. The PPP Loan was made by Silicon Valley Bank, or
SVB. The term of the PPP Loan is 24-months. The interest rate on the PPP Loan is
1%, which shall be deferred for the first six months of the term of the loan;
however, interest will still accrue during this deferral period. We will begin
making monthly principal and interest payments on November 21, 2020. We may
prepay the PPP Loan at any time without payment of penalty or premium. The
promissory note evidencing the PPP Loan contains customary events of default
relating to, among other things, payment defaults, breach of representations and
warranties or provisions of the promissory note, and cross-default provisions.
The occurrence of an event of default may result in the repayment of all amounts
outstanding, collection of all amounts we owe, and/or filing suit and obtaining
judgment against us.
Under the terms of the CARES Act and the Paycheck Protection Program Flexibility
Act of 2020, PPP Loan recipients can apply for and be granted forgiveness for
all or a portion of loans granted under the PPP. The PPP Loan may be forgiven in
part or in full if the PPP Loan proceeds are used for covered payroll costs,
rent and utilities, provided that such amounts are incurred during the 24-week
period that commenced on April 22, 2020, employee and compensation levels are
maintained (subject to certain exceptions), and at least 60% of the PPP Loan
proceeds have been used for covered payroll costs. Any forgiveness of the PPP
Loan will be made in accordance with U.S. Small Business Administration, or SBA,
requirements and subject to approval by SVB. No assurance is provided that we
will obtain forgiveness of the PPP Loan in whole or in part. We will remain
responsible for amounts due under the promissory note that are not forgiven,
together with interest accrued and unpaid thereon at the rate set forth above.
Interest payable on the PPP Loan may be forgiven only if the SBA agrees to pay
such interest on the forgiven principal amount of the PPP Loan. There is no
assurance that any interest payable on the PPP Loan will be forgiven in whole or
in part.
The CARES Act also includes, among other items, provisions relating to payroll
tax credits and deferrals, net operating loss carryback periods, alternative
minimum tax credits and technical corrections to tax depreciation methods for
qualified improvement property. We are currently evaluating the impact of the
provisions of the CARES Act.
Cash Flows
Cash flows for operations have primarily been used for salaries and wages for
our employees, facility and facility related costs for our office and
laboratory, fees paid in connection with preclinical and clinical studies,
laboratory supplies, consulting fees and legal fees. We expect that costs
associated with clinical studies will increase in future periods.
Net cash used in operating activities of $14.1 million during the six months
ended June 30, 2020 was primarily the result of our net loss for the period of
$16.4 million, offset by non-cash charges consisting of stock based
compensation, amortization of debt issuance costs, non-cash lease expense,
depreciation, and non-cash imputed interest totaling $1.3 million. Accounts
payable and accrued and other liabilities increased $0.1 million, and accounts
receivable decreased $0.8 million related to a decrease in Erivedge royalties.
Prepaid expenses and other assets decreased $0.1 million.

Net cash used in operating activities of $13.9 million during the six months
ended June 30, 2019 was primarily the result of our net loss for the period of
$17.1 million, offset by non-cash charges consisting of $3.5 million related to
the loss on
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extinguishment of debt. Additionally, the net loss was offset by stock based
compensation, non-cash interest expense, amortization of debt issuance costs and
depreciation totaling $1.5 million. Accounts payable and accrued and other
liabilities increased $2.6 million, and accounts receivable decreased $0.7
million related to a decrease in Erivedge royalties.
We expect to continue to use cash in operations as we seek to advance our drug
candidates and our programs under our collaboration agreements with Aurigene and
ImmuNext. In addition, in the future we may owe royalties and other contingent
payments to our licensors based on the achievement of developmental milestones,
product sales and other specified objectives.
Investing activities provided cash of $4.6 million and used cash of $7.5 million
for the six months ended June 30, 2020 and 2019, respectively, resulting
primarily from net investment activity from purchases and sales or maturities of
investments for the respective periods.
Financing activities provided cash of $17.8 million for the six months ended
June 30, 2020, as a result of the proceeds from our registered direct offering
in June 2020 and the issuance of shares to Aspire Capital in the first quarter
of 2020, offset by the payment of our liability under the Oberland Purchase
Agreement.
Financing activities provided cash of $24.9 million for the six months ended
June 30, 2019. We extinguished our loan to HealthCare Royalty and made payments
totaling $39.0 million, which was offset by $65.0 million in proceeds from the
sale of future royalties under the Oberland Purchase Agreement less $0.6 million
in issuance costs.
Funding Requirements
We have incurred significant losses since our inception. As of June 30, 2020, we
had an accumulated deficit of approximately $1.0 billion. We will require
substantial funds to continue our research and development programs and to
fulfill our planned operating goals. In particular, our currently planned
operating and capital requirements include the need for working capital to
support our research and development activities for CA-4948 and CI-8993, and
other programs under our collaboration with Aurigene, and to fund our general
and administrative costs and expenses. Based on our available cash resources, we
do not have sufficient cash on hand to support current operations within the
next 12 months from the date of filing this Quarterly Report on Form 10-Q and
anticipate that our $23.6 million of existing cash, cash equivalents and
investments as of June 30, 2020, should enable us to maintain our planned
operations into the first half of 2021. Our ability to raise additional funds
will depend on financial, economic and market conditions, many of which are
outside of our control, and we may be unable to raise financing when needed, or
on terms favorable to us, or at all. Furthermore, high volatility in the capital
markets resulting from the COVID-19 pandemic has had, and could continue to
have, a negative impact on the price of our common stock, and could adversely
impact our ability to raise additional funds. In addition, in light of our
limited cash resources, we may seek to engage in one or more strategic
alternatives, such as a strategic partnership with one or more parties, the
licensing, sale or divestiture of some of our assets or proprietary technologies
or the sale of our company, but there can be no assurance that we would be able
to enter into such a transaction or transactions on a timely basis or on terms
favorable to us, or at all. Our failure to raise capital through a financing or
strategic alternative as and when needed would have a negative impact on our
financial condition and our ability to pursue our business strategy.
Factors that may affect our planned future capital requirements and accelerate
our need for additional working capital, and that would have a negative impact
on our financial condition and our ability to pursue our business strategies,
include the following:

•unanticipated costs in our research and development programs;
•the timing and cost of obtaining regulatory approvals for our drug candidates
and maintaining compliance with regulatory requirements;
•the timing and amount of option exercise fees, milestone payments, royalties
and other payments, including payments due to licensors, including Aurigene and
ImmuNext, for patent rights and technology used in our drug development
programs;
•the costs of commercialization activities for any of our drug candidates that
receive marketing approval, to the extent such costs are our responsibility,
including the costs and timing of establishing drug sales, marketing,
distribution and manufacturing capabilities;
•unplanned costs to prepare, file, prosecute, defend and enforce patent claims
and other patent related costs, including litigation costs and technology
license fees;
•unexpected losses in our cash investments or an inability to otherwise
liquidate our cash investments due to unfavorable conditions in the capital
markets;
•impacts resulting from the COVID-19 pandemic and responsive actions relating
thereto; and
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•our ability to continue as a going concern.
Subject to specified exceptions, we and Aurigene agreed to collaborate
exclusively with each other on the discovery, research, development and
commercialization of programs and compounds within immuno-oncology for an
initial period of approximately two years from the effective date of the
collaboration agreement. At our option, and subject to specified conditions, we
had the right to extend such exclusivity for up to three additional one year
periods by paying to Aurigene additional exclusivity option fees on an annual
basis. We exercised the first one year exclusivity option in 2017. The fee for
this exclusivity option exercise was $7.5 million, which we paid in two equal
installments in 2017. We elected not to exercise our exclusivity option in 2018
and did not make the $10.0 million payment required for this additional
exclusivity in 2018. As a result of this election to not further exercise our
exclusivity option, we no longer operate under the broad immuno-oncology
exclusivity with Aurigene. In 2019, we elected not to further exercise our
exclusivity option related to the IRAK4 and PD1/VISTA programs and did not make
the $2.0 million payment required for this continued exclusivity.
We have historically derived a portion of our operating cash flow from our
receipt of milestone payments under collaboration agreements with third parties.
However, we cannot predict whether we will receive additional milestone payments
under existing or future collaborations.
To become and remain profitable, we, either alone or with collaborators, must
develop and eventually commercialize one or more drug candidates with
significant market potential. This will require us to be successful in a range
of challenging activities, including completing preclinical testing and clinical
trials of our drug candidates, obtaining marketing approval for these drug
candidates, manufacturing, marketing and selling those drugs for which we may
obtain marketing approval and satisfying any post marketing requirements. We may
never succeed in these activities and, even if we do, may never generate
revenues that are significant or large enough to achieve profitability. Other
than Erivedge, which is being commercialized by Genentech and Roche, our most
advanced drug candidates are currently only in early clinical testing.
For the foreseeable future, we will need to spend significant capital in an
effort to develop and commercialize products and we expect to incur substantial
operating losses. Our failure to become and remain profitable would, among other
things, depress the market price of our common stock and could impair our
ability to raise capital, expand our business, diversify our research and
development programs or continue our operations.
New Accounting Pronouncements
For detailed information regarding recently issued accounting pronouncements and
the expected impact on our Condensed Consolidated Financial Statements, see Note
2g, New Accounting Pronouncements, in the accompanying Notes to Condensed
Consolidated Financial Statements included in Item 1 of Part I of this Form
10-Q.
Contractual Obligations

There have been no material changes to our contractual obligations set forth
under the heading "Management's Discussion and Analysis of Financial Condition
and Results of Operations - Contractual Obligations" in our Annual Report on
Form 10-K for the year ended December 31, 2019.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements as of June 30, 2020.

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