LUMOS PHARMA, INC.
This Quarterly Report on Form 10-Q contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as amended, Section
21E of the Securities Exchange Act of 1934, as amended, and the Private
Securities Litigation Reform Act of 1995, and such statements are subject to the
"safe harbor" created by those sections. Forward-looking statements are based on
our management's beliefs and assumptions and on information available to our
management as of the date hereof. In some cases, you can identify
forward-looking statements by terms such as "may," "will," "should," "could,"
"would," "expect," "plans," "anticipates," "believes," "estimates," "projects,"
"predicts," "potential" and similar expressions intended to identify
forward-looking statements. Examples of these statements include, but are not
limited to, statements regarding: the development plan for the Company's product
candidate LUM-201 (ibutamoren) ("LUM-201"); the development plan for our
existing pipeline and potential partnership and out-licensing opportunities; the
timing of planned preclinical studies and clinical trials; the timing of and our
ability to obtain regulatory approvals for our product candidates; the clinical
utility of our product candidates; our plans to leverage our existing
technologies to discover and develop additional product candidates; our
intellectual property position; our ability to enter into strategic
collaborations, licensing or other arrangements; our estimates regarding
expenses, future revenues, capital requirements and needs for additional
financing; plans to develop and commercialize our product candidates; and other
risks and uncertainties, including those described in Part II, Item 1A, "Risk
Factors" of this Quarterly Report and in our other periodic reports filed from
time to time with the Securities and Exchange Commission , or SEC , including our
Annual Report on Form 10-K for the year ended December 31, 2019 and Private
Lumos's audited consolidated financial statements and notes thereto and
management's discussion and analysis of financial condition and results of
operations for the year ended December 31, 2019 included in our Current Report
on Form 8-K/A, filed with the SEC on May 29, 2020 . Our actual results could
differ materially from those discussed in our forward-looking statements for
many reasons, including those risks. You should not place undue reliance on
these forward-looking statements, which apply only as of the date of this
Quarterly Report on Form 10-Q. You should read this Quarterly Report on Form
10-Q completely. Except as required by law, we assume no obligation to update
these forward-looking statements publicly, or to update the reasons actual
results could differ materially from those anticipated in these forward-looking
statements, even if new information becomes available in the future. Such
factors may be amplified by the COVID-19 pandemic and its potential impact on
our business and the global economy.
The following discussion and analysis should be read in conjunction with the
unaudited financial statements and notes thereto included in Part I, Item 1 of
this Quarterly Report on Form 10-Q.
Overview
Lumos is a clinical-stage biopharmaceutical company focused on the
identification, acquisition and in-license, development, and commercialization
of novel products for the treatment of rare diseases. The Company's mission is
to develop new therapies for people with rare diseases, prioritizing its focus
where the medical need is high and the pathophysiology is clear.
In March 2020 , the World Health Organization declared the outbreak of COVID-19,
a novel strain of Coronavirus, a global pandemic. This outbreak is causing major
disruptions to businesses and markets worldwide as the virus spreads. The extent
of the effect on the Company's operational and financial performance will depend
on future developments, including the duration, spread and intensity of the
pandemic, and governmental, regulatory and private sector responses, all of
which are uncertain and difficult to predict. Although the Company is unable to
estimate the financial effect of the pandemic at this time, if the pandemic
continues to evolve into a severe worldwide crisis, it could have a material
adverse effect on the Company's business, results of operations, financial
condition and cash flows. The financial statements do not reflect any
adjustments as a result of the pandemic.
Recent Events
On March 18, 2020 , the Company, formerly known as NewLink, completed a merger in
accordance with the terms of the Merger Agreement, pursuant to which Merger Sub
merged with and into Private Lumos, with Private Lumos surviving as a
wholly-owned subsidiary of NewLink.
Also on March 18, 2020 , and prior to the Effective Time, the Company effected a
1-for-9 Reverse Stock Split and, following the Merger, changed its name to
"Lumos Pharma, Inc. " Unless otherwise noted herein, all references to share
amounts give effect to the Reverse Stock Split. Following the completion of the
Merger, the business being conducted by the Company became primarily the
business conducted by Private Lumos, which is a biopharmaceutical company
focused on the identification, acquisition, in-license, development, and
commercialization of novel products for the treatment of rare diseases.
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Table of Contents Lumos' current pipeline is focused on the future development of an orally administered small molecule, the growth hormone secretagogue ibutamoren, for three rare endocrine disorders. For accounting purposes, Private Lumos is considered to have acquired NewLink in the Merger. NewLink's shares of common stock listed onThe Nasdaq Capital Market, previously trading through the Merger Date under the ticker symbol "NLNK", commenced trading on The Nasdaq Capital Market, under the ticker symbol "LUMO", onThursday, March 19, 2020 . The accompanying results of operations give retroactive effect to the exchange ratio and change in par value for all periods presented.
The Merger was accounted for as a reverse merger with Lumos deemed the accounting acquiror for accounting purposes. Further, the Merger is to be accounted for as an asset acquisition rather than a business combination because the assets acquired and liabilities assumed from NewLink do not meet the definition of a business as defined by ASC 805, Business Combinations as NewLink does not contain the processes in place to generate outputs.
The results of operations and cash flows prior to the Merger Date, relate to
Private Lumos. Subsequent to the Merger Date the information in these unaudited
quarterly financial statements relates to the Company and its consolidated
entities. All share and per share amounts in the financial statements and
related notes have been retroactively adjusted, where applicable, for all
periods presented to give effect to the exchange ratio applied in connection
with the Merger and the Reverse Stock Split.
LUM-201 Growth Hormone Secretagogue
Our pipeline is focused on the development of an orally administered small
molecule, the growth hormone secretagogue LUM-201 for rare endocrine disorders
where injectable recombinant human growth hormone ("rhGH") is currently
approved. A secretagogue is a substance that stimulates the secretion or release
of another substance. LUM-201 stimulates the release of growth hormone ("GH")
and is referred to as a GH secretagogue. The current targeted indications for
LUM-201 are Pediatric Growth Hormone Deficiency ("PGHD"), Turner Syndrome and
Children Born Small for Gestational Age ("SGA"), in each case in a certain
subset of affected patients. Lumos is planning to initiate a clinical
development program to study the effects of LUM-201 in PGHD prior to the end of
2020 with a Phase 2b clinical trial (the "Phase 2b Trial"). The coronavirus
pandemic has caused pervasive interruptions to clinical trials industrywide.
Facing similar near-term impediments, the Company has experienced some delays
related to the pandemic and may experience further delays should significant
pandemic related disruptions persist. Depending on the outcome of data developed
in the Phase 2b Trial and the timing of such data, Lumos plans to conduct
separate Phase 2 clinical trials to study the effects of LUM-201 for Turner
Syndrome and SGA in a certain subset of affected patients. The graphic below
depicts these indications with their respective development status.
[[Image Removed: nlnk-20200331_g2.jpg]]
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Table of Contents LUM-201 stimulates GH via the GH secretagogue receptor, also known as the ghrelin receptor, thus providing a differentiated mechanism of action to treat some rare endocrine disorders (involving a deficiency of GH) by increasing the amplitude of endogenous, pulsatile GH secretion. LUM-201's stimulatory effect is regulated by insulin-like growth factor feedback, hence protecting against hyperstimulation of GH. LUM-201 has been observed to stimulate endogenous GH in patientswho have a functional but reduced hypothalamic pituitary GH axis. LUM-201 is a tablet formulation that will be administered orally once daily and provides a new therapeutic approach to the 35-year old standard of care (subcutaneous injectable rhGH) for treating rare endocrine disorders associated with GH deficiencies. If approved, LUM-201 has the potential to become the first approved oral GH secretagogue to treat rare endocrine disorders associated with GH deficiencies, starting with PGHD, providing an alternative to the current standard regimen of daily injections. LUM-201 for the Treatment of a Subset of PGHD Patients Lumos is initially developing LUM-201 for a subset of patients with PGHD. PGHD is a rare endocrine disorder occurring in approximately one in 3,500 persons aged birth to 17 years. Causes of PGHD can be: congenital (children are born with the condition), acquired (brain tumor, head injuries or other causes), iatrogenic (induced by medical treatment) or idiopathic (of unknown cause). Children with untreated PGHD will have significant growth failure (potential adult heights significantly less than five feet and may have abnormal body composition with decreased bone mineralization, decreased lean body mass and increased fat mass). The main therapeutic goal in PGHD is to restore growth, enabling short children to achieve normal height and prevent complications that could involve metabolic abnormalities, cognitive deficiencies and reduced quality of life. Current treatment of PGHD is limited to daily subcutaneous injections of rhGH with a treatment cycle lasting up to an average of seven years. Poor compliance in daily rhGH injections for an average seven-year treatment regime results in an adverse impact on overall health efficacy. LUM-201 is intended to provide an oral treatment to stimulate the release of endogenous GH in PGHD patientswho have a functional but reduced hypothalamic pituitary GH axis and are expected to respond to LUM-201. Lumos believes this group represents 50% to 60% of PGHD patients. Lumos is planning to initiate a clinical development program to study the effects of LUM-201 in PGHD by the end of 2020 with a Phase 2b study. Lumos has received a Study May Proceed letter from FDA after their review of our study protocol. As trial initiation is currently delayed by the COVID-19 pandemic, Lumos is evaluating whether there is opportunity within the proposed Phase 2b study to address additional FDA comments that could increase Phase 3 registration readiness. The submitted trial is a randomized study testing three doses of LUM-201 in a parallel enrollment approach versus the current standard dose of injectable rhGH with the twin goals of dose selection and refinement of patient selection for a Phase 3 study. Potential expansion of LUM-201 into additional endocrine indications Lumos is also in the planning stages for developing LUM-201 for patients with Turner Syndrome. Turner Syndrome is a sex-linked developmental disorder that affects females only (one normal x chromosome, and the other x chromosome is either missing or structurally changed). It causes growth failure that begins before birth and continues into infancy and childhood, where it can be accentuated by the absence of puberty. If left untreated, girls with Turner Syndrome will usually achieve an average adult height that is significantly shorter than their peers. Lumos is also in the planning stages for developing LUM-201 for the indication of SGA. SGA is a child born with birth weight and/or length under two standard deviations ("SDS") for the gestational age and sex of the population. Approximately five percent of all newborn children are SGA and a spectrum of factors are found to be causative: maternal, placental, fetal, metabolic, and genetic. In the newborn period, SGA children are at greater risk of life-threatening conditions: hypoglycemia, hypercoagulability, necrotic enterocolitis, direct hyperbilirubinemia, and hypotension. Approximately 10% of SGA children do not achieve catch-up growth and remain short (?-2 SDS) into adulthood. Lumos acquired LUM-201 fromAmmonett Pharma LLC ("Ammonett") inJuly 2018 . LUM-201 received Orphan Drug Designation ("ODD") inthe United States and theEuropean Union for GHD in 2017.The United States patent "Detecting and Treating Growth Hormone Deficiency" has been issued with an expiration in 2036. Other patent applications are pending in multiple jurisdictions. Since its inception, Private Lumos' operations have focused on organizing and staffing, business planning, raising capital, acquiring its technology and assets, and conducting preclinical and clinical development of its product candidates. Private Lumos has devoted substantial effort and resources to acquiring its current product candidate, LUM-201, as well as its previous product candidate, LUM-001, which it ceased developing in 2019. Private Lumos acquired LUM-201 through its acquisition of substantially all of the assets related to LUM-201 from Ammonett which had licensed LUM-201 inOctober 2013 from Merck. Private Lumos has not generated any revenue from product sales. Prior to the Merger, Private Lumos funded its operations 21
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Table of Contents primarily through the sale and issuance of preferred stock, as well as through in-kind support pursuant to a collaborative research and development agreement with theNIH from 2012 toFebruary 2020 . The following relates to products in development by NewLink prior to the Merger: IDO Pathway Inhibitors In cancer, the IDO (indoleamine-2, 3-dioxygenase) pathway regulates immune response by suppressing T-cell activation, which enables cancer to avoid immune response. IDO is overexpressed in many cancers, both within tumor cells as a direct defense against T-cell attack, and also within antigen presenting cells in tumor-draining lymph nodes, thereby promoting peripheral tolerance to tumor associated antigens ("TAAs"). When hijacked by developing cancers in this manner, the IDO pathway may facilitate the survival, growth, invasion and metastasis of malignant cells whose expression of TAAs might otherwise be recognized and attacked by the immune system. Currently, we have a small molecule portfolio primarily focused on the IDO pathway. Our small-molecule IDO pathway inhibitor product candidates that have previously been advanced into the clinic include indoximod andNLG802 . Our product candidates are designed to counteract the above described immunosuppressive effects of the IDO pathway in cancer. Preclinical evidence supports the premise that indoximod stimulates the activation of antitumor T-cells through activation of mammalian target of rapamycin and modulation of signaling through the aryl hydrocarbon receptor. To date, our IDO focused small molecules have been well tolerated in clinical trials. They are orally bioavailable and we believe they offer the potential to be synergistic with other cancer therapies such as radiation, chemotherapy, vaccination and immunotherapies involving other checkpoint inhibitors such as anti-PD-1, anti-programmed cell death ligand-1, or anti-cytotoxic T-lymphocyte antigen 4. Clinical data suggest an increase in clinical activity without adding significant toxicity. More than 900 patients have been treated with indoximod to date and it has generally been well-tolerated, including in combination with PD-1 checkpoint inhibitors, various chemotherapy agents, radiation, and a cancer vaccine. A tablet formulation of indoximod hydrochloride for adult patients and a sprinkle formulation for pediatric indications have been developed. Both of these formulations of indoximod could be used in future clinical trials.NLG802 is a prodrug of indoximod.NLG802 is intended to increase bioavailability and exposure to indoximod above levels currently achievable by direct oral administration of indoximod. Based on data from a Phase 1 dose escalation trial, presented inMay 2019 at the Immuno-Oncology 2019World Congress , the treatment regimen was well tolerated with noNLG802 -related serious adverse events reported. The recommended Phase 2 dose was established at 1452 mg BID based on achieving preclinical exposure levels required for pharmacodynamic effects of indoximod. TwoU.S. patents covering both the salt and prodrug formulations of indoximod were issued inthe United States onAugust 15, 2017 andFebruary 19, 2019 , respectively, providing exclusivity until at least 2036. We are continuing to pursue international patent coverage for these formulations in some countries, and we are exploring the potential for further development and licensing opportunities but do not have an active program for the drug product candidate as ofMarch 31, 2020 . Ebola Vaccine InNovember 2014 , NewLink entered into the NewLink Merck Agreement to develop and potentially commercialize our rVSV?G-ZEBOV GP vaccine product candidate and other aspects of the vaccine technology. The rVSV?G-ZEBOV GP vaccine product candidate was originally developed by the PHAC and is designed to utilize the rVSV vector to induce immunity against Ebola virus when replacing the VSV glycoprotein with corresponding glycoproteins from filoviruses. Under the NewLink Merck Agreement, NewLink received an upfront payment of$30.0 million inOctober 2014 , and inFebruary 2015 , NewLink received a milestone payment of$20.0 million . In addition to milestone payments from Merck, NewLink was awarded contracts for development of the rVSV?G-ZEBOV GP from the BARDA and the DTRA totaling$52.1 million during 2016 and$67.0 million during 2014 and 2015. Funds of$2.1 million were de-obligated from the DTRA grant awards in 2017. NewLink received total awards of$118.8 million . OnApril 26, 2018 NewLink entered into an agreement with Merck, DTRA and BARDA to transfer the government grants from BARDA and DTRA to Merck. The transfer was completed inJune 2018 and Merck replaced NewLink as the prime contractor on all such grants. OnDecember 20, 2019 , Merck announced that the FDA approved its application for ERVEBO® (Ebola Zaire Vaccine, Live) for the prevention of disease caused by Zaire Ebola virus in individuals 18 years of age and older. OnJanuary 3, 2020 , Merck notified NewLink that they had been issued a PRV. Under the terms of the NewLink Merck Agreement, onFebruary 4, 2020 , Merck assigned all of its rights and interests in connection with the PRV to NewLink, and upon the Merger, the Company 22
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Table of Contents is entitled to 60% of the value of the PRV obtained through sale, transfer or other disposition of the PRV. We also have the potential to earn royalties on sales of the vaccine in certain countries, if the vaccine is successfully commercialized by Merck. However, we believe that the market for the vaccine will be limited primarily to areas in the developing world that are excluded from royalty payment or where the vaccine is donated or sold at low or no margin and therefore we do not expect to receive material royalty payments from Merck in the foreseeable future. Restructuring Charges OnSeptember 30, 2019 , prior to the Merger, NewLink adopted a restructuring plan to reduce its headcount by approximately 60%, which consisted primarily of clinical and research and development staff and made several changes to senior leadership in order to conserve resources. In addition to the restructuring, effectiveAugust 3, 2019 ,Charles J. Link , Jr, M.D. retired from his position as the Chairman, Chief Executive Officer and Chief Scientific Officer and a member of the board of directors of NewLink, andNicholas Vahanian retired from his position as the President and member of the board of NewLink, effectiveSeptember 27, 2019 , and his employment with NewLink ended onNovember 11, 2019 . As ofMarch 31, 2020 , the Company has$2.7 million accrued relating to remaining payments expected to be paid out over the next twelve months. No expense was recorded during the three months endedMarch 31, 2020 . Corporate Information Our executive offices are located at4200 Marathon Blvd. , Suite 200,Austin Texas . We have additional executive and administrative space inAmes, Iowa , with the lease ending inMarch 2021 . We incurred a net loss of$340,000 for the three months endedMarch 31, 2020 . We expect to continue to incur losses over the next several years as we incur expenses to complete our clinical trial programs, expand our pipeline and pursue regulatory approval of our product candidates. Critical Accounting Policies and Significant Judgments and Estimates We have prepared our financial statements in accordance withU.S. GAAP which requires us to make estimates, assumptions and judgments that affect the reported amount of assets, liabilities, expenses and related disclosures at the date of the financial statements, as well as revenues and expenses during the reporting periods. As such, to understand our financial statements, it is important to understand our critical accounting policies. A critical accounting policy is one that is both important to the portrayal of our financial condition and results of operation and requires management's most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Actual results could, therefore, differ materially from these estimates under different assumptions or conditions. While our significant accounting policies are described in more detail in Note 4 to our condensed consolidated financial statements, we believe the following accounting policies to be critical in the preparation of our financial statements. Asset acquisitions Accounting for transactions as asset acquisitions is significantly different than business combinations. For example, acquired in-process research and development is expensed for asset acquisitions and capitalized for business combinations.Goodwill is only recognized in business combination transactions. As a result, it is important to determine whether a business or an asset or a group of assets is acquired. A business is defined in ASC 805, Business Combinations, as an integrated set of inputs and processes that are capable of generating outputs that have the ability to provide a return to its investors or owners. Typical inputs include long-lived assets (including intangible assets or rights to use long-lived assets), intellectual property and the ability to obtain access to required resources. Typical processes include strategic, operational and resource management processes that are typically documented or evident through an organized workforce. We considered all of the above factors when determining whether a business was acquired. In evaluating the Merger, we concluded that NewLink did not meet the definition of a business as it does not have the processes in place to generate outputs. There are several methods that can be used to determine the fair value of acquired intangibles. We used the precedent transaction method under the market approach to estimate the value of the PRV. We relied on purchase prices indicated by actual precedent priority review voucher transactions that were reasonably comparable to the PRV owned by NewLink. The Market Approach requires several judgments and assumptions to determine the fair value including discount rates, probability assumption of sale, expected transaction sales price, and tax rates. A change in these assumptions would impact the 23
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Table of Contents consideration received and capitalized as part of the Merger. The change could be material. For example, a 3% change in the discount rate used would increase (decrease) the fair value of the equity issued by approximately 2 to 4%. The fair value assigned to the acquired in-process research and development assets was estimated based on the estimated expected net proceeds from the sales of these assets as intellectual property. These assets are no longer being actively pursued in further clinical development by the Company. Acquired in-process research and development Acquired in-process research and development expense consists of the initial up-front payments incurred in connection with the acquisition or licensing of product candidates that do not meet the definition of a business under ASC 805, Business Combinations. Recent Accounting Pronouncements We do not believe that any recently issued effective pronouncements, or pronouncements issued but not yet effective, if adopted, would have a material effect on the accompanying financial statements. Results of Operations Comparison of the Three Months EndedMarch 31, 2020 and 2019 Revenues. Revenues for the three months endedMarch 31, 2020 were$21,000 , an increase of$21,000 from zero for the same period in 2019. The increase in revenue is attributable to$21,000 in licensing billings to Merck. We recognized licensing revenue during the three months endedMarch 31, 2020 for work we performed as a subcontractor of Merck. Research and Development Expenses. Research and development expenses for the three months endedMarch 31, 2020 were$1.9 million , an increase of$450,000 from$1.5 million for the same period in 2019. The increase is primarily due to additional expenses incurred as a result of the Merger including the write-off of the acquired NewLink in-process research and development of$426,000 , increase of$84,000 in personnel-related and stock compensation expense, and an increase of$68,000 in equipment and supplies expense, offset by a decrease in research and development consulting of$128,000 . General and Administrative Expenses. General and administrative expenses for the three months endedMarch 31, 2020 were$3.3 million , an increase of$2.6 million from$683,000 for the same period in 2019. The increase was due primarily to increases of$1.6 million in legal and professional fees incurred primarily due to the Merger,$663,000 in personnel-related expense,$295,000 due to increased operating expenses for rent, supplies, and depreciation and$91,000 due to insurance. Income Tax Benefit. We recorded an income tax benefit of$5.5 million for the three months endedMarch 31, 2020 . We recorded no income tax benefit for the three months endedMarch 31, 2019 . The income tax benefit as ofMarch 31, 2020 differs from the three months endedMarch 31, 2019 primarily due to the benefit recorded as a result of our ability to carryback NOLs to the tax years beginning beforeDecember 31, 2017 , specifically to the years endedDecember 31, 2014 and 2015, the release of the valuation allowance relating to Private Lumos NOL carryforwards, and current tax benefit that management anticipates will be utilized in the current year. Net Loss. Net income for the three months endedMarch 31, 2020 was$340,000 compared to a net loss of$2.1 million for the same period in 2019. The net loss available to common shareholders for the three months endedMarch 31, 2020 was$311,000 compared to a net loss available to common shareholders of$2.9 million for the same period in 2019. The increase in net loss attributable to common shareholders compared to net loss is due to the accretion of preferred stock dividends of$651,000 and$750,000 for the three months endedMarch 31, 2020 and 2019, respectively. The basic and diluted weighted-average shares of common stock outstanding for the three months endedMarch 31, 2020 were 2,189,758, resulting in a basic and diluted loss per share available to common shareholders of$0.14 . For the three months endedMarch 31, 2019 , the basic and diluted weighted-average shares of common stock outstanding were 1,339,289, resulting in basic and diluted loss per share of$2.13 .
Liquidity and Capital Resources
As of
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We anticipate that we will continue to generate operating losses to the extent
that we incur expenses to complete our clinical trial programs for our product
candidates, develop our pipeline and pursue regulatory approval of our product
candidates.
We may seek to sell additional equity or debt securities or obtain a credit
facility if our available cash and cash equivalents are insufficient to satisfy
our liquidity requirements or if we develop additional opportunities to do so.
The sale of additional equity and debt securities may result in additional
dilution to our stockholders. If we raise additional funds through the issuance
of debt securities or preferred stock, these securities could have rights senior
to those of our common stock and could contain covenants that would restrict our
operations. We may require additional capital beyond our currently forecasted
amounts. Any such required additional capital may not be available on reasonable
terms, if at all. If we were unable to obtain additional financing, we may be
required to reduce the scope of, delay or eliminate some or all of our planned
research and development activities, which could harm our business.
Because of the numerous risks and uncertainties associated with the research and
development of our product candidates, we are unable to estimate the exact
amounts of our working capital requirements. Our future funding requirements
will depend on many factors, including, but not limited to:
•the scope, progress, results, and costs of clinical trials for our product
candidates, and discovery and development activities related to new product
candidates;
•the timing of, and the costs involved in, obtaining regulatory approvals for
our product candidates;
•the cost of commercialization activities if any of our product candidates are
approved for sale, including marketing, sales, facilities, and distribution
costs;
•the cost of manufacturing our product candidates and any products we
commercialize;
•our ability to establish and maintain strategic collaborations, licensing or
other arrangements and the financial terms of such agreements;
•whether, and to what extent, we are required to repay our outstanding
government provided loans;
•the costs involved in preparing, filing, prosecuting, maintaining, defending
and enforcing patent claims, including litigation costs and the outcome of such
litigation;
•the impact of public health crises such as the current COVID-19 pandemic or
similar outbreaks, and
•the timing, receipt and amount of sales of, or royalties on, our future
products, if any.
Cash Flows
The following table sets forth the primary sources and uses of cash for each of
the periods set forth below:
Three Months Ended March 31,
2020 2019
Net cash used in operating activities $ (3,310) $ (2,186)
Net cash provided by investing activities 84,179 -
Net cash used in financing activities - -
Net increase (decrease) in cash and equivalents $ 80,869 $ (2,186) For the three months ended
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