QUANTERIX : Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q)

You should read the following discussion and analysis of our financial condition
and results of operations together with our condensed consolidated financial
statements and the related notes included elsewhere in this Quarterly Report on
Form 10-Q and our audited financial statements and Management's Discussion and
Analysis of Financial Condition and Results of Operations included in our Annual
Report on Form 10-K for the year ended December 31, 2019, filed with the SEC. In
addition to historical information, the following discussion contains
forward-looking statements that involve risks, uncertainties and assumptions.
Our actual results, performance or experience could differ materially from what
is indicated by any forward-looking statement due to various important factors,
risks and uncertainties, including, but not limited to, those set forth under
"Special Note Regarding Forward-Looking Statements" included elsewhere in this
quarterly report or under "Risk Factors" in Item 1A of Part I of our Annual
Report on Form 10-K for the year ended December 31, 2019 or other filings that
we make with the SEC.

Overview

We are a life sciences company that has developed next generation,
ultra­sensitive digital immunoassay platforms that advance precision health for
life sciences research and diagnostics. Our platforms are based on our
proprietary digital "Simoa" detection technology. Our Simoa bead­based and
planar array platforms enable customers to reliably detect protein biomarkers in
extremely low concentrations in blood, serum and other fluids that, in many
cases, are undetectable using conventional, analog immunoassay technologies, and
also allow researchers to define and validate the function of novel protein
biomarkers that are only present in very low concentrations and have been
discovered using technologies such as mass spectrometry. These capabilities
provide our customers with insight into the role of protein biomarkers in human
health that has not been possible with other existing technologies and enable
researchers to unlock unique insights into the continuum between health and
disease. We believe this greater insight will enable the development of novel
therapies and diagnostics and facilitate a paradigm shift in healthcare from an
emphasis on treatment to a focus on earlier detection, monitoring, prognosis
and, ultimately, prevention. We are currently focusing on protein detection,
which we believe is an area of significant unmet need and where we have
significant competitive advantages. However, in addition to enabling new
applications and insights in protein analysis, our Simoa platforms have also
demonstrated applicability across other testing applications, including
detection of nucleic acids and small molecules.



We currently sell all of our products for life science research, primarily to
laboratories associated with academic and governmental research institutions, as
well as pharmaceutical, biotechnology and contract research companies, through a
direct sales force and support organizations in North America and Europe, and
through distributors or sales agents in other select markets, including
Australia, Brazil, China, Czech Republic, India, Israel, Japan, Lebanon, Mexico,
Qatar, Saudi Arabia, Singapore, South Korea and Taiwan.



Our instruments are designed to be used either with assays fully developed by
us, including all antibodies and supplies required to run the tests, or with
"homebrew" kits where we supply some of the components required for testing, and
the customer supplies the remaining required elements. Accordingly, our
installed instruments generate a recurring revenue stream. We believe that our
recurring consumable revenue is driven by our customers' ability to extract more
valuable data using our platform and to process a large number of samples
quickly with little hands-on preparation.



We commercially launched our first immunoassay platform, the Simoa HD-1, in
January 2014. The HD-1 is based on our bead-based technology, and assays run on
the HD-1 are fully automated. We initiated commercial launch of the SR-X
instrument in December 2017. The SR-X utilizes the same Simoa bead-based
technology and assay kits as the HD-1 in a compact benchtop form with a lower
price point, more flexible assay preparation, and a wider range of applications.
In July 2019, we launched the Simoa HD-X, an upgraded version of the Simoa HD-1,
which replaces the HD-1. The HD-X has been designed to deliver significant
productivity and operational efficiency improvements, as well as greater user
flexibility. We began shipping and installing HD-X instruments at customer
locations in the third quarter of 2019, ahead of our original fourth quarter
expectation. As the installed base of the Simoa instruments increases, total
consumables revenue overall is expected to increase. We believe that consumables
revenue should be subject to less

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period-to-period fluctuation than our instrument sales revenue, and will become an increasingly important contributor to our overall revenue.

On January 30, 2018, we acquired Aushon for $3.2 million in cash, with an
additional payment of $0.8 million made in July 2018, six months after the
acquisition date. With the acquisition of Aushon, we acquired a CLIA certified
laboratory, as well as Aushon's proprietary sensitive planar array detection
technology. Leveraging our proprietary sophisticated Simoa image analysis and
data analysis algorithms, we further refined this planar array technology to
develop the SP-X instrument to provide the same Simoa sensitivity found in our
Simoa bead-based platform. We initiated an early-access program for the SP-X
instrument in January 2019, with the full commercial launch commenced in
April 2019.



On August 1, 2019, we completed our acquisition of Uman for an aggregate
purchase price of $21.2 million, comprised of (i) $15.7 million in cash plus
(ii) 191,152 shares of our common stock (representing $5.5 million based on the
closing prices of our common stock on the Nasdaq Global Market on July 1, 2019
and August 1, 2019, the dates of issuance). The acquisition closed with respect
to 95% of the outstanding shares of capital stock of Uman on July 1, 2019 and
with respect to the remaining 5% of the outstanding shares of capital stock of
Uman on August 1, 2019. Uman supplies neurofilament light (Nf-L) antibodies and
ELISA kits, which are widely recognized by researchers and biopharmaceutical and
diagnostics companies world-wide as the premier solution for the detection of
Nf-L to advance the development of therapeutics and diagnostics for
neurodegenerative conditions.



We are subject to ongoing uncertainty concerning the COVID-19 pandemic,
including its length and severity and its effect on our business. During the
quarter, we implemented a resiliency plan focused on the health and safety of
our employees and maintaining continuity of our operations. We have seen an
impact on instrument revenue due to limitations on our ability to access certain
customer sites and complete instrument installations, as well as an impact on
consumables revenue from interruptions in certain customer laboratories. We
expect these COVID-19 related challenges to continue until these customers
return to normal operations.



In view of the pandemic, we have adjusted our operations to expand capacity in
our Accelerator Laboratory to support customers whose operations have been
disrupted and to sustain clinical trials. We also believe that our cytokine
assay technology provides researchers with important and differentiated tools to
study disease progression, cytokine release syndrome, and patient-treatment
response in the fight against COVID-19.  We are also working towards developing
a SARS-COV-2 quantitative IgG assay, an antigen early detection assay in blood,
and a high-definition SARS-COV-2 assay to enable research pursuits. We believe
that these activities may provide additional business and revenue opportunities
as the situation unfolds.

The situation remains dynamic and there remains significant uncertainty as to
the length and severity of the pandemic, the actions that may be taken by
government authorities, the impact to the business of our customers and
suppliers, the long-term economic implications and other factors identified in
Section 1A, "Risk Factors" of our Annual Report on Form 10-K for the year ended
December 31, 2019. We will continue to evaluate the nature and extent of the
impact to our business, financial condition and operating results.



As of March 31, 2020, we had cash and cash equivalents of $96.4 million. Since
inception, we have incurred net losses. Our net loss was $40.8 million,
$31.5 million, and $27.0 million for the years ended December 31, 2019, 2018 and
2017, respectively, and $11.6 million and $9.4 million for the three months
ended March 31, 2020 and 2019, respectively. As of March 31, 2020, we had an
accumulated deficit of $227.9 million and stockholders' equity of
$119.0 million. We expect to continue to incur significant expenses and
operating losses at least through the next 24 months. We expect our expenses
will increase substantially as we:

· expand our sales and marketing efforts to further commercialize our products;

· strategically acquire companies or technologies that may be complementary to

our business;

· expand our research and development efforts to improve our existing products

and develop and launch new products, particularly if any of our products are

deemed by the United States Food and Drug Administration, or FDA, to be medical

    devices or otherwise subject to additional regulation by the FDA;


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· seek premarket approval, or PMA, or 510(k) clearance from the FDA for our

existing products or new products if or when we decide to market products for

use in the prevention, diagnosis or treatment of a disease or other condition;

 ·  hire additional personnel and continue to grow our employee headcount;

· enter into collaboration arrangements, if any, or in-license other products and

technologies;

· add operational, financial and management information systems; and

· incur increased costs as a result of operating as a public company.

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Results of Operations

Comparison of the Three Months Ended March 31, 2020 and March 31, 2019 (dollars
in thousands):


                                             Three
                                            Months                   Three Months
                                             Ended                       Ended
                                          March 31,        % of       March 31,         % of          $           %
                                             2020        revenue         2019         revenue      change      change
Product revenue                           $     9,833       63 %     $       9,547       77 %     $     286        3 %

Service and other revenue                       5,762       36 %             2,790       23 %         2,972      107 %
Collaboration and license revenue                 132        1 %           

     -        - %           132        - %
Total revenue                                  15,727      100 %            12,337      100 %         3,390       27 %
Cost of goods sold:
Cost of product revenue                         6,186       39 %             4,248       34 %         1,938       46 %
Cost of service revenue                         2,728       17 %             2,082       17 %           646       31 %

Total costs of goods sold and services          8,914       57 %             6,330       51 %         2,584       41 %
Gross profit                                    6,813       43 %             6,007       49 %           806       13 %
Operating expenses:
Research and development                        4,268       27 %             3,852       31 %           416       11 %

Selling, general and administrative            14,273       91 %           

11,512       93 %         2,761       24 %
Total operating expense                        18,541      118 %            15,364      125 %         3,177       21 %
Loss from operations                         (11,728)     (75) %           (9,357)     (76) %       (2,371)     (25) %

Interest income (expense), net                    161        1 %                21        - %  `        140      667 %
Other income (expense), net                     (167)      (1) %              (47)        - %         (120)    (255) %
Loss before income taxes                     (11,734)     (75) %           (9,383)     (76) %       (2,351)     (25) %
Income tax benefit (provision)                    124        1 %           

  (22)        - %           146    (664) %
Net loss                                  $  (11,610)     (74) %     $     (9,405)     (76) %     $ (2,205)     (23) %




Revenue

Total revenue increased by $3.4 million, or 27%, to $15.7 million for the three
months ended March 31, 2020 as compared to $12.3 million for the three months
ended March 31, 2019. Product revenue consisted primarily of sales of
instruments totaling $3.7 million and sales of consumables and other products of
$6.1 million for the three months ended March 31, 2020. Product revenue
consisted of sales of instruments totaling $3.4 million and sales of consumables
and other products totaling $6.1 million for the three months ended March 31,
2019. The increase in product revenue of $0.3 million was primarily due to
increased instruments sales in the three months ended March 31, 2020.
Consumables revenue was flat year-over-year. Instrument revenue was impacted by
limitations in our ability to access certain customer sites and complete
instrument installations due to COVID-19, and consumables revenue was impacted
by customers' transition from HD-1 to HD-X and later from interruptions in
certain customer's laboratories due to COVID-19. The impact of COVID-19 on
product revenue was offset in part by an increase in service and other revenue
of $3.0 million due to increased services performed in our Accelerator
Laboratory. We had $0.1 million in collaboration and license revenue in the
three months ended March 31, 2020 related to licensing technology and
intellectual property.

Cost of Goods Sold and Services

Cost of product revenue increased by $1.9 million, or 46%, to $6.2 million for
the three months ended March 31, 2020 as compared to $4.2 million for the three
months ended March 31, 2019. The increase was primarily due to an increase in
sales of instruments, along with costs incurred from the amortization of the
Uman acquisition-related inventory valuation adjustment and acquired
intangibles. Cost of service revenue increased to $2.7 million for the three
months ended March 31, 2020 from $2.1 million for the three months ended March
31, 2019. The increase was primarily due to higher utilization of the
Accelerator Laboratory, plus increased personnel costs from the build out of our
field service organization. Overall cost of goods sold as a percentage of
revenue increased to 57% of total revenue for the three months ended March 31,
2020 as compared to 51% for the three months ended March 31, 2019, primarily as
a result of the amortization of acquisition-related acquired intangibles, and
inventory valuation adjustments.

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Research and Development Expense

Research and development expense increased by $0.4 million, or 11%, to $4.3
million for the three months ended March 31, 2020 as compared to $3.9 million
for the three months ended March 31, 2019. The increase was primarily due to the
increased headcount in research and development.

Selling, General and Administrative Expense

Selling, general and administrative expense increased by $2.8 million, or 24%,
to $14.3 million for the three months ended March 31, 2020 as compared to $11.5
million for the three months ended March 31, 2019. The increase was primarily
due to headcount additions in various departments as we build out our
organization to support future growth, the lease for the new headquarters, and
stock compensation expense.

Interest Income and Other Expense, Net

Interest income and other expense, net increased by less than $0.1 million for
the three months ended March 31, 2020 as compared to same period in 2019,
primarily due to the interest income earned on cash equivalents, which increased
due to the at-the-market and underwritten public offerings completed during
2019.

Income Tax Benefit (Provision)

Income tax benefit was $0.1 million for the three months ended March 31, 2020 as
compared to a provision of less than $0.1 million for the same period in 2019.
The change is primarily due to certain state and international taxes in 2020.

Liquidity and Capital Resources

To date, we have financed our operations principally through equity offerings, borrowings from credit facilities and revenue from our commercial operations.

Equity Offerings

In December 2017, we completed our IPO in which we sold 4,916,480 shares of
common stock at an initial public offering price of $15.00 per share. The
aggregate net proceeds received by us from the offering, net of underwriting
discounts and commissions and offering expenses, were $65.6 million. Prior to
the IPO, we had raised capital through the sale of redeemable convertible
preferred stock in private placement transactions.

On March 19, 2019, we entered into a Sales Agreement for an "at the market
offering" arrangement with Cowen, which allows us to issue and sell shares of
common stock pursuant to a shelf registration statement for total gross sales
proceeds of up to $50.0 million from time to time through Cowen, acting as our
agent. During the 2019 fiscal year, we sold an aggregate of 2,186,163 shares of
common stock pursuant to this agreement resulting in $49.7 million in gross
proceeds and $48.0 million in net proceeds.

On August 8, 2019, we entered into an underwriting agreement with J.P. Morgan
Securities LLC and SVB Leerink LLC, as representatives of the several
underwriters, relating to an underwritten public offering of 2,732,673 shares of
common stock at a public offering price of $25.25 per share. We received $69.0
million in gross proceeds and $64.5 million in net proceeds.

Loan Facility with Hercules

On April 14, 2014, we executed a Loan Agreement with Hercules Capital, Inc. (formerly known as Hercules Technology Growth Capital, Inc.). The Loan Agreement provided a total debt facility of $10.0 million, which is secured by substantially all of our assets. At closing, we borrowed $5.0 million in principal and had the ability to draw the

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additional $5.0 million over the period from November 1, 2014 to March 31, 2015.
The interest rate on this term loan was variable based on a calculation of 8%
plus the prime rate less 5.25%, with a minimum interest rate of 8%. Interest was
to be paid monthly beginning the month following the borrowing date. Principal
payments were scheduled to begin on September 1, 2015, unless we achieved
certain milestones which would have extended this date to December 1, 2015 or
March 1, 2016. In connection with the execution of the Loan Agreement, we issued
Hercules a warrant to purchase up to 173,428 shares of our Series C Preferred
Stock at an exercise price of $3.3299 per share. Upon closing of the IPO, this
warrant was automatically converted into a warrant to purchase up to 53,960
shares of our common stock at an exercise price of $10.70 per share.

On March 4, 2015, we executed Amendment 1 to the Loan Agreement and drew the
additional $5.0 million available under the Loan Agreement at that time. The
terms of the amendment deferred principal payments to start on December 1, 2015
or March 1, 2016 if we obtained at least $10.0 million in equity financing
before December 1, 2015. This equity financing did not occur before December 1,
2015.

In January 2016, we executed Amendment 2 to the Loan Agreement, which increased
the total facility available by $5.0 million to a total of $15.0 million and
further delayed the start of principal payments to July 1, 2016. Following the
Series D Preferred Stock financing in March 2016, we could have elected to
further delay the start of principal payments until January 1, 2017, however we
voluntarily began paying principal on July 1, 2016. Upon signing this amendment,
we drew an additional $3.0 million under the debt facility. The remaining
$2.0 million available for borrowing expired unused in 2016, decreasing the
amounts available under the debt facility to $13.0 million.

In March 2017, we signed Amendment 3 to the Loan Agreement increasing the total
facility available by $5.0 million to a total of $18.0 million. We did not draw
any of this additional amount, which was available for us to draw until
February 28, 2018. Additionally, we did not request an optional term loan for an
incremental $5.0 million which was available for us to request until
September 3, 2018. Principal payments were delayed to September 1, 2018 and the
loan maturity date was extended to March 1, 2019. We voluntarily made principal
payments in the months of March, April, and May 2018. No principal payments were
made in June, July or August 2018. The amendment did not affect the due date of
the existing end of term fees (in aggregate $0.5 million) which were due on
February 1, 2018. In connection with this amendment, we issued Hercules a
warrant to purchase up to 38,828 shares of our Series D Preferred Stock at an
exercise price of $3.67 per share. Upon closing of the IPO, this warrant was
automatically converted into a warrant to purchase up to 12,080 shares of our
common stock at an exercise price of $11.80 per share.

In July 2017, we signed Amendment 4 to the Loan Agreement, which capped the "Term Loan Interest Rate" with respect to the 2017 Term Loan Advance only at 10%. Amendment 4 to the Loan Agreement did not change or affect any other element of the Loan Agreement or the Term Loan Advance.

In August 2018, we signed Amendment 5 to the Loan Agreement, which extends the
interest only payment period through March 1, 2020 and also extends the loan
maturity date to March 1, 2020. We accounted for the August 2018 amendment as a
modification pursuant to ASC 470-50 and determined that no material change
occurred as a result of the modification. In addition, the amendment deferred
the payment of principal until the maturity date. $0.1 million of end of term
payments were paid in March 2020.

In October 2018, we signed Amendment 6 to the Loan Agreement, which amends the
Loan Agreement's collateral clause to exclude the $1 million certificate of
deposit associated with the lease on our new headquarters in Billerica,
Massachusetts. The Loan Agreement and amendments contain end of term payments
and are recorded in the debt accounts. $0.5 million of end of term payments were
paid in the year ended December 31, 2018.

On April 15, 2019, we signed Amendment No. 7 to the Loan Agreement, which extends the interest only payment period through July 1, 2021 and also extends the loan maturity date to October 1, 2021. We are required to pay the loan principal in five equal installments starting July 1, 2021 with the final principal payment to be made on October 1, 2021.

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On July 2, 2019, 66,041 warrants were exercised by Hercules on a net, non-cash,
basis. Per the terms of the warrant agreement, we issued 45,690 shares of common
stock with a value equal to Hercules' gain.

The Loan Agreement contains negative covenants restricting our activities,
including limitations on dispositions, mergers or acquisitions, incurring
indebtedness or liens, paying dividends or making investments and certain other
business transactions. There are no financial covenants associated with the Loan
Agreement. The obligations under the Loan Agreement are subject to acceleration
upon the occurrence of specified events of default, including a material adverse
change in our business, operations or financial or other condition, which is
subjective in nature. We have determined that the risk of subjective
acceleration under the material adverse events clause is not probable and
therefore have classified the outstanding principal in current and long-term
liabilities based on scheduled principal payments.

Debt principal repayments, including the end of term fees, due as of March 31, 2020 are (in thousands):

                       Years ending December 31,
                       Remainder 2020                $     -
                       2021                            7,738
                                                     $ 7,738




Uman Acquisition



In August 2019, we completed the acquisition of Uman, in which we paid $15.7
million in cash to the shareholders of Uman. We funded this payment through our
existing cash balances. In addition, we issued $5.5 million in stock in
connection with the purchase of Uman. The acquisition closed with respect to 95%
of the outstanding shares of capital stock of Uman on July 1, 2019 and with
respect to the remaining 5% of the outstanding shares of capital stock of Uman
on August 1, 2019.



Cash Flows

The following table presents our cash flows for each period presented (in
thousands):


                                                   Three Months Ended March 31,
                                                     2020                2019

Net cash used in operating activities $ (13,179) $ (5,352)

   Net cash used in investing activities                  (426)             

(5,917)

   Net cash provided by financing activities                861             

831

Net decrease in cash and cash equivalents $ (12,744) $ (10,438)

Net Cash Used in Operating Activities

We derive cash flows from operations primarily from the sale of our products and
services. Our cash flows from operating activities are also significantly
influenced by our use of cash for operating expenses to support the growth of
our business. We have historically experienced negative cash flows from
operating activities as we have developed our technology, expanded our business
and built our infrastructure and this may continue in the future.

Net cash used in operating activities was $13.2 million during the three months
ended March 31, 2020. The net cash used in operating activities primarily
consisted of the net loss of $11.6 million offset by non-cash charges of $2.1
million of stock-based compensation expense and $1.0 million of depreciation and
amortization expense. Cash used as a result of changes in operating assets and
liabilities of $5.3 million was primarily due to an increase in accounts
receivable of $1.2 million, an increase in inventory of $1.4 million, an
increase in accounts payable of $1.1 million, and an increase in accrued
compensation and benefits, other accrued expenses and other current liabilities
of $1.7 million.

Net cash used in operating activities was $5.4 million during the three months
ended March 31, 2019. The net loss of $9.4 million includes non-cash charges of
$1.3 million of stock-based compensation expense and $0.4 million of

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depreciation and amortization. Cash used as a result of changes in operating
assets and liabilities of $2.3 million was primarily due to an increase in
inventory of $1.8 million, a decrease in accounts payable of $1.3 million and a
decrease in accrued compensation and benefits, other accrued expenses and other
current liabilities of $0.3 million and an increase in accounts receivable of
$0.5 million. In addition, $6.1 million increase due to changes in other
noncurrent liabilities primarily related to our new lease.

Net Cash Used in Investing Activities

Historically, our primary investing activities have consisted of capital expenditures for the purchase of capital equipment to support our expanding infrastructure and work force. We expect to continue to incur additional costs for capital expenditures related to these efforts in future periods.

We used $0.4 million of cash in investing activities during the three months ended March 31, 2020 for the purchase of property and equipment.

We used $5.9 million of cash in investing activities during the three months
ended March 31, 2019 consisting of cash paid in for purchases of capital
equipment to support our infrastructure. The significant increase was related to
the leasehold improvements for our new headquarters, which is a component of our
lease agreement.

Net Cash Provided by Financing Activities

Historically, we have financed our operations principally through private placements of our convertible preferred stock and borrowings from credit facilities, the sale of shares of our common stock in our IPO and revenues from our commercial operations.

Financing activities provided $0.9 million of cash during the three months ended
March 31, 2020, primarily from $0.5 million in proceeds from stock options
exercised and $0.4 million in proceeds from stock purchases through our 2017
ESPP.

Financing activities provided $0.8 million of cash during the three months ended March 31, 2019, which was primarily from proceeds of common stock option exercises of $0.5 million and stock purchases through our 2017 ESPP of $0.3 million.

Capital Resources

We have not achieved profitability on a quarterly or annual basis since our
inception, and we expect to continue to incur net losses in the future. We also
expect that our operating expenses will increase as we continue to increase our
marketing efforts to drive adoption of our commercial products. Additionally, as
a public company, we have incurred and will continue to incur significant audit,
legal and other expenses that we did not incur as a private company. Our
liquidity requirements have historically consisted, and we expect that they will
continue to consist, of sales and marketing expenses, research and development
expenses, working capital, debt service and general corporate expenses.

We believe cash generated from commercial sales, our current cash and cash
equivalents, and interest income we earn on these balances will be sufficient to
meet our anticipated operating cash requirements for at least the next 12
months. In the future, we expect our operating and capital expenditures to
increase as we increase headcount, expand our sales and marketing activities and
grow our customer base. Our estimates of the period of time through which our
financial resources will be adequate to support our operations and the costs to
support research and development and our sales and marketing activities are
forward-looking statements and involve risks and uncertainties and actual
results could vary materially and negatively as a result of a number of factors,
including the factors discussed in Item 1A, "Risk Factors" of our Annual Report
on Form 10-K for the year ended December 31, 2019. We have based our estimates
on assumptions that may prove to be wrong and we could utilize our available
capital resources sooner than we currently expect. Our future funding
requirements will depend on many factors, including:

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· market acceptance of our products, including our SP-X and HD-X instruments;

· the cost and timing of establishing additional sales, marketing and

distribution capabilities;

· the cost of our research and development activities;

· our ability to enter into collaborations in the future, and the success of any

such collaborations;

· the cost and timing of potential regulatory clearances or approvals that may be

required in the future for our products;

· the effects of the COVID-19 pandemic; and

· the effect of competing technological and market developments.

If the conditions for raising capital are favorable, we may seek to finance
future cash needs through public or private equity or debt offerings or other
financings. On March 19, 2019, we filed a universal shelf registration statement
on Form S-3, which was declared effective by the SEC on May 10, 2019, and
pursuant to which we registered for sale up to $200 million of any combination
of our common stock, preferred stock, debt securities, warrants, rights, and/or
units from time to time and at prices and on terms that we may determine. After
the sales of shares of common stock in our "at-the-market" offering during June
2019, and the sale of 2,732,673 shares of common stock in our underwritten
public offering in August 2019, approximately $81.3 million of securities
remained available for issuance under this shelf registration statement. This
registration statement will remain in effect up to May 10, 2022. We cannot
assure you that we will be able to obtain additional funds on acceptable terms,
or at all. If we raise additional funds by issuing equity or equity-linked
securities, our stockholders may experience dilution. Future debt financing, if
available, may involve covenants restricting our operations or our ability to
incur additional debt. Any debt or equity financing that we raise may contain
terms that are not favorable to us or our stockholders. If we raise additional
funds through collaboration and licensing arrangements with third parties, it
may be necessary to relinquish some rights to our technologies or our products,
or grant licenses on terms that are not favorable to us. If we do not have or
are not able to obtain sufficient funds, we may have to delay development or
commercialization of our products. We also may have to reduce marketing,
customer support or other resources devoted to our products or cease operations.

Contractual Obligations and Commitments

As of March 31, 2020, there have been no material changes to our contractual
obligations and commitments from those described under "Management's Discussion
and Analysis of Financial Condition and Results of Operations" included in our
Annual Report on Form 10-K for the year ended December 31, 2019.

Off-Balance Sheet Arrangements

We did not have, during the periods presented, and we do not currently have, any off-balance sheet arrangements, as defined under applicable SEC rules.

Critical Accounting Policies, Significant Judgements and Estimates

The preparation of financial statements in conformity with accounting principles
generally accepted in the United States, or U.S. GAAP, requires management to
make estimates and assumptions that impact the reported amounts of assets,
liabilities, revenues, and expenses and the disclosure of assets and liabilities
in our financial statements and accompanying notes. The most significant
assumptions used in the financial statements are the underlying assumptions used
in revenue recognition and stock-compensation. We base estimates and assumptions
on historical experience when available and on various factors that we
determined to be reasonable under the circumstances. We evaluate our estimates
and assumptions on an ongoing basis. Our actual results may differ from these
estimates under different assumptions or conditions.

Our critical accounting policies and significant estimates that involve a higher
degree of judgment and complexity are described under "Management's Discussion
and Analysis of Financial Condition and Results of Operations-Critical
Accounting Policies, Significant Judgements and Estimates" included in our
Annual Report on Form 10-K for the year ended December 31, 2019. There have been
no material changes to our critical accounting policies and estimates as
disclosed therein, with the exception of our adoption of recent accounting
pronouncements, as discussed below.

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Recent Accounting Pronouncements

We adopted ASC 842 and its related amendments. See Notes 2 and 10 to our unaudited financial statements included elsewhere in this Quarterly Report on Form 10-Q for more information.

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