MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND


                             RESULTS OF OPERATIONS

You should read the following discussion of our financial condition and results
of operations together with our unaudited condensed consolidated financial
statements and related notes included elsewhere in this Quarterly Report on Form
10-Q. Some of the information contained in this discussion and analysis,
including information with respect to our plans and strategy for our business,
include forward-looking statements that involve risks and uncertainties. Our
actual results could differ materially from those anticipated in these
forward-looking statements as a result of various factors, including those set
forth under "Risk Factors" and elsewhere in this Quarterly Report on Form 10-Q.

Overview



We are a clinical-stage immuno-oncology company focused on helping patients
fight cancer by developing therapies that block the CD47 checkpoint pathway and
bridge the innate and adaptive immune system. Cancer cells leverage CD47, a cell
surface protein, as a "don't eat me" signal to evade detection by the immune
system. Our company is developing a next-generation checkpoint inhibitor
designed to have a high affinity for CD47 and to avoid the limitations caused by
hematologic toxicities inherent in other CD47 blocking approaches. We believe
our lead product candidate, ALX148, will have a wide therapeutic window to block
the "don't eat me" signal on cancer cells, and to leverage the immune activation
of broadly used anti-cancer agents through combination strategies. As of March
31, 2021, we had dosed over 170 subjects with ALX148 across a range of
hematologic and solid malignancies in combination with a number of leading
anti-cancer agents. We plan to initiate additional studies in combination with
leading anti-cancer agents. In hematologic malignancies, we have dosed the first
subjects for the treatment of myelodysplastic syndromes, or MDS, and intend to
advance ALX148 into clinical development for the treatment of acute myeloid
leukemia, or AML, in the second half of 2021. In solid tumors, we have initiated
the first of two randomized Phase 2 trials of ALX148 for the treatment of
first-line head and neck squamous cell carcinoma, or HNSCC, and dosed the first
subject in May 2021. We intend to initiate the second randomized Phase 2 trial
of ALX148 for the treatment of first-line HNSCC, second line
gastric/gastroesophageal junction, or GEJ, cancer and a Phase 1 trial in
collaboration with Zymeworks for the treatment of breast cancer in 2021. Based
on our clinical results to date in multiple oncology indications showing
encouraging anti-tumor activity and tolerability and our clinical development
plans, our strategy is to pursue ALX148 as a potentially critical component for
future combination treatments in oncology.

Our predecessor company, ALX Oncology Limited, an Irish private company limited
by shares, was initially incorporated in Ireland on March 13, 2015 under the
name Alexo Therapeutics Limited and changed its name to ALX Oncology Limited on
October 11, 2018. We were then incorporated in Delaware on April 1, 2020 under
the name ALX Oncology Holdings Inc. and completed an internal reorganization
effective as of the same date whereby ALX Oncology Limited became our
wholly-owned subsidiary and all of the stockholders, warrant holders and option
holders of ALX Oncology Limited became our stockholders, warrant holders and
option holders, holding the same number of corresponding shares, warrants and/or
options in us as they did in ALX Oncology Limited immediately prior to the
internal reorganization. The information included herein are presented as that
of ALX Oncology Holdings Inc., unless such information refers to a date prior to
April 1, 2020, in which case it will reflect that of our predecessor company.

Since our founding, we have devoted substantially all of our resources to
identifying and developing ALX148, advancing preclinical programs, scaling up
manufacturing, conducting clinical trials and providing general and
administrative support for these operations. We have no products approved for
marketing and we have never received any revenue from drug product sales.

In July 2020, we consummated our initial public offering, raising net proceeds
of $169.5 million, after deducting underwriting discounts and commissions of
$13.0 million and offering-related expenses of $3.2 million. In December 2020,
we consummated a follow-on public offering, raising net proceeds of $194.9
million, after deducting underwriting discounts and commissions of $12.5 million
and offering-related expenses of $0.7 million. From inception through March 31,
2021, we have raised an aggregate of $545.3 million to fund our operations, of
which $175.1 million were net proceeds from sales of our convertible preferred
stock, $5.8 million were net proceeds from borrowings under a term loan, $169.5
million were net proceeds from our initial public offering and $194.9 million
were net proceeds from our follow-on public offering.

We have incurred net losses in each year since inception. Our net losses were
$14.2 million and $5.5 million for the three months ended March 31, 2021 and
2020, respectively. As of March 31, 2021 and December 31, 2020, we had an
accumulated deficit of $132.7 million and $118.5 million, respectively.
Substantially all of our operating losses are a result of expenses incurred in
connection with our research and development programs, primarily ALX148, and
from general and administrative expenses associated with our operations.

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We expect to continue to incur significant expenses and increasing operating losses over at least the foreseeable future. We expect our expenses will increase substantially in connection with our ongoing activities, as we:

• advance ALX148 through multiple clinical trials in multiple indications;

• pursue regulatory approval of ALX148 in hematological malignancies and

solid tumors;

• continue our discovery and preclinical and clinical development efforts,

including our collaboration with Tallac Therapeutics;

• obtain and maintain patent, trade secret and other intellectual property

protection and regulatory exclusivity for our product candidates;




  • manufacture supplies for our preclinical studies and clinical trials; and


    •   continue to add operational, financial and management information systems

to support ongoing operations as a public company.

Components of Results of Operations

Related-Party Revenue



To date, we have not generated any revenue from product sales, licenses or
collaborations and do not expect to generate any revenue from the sale of
products in the foreseeable future. We recognized related-party revenue related
to research and development services to Tallac Therapeutics, which ceased as of
July 1, 2020. If our clinical development efforts for our product candidates are
successful and result in regulatory approval, we may generate revenue from
future product sales. If we enter into license or collaboration agreements for
any of our product candidates or intellectual property, we may generate revenue
in the future from payments as a result of such license or collaboration
agreements. We cannot predict if, when, or to what extent we will generate
revenue from the commercialization and sale of our product candidates including
ALX148. We may never succeed in obtaining regulatory approval for any of our
product candidates.

Operating Expenses

Research and Development Expenses

Research and development expenses consist primarily of costs incurred for the development of our lead product candidate, ALX148, which include:

• expenses incurred in connection with the preclinical and clinical

development, including expenses incurred under agreements with contract

research organizations, or CROs;

• employee-related expenses, including salaries, related benefits, travel

and stock-based compensation expense for employees engaged in research and

development functions;

• expenses related to production of clinical materials, including fees paid

to contract manufacturing organizations, or CMOs;

• laboratory and vendor expenses related to the execution of preclinical

studies and clinical trials; and

• facilities and other expenses, which include expenses for rent and

maintenance of facilities, depreciation and amortization expense and other

supplies.




We expense research and development costs as incurred. Nonrefundable advance
payments for goods or services to be received in future periods for use in
research and development activities are deferred and capitalized. The
capitalized amounts are then expensed as the related goods are delivered or as
services are performed. We record accruals for estimated costs of research,
preclinical studies and clinical trials and manufacturing development, which are
a significant component of research and development expenses. We determine the
estimated costs through discussions with internal personnel and external service
providers as to the progress or stage of completion of the services and the
agreed-upon fees to be paid for such services.

Our research and development expenses consist primarily of costs associated with
the development of our lead product candidate ALX148 and include external costs,
such as fees paid to consultants, central laboratories, contractors, CMOs and
CROs in connection with our preclinical and clinical development activities. We
allocate expenses, such as employee salaries, benefits, facilities, travel and
other miscellaneous expenses, based on an estimated percentage of time worked on
each program.

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Almost all of our research and development expenses to date related to the
clinical development of our lead product candidate, ALX148. We expect our
research and development expenses to increase substantially for the foreseeable
future as we continue to invest in research and development activities related
to developing our product candidates, as our product candidates advance into
later stages of development and as we begin to conduct larger clinical trials.
The process of conducting the necessary clinical trials to obtain regulatory
approval is costly and time-consuming, and the successful development of our
product candidates is highly uncertain. As a result, we are unable to determine
the duration and completion costs of our research and development projects or
when and to what extent we will generate revenue from the commercialization and
sale of any of our product candidates. In addition, we will incur expenses
related to the preclinical research services that we contract from Tallac
Therapeutics, as further described in Note 10 to our condensed consolidated
financial statements appearing elsewhere in this Quarterly Report on Form 10-Q.

The successful development of our current and future product candidates is highly uncertain. This is due to the numerous risks and uncertainties, including the following:

• successful completion of preclinical studies and clinical trials;

• delays in regulators or institutional review boards authorizing us or our


        investigators to commence our clinical trials or in our ability to
        negotiate agreements with clinical trial sites or CROs;


  • the number and location of clinical sites included in the trials;

• raising additional funds necessary to complete clinical development of our

product candidates;

• obtaining and maintaining patent, trade secret and other intellectual

property protection and regulatory exclusivity for our product candidates;

• contracting with third-party manufacturers for clinical supplies of our

product candidates;

• protecting and enforcing our rights in our intellectual property

portfolio, including, if necessary, litigation; and

• maintaining a continued acceptable safety profile of the products

following approval.




A change in the outcome of any of these variables with respect to the
development of our product candidates may significantly impact the costs and
timing associated with the development of our product candidates. We may never
succeed in obtaining regulatory approval for any of our product candidates.

Research and development activities are central to our business model. There are
numerous factors associated with the successful commercialization of any of our
product candidates, including future trial design and various regulatory
requirements, many of which cannot be determined with accuracy at this time
based on our stage of development. In addition, future regulatory factors beyond
our control may impact the success, cost or timing of our clinical development
programs.

General and Administrative Expenses



General and administrative expenses consist primarily of personnel-related
expenses, business development expenses, facilities expenses, depreciation and
amortization expenses and professional services expenses, including legal, human
resources, audit, accounting and tax-related services, and directors and
officers liability insurance premiums. Personnel and related costs consist of
salaries, benefits and stock-based compensation expense. Facilities costs
consist of rent and maintenance of facilities.

We anticipate that our general and administrative expenses will continue to
increase as a result of increased headcount, expanded infrastructure and higher
consulting, legal, tax and regulatory-related services associated with
maintaining compliance with stock exchange listing and SEC requirements, audit
and investor relations costs, director and officer insurance premiums and other
costs associated with being a public company.

Cost of Services for Related-Party Revenue



We previously incurred costs associated with related-party contract research
services including direct labor and associated employee benefits, laboratory
supplies and other expenses. These costs were recorded in cost of services for
related-party transactions as a component of total operating expenses in the
accompanying condensed consolidated statements of operations and comprehensive
loss.

Interest Expense

Historically, our interest expense consisted primarily of interest expense on the term loan and amortization of deferred debt issuance costs.


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Other Income, Net



Our other expense, net, consists of interest income on cash balances, changes in
the fair value of our convertible preferred stock warrant liability and compound
derivative liability, and foreign currency re-measurement and transaction gains
and losses. Prior to our initial public offering, the underlying shares of our
Series B convertible preferred stock warrants were contingently redeemable, and
we accounted for these warrants as a liability at fair value and re-measured the
fair value at each balance sheet date. As a result of the completion of our
initial public offering, the Series B convertible preferred stock warrant
liability was reclassified to stockholders' equity and re-measurement was no
longer required. The compound derivative liability was extinguished upon the
extinguishment of the host instrument in December 2020.

Results of Operations and Net Loss

The following table summarizes our results of operations for the three months ended March 31, 2021 and 2020 (dollars in thousands):





                                           Three Months Ended
                                                March 31,                  Change
                                            2021          2020          $           %
     Related-party revenue               $        -     $    655     $   (655 )     (100 ) %
     Operating expenses
     Research and development                 9,849        3,828        

6,021 157 %


     General and administrative               4,359        1,473        

2,886 196 %

Cost of services for related


       party revenue                              -          596         (596 )     (100 ) %
     Total operating expenses                14,208        5,897        8,311        141   %
     Loss from operations                   (14,208 )     (5,242 )     (8,966 )      171   %
     Interest expense                            (3 )       (215 )        212        (99 ) %
     Other income, net                           26            7           19        271   %
     Loss before income taxes               (14,185 )     (5,450 )     (8,735 )      160   %
     Income tax provision                         -           (4 )          4       (100 ) %

Net loss and comprehensive loss (14,185 ) (5,454 ) (8,731 ) 160 %

Cumulative dividends allocated to


       preferred stockholders                     -       (1,983 )      

1,983 (100 ) %

Net loss attributable to common


       stockholders                      $  (14,185 )   $ (7,437 )   $ (6,748 )       91   %





Comparisons of the Three Months Ended March 31, 2021 and 2020

Related-Party Revenue



Related-party revenue for the three months ended March 31, 2021 and 2020, was
zero and $0.7 million, respectively, which was generated solely from payments
received for reimbursement of research and development expenses pursuant to the
Tollnine Agreement, as further described in Note 10 to our condensed
consolidated financial statements appearing elsewhere in this Quarterly Report
on Form 10-Q. The decrease of $0.7 million was due to the termination of the
Tollnine Agreement on July 1, 2020.

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Research and Development Expenses

The following table summarizes our research and development expenses incurred for the three months ended March 31, 2021 and 2020 (dollars in thousands):





                                              Three Months Ended
                                                   March 31,                 Change
                                               2021          2020          $          %
   Clinical and development costs           $    7,920      $ 2,858     $ 

5,062 177 %


   Personnel and related costs                   1,289          847         

442 52 %


   Stock-based compensation expense                579           83         

496 598 %


   Other research and development costs             61           40         

21 53 %

Total research and development expense $ 9,849 $ 3,828 $ 6,021 157 %




Research and development expenses for the three months ended March 31, 2021 was
$9.8 million, compared to $3.8 million for the three months ended March 31,
2020. The increase of $6.0 million was primarily attributable to an increase of
$5.1 million in clinical and development costs due to higher expenses associated
with increased pre-clinical, clinical and other research costs in advancement of
our current lead product candidate, ALX148, as well as an increase of $0.5
million in stock-based compensation expense primarily resulting from additional
stock option award grants at higher fair values. In addition, we incurred
increased personnel-related costs of $0.4 million due to headcount growth.

General and Administrative Expenses

The following table summarizes our general and administrative expenses incurred for the three months ended March 31, 2021 and 2020 (dollars in thousands):





                                                Three Months Ended
                                                     March 31,                 Change
                                                 2021          2020          $          %
  Personnel and related costs                 $    1,187      $   479     $   708       148   %
  Stock-based compensation expense                 1,221           68       

1,153 N/M


  Other general and administrative costs           1,951          926       

1,025 111 %

Total general and administrative expenses $ 4,359 $ 1,473 $ 2,886 196 %



  N/M - not meaningful




General and administrative expenses for the three months ended March 31, 2021
was $4.4 million, compared to $1.5 million during the three months ended
March 31, 2020. This increase of $2.9 million was primarily attributable to an
increase in personnel-related costs of $0.7 million due to headcount growth, an
increase in stock-based compensation expense of $1.2 million primarily resulting
from additional stock option award grants at higher fair values and an increase
in other general and administrative costs of $1.0 million, which includes $0.5
million of directors and officers liability insurance premium, as well as higher
professional services fees of $0.3 million associated with increased accounting
and compliance activities.

Cost of Services for Related-Party Revenue



Cost of services for related-party revenue for the three months ended March 31,
2021 was zero, compared to $0.6 million during the three months ended March 31,
2020. This decrease of $0.6 million was due to the termination of the Tollnine
Agreement effective July 1, 2020.

Liquidity and Capital Resources; Plan of Operations

Sources of Liquidity



Since our inception, we have incurred significant operating losses and have not
generated any product revenue. We have not yet commercialized any of our product
candidates and we do not expect to generate revenue from sales of any product
candidates for several years, if at all, subject to marketing approval of any of
our product candidates. To date, we have funded our operations with

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proceeds from the sales of shares of our common stock and convertible preferred
stock and borrowings under our term loan. Through March 31, 2021, we have
received net proceeds from sales of our convertible preferred stock, borrowings
under our term loan, our initial public offering and our follow-on public
offering of $175.1 million, $5.8 million, $169.5 million and $194.9 million,
respectively. As of March 31, 2021, we had cash and cash equivalents of $429.9
million.

Debt Extinguishment

In December 2020, we used approximately $6.5 million of the net proceeds from
our follow-on public offering to repay the outstanding principal amount of $6.0
million and early extinguish the outstanding Term Loan with SVB and WestRiver.
As a result, we recognized a $0.6 million loss on early debt extinguishment,
representing the difference between the reacquisition price of debt and the net
carrying amount of the loan as of the date of the payoff.

Funding Requirements



We have incurred losses and negative cash flows from operations since inception
and anticipate that we will continue to incur net losses for the foreseeable
future. As of March 31, 2021, we had an accumulated deficit of $132.7 million.
We expect our expenses to increase substantially in connection with our ongoing
activities, particularly as we advance the preclinical activities and clinical
trials for our product candidates in development. In addition, we expect to
incur additional costs associated with operating as a public company. Management
recognizes the need to raise additional capital to fully implement its business
plan. The timing and amount of such future capital requirements are difficult to
forecast and will depend on many factors, including:

• the timing and progress of preclinical and clinical development activities;




  • successful enrollment in and completion of clinical trials;

• the timing and outcome of regulatory review of our product candidates;

• our ability to establish agreements with third-party manufacturers for


        clinical supply for our clinical trials and, if any of our product
        candidates are approved, commercial manufacturing;


  • addition and retention of key research and development personnel;

• our efforts to enhance operational, financial and information management

systems, and hire additional personnel, including personnel to support

development of our product candidates;

• the costs and timing of future commercialization activities, including

product manufacturing, marketing, sales and distribution, for any of our

product candidates for which we obtain marketing approval;

• the legal patent costs involved in prosecuting patent applications and

enforcing patent claims and other intellectual property claims;

• the terms and timing of any collaboration, license or other arrangement,

including the terms and timing of any milestone and royalty payments

thereunder; and

• the impact of the COVID-19 pandemic, which may exacerbate the magnitude of

the factors discussed above.




Until such time, if ever, as we can generate substantial product revenue, we
expect to finance our operations through a combination of equity offerings, debt
financings, collaborations, strategic alliances and marketing, distribution or
licensing arrangements. We do not currently have any committed external source
of funds. Our ability to raise additional capital may be adversely impacted by
potential worsening global economic conditions and the recent disruptions to and
volatility in the credit and financial markets in the United States and
worldwide resulting from the ongoing COVID-19 pandemic. To the extent that we
raise additional capital through the sale of equity or convertible debt
securities, your ownership interest will be diluted, and the terms of these
securities may include liquidation or other preferences that adversely affect
your rights as a common stockholder. Debt financing and preferred equity
financing, if available, may involve agreements that include covenants limiting
or restricting our ability to take specific actions, such as incurring
additional debt, making acquisitions or capital expenditures or declaring
dividends. If we raise additional funds through collaborations, strategic
alliances or marketing, distribution or licensing arrangements with third
parties, we may have to relinquish valuable rights to our technologies, future
revenue streams, research programs or drug candidates or grant licenses on terms
that may not be favorable to us. If we are unable to raise additional funds
through equity or debt financings or other arrangements when needed, we may be
required to delay, limit, reduce or terminate our research, product development
or future commercialization efforts or grant rights to develop and market drug
candidates that we would otherwise prefer to develop and market ourselves.

In July 2020, we completed our initial public offering pursuant to a registration statement on Form S-1. In the initial public offering, we issued and sold an aggregate of 9,775,000 shares of common stock, including the underwriters' exercise in full of their


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overallotment option, under the registration statement at a public offering price of $19.00 per share. Net proceeds were approximately $169.5 million, after deducting underwriting discounts and commissions of $13.0 million and offering-related expenses of $3.2 million.



In December 2020, we completed our follow-on public offering pursuant to a
registration statement on Form S-1. In the follow-on public offering, we issued
and sold an aggregate of 2,737,000 shares of common stock, including the
underwriters' exercise in full of their overallotment option, under the
registration statement at a public offering price of $76.00 per share. Net
proceeds were approximately $194.9 million, after deducting underwriting
discounts and commissions of $12.5 million and offering-related expenses of $0.7
million.

We believe our existing cash and cash equivalents will enable us to fund our
operating expenses and capital expenditure requirements through 2024. We have
based these estimates on assumptions in which actuals may materially differ, and
we could utilize our available capital resources sooner than we expect.

Cash Flows

The following table presents a summary of the net cash flow activity for the three months ended March 31, 2021 and 2020:





                                                             Three Months Ended
                                                                  March 31,
                                                             2021          2020
                                                               (in thousands)

Net cash provided by (used in):


    Operating activities                                   $  (5,135 )   $  (8,963 )
    Investing activities                                          (7 )         (10 )
    Financing activities                                         778       104,991

Net increase (decrease) in cash and cash equivalents $ (4,364 ) $ 96,018






Operating Activities

In the three months ended March 31, 2021, cash used in operating activities of
$5.1 million was attributable to a net loss of $14.2 million partially offset by
a change of $7.2 million in our net operating assets and liabilities and $1.9
million in non-cash charges. The change in operating assets and liabilities was
primarily due to a $7.3 million increase in accounts payable, $0.6 million
increase in accrued expenses and other current liabilities and $0.3 million
increase in other non-current liabilities, partially offset by a $0.6 million
increase in other assets and $0.5 million increase in prepaids and other current
assets. This was primarily due to the timing of cash payments for clinical
trial-related activities and changes in assets and liabilities due to the
adoption of ASC 842. The non-cash charges consisted primarily of stock-based
compensation of $1.8 million.

In the three months ended March 31, 2020, cash used in operating activities of
$9.0 million was attributable to a net loss of $5.5 million partially offset by
$0.5 million in non-cash charges and a change of $4.0 million in our net
operating assets and liabilities. The non-cash charges consisted of stock-based
compensation of $0.2 million, depreciation and amortization of $0.1 million,
amortization of term loan discount and issuance costs of $0.1 million and change
in fair value of Series B convertible preferred shares warrant liability and
term loan compound derivative of $0.1 million. The change in operating assets
and liabilities was primarily due to a $1.8 million decrease in accounts
payable, $0.6 million decrease in accrued expenses, $0.9 million increase in
prepaid expense and $0.7 million increase in receivables due from a
related-party. This was primarily due to timing of cash payments for CMC-related
activities.

Investing Activities

During the three months ended March 31, 2021 and 2020, cash used in investing activities was nominal.



Financing Activities

In the three months ended March 31, 2021, cash provided by financing activities
was $0.8 million and was attributable to proceeds from exercise of stock options
under equity incentive plans.

In the three months ended March 31, 2020, cash provided by financing activities
was $105.0 million from the sale and issuance of Series C convertible preferred
shares.

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Contractual Obligations and Commitments

We have contractual obligations from our operating lease, finance leases, manufacturing and service contracts, and other research and development activities. The following table aggregates our material expected contractual obligations and commitments as of March 31, 2021 (in thousands):





                                                               March 31, 2021
                                 Total        2021 (4)       2022 - 2023       2024 - 2025       Thereafter

Operating lease obligations    $     311     $      105     $         206     $           -     $           -
(1)
Finance lease obligations
(2)                                1,024            304               720                 -                 -
Manufacturing and service
contracts (3)                      9,258          5,016             4,182                60                 -
Total                          $  10,593     $    5,425     $       5,108     $          60     $           -



(1) Payments due for the office space in Burlingame, California under a single


        operating sub-lease agreement that expires in 2023. See Note 5 to our
        condensed consolidated financial statements appearing elsewhere in this
        Quarterly Report on Form 10-Q for details of related commitments.

(2) Payments due for embedded finance leases related to a pharmaceutical

support service contract, including payments for lease agreements that

have not yet commenced. See Note 5 to our condensed consolidated financial

statements appearing elsewhere in this Quarterly Report on Form 10-Q for

details of related commitments.

(3) In November 2015, we entered into a Master Service Agreement, or the MSA,

with KBI Biopharma, Inc. relating to formulation development, process

development and cGMP manufacturing of ALX148 for use in clinical trials on

a project basis. The MSA had an initial term of three years with

successive one-year renewal periods, is cancellable upon notice and is

non-exclusive. Statements of work under the MSA commit us to certain

future purchase obligations of approximately $7.5 million. In addition, we

have commitments with two other drug product manufacturers that commit us

to certain future purchase obligations of approximately $1.8 million.

These amounts are based on non-cancellable commitments and forecasts that


        include estimates of future market demand, quantity discounts and
        manufacturing efficiencies that may impact timing of purchases.


  (4) Remaining nine months.

We enter into contracts in the normal course of business with various third parties for clinical trials, preclinical research studies and testing, manufacturing and other services and products for operating purposes. These contracts generally provide for termination upon notice. Payments due upon cancellation consist only of payments for services provided or expenses incurred, including non-cancellable obligations of our service providers, up to the date of cancellation. These payments are not included in the table of contractual obligations above.

Off-Balance Sheet Arrangements

During the period presented, we did not have, nor do we currently have, any off-balance sheet arrangements, as defined in the rules and regulations of the SEC.

Critical Accounting Policies and Significant Judgments and Estimates



Our management's discussion and analysis of our financial condition and results
of operations are based on our condensed consolidated financial statements,
which have been prepared in accordance with U.S. generally accepted accounting
principles, or U.S. GAAP. The preparation of our condensed consolidated
financial statements and related disclosures requires us to make estimates and
judgments that affect the reported amounts of assets, liabilities, expenses and
the disclosure of our contingent liabilities in our condensed consolidated
financial statements. We base our estimates on historical experience, known
trends and events and various other factors that we believe are reasonable under
the circumstances, the results of which form the basis for making judgments
about the carrying values of assets and liabilities that are not readily
apparent from other sources. We evaluate our estimates and assumptions on an
ongoing basis. Our actual results may materially differ from these estimates
under different assumptions or conditions.

Our critical accounting policies are more fully described in the section titled
"Management's Discussion and Analysis of Financial Condition and Results of
Operations-Critical Accounting Policies and Significant Judgments and Estimates"
in the Company's Annual Report on Form 10-K for the year ended December 31,
2020. During the three months ended March 31, 2021, there were no material
changes to our critical accounting policies from those discussed in the
Company's Annual Report on Form 10-K for the year ended December 31, 2020.



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