INOVIO PHARMACEUTICALS, INC. This Quarterly Report contains forward-looking statements, as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially. Although we believe that the expectations reflected in the forward-looking statements are reasonable based on our current expectations and projections, we cannot guarantee future results, levels of activity, performance or achievements. Moreover, neither we, nor any other person, assume responsibility for the accuracy and completeness of the forward-looking statements. We are under no obligation to update any of the forward-looking statements after the filing of this Quarterly Report to conform such statements to actual results or to changes in our expectations. The following discussion of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and the related notes and other financial information appearing elsewhere in this Quarterly Report and our audited consolidated financial statements and related notes for the year endedDecember 31, 2019 included in our Annual Report on Form 10-K filed with theU.S. Securities and Exchange Commission , orSEC , onMarch 12, 2020 (our "2019 Annual Report"). Readers are also urged to carefully review and consider the various disclosures made by us that attempt to advise interested parties of the factors that affect our business, including without limitation the disclosures made in Item 1A of Part II of this Quarterly Report under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," and the disclosures made in our 2019 Annual Report under the caption "Risk Factors" and in our audited consolidated financial statements and related notes. Risk factors that could cause actual results to differ from those contained in the forward-looking statements include but are not limited to: our history of losses; our lack of products that have received regulatory approval; uncertainties inherent in clinical trials and product development programs, including but not limited to the fact that preclinical and clinical results may not be indicative of results achievable in other trials or for other indications, that the studies or trials may not be successful or achieve desired results, that preclinical studies and clinical trials may not commence, have sufficient enrollment or be completed in the time periods anticipated, that results from one study may not necessarily be reflected or supported by the results of other similar studies, that results from an animal study may not be indicative of results achievable in human studies, that clinical testing is expensive and can take many years to complete, that the outcome of any clinical trial is uncertain and failure can occur at any time during the clinical trial process, and that our electroporation technology and DNA vaccines, DNA immunotherapies and DNA encoded monoclonal antibody product candidates, or dMABS, may fail to show the desired safety and efficacy traits in clinical trials; the availability of funding; the ability to manufacture vaccine candidates, either on our own or with third parties; the availability or potential availability of alternative therapies or treatments for the conditions targeted by us or our collaborators, including alternatives that may be more efficacious or cost-effective than any therapy or treatment that we and our collaborators hope to develop; our ability to receive development, regulatory and commercialization event-based payments under our collaborative agreements; whether our proprietary rights are enforceable or defensible or infringe or allegedly infringe on rights of others or can withstand claims of invalidity; the impact of government healthcare proposals; and the impact of COVID-19 on us and our third-party contractors and suppliers.
General
We are a biotechnology company focused on rapidly bringing to market precisely designed DNA medicines to treat, cure, and protect people from diseases associated with human papillomavirus (HPV), cancer, and infectious diseases. Our DNA medicine pipeline is comprised of three types of product candidates, DNA vaccines, DNA immunotherapies and DNA encoded monoclonal antibodies (dMABs). In clinical trials, we have demonstrated that a DNA medicine can be delivered directly into cells in the body via our proprietary smart device to consistently activate robust and fully functional T cell and antibody responses against targeted cancers and pathogens. Our novel DNA medicine candidates are made using our proprietary SynCon® technology that creates optimized plasmids, which are circular strands of DNA that can produce antigens independently inside a cell to help the person's immune system recognize and destroy cancerous or virally infected cells. Our hand-held CELLECTRA® smart delivery devices provide optimized uptake of our DNA medicines within the cell, overcoming a key limitation of other DNA-based technology approaches.
34
--------------------------------------------------------------------------------
Human data to date have shown a favorable safety profile of our DNA medicines delivered directly into cells in the body using the CELLECTRA® smart device in more than 6,000 administrations across more than 2,000 patients. Our corporate strategy is to advance, protect, and provide our novel DNA medicines to meet urgent and emerging global health needs. We continue to advance and validate an array of DNA medicine candidates that target HPV-related diseases, cancer, and infectious diseases. We aim to advance these candidates through commercialization and continue to leverage third-party resources through collaborations and partnerships, including product license agreements. Our partners and collaborators includeApolloBio Corp. , AstraZeneca,Beijing Advaccine, TheBill & Melinda Gates Foundation (Gates),Coalition for Epidemic Preparedness Innovations (CEPI),Defense Advanced Research Projects Agency (DARPA), TheU.S. Department of Defense (DoD ), GeneOne Life Science, HIV Vaccines Trial Network, theU.S. Defense Threat Reduction Agency's Medical CBRN Defense Consortium (MCDC),International Vaccine Institute (IVI),National Cancer Institute ,National Institutes of Health ,National Institute of Allergy and Infectious Diseases ,Ology Bioservices , theParker Institute for Cancer Immunotherapy , Plumbline Life Sciences, Regeneron Pharmaceuticals, Thermo Fisher Scientific, Richter-Helm BioLogics, Thermo Fisher Scientific, theUniversity of Pennsylvania , theWalter Reed Army Institute of Research , andThe Wistar Institute . We or our collaborators are currently conducting or planning clinical studies of our DNA medicines for HPV-associated precancers, including cervical, vulvar, and anal dysplasia; HPV-associated cancers, including head & neck, cervical, anal, penile, vulvar, and vaginal; other HPV-associated disorders, such as recurrent respiratory papillomatosis, or RRP; glioblastoma multiforme, or GBM; prostate cancer; HIV; Ebola; Middle East Respiratory Syndrome, or MERS; Lassa fever; Zika virus; and the COVID-19 virus (coronavirus). All of our product candidates are in the research and development phase. We have not generated any revenues from the sale of any products, and we do not expect to generate any such revenues for at least the next several years. We earn revenue from license fees and milestone revenue and collaborative research and development agreements. Our product candidates will require significant additional research and development efforts, including extensive preclinical and clinical testing. All product candidates that we advance to clinical testing will require regulatory approval prior to commercial use, and will require significant costs for commercialization. We may not be successful in our research and development efforts, and we may never generate sufficient product revenue to be profitable. As ofSeptember 30, 2020 , we had an accumulated deficit of$881.9 million . We expect to continue to incur substantial operating losses in the future due to our commitment to our research and development programs, the funding of preclinical studies, clinical trials and regulatory activities and the costs of general and administrative activities. Impacts of COVID-19 on Our Business The COVID-19 pandemic has had a number of significant impacts on our business during 2020. Most notably, inthe United States ,South Korea andChina , we have accelerated the clinical development of INO-4800, our DNA vaccine candidate matched to the outbreak strain of SARS-CoV-2, the virus that causes COVID-19. In January, we received initial grant funding from CEPI to advance INO-4800 into preclinical studies and clinical development through Phase 1 human testing. We had previously been awarded grants from CEPI for the development of other DNA vaccines against Lassa fever and Middle East Respiratory Syndrome, MERS, which is also caused by a coronavirus like COVID-19. We commenced a Phase 1 clinical trial inthe United States in April, and in June we reported positive interim data from the first two cohorts of the trial. In addition, INO-4800 was selected to participate in a non-human primate (NHP) challenge study as part of theU.S. government's Operation Warp Speed, a national program aiming to provide substantial quantities of safe, effective COVID-19 vaccine for Americans byJanuary 2021 . We recently expanded our Phase 1 trial to add older participants in additional cohorts and intend to initiate a Phase 2/3 efficacy trial if and when the FDA allows us to proceed. InSeptember 2020 , the FDA notified us that the planned Phase 2/3 clinical trial remains on partial clinical hold pending resolution of certain items identified by the FDA. We responded to theFDA's questions inOctober 2020 , and the FDA has up to 30 days following our response to notify us of its decision as to whether the Phase 2/3 trial may proceed. In the meantime, we may continue our expanded Phase 1 clinical trial as previously authorized. We have also initiated clinical trials of INO-4800 inSouth Korea andChina . In April, CEPI awarded us a grant of$6.9 million to work withInternational Vaccine Institute and theKorea National Institute of Health to conduct a Phase 1/2 trial, which is the first COVID-19 vaccine clinical trial approved inSouth Korea . InChina , we are collaborating withBeijing Advaccine Biotechnology Co. to conduct a Phase 1 trial, the initiation of which was approved by regulatory authorities in July. In parallel with our accelerated clinical development efforts, we have engaged a network of partners for the planned large-scale manufacturing of INO-4800 if it achieves regulatory approval. In March, theU.S. Department of Defense , orDoD , awardedOlogy Bioservices Inc. a contract to manufacture INO-4800 for theDoD to be used in upcoming clinical trials. In April, we entered into an agreement with the German contract manufacturerRichter-Helm BioLogics GmbH & Co. KG and 35
--------------------------------------------------------------------------------
expanded our preexisting manufacturing partnership to support large-scale manufacturing of INO-4800. In March, we also received a grant from theBill and Melinda Gates Foundation for accelerated testing and scale up of our CELLECTRA® 3PSP proprietary smart device for the intradermal delivery of INO-4800. In June, theDoD awarded us$71 million to support the large-scale manufacture of CELLECTRA® 3PSP and the procurement of CELLECTRA® 2000 devices that are used to deliver INO-4800 intradermally. With this growing coalition of partners and funders, and with our existing capacity and current and planned contract resources, our goal is to produce up to one million doses of INO-4800 by the end of 2020 and additional doses in 2021. Operationally, we have not experienced significant disruptions to date as a result of the COVID-19 pandemic. In response to the outbreak, a number of governmental orders and other public health guidance measures were implemented across much ofthe United States , including in the locations of our offices, laboratories, clinical trial sites and third parties on whom we rely. We have implemented a work from home policy allowing employees who can work from home to do so, while those needing to work in laboratory facilities work in shifts to reduce the number of people gathered together at one time. Business travel has been suspended, and online and teleconference technology is used to meet virtually rather than in person. We have taken measures to secure our research and development project activities, while work in laboratories has been organized to reduce risk of COVID-19 transmission. To date, our liquidity has also not been negatively impacted by the pandemic. During the nine months endedSeptember 30, 2020 , we have raised$330.0 million in net proceeds from the sale of shares of our common stock, which has further enhanced our liquidity and capital resources. As ofSeptember 30, 2020 , our cash and cash equivalents and short-term investments were$337.2 million , compared to$89.5 million as ofDecember 31, 2019 . We are closely monitoring the impact of the COVID-19 pandemic on our employees, collaborators and service providers. The extent to which the pandemic will impact our business and operations will depend on future developments, including the duration of the outbreak, travel restrictions and social distancing inthe United States and other countries, and the effectiveness of actions taken inthe United States and other countries to contain and treat the disease, that are highly uncertain. For additional information on the potential effects of the COVID-19 pandemic on our business, financial condition and results of operations, see the "Risk Factors" section below in Part II, Item 1A of this Form 10-Q.
Critical Accounting Policies
There have been no significant changes to our critical accounting policies since
Adoption of Recent Accounting Pronouncements Information regarding recent accounting pronouncements is contained in Note 4 to the Condensed Consolidated Financial Statements, included in this Quarterly Report.
Results of Operations Revenue. Total revenue was$236,000 and$1.8 million , respectively, for the three and nine months endedSeptember 30, 2020 , as compared to$867,000 and$3.8 million , respectively, for the three and nine months endedSeptember 30, 2019 . Revenue primarily consisted of revenues under collaborative research and development arrangements, including arrangements with affiliated entities, for the three and nine months endedSeptember 30, 2020 and 2019. The decrease in revenue for the nine-month period year over year was primarily due to less revenue recognized from our collaboration with AstraZeneca, offset by milestone revenue earned from our affiliated entity PLS. Research and development expenses. Research and development expenses for the three and nine months endedSeptember 30, 2020 were$26.5 million and$67.9 million , respectively, as compared to$19.1 million and$66.0 million , respectively, for the three and nine months endedSeptember 30, 2019 . The increase for the three-month period year over year was primarily due to higher drug manufacturing expenses related to our INO-4800, VGX-3100 and other clinical trials of$4.3 million , an increase in engineering services related to our CELLECTRA® 3PSP device array automation project of$3.9 million , higher employee and contractor compensation expense of$3.5 million , an increase in consulting services related to COVID-19 of$2.1 million , higher device inventory expense of$1.6 million , and higher employee stock-based compensation expense of$1.1 million . These increases were offset by an increase in contra-research and development expense recorded from grant 36
--------------------------------------------------------------------------------
Table of Contents agreements of$10.1 million , among other variances. The increase for the nine-month period year over year was primarily due to higher drug manufacturing expenses and outside services related to our INO-4800 clinical trials of$9.3 million , an increase in engineering services related to our CELLECTRA® 3PSP device array automation project of$4.2 million , higher device inventory expense of$3.0 million and higher drug manufacturing expenses related to our VGX-3100 clinical trials of$2.3 million . These increases were offset by an increase in contra-research and development expense recorded from grant agreements of$17.7 million , among other variances. Contributions received from current grant agreements and recorded as contra-research and development expense were$12.9 million and$26.9 million , respectively, for the three and nine months endedSeptember 30, 2020 as compared to$2.8 million and$9.2 million , respectively, for the three and nine months endedSeptember 30, 2019 . The increase for the three-month period year over year was primarily due to increases of$7.7 million ,$1.3 million and$943,000 earned under grants from theDoD , CEPI and Gates, respectively, for our INO-4800 and device development activities, among other variances. The increase for the nine-month period year over year was primarily due to increases of$9.5 million ,$7.7 million and$1.9 million earned under grants from CEPI,DoD and Gates, respectively, related to our INO-4800 and device development activities, partially offset by a decrease of$1.7 million earned from the Gates grant related to our dMAb technology, among other variances. General and administrative expenses. General and administrative expenses, which include business development expenses, the amortization of intangible assets and patent expenses, were$10.1 million and$28.6 million , respectively, for the three and nine months endedSeptember 30, 2020 , as compared to$5.7 million and$18.5 million , respectively, for the three and nine months endedSeptember 30, 2019 . The increase for the three-month period year over year was primarily related to an increase in legal expenses of$2.3 million related to the legal proceedings described elsewhere in this report, higher employee and consultant stock-based compensation expense of$951,000 , and higher employee compensation of$698,000 , among other variances. The increase for the nine-month period year over year was primarily related to an increase in legal expenses of$3.8 million , an increase in expenses for work performed related to corporate marketing and communications of$3.0 million , higher employee and consultant stock-based compensation expense of$2.2 million , and higher employee compensation of$1.1 million , among other variances. Stock-based compensation. Stock-based compensation expense is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite vesting period. Total employee and director stock-based compensation expense for the three and nine months endedSeptember 30, 2020 was$3.9 million and$11.0 million , respectively. Of these amounts,$2.1 million and$6.2 million , respectively, was included in research and development expenses, and$1.8 million and$4.8 million , respectively, was included in general and administrative expenses. Total employee and director stock-based compensation expense for the three and nine months endedSeptember 30, 2019 was$1.8 million and$8.1 million , respectively. Of these amounts,$922,000 and$5.1 million , respectively, was included in research and development expenses, and$885,000 and$3.0 million , respectively, was included in general and administrative expenses. The year over year increase was primarily related to a higher weighted average grant date fair value for the awards granted in 2020, offset in part by the reversal of previously recorded stock option expense due to the reduction in force in the third quarter of 2019 and an option modification expense recorded in the second quarter of 2019. Interest income. Interest income for the three and nine months endedSeptember 30, 2020 was$897,000 and$2.4 million , respectively, as compared to$637,000 and$2.0 million , respectively, for the three and nine months endedSeptember 30, 2019 . The increase was related to higher interest earned on our higher balance of short-term investment holdings. Interest expense. Interest expense for the three and nine months endedSeptember 30, 2020 was$2.0 million and$7.6 million , respectively, as compared to$2.4 million and$5.3 million , respectively, for the three and nine months endedSeptember 30, 2019 . The decrease for the three-month period year over year was due to less interest expense recorded for our convertible senior notes, or the Notes, due to the partial conversion of the Notes into shares of our common stock inJuly 2020 , as well as less interest expense recorded on ourAugust 2019 Bonds due to their full conversion into shares of our common stock inAugust 2020 . The increase for the nine-month period year over year was due to higher interest expense recorded on the Notes, which were issued during the first quarter of 2019, as well as interest expense from ourAugust 2019 Bonds andDecember 2019 Bonds, which were issued during the third and fourth quarters of 2019, respectively. Change in fair value of derivative liability. The change in fair value of derivative liability for the three and nine months endedSeptember 30, 2020 was a decrease of$35.3 million and an increase of$75.7 million , respectively. The change in fair value of derivative liability for both the three and nine months endedSeptember 30, 2019 was a decrease of$2.6 million . We determined that ourAugust 2019 Bonds included an embedded conversion feature that was considered to be a derivative liability requiring bifurcation from the debt instrument and separate recognition in our financial statements. The conversion feature was revalued at the end of each reporting period and immediately prior to the conversion of theAugust 2019 Bonds inAugust 2020 , with the resulting changes in fair value reflected in the condensed consolidated statements of operations. The derivative liability was derecognized upon the conversion in full of theAugust 2019 Bonds. 37
--------------------------------------------------------------------------------
Table of Contents Gain (loss) on investment in affiliated entities. The gain (loss) results from the change in the fair market value of the investments in GeneOne and PLS for a gain of$27.0 million and$36.3 million , respectively, for the three and nine months endedSeptember 30, 2020 as compared to a loss of$486,000 and$1.4 million , respectively, for the three and nine months endedSeptember 30, 2019 . During the three months endedSeptember 30, 2020 , we sold our full equity interest in GeneOne. We record our investment in PLS at its market value based on the closing price of the shares on theKorea New Exchange Market at each balance sheet date, with changes in fair value reflected in the condensed consolidated statements of operations. Net unrealized gain on available-for-sale equity securities. The net unrealized gain on available-for-sale equity securities for the three and nine months endedSeptember 30, 2020 of$1.3 million and$625,000 , respectively, results from a change in the fair market value of the investments as ofSeptember 30, 2020 . Gain on deconsolidation of Geneos. The gain recorded represents the excess of the fair value of our retained noncontrolling investment in Geneos and the carrying amount of the non-controlling interest over the carrying amount of Geneos' assets and liabilities as ofJune 1, 2020 , the date of deconsolidation. Loss on extinguishment of convertible bonds. Upon the full conversion of ourAugust 2019 Bonds, a loss of$8.2 million was recorded for the difference between the fair value of the derivative liability immediately prior to its derecognition plus the carrying amount of the debt component, and the fair value of our common stock issued upon conversion. Gain on extinguishment of convertible senior notes. As a result of the partial conversions of the Notes inJuly 2020 , we recorded a$3.1 million gain on extinguishment calculated as the difference between the estimated fair value of the debt and the carrying value of the Notes as of the conversion dates. Share in net loss of Geneos. The share in net loss of Geneos represents our share of Geneos' losses during the period after deconsolidation. Income tax benefit/(Provision for income taxes). The income tax benefit of$0 and$170,000 recorded for the three and nine months endedSeptember 30, 2019 , respectively, reflected our application of the intraperiod tax allocation rules under which we are required to record a tax benefit in continuing operations to offset the tax provision we recorded directly to other comprehensive income (loss) related to unrealized gains on our short-term investments. There was no income tax benefit or provision recorded for the three and nine months endedSeptember 30, 2020 .
Liquidity and Capital Resources Historically, our primary uses of cash have been to finance research and development activities including clinical trial activities in the oncology, DNA vaccines and other immunotherapy areas of our business. Since inception, we have satisfied our cash requirements principally from proceeds from the sale of equity securities, indebtedness and grants and government contracts.
Working Capital and Liquidity
As of
Cash Flows
Net cash used in operating activities was
38
--------------------------------------------------------------------------------
Net cash used in operating activities for the nine months endedSeptember 30, 2019 consisted of net loss of$82.4 million , less use of net cash in operating assets and liabilities of$15.2 million , partially offset by net non-cash adjustments of$13.5 million . The primary non-cash expenses added back to net loss included stock-based compensation of$8.9 million , interest expense of$2.6 million and depreciation and amortization of$3.5 million . Net cash used in investing activities was$55.1 million and$19.5 million for the nine months endedSeptember 30, 2020 and 2019, respectively. The variance was primarily the result of timing differences in short-term investment purchases, sales and maturities, offset by the proceeds from the sale of our investment in GeneOne of$40.1 million . Net cash provided by financing activities was$338.3 million and$95.8 million for the nine months endedSeptember 30, 2020 and 2019, respectively. The variance was primarily due to the significantly higher net proceeds from the sale of common stock under the ATM sales agreement as well as proceeds from stock option exercises in 2020, offset by the net proceeds received from the issuance of Notes andAugust 2019 Bonds. Issuances of Notes and Bonds InDecember 2019 , we completed a private placement of our 1.0% convertible bonds dueDecember 2024 , or theDecember 2019 Bonds, to an institutional investor inKorea for an aggregate principal amount of4.7 billion Korean Won (KRW) (approximately USD$4.1 million based on the exchange rate on the date of issuance). Net proceeds from the offering were$4.0 million , after deducting the offering expenses payable by us. See Note 9 to the condensed consolidated financial statements included in this report for further discussion. InAugust 2019 , we completed a private placement of aggregate principal amount of18 billion KRW (approximately USD$15.0 million based on the exchange rate on the date of issuance) ofAugust 2019 Bonds issued to institutional investors led byKorea Investment Partners . Net proceeds from the offering were$14.5 million , after deducting the offering expenses payable by us. See Note 9 to the condensed consolidated financial statements included in this report for further discussion. InAugust 2020 , theAugust 2019 Bonds were fully converted into 4,962,364 shares of our common stock. In the first quarter of 2019, we completed a private placement of$78.5 million aggregate principal amount of Notes, sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. Net proceeds from the offering were$75.7 million , after deducting the initial purchasers' discount and offering expenses payable by us. See Note 9 to the condensed consolidated financial statements included in this report for further discussion. InJuly 2020 , certain holders of the Notes converted principal amount of$19.1 million into an aggregate of 3,546,074 shares of our common stock. InOctober 2020 , certain holders of the Notes converted additional principal amount of$10.0 million into an aggregate of 1,858,044 shares of common stock. Issuances of Common Stock InMay 2018 , we entered into an At-the-Market Equity Offering Sales Agreement, or the Sales Agreement, with an outside placement agent, or the Placement Agent, to sell shares of our common stock with aggregate gross proceeds of up to$100.0 million , from time to time, through an "at-the-market" equity offering program under which the Placement Agent would act as sales agent. During the year endedDecember 31, 2019 , we sold 3,340,678 shares of common stock under the Sales Agreement for aggregate net proceeds of$9.1 million . In the first quarter of 2020, we entered into amendments to the Sales Agreement to increase the amount of our common stock that could be sold through the Placement Agent under the Sales Agreement to an aggregate offering price of up to$250.0 million . During the three months endedMarch 31, 2020 , we sold 43,148,952 shares of common stock under the Sales Agreement for aggregate net proceeds of$208.2 million . Following these sales, there was no remaining capacity under this Sales Agreement. OnApril 3, 2020 , we entered into a new sales agreement, or the New Sales Agreement, with the same Placement Agent to sell shares of our common stock. On that same day, we filed a prospectus supplement pursuant to the New Sales Agreement for the offer and sale of our common stock for aggregate gross proceeds of up to$150.0 million . OnMay 12, 2020 we filed an additional prospectus supplement pursuant to the New Sales Agreement for the offer and sale of our common stock for an additional$100.0 million of gross proceeds, bringing the maximum gross proceeds of sales under the New Sales Agreement to$250.0 million . ThroughSeptember 30, 2020 , we have sold 12,041,178 shares of common stock under the New Sales Agreement for aggregate net proceeds of$121.7 million . During the nine months endedSeptember 30, 2020 , stock options to purchase 1,723,626 shares of common stock were exercised for aggregate net proceeds to us of$9.9 million . During the nine months endedSeptember 30, 2019 , stock options to purchase 33,594 shares of common stock were exercised for aggregate net proceeds of$92,000 . As ofSeptember 30, 2020 , we had an accumulated deficit of$881.9 million . We expect to continue to operate at a loss for some time. The amount of the accumulated deficit will continue to increase, as it will be expensive to continue research and development efforts. If these activities are successful and if we receive approval from the FDA to market any of our DNA 39
--------------------------------------------------------------------------------
vaccines, DNA immunotherapies or dMAB product candidates, then we will need to
raise additional funding to market and sell the approved vaccine products and
equipment. We cannot predict the outcome of the above matters at this time. We
are evaluating potential collaborations as an additional way to fund operations.
We believe that our current cash and short-term investments are sufficient to
meet our planned working capital requirements for at least the next twelve
months from the date this Quarterly Report is filed.
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 in the rules and regulations of the
© Edgar Online, source
