The following discussion and analysis should be read in conjunction with the
unaudited condensed consolidated financial statements and notes thereto included
in Part I, Item 1 of this quarterly report on Form 10­Q for the quarter ended
March 31, 2022 (this "Quarterly Report"). This Quarterly Report contains
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of 1995, such
statements are subject to the "safe harbor" created by those sections and
involve risks and uncertainties. Forward-looking statements are based on our
management's beliefs and assumptions and on information available to our
management as of the date hereof. As a result of many factors, such as those set
forth under "Item 1A. Risk Factors" included in our 2021 Annual Report and Part
II, "Item 1A. Risk Factors" in this Quarterly Report, our actual results may
differ materially from those anticipated in these forward-looking statements,
accordingly, you should not place undue reliance on these forward-looking
statements. Except as required by law, we assume no obligation to update these
forward-looking statements publicly, or to update the reasons actual results
could differ materially from those anticipated in these forward-looking
statements, even if new information becomes available in the future. Such
factors may be amplified by the COVID-19 pandemic and its potential impact on
our business and the global economy.

Overview

Lumos Pharma, Inc. is a clinical-stage biopharmaceutical company. References in
this Quarterly Report to "us," "we," "our," the "Company," or "Lumos" are to
Lumos Pharma, Inc. and its wholly-owned subsidiaries. With our principal
executive offices located in Austin, Texas and additional executive and
administrative offices located in Ames, Iowa, we are engaged in advancing our
clinical program and focused on identifying, acquiring, developing, and
commercializing novel products and new therapies for people with rare diseases
on a global level, for which there is currently a significant unmet need for
safe and effective therapies. Our common stock is listed on the Nasdaq Select
Market ("Nasdaq") and trades under the ticker symbol "LUMO."

We have focused our efforts on the development of our sole product candidate,
growth hormone secretagogue ibutamoren ("LUM-201"), a potential oral therapy for
pediatric growth hormone deficiency ("PGHD") and other rare endocrine disorders.

PGHD is a rare endocrine disorder occurring in approximately one in 3,500
persons aged birth to 17 years. Causes of PGHD can be congenital (children are
born with the condition), acquired (brain tumor, head injuries or other causes),
iatrogenic (induced by medical treatment) or idiopathic (of unknown cause).
Children with untreated PGHD will have significant growth failure, potential
adult heights significantly less than five feet, and may have abnormal body
composition with decreased bone mineralization, decreased lean body mass, and
increased fat mass.

The main therapeutic goal in PGHD is to restore growth, enabling short children
to achieve normal height and prevent complications that could involve metabolic
abnormalities, cognitive deficits and reduced quality of life. The current
standard of care for PGHD is limited to daily subcutaneous injections of rhGH
with a treatment cycle lasting up to an average of seven years. Poor compliance
with daily rhGH injections during treatment can result in an adverse impact on
growth. The FDA recently approved a new treatment, Skytrofa, a once-weekly
injection that would reduce the number of injections over the course of
treatment for a patient, however, we believe that many providers and patients
will have a preference for an orally administered treatment, when available.

On March 18, 2020, we closed the business combination (the "Merger") among the
Company, formerly known as NewLink Genetics Corporation ("NewLink"), Cyclone
Merger Sub, Inc. ("Merger Sub"), a wholly owned subsidiary of NewLink, and Lumos
Pharma, Inc., ("Private Lumos") which has since been renamed "Lumos Pharma Sub,
Inc." whereby Merger Sub merged with and into Private Lumos, with Private Lumos
surviving as a wholly-owned subsidiary of the Company. Immediately prior to the
closing of the Merger, the shares of NewLink common stock were adjusted with a
reverse split ratio of 1­for­9. Under the terms of the Merger, Private Lumos
stockholders received an aggregate of 4,146,398 shares of NewLink common stock
(after giving effect to the reverse split). Immediately following the reverse
stock split and the completion of the Merger, there were 8,292,803 shares of our
common stock outstanding, of which approximately 50% was held by each of Private
Lumos and NewLink security holders. The Merger was accounted for as a reverse
asset acquisition.

LUM-201 Growth Hormone Secretagogue



Our pipeline is focused on the development of an orally administered small
molecule, LUM-201, which is a growth hormone ("GH") secretagogue, also called
ibutamoren, for rare endocrine disorders where injectable recombinant human
growth hormone ("rhGH") is currently approved. LUM-201 is a tablet formulation
that will be administered once daily.


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Lumos acquired LUM-201 from Ammonett Pharma LLC ("Ammonett") in July 2018.
LUM-201 received an Orphan Drug Designation ("ODD") in the United States and the
European Union for Growth Hormone Deficiency ("GHD") in 2017. The United States
patent "Detecting and Treating Growth Hormone Deficiency" has been issued with
an expiration in 2036. Related patents have been issued in the European Union
(where validations are ongoing), Australia, Israel, Japan, South Korea, and
Ukraine with related patent applications pending in multiple other
jurisdictions. If approved, LUM-201 has the potential to become the first
approved oral GH secretagogue to treat rare endocrine disorders associated with
GH deficiencies, starting with PGHD, providing an alternative to the current
standard regimen of recombinant growth hormone product injections. A
secretagogue is a substance that stimulates the secretion or release of another
substance. LUM-201 stimulates the release of GH and is referred to as a GH
secretagogue.

LUM-201 stimulates GH via the GH secretagogue receptor (GHSR1a), also known as
the ghrelin receptor, thus providing a differentiated mechanism of action to
treat some rare endocrine disorders (involving a deficiency of GH) by increasing
the amplitude of endogenous, pulsatile GH secretion. LUM-201's stimulatory
effect is regulated by both circulating levels of GH and its down-stream
mediator insulin-like growth factor which at supraphysiological levels feedback
or negatively regulate additional release of GH from the pituitary, hence
protecting against hyperstimulation of GH release. LUM-201 has been observed to
stimulate endogenous GH secretion in patients who have a functional but reduced
hypothalamic pituitary GH axis. We believe that a subset of patients with PGHD
who have a functional but reduced hypothalamic pituitary GH axis are expected to
respond to LUM-201 and represent approximately 60% of PGHD patients.

During the fourth quarter of 2020, we launched our OraGrowtH210 Trial (as
defined below) program to study the effects of LUM-201 in PGHD and initiated our
Phase 2 clinical trial ("OraGrowtH210 Trial" or the "Phase 2 Trial") with the
opening of the initial sites participating in this study. The PGHD patient
population consists of patients diagnosed with organic PGHD (a more severe GH
deficiency) and idiopathic PGHD (a less severe or moderate GH deficiency). The
OraGrowtH210 Trial is a global multi-site randomized study evaluating orally
administered LUM-201 at three dose levels (0.8, 1.6 and 3.2 mg/kg/day) against a
standard dose of daily injectable rhGH in approximately 80 subjects diagnosed
with idiopathic PGHD.

The primary endpoint of the study is preliminary validation of our predictive
enrichment marker ("PEM") patient selection strategy as evidenced by the
percentage of selected patients who grow in response to LUM-201. The primary
efficacy endpoint is annualized height velocity. Secondary endpoints include
selection of a pediatric dose of LUM-201 for future studies including Phase 3
and determination of the degree of repeatability of the PEM selection process in
PEM positive patients screened for participation in OraGrowtH210.

The OraGrowtH210 Trial currently has sites enrolling in the United States,
Australia, New Zealand, Poland, and Israel. We had initiated or had planned to
initiate sites in Russia and Ukraine; however, due to the ongoing conflict
between Ukraine and Russia and the resulting uncertainty in the region, we are
unable to enroll patients in Ukraine and all of our clinical sites in Russia are
suspended until further notice. No patients had been randomized to treatment in
the clinical trial at any of our nine sites in Ukraine and Russia. Given the
encouraging screening and enrollment trajectory at our other clinical sites, we
continue to anticipate the 6-month primary outcome data on all 80 subjects in
the second half of 2023. The ongoing Ukraine-Russia conflict may, however,
adversely impact our business in the future, and it remains too early to
evaluate all the potential effects of this crisis.

A second concurrent trial of LUM-201 in PGHD exploring the effects of the novel
mechanism of action of LUM-201 in amplifying the pulsatile secretion of growth
hormone (the "OraGrowtH212 Trial") was initiated in the second quarter of 2021.
The OraGrowtH212 Trial in PGHD will run in parallel with the OraGrowtH210 Trial.
The OraGrowtH212 Trial is a single site, open-label trial evaluating the
pharmacokinetic and pharmacodynamic ("PK/PD") effects of LUM-201 in up to 24
PGHD subjects at two different dose levels, 1.6 and 3.2 mg/kg/day. The objective
of OraGrowtH212 is to confirm prior clinical data illustrating the increased
pulsatile release of endogenous growth hormone unique to LUM-201 and its
potential for this mechanism of action to contribute to efficacy in PGHD. Our
OraGrowtH212 Trial is being conducted at a single specialized pediatric center
with the capacity to conduct the more frequent sample acquisition and monitoring
required for this type of clinical trial. Data from the OraGrowtH212 Trial may
be supportive in future regulatory filings; however, this trial is not required
for regulatory approval of LUM-201. The primary endpoint for this trial is six
months of PK/PD and height velocity data in up to 24 subjects. Subjects will be
dosed for a total of 12 months, with a plan to extend the duration of the trial
to 23 months total.

In response to the FDA's request in a letter dated July 16, 2021, we announced
in July 2021 that the FDA had restricted treatment with LUM-201 to no more than
12 months. At this time, we extended the treatment period from six months to 12
months to gather additional efficacy data for LUM-201 in PGHD prior to starting
our originally planned long-term extension trial (the "OraGrowtH211 trial"). As
announced on May 10, 2022, after review of preliminary safety and efficacy data
from both the OraGrowtH210 and OraGrowtH212 Trials, the FDA has removed the
partial hold and will now permit treatment with


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LUM-201 beyond 12 months. As a result, the OraGrowtH210 Trial will be extended to 24 months to allow subjects to continue LUM-201 therapy uninterrupted. Additionally, we plan to extend the OraGrowtH212 Trial for up to 24 months.



The extension of the treatment period will not impact the primary outcome data
read out for OraGrowtH210, which will be based on the annualized data from the
first six months of treatment. We continue to review the timing of the start
of the long-term extension study in context of the OraGrowtH210 Trial extension
and gather the requested efficacy data to be reviewed by the FDA prior to
initiation. We do not anticipate these protocol changes, on a stand-alone
basis, will extend the time to the initiation of our Phase 3 clinical trial.

During the first quarter of 2022, we initiated our OraGrowtH213 Trial (the
"OraGrowtH213 Trial," and together with the OraGrowtH210 Trial, the OraGrowtH211
Trial (defined below), and the OraGrowtH212 Trial, the "OraGrowtH Trials"), an
open-label, multi-center, Phase 2 study evaluating the growth effects and safety
of LUM-201 following 12 months of daily rhGH in up to 20 idiopathic PGHD
subjects who have completed the OraGrowtH210 Trial. Subjects will be
administered LUM-201 at a dose level of 3.2 mg/kg/day for up to 12 months.

In April 2022, we announced achievement of the 50% randomization milestone for
our OraGrowtH210 Trial. Interim data from both the OraGrowtH210 and OraGrowtH212
Trials are anticipated by the end of 2022. Data from the interim analysis for
OraGrowtH210 will evaluate the safety and annualized height velocity at three
dose levels of LUM-201 against a standard dose of rhGH in a total of 40 subjects
at six months on therapy. We believe this data set may be adequate to provide an
initial indication of LUM-201's impact on height velocity compared to growth
hormone on the PEM positive population selected for in the trial. Our
OraGrowtH212 interim analysis will evaluate safety and height velocity data in
10 or more subjects at six months on therapy at either 1.6 or 3.2 mg/kg/day.

The graphic below depicts the clinical development plan for LUM-201.


                    [[Image Removed: nlnk-20220331_g2.jpg]]

Potential expansion of LUM-201 into additional indications



We recently announced a clinical collaboration with Massachusetts General
Hospital ("MGH") to evaluate oral LUM-201 in nonalcoholic fatty liver disease
("NAFLD") in an investigator-initiated trial. This investigator-initiated trial
will evaluate a dose of 25 mg/day of LUM-201 in 10 men and women with NAFLD. GH
is a critical stimulator of lipolysis, and preclinical data suggest that
amplifying GH secretion has the potential to reduce hepatic steatosis and
prevent NAFLD progression. Enhancing the natural pulsatile release of GH has
been shown clinically in short-term studies to be more efficacious in inducing
lipolysis than continuous infusions of GH. The primary endpoints will be to
determine the changes in intrahepatic lipid content, hepatic inflammation and
fibrosis with GH augmentation as measured by H-MRS and Perspectum's
LiverMultiScan®. Biopsies will be conducted on a subset of subjects to obtain
additional information at the genetic and cellular level in this indication.

We approved an unsolicited grant application for this study and will supply LUM-201 for this pilot trial. Lumos has a pending application for a method-of-use patent for LUM-201 in NAFLD and retains intellectual property rights for LUM-201 in this indication.

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We continue to explore our development path to expand into additional
indications for LUM-201. We are actively reviewing the mechanism of action of
LUM-201 in a subset of affected patients in other potential indications,
including Prader Willi Syndrome, Idiopathic Short Stature, Children Born Small
for Gestational Age, and Turners Syndrome, and are working towards developing
the clinical plans for additional targeted indications. Timing for the
initiation of these plans will be dependent on the outcome of data developed and
identification of the most efficacious dose in the OraGrowtH210 Trial and the
timing of such data.

Ebola Vaccine

In November 2014, NewLink entered into the NewLink Merck Agreement with Merck to
develop and potentially commercialize its Ebola vaccine rVSV?G-ZEBOV that it
licensed from PHAC. rVSV?G-ZEBOV was also eligible to receive a PRV if approval
was granted by the FDA, with the Company entitled to 60% of the PRV value
obtained through sale, transfer or other disposition of the PRV. On December 20,
2019, Merck announced that the FDA approved its application for ERVEBO® (Ebola
Zaire Vaccine, Live) for the prevention of disease caused by Zaire Ebola virus
in individuals 18 years of age and older. Pursuant to the asset purchase
agreement, Merck agreed, among other things, to pay us for the PRV in two
installments. As required by the agreement, Merck paid us $34.0 million at the
closing during the three months ended September 30, 2020 and $26.0 million on
January 11, 2021.

We have received and have the potential to continue to earn royalties on sales
of the vaccine in certain countries. However, we believe that the market for the
vaccine will be limited primarily to areas in the developing world that are
excluded from royalty payment or where the vaccine is donated or sold at low or
no margin and, therefore, we do not expect to receive material royalty payments
from Merck in the foreseeable future.

Oncology Candidates



We have small-molecule product candidates, which we acquired from NewLink in the
merger. These product candidates, indoximod, NLG802 (a prodrug of indoximod) and
NLG919 (a direct IDO1 enzymatic inhibitor) are indoleamine-2, 3-dioxygenase
pathway inhibitors. We also had an additional small molecule product candidate,
NLG207, which is a nanoparticle-drug conjugate consisting of a
cyclodextrin-based polymer backbone linked to camptothecin, a topoisomerase 1
inhibitor, which was out-licensed to Ellipses Pharma Limited, effective December
17, 2019.

Two U.S. patents covering both the salt and prodrug formulations of indoximod
were issued in the United States on August 15, 2017 and February 19, 2019,
respectively, providing exclusivity until at least 2036. We are continuing to
pursue international patent coverage for these formulations in some countries.
We may explore the potential for further development and licensing opportunities
for these product candidates; however, we currently do not have any active
program for these acquired small molecule product candidates.

Financial Overview

Revenue



We have no products approved for commercial sale and have not generated any
revenue from product sales. In the future, we may generate revenue from product
sales, royalties on product sales, or license fees, milestones, or other upfront
payments if we enter into any collaborations or license agreements. We expect
that our future revenue will fluctuate from quarter to quarter for many reasons,
including the uncertain timing and amount of any such payments and sales.

Research and Development Expenses



Research and development expenses consist primarily of costs incurred to advance
our product candidate, LUM-201. Our research and development expenses include
internal personnel expenditures along with external research and development
expenses incurred under arrangements with third parties, such as contract
research and manufacturing organizations, consultants, and our scientific
advisors.

We expense research and development costs as incurred. Nonrefundable advance
payments for goods and services that will be used in future research and
development activities are capitalized as an asset and expensed when the service
has been performed or when the goods have been received. We expect our research
and development expenses to increase for the foreseeable future as we continue
to conduct our clinical trial programs for our product candidates develop our
pipeline and pursue regulatory approval of our product candidates.

General and Administrative Expenses

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General and administrative expenses consist primarily of professional fees for
legal, auditing, tax and business consulting services, personnel expenses and
travel costs. We expect that general and administrative expenses will increase
in the future as we expand our operating activities.

Critical Accounting Policies and Significant Judgments and Estimates



We have prepared our condensed consolidated financial statements in accordance
with U.S. GAAP, which requires us to make estimates, assumptions and judgments
that affect the reported amount of assets, liabilities, expenses. On an ongoing
basis, we evaluate these estimates and judgments. We based our estimates on
historical experience and on various assumptions that we believe to be
reasonable under the circumstances. These estimates and assumptions form the
basis for making judgments about the carrying values of assets and liabilities
and the recording of expenses that are not readily apparent from other sources.
Actual results could, therefore, differ materially from these estimates under
different assumptions or conditions.

Management believes there have been no material changes to the critical
accounting policies from those discussed in "Note 2 - Summary of Significant
Accounting Policies and Recent Accounting Pronouncements" of our consolidated
financial statements included in our 2021 Annual Report.

COVID-19



The pandemic caused by an outbreak of COVID-19 has resulted, and is likely to
continue to result, in significant national and global economic disruption and
may continue to adversely affect our operations. We are actively monitoring the
potential impact of COVID-19, if any, on the carrying value of certain assets
and our continued operations. To date, we have experienced delays related to the
progress of our clinical trials as clinical sites adapt their procedures to
caring for patients during a pandemic; however, we have not incurred impairment
of any assets as a result of COVID-19. The extent to which these events may
impact our business, clinical development, regulatory efforts, and the value of
our common stock, will depend on future developments, which are highly uncertain
and cannot be predicted at this time. The duration and intensity of these
impacts and resulting disruption to our operations is uncertain and we will
continue to evaluate the impact that these events could have on our operations,
financial position, and results of operations and cash flows during fiscal year
2022.

Results of Operations

Comparison of the Three Months Ended March 31, 2022 and 2021:



                                                        Three Months Ended March 31,
                                                          2022                  2021                Change in $                 Change in %
                                                               (in thousands)                      (in thousands)
Revenues:
Royalty revenue                                    $           111          $        -                     111                             100  %
Total revenues                                                 111                   -
Operating expenses:
 Research and development                                    4,221               4,660                    (439)                             (9) %
General and administrative                                   3,621               3,957                    (336)                             (8) %
Total operating expenses                                     7,842               8,617

Other income, net                                               11                 (14)                     25                             179  %

Net loss                                           $        (7,720)         $   (8,631)

Revenues. Revenues increased by $0.1 million for the three months ended March 31, 2022 compared to the same period in 2021 due to royalties earned related to sales of ERVEBO®.



Research and Development Expenses. Research and development expenses decreased
by $0.4 million for the three months ended March 31, 2022 compared to the same
period in 2021 primarily due to decreases of $0.5 million in personnel-related
expenses, $0.3 million in stock compensation expenses and $0.1 million in legal
and consulting expenses, offset by an increase of $0.5 million in clinical trial
and contract manufacturing expenses.


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General and Administrative Expenses. General and administrative expenses
decreased by $0.3 million for the three months ended March 31, 2022 compared to
the same period in 2021 primarily due to decreases of $0.3 million in legal and
consulting expenses, $0.2 million in stock compensation expenses, and $0.1
million in depreciation expenses, offset by increases of $0.1 million in
licensing expenses and $0.2 million in other expenses.

Other Income, net. Other income, net increased by $25,000 for the three months ended March 31, 2022 compared to the same period in 2021 primarily due to a decrease in interest expense.

Liquidity and Capital Resources



We have historically devoted substantially all our efforts toward research and
development and have never earned revenue from commercial sales of our products.
We expect to continue to incur additional substantial losses in the foreseeable
future as a result of our research and development programs and from general and
administrative costs associated with our operations. However, we believe that
our existing cash and cash equivalents of approximately $87 million as of
March 31, 2022 will be sufficient to allow us to fund our operations through the
primary read out of the OraGrowtH210 and OraGrowtH212 Trials for patients with
idiopathic (moderate) PGHD and for at least 12 months from the filing date of
this Quarterly Report.

We may seek to sell additional equity or debt securities or obtain a credit
facility from time to time if our available cash and cash equivalents are
insufficient to satisfy our liquidity requirements or if we develop additional
opportunities to do so. The sale of additional equity and debt securities may
result in additional ownership dilution to our stockholders. If we raise
additional funds through the issuance of debt securities or preferred stock,
these securities could have rights senior to those of our common stock and could
contain covenants that would restrict our operations. We may require additional
capital beyond our currently forecasted amounts. Any such required additional
capital may not be available on reasonable terms, if at all. If we are unable to
obtain additional financing, we may be required to reduce the scope of, delay or
eliminate some or all of our planned research and development activities, which
could harm our business.

Because of the numerous risks and uncertainties associated with the research and
development of our product candidates, we are unable to estimate the exact
amounts of our working capital requirements. Our future funding requirements
will depend on many factors, including, but not limited to:

•the scope, progress, results, and costs of clinical trials for our product candidates, and discovery and development activities related to new product candidates;

•the timing of, and the costs involved in, obtaining regulatory approvals for our product candidates;

•the cost of commercialization activities if any of our product candidates are approved for sale, including marketing, sales, facilities, and distribution costs;

•the cost of manufacturing our product candidates and any products we commercialize;

•our ability to establish and maintain strategic collaborations, licensing or other arrangements and the financial terms of such agreements;

•whether, and to what extent, we are required to repay our outstanding government provided loans;



•the costs involved in preparing, filing, prosecuting, maintaining, defending
and enforcing patent claims, including litigation costs and the outcome of such
litigation;

•changes in domestic and global business or macro-economic conditions, including
continued adverse impacts from the COVID-19 pandemic or the conflict in Ukraine,
resulting labor shortages, supply chain disruptions, and inflation; and

•the timing, receipt and amount of sales of, or royalties on, our future products, if any.



On December 30, 2020, we entered into a Controlled Equity OfferingSM Sales
Agreement (the "Sales Agreement") with Cantor Fitzgerald & Co., as agent (the
"Agent"), pursuant to which we may offer and sell from time to time through the
Agent up to $50.0 million of shares of our common stock (the "Shares"). The
offering and sale of the Shares has been registered under the Securities Act.
Under the Sales Agreement, the Agent may sell the Shares by any method permitted
by law and deemed to be an "at-the-market" offering as defined in Rule 415(a)(4)
promulgated under the Securities Act, including sales made directly on or
through the Nasdaq, on any other existing trading market for the Shares, in
negotiated transactions at market prices prevailing at the time of sale or at
prices related to such prevailing market prices and/or any other method
permitted by law. We will notify the Agent of the number of Shares to be issued,
the time period during which sales are requested to be made, any limitation on
the number of Shares that may be sold in any one day and any minimum price below
which sales may not be

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made. We intend to use the net proceeds from this offering for working capital
and general corporate purposes, which include, but are not limited to, expanding
clinical development opportunities for our product candidate into potential
additional indications, and general and administrative expenses. We may also use
a portion of the net proceeds to invest in future strategic transactions to
expand and diversify our product pipeline through the acquisition or licensing
of product candidates or technologies that are complementary to our own. We will
pay the Agent a commission of up to 3.0% of the gross sales price of the Shares
sold through it under the Sales Agreement. In addition, we have agreed to
reimburse certain expenses incurred by the Agent in connection with the
offering. The Sales Agreement may be terminated by the Agent or by us at any
time upon notice to the other party, as set forth in the Sales Agreement, or by
the Agent at any time in certain circumstances, including the occurrence of a
material and adverse change in our business or financial condition that makes it
impractical or inadvisable to market the shares or to enforce contracts for the
sale of the Shares. As of March 31, 2022, no shares have been issued under the
Sales Agreement.

Cash Flows

The following table sets forth the primary sources and uses of cash for each of the periods set forth below (in thousands):


                                                      Three Months Ended 

March 31,


                                                          2022                   2021
   Net cash used in operating activities       $       (8,033)                $ (10,412)
   Net cash provided by investing activities                -                    26,000
   Net cash used in financing activities                  (18)                     (166)
   Net increase in cash and equivalents        $       (8,051)                $  15,422


For the three months ended March 31, 2022 and 2021, our operating activities
used cash of $8.0 million and $10.4 million, respectively. The decrease was
primarily due to decreases of $2.1 million in the change in working capital and
$0.9 million in losses from operations, offset by increases of $0.5 million in
stock compensation expenses and $0.1 million in depreciation and amortization.
The decrease in the change in working capital is primarily due to an increase in
accounts payable as of March 31, 2022 compared to March 31, 2021.

For the three months ended March 31, 2022 and 2021, our investing activities
provided cash of $0 and $26 million, respectively. The decrease resulted from
$26.0 million in cash received towards the final installment from sale of the
PRV during the three months ended March 31, 2021.

For the three months ended March 31, 2022 and 2021, our financing activities
used net cash of $18,000 and $166,000, respectively. The decrease was primarily
due to $148,000 in expenses related to the common stock offering under our
Controlled Equity OfferingSM during the three months ended March 31, 2021.

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