You should read the following discussion and analysis of our financial condition and results of operations together with our unaudited condensed financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q, or Quarterly Report, and our final prospectus for our initial public offering ("Prospectus"), datedAugust 2, 2021 and filed with theUnited States Securities and Exchange Commission , orSEC , pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended, or the Securities Act. Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report, including information with respect to our plans and strategy for our business and related financing, includes forward-looking statements that involve risks and uncertainties. As a result of many factors, including those factors set forth in the "Risk Factors" section of this Quarterly Report, our actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. Please also see the "Special Note Regarding Forward-Looking Statements" section of this Quarterly Report. OverviewOmega Therapeutics is pioneering a new systematic approach to use mRNA therapeutics as programmable epigenetic medicines by leveraging our OMEGA Epigenomic Programming platform ("OMEGA platform"). mRNA refers to Messenger RNA, a single-stranded RNA (ribonucleic acid that carries instructions for the synthesis of proteins) corresponding to the sequence of a gene. Our OMEGA platform harnesses the power of epigenetics, the mechanism that controls gene expression and every aspect of an organism's life from cell genesis, growth and differentiation to cell death. We have deciphered the three-dimensional architecture of the human genome and its accompanying regulators, which are organized into distinct and evolutionarily conserved structures called Insulated Genomic Domains, or IGDs. IGDs are the fundamental structural and functional units of gene control and cell differentiation and act as the "control room" of biology. Most diseases are caused by aberrant gene expression rooted in alterations in IGDs. The OMEGA platform has enabled us to systematically identify and validate thousands of novel DNA-sequence-based epigenomic "zip codes" within IGDs. We call these epigenomic targets EpiZips. We rationally design and engineer our mRNA therapeutics, which are modular and programmable epigenetic medicines, called Omega Epigenomic Controllers, or OECs, to target EpiZips for Precision Genomic Control. This enables us to precisely tune genes to a desired level of expression and to control the duration of expression. Through this approach, we believe that the OMEGA platform has broad potential applicability across a range of diseases and conditions. Our pipeline currently consists of early-stage, preclinical programs that span regenerative medicine, multigenic diseases including immunology, oncology, and select monogenic diseases. We have conducted in vivo preclinical studies of our OECs in multiple disease models for various indications, including hepatocellular carcinoma, or HCC, non-small cell lung cancer, or NSCLC, and acute respiratory distress syndrome, or ARDS, and we expect to conduct in vivo preclinical studies for multiple additional programs. If successful, we plan to initiate investigational new drug ("IND") enabling studies for multiple programs beginning in 2021, and we expect to submit an IND for our OEC candidate for the treatment of HCC in the first half of 2022. We are also planning a second IND filing for another OEC candidate targeted for the second half of 2022 and to declare additional OEC development candidates in the first half of 2022. Since our inception, we have incurred significant operating losses. We have not commercialized any products and have never generated any revenue from product sales. We have devoted almost all of our financial resources to research and development, including our preclinical development activities and preparing for clinical trials of our product candidates. To date, we have funded our operations primarily with proceeds from sales of equity securities and borrowings under our loan and security agreement. As ofJune 30, 2021 , we had cash and cash equivalents of$122.4 million . OnAugust 3, 2021 , we closed our initial public offering, or IPO, of 7,400,000 shares of our common stock at a public offering price of$17.00 per share. The gross proceeds from the IPO were$125.8 million and the net proceeds were approximately$113.4 million , after deducting underwriting discounts and commissions and other offering expenses payable by us. OnAugust 17, 2021 , we issued and sold 900,976 shares of our common stock pursuant to the partial exercise of the underwriters' option to purchase additional shares, at a public offering price of$17.00 per share, for aggregate gross proceeds of$15.3 million . We received appropriately$14.2 million in net proceeds after deducting underwriting discounts and commissions. Our ability to generate product revenue will depend on the successful development, regulatory approval, and eventual commercialization of one or more of our product candidates. Until such time, if ever, as we can generate substantial product revenue, we expect to finance our operations through equity offerings, debt financings, marketing and distribution arrangements and other collaborations, strategic alliances and licensing arrangements, or other sources. 25 -------------------------------------------------------------------------------- Additional sources of financing might not be available to us on favorable terms, if at all. If we are unable to raise additional funds through equity or debt financings when needed, we may be required to delay, limit, reduce, or terminate our product development or future commercialization efforts or grant rights to develop and market product candidates that we would otherwise prefer to develop and market ourselves. We expect to continue to incur significant additional operating losses for the foreseeable future as we seek to advance product candidates through clinical development, continue preclinical development, expand our research and development activities, develop new product candidates, complete preclinical studies and clinical trials, seek regulatory approval and, if we receive regulatory approval, commercialize our products. Our expenses will also increase substantially if or as we: • continue our research and development efforts and submit INDs for our product candidates; • initiate and conduct clinical trials of our product candidates; • continue to engineer and develop additional product candidates; • continue to develop the OMEGA platform;
• seek regulatory and marketing approvals for product candidates that
successfully complete clinical trials, if any;
• establish manufacturing and supply chain capacity sufficient to provide
clinical and, if applicable, commercial quantities of product candidates,
including building our own manufacturing facility; • establish a sales, marketing, internal systems and distribution infrastructure to commercialize any products for which we may obtain regulatory approval, if any, in geographies in which we plan to commercialize our products ourselves;
• maintain, expand, protect and enforce our intellectual property estate;
• hire additional staff, including clinical, scientific, technical,
regulatory, operational, financial, commercial, and support personnel, to
execute our business plan and support our product development and potential
future commercialization efforts; • enter into collaborations or licenses for new technologies;
• make royalty, milestone, or other payments under our current and any future
in-license agreements;
• incur additional legal, accounting, and other expenses in operating our
business; and • continue to operate as a public company. Impact of COVID-19 on our business The worldwide COVID-19 pandemic, including the identification of new variants of the virus, may affect our ability to initiate and complete preclinical studies, delay the initiation of our future clinical trials, or have other adverse effects on our business, results of operations, financial condition, and prospects. In addition, the pandemic has caused substantial disruption in the financial markets and may adversely impact economies worldwide, both of which could adversely affect our business, operations and ability to raise funds to support our operations. To date, we have not experienced material business disruptions as a result of the pandemic. We are following, and plan to continue to follow, recommendations from federal, state and local governments regarding workplace policies, practices and procedures. In response to the direction from state and local governmental authorities, we have restricted access to our facility to those individuals who must perform critical research and laboratory support activities that must be completed on site, limited the number of such people that can be present at our facility at any one time and required that most of our employees work remotely. In addition, the third-party contract research organizations, or CROs, and contract development and manufacturing organizations, or CDMOs, that we engage have faced in the past and may face in the future disruptions that could affect our ability to initiate and complete preclinical studies, including disruptions in procuring items that are essential for our research and development activities, such as, for example, raw materials used in the manufacture of our product candidates and laboratory supplies for our preclinical studies, for which there may be shortages because of ongoing efforts to address the COVID-19 pandemic.
We cannot be certain what the overall impact of the COVID-19 pandemic, or the variants of the virus, will be on our business, and the pandemic has the potential to adversely affect our business, financial condition, results of operations, and prospects.
26 --------------------------------------------------------------------------------
Components of our results of operations Revenue To date, we have not generated any revenue from any sources, including product sales, and do not expect to generate any revenue from the sale of products for the foreseeable future. If our development efforts for our product candidates are successful and result in regulatory approval or collaboration or license agreements with third parties, we may generate revenue in the future from product sales, payments from collaboration or license agreements that we may enter into with third parties or any combination thereof. We cannot predict if, when or to what extent we will generate revenue from the commercialization and sale of our product candidates. We may never succeed in obtaining regulatory approval for any of our product candidate.
Operating expenses
Research and development expenses
Research and development expenses consist primarily of costs incurred in performing research and development activities, which include:
• personnel-related expenses, including salaries, bonuses, benefits, and
stock-based compensation for employees engaged in research and development
functions; • expenses incurred in connection with the discovery and preclinical
development of our research programs, including under agreements with third
parties, such as consultants, contractors, CROs and CDMOs that manufacture
material for use in our discovery and preclinical development; • laboratory supplies and research materials; • costs of licensing technology; and
• facilities, depreciation, and other expenses which include direct and allocated expenses. We expense research and development costs as incurred. Costs for research and development activities are recognized based on an evaluation of the progress to completion of specific tasks. Payments for these activities are based on the terms of the individual agreements, which may differ from the pattern of costs incurred, and are reflected in our unaudited condensed financial statements as prepaid or accrued research and development expenses. Nonrefundable advance payments that we make for goods or services to be received in the future for use in research and development activities are recorded as prepaid expenses and expensed as the related goods are delivered or the services are performed. We do not track the research and development expenses on a program-by-program basis for our product candidates, and we do not allocate costs associated with our discovery efforts, laboratory supplies and facilities, including depreciation or other indirect costs, to specific programs because these costs are deployed across multiple programs and the OMEGA platform. We use internal resources primarily to conduct our research and discovery activities as well as for managing our preclinical development, process development, manufacturing and clinical development activities. These employees work across multiple programs and our technology platform and, therefore, we do not track these costs by program. We expect that our research and development expenses will continue to increase as we continue our current discovery and research programs, initiate new research programs, continue preclinical development of our product candidates and conduct future clinical trials for any of our product candidates.
General and administrative expenses
General and administrative expenses consist primarily of salaries and other related costs such as bonuses and benefits, including stock-based compensation, for personnel in our executive, finance, legal, human resources, corporate business development, and administrative functions. General and administrative expenses also include professional fees for legal, patent, accounting, information technology, auditing, tax, consulting services, and facility-related expenses, which include direct depreciation costs and allocated expenses for rent and maintenance of facilities and other operating costs. We expect that our general and administrative expenses will increase in the future as we increase our headcount to support our continued research and development and potential commercialization of our product candidates. We also expect to continue to incur increased expenses associated with being a public company, including costs of accounting, audit, legal, regulatory, and tax compliance services, director and officer insurance costs, and investor and public relations costs. 27 --------------------------------------------------------------------------------
Related party expense, net
Related party expense, net consists primarily of fees paid to Flagship Pioneering, or Flagship, for their management services provided to us, as well as reimbursements for certain expenses, including insurance and benefits, partner and related fees, and software licenses incurred on our behalf. Additionally, our principal office and laboratory space is leased with an affiliate of Flagship, and we also sublease our other office and laboratory space to two other parties which are affiliates of Flagship. The rent expense and costs related to our principal office and laboratory space, including real estate taxes, insurance, and normal maintenance costs, are considered as related party expenses. Such related party expenses are offset with sublease income received from our related parties, which is comprised of base rent and costs related to the subleased premises such as real estate taxes, cost of operations, maintenance, repair, replacement, and property management.
Other expense, net
Interest expense, net
Interest expense, net primarily consists of interest payments as well as the amortization of the debt discount related to our loan and security agreement.
Other expense, net
Other expense, net primarily consists of the remeasurement gains or losses associated with changes in the fair value of the warrant liability and the success fee obligation related to our loan and security agreement. Until settlement, fluctuations in the fair value of our warrant liability and success fee obligation are based on the remeasurement at each reporting period.
Results of operations
Comparison for the three months ended
The following table summarizes the results of our operations for the three
months ended
Three months ended June 30, $ Increase / 2021 2020 (Decrease) % Change Operating expenses: Research and development$ 11,184 $ 4,895 $ 6,289 128 % General and administrative 3,637 1,010 2,627 260 % Related party expense, net 384 225 159 71 % Total operating expenses 15,205 6,130 9,075 148 % Loss from operations (15,205 ) (6,130 ) 9,075 148 % Other expense, net: Interest expense, net (190 ) (194 ) (4 ) 2 % Change in fair value of warrant liability (11 ) 1 12 1200 % Other expense, net (4 ) - 4 100 % Total other expense, net (205 ) (193 ) 12 6 % Net loss and comprehensive loss$ (15,410 ) $ (6,323 ) $ 9,087 28
--------------------------------------------------------------------------------
Research and development expenses
Research and development expenses were$11.2 million and$4.9 million for the three months endedJune 30, 2021 and 2020, respectively. The following table summarizes our research and development expenses by nature (in thousands). Three months ended June 30, 2021 2020 Personnel-related expenses$ 2,152
6,092
1,389
Other research and development costs, including laboratory materials and supplies 2,062
1,358
Costs of licensing technology 26 - Facilities and overhead expenses 852 679 Total research and development expenses$ 11,184 $ 4,895
Research and development expenses increased
• Increase of
the number of employees in the research and development functions and the
related stock-based compensation.
• Increase of
increase in research and development activities.
General and administrative expenses
General and administrative expenses were$3.6 million and$1.0 million for the three months endedJune 30, 2021 and 2020, respectively. The year-over-year increase of$2.6 million was primarily driven by an increase of$2.0 million in personnel-related expenses, including recruiting fees and stock-based compensation, due to growth in the general and administrative functions. The remaining$0.6 million increase is primarily attributable to higher spending in corporate legal services and other costs associated with ongoing business activities.
Related party expense, net
Related party expenses, net was$0.4 million and$0.2 million for the three months endedJune 30, 2021 and 2020, respectively. The increase of$0.2 million was primarily driven by$0.6 million of lease expense and related costs incurred for our principal office and laboratory space, in which the lease term started inAugust 2020 . The increase was offset by the$0.5 million sublease income earned fromLARONDE, Inc. , for which the sublease agreement started inSeptember 2020 . Interest expense, net Interest expense, net was relatively consistent for both of the three-month periods endedJune 30, 2021 and 2020, which was$0.2 million , and was primarily the result of interest incurred and the amortization of debt discount related to our loan and security agreement.
Change in fair value of warrant liability
During the three months ended
Other expense, net
Other expense, net was not significant for both of the three-month periods ended
29 --------------------------------------------------------------------------------
Comparison for the six months ended
The following table summarizes the results of our operations for the six months
ended
Six months ended June 30, $ Increase / 2021 2020 (Decrease) % Change Operating expenses: Research and development$ 20,933 $ 8,416 $ 12,517 149 % General and administrative 6,452 2,375 4,077 172 % Related party expense, net 763 567 196 35 % Total operating expenses 28,148 11,358 16,790 148 % Loss from operations (28,148 ) (11,358 ) 16,790 148 % Other expense, net: Interest expense, net (402 ) (387 ) 15 4 % Change in fair value of warrant liability (340 ) 4 344 8600 % Other expense, net (8 ) - 8 100 % Total other expense, net (750 ) (383 ) 367 96 % Net loss and comprehensive loss$ (28,898 ) $ (11,741 ) $ 17,157
Research and development expenses
Research and development expenses were
Six months ended June 30, 2021 2020 Personnel-related expenses$ 3,898 $ 2,659 Discovery and preclinical development costs, including third-party costs (consultants, contractors, and CDMO) 10,773
2,203
Other research and development costs, including laboratory materials and supplies 3,175
2,201
Costs of licensing technology 1,458 - Facilities and overhead expenses 1,629
1,353
Total research and development expenses$ 20,933 $ 8,416
The research and development expenses increased
• Increase of
the number of employees in the research and development functions and the
related stock-based compensation.
• Increase of
$1.0 million in laboratory materials and supplies attributable to an increase in research and development activities.
• Increase of
exercise fee incurred upon the execution of the first non-exclusive license
agreement with
General and administrative expenses
General and administrative expenses were$6.5 million and$2.4 million for the six months endedJune 30, 2021 and 2020, respectively. The increase of$4.1 million compared to the prior year period was primarily driven by an increase of$2.9 million in employee related expenses, including recruiting fees and stock-based compensation, due to the growth in the number of employees in the general and administrative functions. The remaining$1.2 million increase was primarily driven by an increase in professional fees related to audit and legal services as we prepared to operate as a public company and costs associated with ongoing business activities. 30
--------------------------------------------------------------------------------
Related party expense, net
Related party expenses, net was$0.8 million and$0.6 million for the six months endedJune 30, 2021 and 2020, respectively. The increase of$0.2 million was primarily driven by the$1.2 million of lease expense and the related costs incurred for our principal office and laboratory space, in which the lease term started inAugust 2020 . The increase was offset by the$1.0 million sublease income earned fromLARONDE, Inc. , for which the sublease agreement started inSeptember 2020 . Interest expense, net Interest expense, net was relatively consistent for both of the six-month periods endedJune 30, 2021 and 2020, which was$0.4 million , and was primarily the result of interest incurred and the amortization of debt discount related to our loan and security agreement.
Change in fair value of warrant liability
During the six months endedJune 30, 2021 , we recorded an expense of$0.3 million from an increase in the fair value of our warrant liability, primarily due to the increase in the value of our redeemable convertible preferred stock underlying the outstanding warrants.
Other expense, net
Other expense, net was not significant for both of the six-month periods ended
Liquidity and capital resources Sources of liquidity Since our inception, we have incurred significant operating losses. We expect to incur significant expenses and operating losses for the foreseeable future as we support our continued research activities and development of our programs and platform. We have not yet commercialized any products, and we do not expect to generate product revenue for several years, if at all. To date, we have funded our operations primarily with proceeds from sales of equity securities, including our IPO, and borrowings under our loan and security agreement. OnAugust 3, 2021 , we closed our IPO of 7,400,000 shares of our common stock at a public offering price of$17.00 per share. The gross proceeds from the IPO were$125.8 million and the net proceeds were approximately$113.4 million , after deducting underwriting discounts and commissions and other offering expenses payable by us. OnAugust 17, 2021 , we issued and sold 900,976 shares of our common stock pursuant to the partial exercise of the underwriters' option to purchase additional shares, at a public offering price of$17.00 per share, for aggregate gross proceeds of$15.3 million . We received appropriately$14.2 million in net proceeds after deducting underwriting discounts and commissions.
Cash flows
The following table summarizes our sources and uses of cash for each of the periods presented (in thousands):
Six months ended June 30, 2021 2020 Net cash used in operating activities$ (25,157 ) $ (11,192 ) Net cash used in investing activities (914 ) (239 ) Net cash provided by financing activities 125,531
41,044
Net increase in cash, cash equivalents, and restricted cash 99,460 29,613 Operating activities Net cash used in operating activities totaled$25.2 million in the six months endedJune 30, 2021 compared to net cash used in operating activities of$11.2 million in the six months endedJune 30, 2020 . The$14.0 million increase in operating cash outflows was primarily attributable to$17.2 million higher net loss recognized during the six months endedJune 30, 2021 , offset by net cash provided by changes in our operating assets and liabilities of$1.9 million . 31 --------------------------------------------------------------------------------
Investing activities
Net cash used in investing activities totaled$0.9 million in the six months endedJune 30, 2021 compared to net cash used in investing activities of$0.2 million in the six months endedJune 30, 2020 . The$0.7 million increase in investing cash outflows was primarily attributable to additional capital expenditures resulting from our investment in laboratory equipment as we expanded our discovery and preclinical activities.
Financing activities
Net cash provided by financing activities for the six months endedJune 30, 2021 consisted primarily of the gross proceeds from the issuance of Series C redeemable convertible preferred stock of$125.5 million inMarch 2021 . Net cash provided by financing activities for the six months endedJune 30, 2020 consisted primarily of the gross proceeds from the issuance of Series B redeemable convertible preferred stock of$41.1 million during the period.
Loan and security agreement
InMarch 2018 , we entered into the loan and security agreement, Loan Agreement, withPacific Western Bank , or PWB, under which we borrowed$8.0 million pursuant to Tranche I and Tranche II. InSeptember 2019 , we entered into an amendment to the Loan Agreement, or First Amendment, in which PWB made an additional term loan to us in an aggregate principal amount of$12.0 million . The proceeds of the First Amendment were first applied to the repayment in full of all outstanding principal and accrued interest on the outstanding term loan of$8.0 million under Tranche I and Tranche II; the remaining cash proceeds of$4.0 million was used for general working capital and for capital expenditures purposes. InDecember 2020 , we entered into a further amendment to extend the principal repayment date, and there was no additional proceeds taken under this amendment. The maturity date of the term loan isDecember 31, 2023 , and it is to be repaid beginning onDecember 31, 2021 in twenty-four equal installments, including interest at a floating annual rate equal to the greater of (i) 0.75% above the prime rate then in effect and (ii) 6.00%, due monthly starting the first month afterDecember 30, 2020 . As ofJune 30, 2021 , the interest rate applicable to the term loan was 6.0% and the interest payment on the outstanding term loan was less than$0.1 million per month.
Borrowings under the Loan agreement, as amended, are collateralized by substantially all of our personal property, other than our intellectual property. There are no financial covenants associated with the Loan Agreement, as amended; however, we are subject to certain affirmative and negative covenants to which we will remain subject until maturity.
Funding requirements
As ofJune 30, 2021 , we had cash and cash equivalents of$122.4 million . We expect that our expenses will increase substantially in connection with our ongoing activities, particularly as we advance preclinical activities and into clinical trials for our product candidates in development. In addition, we will continue to incur additional costs associated with operating as a public company. The timing and amount of our operating and capital expenditures will depend largely on:
• the scope, progress, results, and costs of our preclinical studies and any
future clinical trials;
• the timing of, and the costs involved in, obtaining marketing approvals for
our current and future product candidates in regions where we choose to commercialize any products; • the number of future product candidates and potential additional indications that we may pursue and their development requirements;
• the stability, scale, yield, and cost of our manufacturing process as we
scale-up production and formulation of our product candidates for clinical
trials, in preparation for regulatory approval and in preparation for
commercialization, including our ability to build our own manufacturing
facility;
• the costs of commercialization activities for any approved product,
including the costs and timing of establishing product sales, marketing,
distribution, and manufacturing capabilities;
• revenue, if any, received from commercial sales of our products, should any
of our product candidates receive marketing approval;
• the costs and timing of changes in pharmaceutical pricing and reimbursement
infrastructure; 32
--------------------------------------------------------------------------------
• the costs and timing of changes in the regulatory environment and enforcement rules;
• our ability to compete with other therapeutics in the indications we target;
• the effect of competing technological and market developments;
• the extent to which we enter into collaborations or licenses for products,
product candidates, or technologies;
• our headcount growth and associated costs as we expand our research and
development capabilities and establish a commercial infrastructure;
• the costs of preparing, filing, and prosecuting patent applications and
maintaining and protecting our intellectual property rights, including
enforcing and defending intellectual property-related claims; • the costs of operating as a public company; and
• the severity, duration, and impact of the COVID-19 pandemic, which may adversely impact our business. We believe that the net proceeds from our IPO, together with our existing cash and cash equivalents, will enable us to fund our operating expenses and capital expenditure requirements for at least the next 12 months from the filing date of the Quarterly Report. We have based this estimate on assumptions that may prove to be incorrect, and we could utilize our available capital resources sooner than we expect. Until such time, if ever, as we can generate substantial product revenue, we expect to finance our operations through equity offerings, debt financings, marketing and distribution arrangements and other collaborations, strategic alliances and licensing arrangements, or other sources. Contractual obligations
There have been no material changes to our contractual obligations as of
Critical accounting policies and estimates Our management's discussion and analysis of our financial condition and results of operations are based on our unaudited condensed financial statements, which have been prepared in accordance with accounting principles generally accepted in theU.S. , or GAAP. The preparation of these unaudited condensed financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, costs and expenses. On an ongoing basis, we evaluate these estimates and judgments, including those described below. We base our estimates on historical experience and on various other 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 that are not readily apparent from other sources. Actual results and experiences may differ materially from these estimates. Our critical accounting policies are described under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations-Critical Accounting Policies and Estimates" in our Prospectus and the notes to the unaudited condensed consolidated financial statements appearing elsewhere in this Quarterly Report on Form 10-Q. During the six months endedJune 30, 2021 , there were no material changes to our critical accounting policies from those discussed in our Prospectus. Recently Issued Accounting Pronouncements
We have reviewed all recently issued accounting pronouncements and have determined that, other than as disclosed in Note 2 - Summary of Significant Accounting Policies in the Notes to audited financial statements included in the Prospectus, such standards will not have a material impact on our financial statements or do not otherwise apply to our current operations.
Emerging growth company status We qualify as an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. As a result, we may take advantage of specified reduced disclosure and other reporting requirements that are otherwise applicable generally to public companies. In particular, the JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. We have elected not to "opt out" of such extended transition period, which means that when a standard is issued or 33
--------------------------------------------------------------------------------
revised and it has different application dates for public or private companies, we may adopt the new or revised standard at the time private companies adopt the new or revised standard and may do so until such time that we either (i) irrevocably elect to "opt out" of such extended transition period or (ii) no longer qualify as an emerging growth company.
© Edgar Online, source