Table of Contents
Notes to Consolidated Financial Statements (Continued)
1. Background (Continued)
Company is subject to risks common to companies in the biotechnology industry, including, but not limited to, development by the Company or its competitors of technological
innovations, risks of failure of clinical studies, dependence on key personnel, protection of proprietary technology, compliance with government regulations, and ability to transition from preclinical
manufacturing to commercial production of products.
2. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying consolidated financial statements of the Company and its subsidiaries have been prepared in conformity with
accounting principles generally accepted in the United States of America ("GAAP"). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the
Accounting Standards Codification ("ASC") and Accounting Standards Update ("ASU") of the Financial Accounting Standards Board ("FASB"). These consolidated financial statements are presented in U.S.
Unaudited Interim Financial Information
The accompanying consolidated balance sheet as of September 30, 2015, the consolidated statements of operations and
comprehensive loss and statements of cash flows for the nine months ended September 30, 2014 and 2015, and the consolidated statement of stockholders' equity (deficit) for the nine months ended
September 30, 2015 are unaudited. The interim unaudited consolidated financial statements have been prepared on the same basis as the annual audited consolidated financial statements; and in
the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company's financial position as of September 30,
2015, and the results of its operations and its cash flows for the nine months ended September 30, 2014 and 2015. All references to September 30, 2014 and 2015 in these footnotes are
unaudited. The results for the nine months ended September 30, 2015 are not necessarily indicative of results to be expected for the year ending December 31, 2015, any other interim
periods, or any future year or period.
Unaudited Pro Forma Information
The accompanying unaudited pro forma consolidated balance sheet as of September 30, 2015 assumes the automatic conversion of
the Class B-1, B-2, C and D preferred stock into 8,695,662 shares of common stock upon the completion of an IPO.
the accompanying statements of operations and comprehensive loss, unaudited pro forma basic and diluted net loss per share attributable to common stockholders for the year ended
December 31, 2014 and for the nine months ended September 30, 2015 have been prepared to give effect to the automatic conversion of all outstanding shares of preferred stock into common
stock, as though the proposed initial public offering had occurred at the beginning of the period presented or the issuance date of the preferred stock, if later.