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of convertible preferred stock, including $40.0 million of equity sales to our strategic partners, including BI. We have also funded our operations through credit facilities, equipment
lease financings, federal grants and investment income.
the years ended December 31, 2013 and 2012, we had net income of $1.2 million and $0.2 million, respectively. Our historical net income is not necessarily
indicative of results for any future period. For the six months ended June 30, 2014 and 2013, we had a net loss of $10.0 million and $8.7 million, respectively, and at
June 30, 2014, we had an accumulated deficit of $120.9 million. We have devoted substantially all of our capital resources to the research and development of our product candidates.
Since our inception in 2001, we have had no revenues from product sales. We expect to incur significant expenses and operating losses for the foreseeable future as we advance our product candidates
from discovery through preclinical development and clinical trials, and to eventually seek regulatory approval and pursue commercialization. Furthermore, upon the closing of this offering, we expect
to incur additional costs associated with operating as a public company, including significant legal, accounting, investor relations and other expenses that we did not incur as a private company.
will need to obtain substantial additional funding in connection with our continuing operations, in addition to the net proceeds from this offering. As of June 30, 2014, we had
cash, cash equivalents and marketable securities of approximately $18.1 million. We will seek to fund our operations through the sale of equity, debt financings or other capital sources,
including potential collaborations or partnerships with other companies or other strategic transactions. We may be unable to raise additional funds or enter into such other agreements or arrangements
when needed on favorable terms, or at all. If we fail to raise capital or enter into such agreements as, and when, needed, we may have to significantly delay, scale back or discontinue the development
and commercialization of one or more of our product candidates.
11b HSD1 Inhibitors with BI
In October 2007, we entered into a research collaboration and license agreement with BI, which we refer to as the
11b Agreement. Based upon discoveries we made using Contour, we and BI formed a worldwide strategic partnership granting BI exclusive rights to develop and
commercialize novel compounds for patients with type 2 diabetes and certain related metabolic disease conditions, such as abnormal blood cholesterol and triglyceride levels, obesity and
hypertension, or high blood pressure. The alliance encompasses multiple series of novel, orally available 11b HSD1 inhibitors that were discovered using Contour.
We also retained the right, subject to the approval of the joint steering committee established pursuant to the 11b Agreement, to develop
11b HSD1 inhibitors for certain indications outside of the core focus of diabetes and related metabolic conditions. The collaborative research program portion of
this strategic partnership began in October 2007 and expired in December 2009.
the 11b Agreement, we have received an aggregate of $59.2 million in non-equity funding as of June 30, 2014, including upfront
license fees, research funding and success-based milestone payments. We received an upfront license fee from BI of $15.0 million upon execution of the
11b Agreement. In addition, BI made quarterly payments of $0.8 million during the 27-month collaborative research program period, for a total of
$7.2 million. The upfront fee and the research collaboration payments were recognized as revenue over the 27-month funded research program period, from October 2007 through December 2009. Also,
as of June 30, 2014, we earned $37.0 million for achieving substantive development milestone payments,
including a $7.0 million milestone payment from BI in May 2012 related to our most advanced 11b compound VTP-34072, and we are eligible to receive up to
$278.0 million in additional milestone payments based on the achievement of pre-specified events, including up to $153.0 million in development and regulatory milestone payments and up
to $125.0 million in commercialization milestone payments.
additional development, regulatory and commercialization milestone payments are payable upon the first occurrence of any product to meet the requirements specified in the
11b Agreement. Any