Table of Contents
further development. These costs include attempts to replicate literature data, structural biology around the target and, to a limited extent, compound synthesis. Generally, these costs include
activities up to and including animal proof-of-concept.
the third quarter of 2013, we commenced significant discovery work on a known immuno-oncology target. Future research and development costs for this program are expected to increase
significantly should the exploratory work confirm the potential of this target.
We have developed Contour, a computational structure-based drug discovery platform, to design and optimize compounds across a range of
therapeutic targets and disease areas. Technology development expenses consist principally of salaries and related costs for personnel
engaged in the development and enhancement of the technology. We expect future technology development expenses to be in line with 2013 costs for the next few years.
expect that the expenses related to our entire pipeline will continue to increase with successful progression of our compounds into later stages of development and as we commence new
discovery efforts on promising biological targets. However, future research and development costs for any particular program or product candidate are not reasonably certain because such costs are
dependent on a number of variables, including successful completion of preclinical and clinical studies, the design and cost of future studies and the amount and timing of discovery efforts committed
to back-up compounds.
General and Administrative Expenses
General and administrative expenses consist principally of salaries and related costs for personnel in executive, finance, business
development, legal and human resources functions. Other general and administrative expenses include facility costs not otherwise included in research and development expenses, patent filing and
prosecution costs and professional fees for investor relations, legal, auditing and tax services.
anticipate that our general and administrative expenses will increase as a result of increased payroll, expanded infrastructure and higher consulting, legal, regulatory and
tax-related services associated with maintaining compliance with stock exchange listing and SEC requirements, accounting and investor relations costs, and director and officer insurance premiums
associated with being a public company.
Other income primarily relates to the revaluation of our warrant liability and the sale of Pennsylvania tax credits.
Interest Income and Interest Expense
Interest income consists of interest earned on our cash, cash equivalents and marketable securities. The primary objective of our
investment policy is capital preservation.
expense consists primarily of interest, amortization of debt discount, and amortization of deferred financing costs associated with our notes payable.
Critical Accounting Policies and Significant Judgments and Estimates
Our management's discussion and analysis of our financial condition and results of operations is based on our financial statements,
which have been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. The preparation of these financial statements requires us to make estimates and
judgments that affect the reported amounts of assets and liabilities, disclosure of