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- the cost of commercialization activities for our other product candidates, if any of these product candidates is approved
for sale, including marketing, sales and distribution costs;
- if VTP-34072 and VTP-37948 receive regulatory approval, the timing, amount of sales and royalties thereon of each;
- the cost of manufacturing our other product candidates for clinical trials in preparation for regulatory approval and
- our ability to establish and maintain strategic partnerships, licensing or other arrangements and the financial terms of
- the costs involved in preparing, filing, prosecuting, maintaining, defending and enforcing patent claims, including
litigation costs and the outcome of such litigation; and
- the timing, receipt, and amount of sales of, or royalties on, other future product candidates, if any.
on our current operating plan, we believe that the net proceeds we receive from this offering, together with receipt of anticipated milestone payments and our existing cash, cash
equivalents and marketable securities will be sufficient to fund our projected operating requirements through the first half of 2016. However, our operating plan may change as a result of many factors
currently unknown to us, and we may need additional funds sooner than planned. In addition, we may seek additional capital due to favorable market conditions or strategic considerations even if we
believe we have sufficient funds for our current or future operating plans. Additional funds may not be available when we need them on terms that are acceptable to us, or at all. If adequate funds are
not available to us on a timely basis, we may be required to delay, limit, reduce or terminate preclinical studies, clinical trials or other development activities for one or more of our product
candidates or delay, limit, reduce or terminate our establishment of sales and marketing capabilities or other activities that may be necessary to commercialize our product candidates.
Raising additional capital may cause dilution to our existing stockholders, restrict our operations or require us to relinquish rights to our technologies or product
candidates on unfavorable terms to us.
We may seek additional capital through a variety of means, including through private and public equity offerings, debt financings and
strategic partnerships. To the extent that we raise additional capital through the sale of equity or convertible debt securities, your ownership interest will be diluted, and the terms may include
liquidation or other preferences that adversely affect your rights as a stockholder. Debt financing, if available, may involve agreements that include covenants limiting or restricting our ability to
take certain actions, such as incurring additional debt, making capital expenditures or declaring dividends. If we raise additional funds through strategic partnerships with third parties, we may have
to relinquish valuable rights to our technologies or product candidates, or grant licenses on terms that are not favorable to us. If we are unable to raise additional funds through equity or debt
financing when needed, we may be required to delay, limit, reduce or terminate our product development or commercialization efforts for VTP-43742, VTP-38443, VTP-38543 or other future product
candidates or grant rights to develop and market our product candidates that we would otherwise prefer to develop and market ourselves.
The terms of our secured debt facility require us to meet certain operating covenants and place restrictions on our operating and financial flexibility. If we raise
additional capital through debt financing, the terms of any new debt could further restrict our ability to operate our business.
We have a $15 million loan and security agreement with Oxford Finance LLC and Silicon Valley Bank that is secured by a
lien covering all of our assets, other than our intellectual property. As of December 31, 2013 and June 30, 2014, the outstanding principal balance of
the loan was approximately $10.4 million and $7.7 million, respectively. The loan agreement contains customary affirmative and negative covenants and events of default. Affirmative
covenants include, among others, covenants requiring us to maintain our legal existence and governmental approvals, deliver certain financial reports and maintain insurance coverage. Negative
covenants include, among others, restrictions on transferring any part of our business