ACHN 2017 Annual Report

If our operating plan changes, we may need additional funds sooner than planned. Such additional financing may not be available when we need it or may not be available on terms that are favorable to us. 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. If adequate funds are not available to us on a timely basis, or at all, we may be required to terminate or delay preclinical studies, clinical trials or other development activities for one or more of our drug candidates. We may seek additional financing through a combination of private and public equity offerings, debt financings and collaboration, strategic alliance and licensing arrangements. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of our existing stockholders will be diluted, and the terms may include adverse liquidation or other preferences that adversely affect stockholders’ rights. Contractual Obligations and Commitments The following table sets forth a summary of our commitments as of December 31, 2017: Payment Due by Period Total Less Than 1 Year 1-3 Years 3-5 Years More than 5 Years (in thousands) Debt, including interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 318 $ 183 $ 135 $— $— Operating lease obligations . . . . . . . . . . . . . . . . . . . . . . . . . 2,047 925 1,122 — — Clinical research obligations . . . . . . . . . . . . . . . . . . . . . . . . 29,517 25,699 3,801 17 — Other professional obligations . . . . . . . . . . . . . . . . . . . . . . . 1,941 1,849 92 — — Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $33,823 $28,656 $5,150 $ 17 $— Clinical research obligations consist of costs of services by clinical organizations, other outsourced research and materials used in research and development activities. Other professional obligations consist mainly of general and administrative consulting obligations. Off-Balance Sheet Arrangements We do not have any off-balance sheet arrangements as of December 31, 2017. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which supersedes all existing revenue recognition requirements, including most industry-specific guidance. ASU No. 2014-09 requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” which delays the effective date of ASU No. 2014-09 by one year. The new standard is effective for reporting periods beginning after December 15, 2017. In March 2016, FASB also issued ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations,” which clarifies the implementation guidance on principal versus agent considerations. Further, in April 2016, FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing,” which clarifies the implementation guidance on identifying performance obligations and licensing. ASU No. 2014-09 or Topic 606 will not have an impact on our financial position and results of operations, as we do not have any material revenue-generating contracts. In February 2016, FASB issued ASU No. 2016-02 “Leases – Topic 842.” ASU No. 2016-02 requires the recognition of lease assets and lease liabilities by lessees for all leases greater than one year in duration and 90