APLS 2017 Annual Report

79 Results of Operations Comparison of Years Ended December 31, 2016 and 2017 The following table summarizes our results of operations for the years ended December 31, 2016 and 2017, together with the dollar increase or decrease and percentage change in those items: Year Ended December 31, Change Change 2016 2017 $ % Operating expenses: Research and development $ 22,978,599 $ 40,303,878 $ 17,325,279 75.4% General and administrative 4,303,743 10,463,151 6,159,408 143.1 Operating loss (27,282,342) (50,767,029) (23,484,687) 86.1 Loss from remeasurement of fair value of warrants — (153,692) (153,692) 100.0 Interest income (expense), net 135,309 (96,915) (232,224) (171.6) Other income, net 22,396 11,542 (10,854) (48.5) Net loss and comprehensive loss $ (27,124,637) $ (51,006,094) $ (23,881,457) 88.0 Research and Development Expenses The following table summarizes our research and development expenses incurred during the years ended December 31, 2016 and 2017, together with the dollar increase or decrease and percentage change in those items: Year Ended December 31, Change Change 2016 2017 $ % Clinical trial costs $ 11,486,499 $ 15,231,683 $ 3,745,184 32.6% Contract manufacturing 5,098,538 13,323,343 8,224,805 161.3 Pre-clinical study expenses 3,431,482 1,699,902 (1,731,580) (50.5) Compensation and related personnel costs 1,989,164 4,933,207 2,944,043 148.0 Other research and development costs 972,916 3,659,506 2,686,590 276.1 Device development expenses — 1,456,238 1,456,238 100.0 Total research and development expenses $ 22,978,599 $ 40,303,878 $ 17,325,279 75.4 Research and development expenses increased by $17.3 million to $40.3 million for the year ended December 31, 2017 from $23.0 million for the year ended December 31, 2016, an increase of 75.4%. The increase in research and development expenses was primarily attributable to an increase of $8.2 million in manufacturing expenses, an increase of $3.7 million in clinical trial costs, an increase of $2.9 million in employee related costs primarily due to the hiring of additional personnel, an increase of $2.7 million related to research and development supporting activities, and an increase of $1.5 million in device development expenses, partially offset by a decrease of $1.7 million in preclinical study expenses. General and Administrative Expenses General and administrative expenses increased by $6.2 million to $10.5 million for the year ended December 31, 2017, from $4.3 million for the year ended December 31, 2016, an increase of 143.1%. The increase in general and administrative expenses was primarily attributable to an increase in employee related costs of $3.8 million, an increase in professional and consulting fees of $1.5 million, and an increase in office, travel and related costs of $0.9 million. The increased employee related costs of $3.8 million consisted of $1.6 million related to an increase in salaries and benefits primarily due to the hiring of additional members of our management team, $1.8 million related to stock option expense associated with the grants of stock options to the members of our board of directors upon the IPO, and $0.5 million in recruitment expense. The increased professional and consulting fees of $1.5 million primarily consisted of an increase in consulting fees of $1.0 million, an increase of $0.4 million in legal fees and an increase of $0.1 million in accounting fees. Loss From Remeasurement of Fair Value of Warrants Loss from remeasurement of fair value of warrants was $0.2 million for the year ended December 31, 2017, an increase of $0.2 million compared to the year ended December 31, 2016. The increase was due to the remeasurement of the fair value of our liabilities related to the common stock warrants that we issued to Silicon Valley Bank on October 20, 2017. At December 31, 2016, there was no