APLS 2017 Annual Report

APELLIS PHARMACEUTICALS, INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY Convertible Preferred Stock Common Stock Additional Total Outstanding Outstanding Paid-In Accumulated Stockholders' Shares Amount Shares Amount Capital Deficit Equity Balance at January 1, 2015 29,064,736 $ 35,866,260 4,583,282 $ 458 $ 1,974,955 $ (24,616,966) $ 13,224,707 Issuance of common stock upon exercise of stock options — — 732 1 1,718 — 1,719 Issuance of Series C convertible preferred stock, net of issuance costs 6,183,333 9,277,112 — — — — 9,277,112 Series C tranche Right — (2,112) — — — — (2,112) Issuance of common stock upon closing Potentia asset purchase, net of issuance costs — — 3,844,352 384 26,394,748 — 26,395,132 Issuance of Series D convertible preferred stock, net of issuance costs 14,384,938 32,050,646 — — — — 32,050,646 Share-based compensation expense — — — — 545,701 — 545,701 Net loss — — — — — (46,515,956) (46,515,956) Balance at December 31, 2015 49,633,007 77,191,906 8,428,366 843 28,917,122 (71,132,922) 34,976,949 Issuance of Series D convertible preferred stock, net of issuance costs 6,714,413 14,863,020 — — - — 14,863,020 Share-based compensation expense — — — — 1,078,988 — 1,078,988 Net loss — — — — - (27,124,637) (27,124,637) Balance at December 31, 2016 56,347,420 92,054,926 8,428,366 843 29,996,110 (98,257,559) 23,794,320 Issuance of Series E convertible preferred stock, net of issuance costs 7,792,035 19,747,847 — — — — 19,747,847 Issuance of common stock upon exercise of stock options — — 46,881 5 164,496 — 164,501 Issuance of warrants to an affiliate of stockholder — — — — 430,160 — 430,160 Issuance of common stock upon exercise of warrants — — 93,764 9 514,191 — 514,200 Conversion of convertible preferred stock to common stock (64,139,455) (111,802,773) 30,070,034 3,007 111,799,766 — - Issuance of common stock in initial public offering, net of issuance costs — — 11,695,107 1,169 149,878,047 — 149,879,216 Share-based compensation expense — - — — 5,418,710 — 5,418,710 Net loss — — — — — (51,006,094) (51,006,094) Balance at December 31, 2017 — $ — 50,334,152 $ 5,033 298,201,480 $ (149,263,653) $ 148,942,860 See accompanying notes to consolidated financial statements 89