APLS 2017 Annual Report

90 APELLIS PHARMACEUTICALS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31, 2015 2016 2017 Operating Activities Net loss $ (46,515,956) $ (27,124,637) $ (51,006,094) Adjustments to reconcile net loss to net cash used in operating activities: Non-cash acquisition of in-process research and development 26,486,000 — — Share-based compensation expense 545,701 1,078,988 5,418,710 Loss from remeasurement of fair value of warrants — — 153,692 Accretion of discounts — — 13,563 Amortization — — 11,935 Changes in operating assets and liabilities: Refundable research and development credit (1,313,398) 408,934 50,443 Prepaid assets (190,926) (873,884) (3,927,155) Other current assets 110,054 — 10,177 Other assets (96,050) 68,743 (51,622) Accounts payable 1,725,904 69,779 932,299 Accrued expenses 392,724 368,999 1,798,979 Net cash used in operating activities (18,855,947) (26,003,078) (46,595,073) Financing Activities Issuance of Series C convertible preferred stock, net of issuance costs 9,275,001 — — Issuance of Series D convertible preferred stock, net of issuance costs 32,050,646 14,863,020 — Issuance of Series E convertible preferred stock, net of issuance costs — — 19,747,847 Deferred issuance costs (90,868) — — Proceeds from issuance of term loan, net of issuance costs — — 19,795,007 Proceeds from issuance of promissory note payable to an affiliate of stockholder — — 6,569,840 Proceeds from issuance of common stock, net of issuance costs 1,719 — 150,062,959 Proceeds from the issuance of common stock warrants — — 520,760 Proceeds from exercise of stock options and warrants — — 678,701 Net cash provided by financing activities 41,236,498 14,863,020 197,375,114 Net increase (decrease) in cash and cash equivalents 22,380,551 (11,140,058) 150,780,041 Cash and cash equivalents at beginning of period 13,622,995 36,003,546 24,863,488 Cash and cash equivalents at end of period $ 36,003,546 $ 24,863,488 $ 175,643,529 Supplemental Disclosure of Non-Cash Financing Activities Conversion of convertible preferred stock to common stock $ — $ — $ 111,802,773 See accompanying notes to consolidated financial statements