AKAO 2017 Annual Report

40 existing cash, cash equivalents and short-term investments, will enable us to fund our current planned operations for at least the next twelve months from the issuance of these financial statements. In addition, other factors may arise causing us to need additional capital resources sooner than anticipated. We anticipate that we will need to raise substantial additional funds in the future to fund our operations. We may obtain additional financing through multiple sources, including but not limited to public or private equity offerings, debt financings, a credit facility, government contracts and/or strategic collaborations. Additional financing may not be available to us when we need it or it may not be available to us on acceptable terms, if at all. Our ability to obtain debt financing may be limited by covenants we have made under our loan and security agreement with Silicon Valley Bank and our pledge to Silicon Valley Bank of substantially all of our assets, other than our intellectual property, as collateral. The negative pledge in favor of Silicon Valley Bank with respect to our intellectual property under the loan and security agreement could further limit our ability to obtain additional debt financing. Our failure to raise capital as and when needed could have a negative impact on our financial condition and our ability to pursue our business strategies. The amount and timing of our future financing requirements will depend on many factors, including: • the size and timing of revenues from approved products like plazomicin (when approved); • the size, timing and type of the nonclinical and clinical studies that we decide to pursue in the development of our product candidates, including plazomicin and C-Scape; • the type, number, costs and results of the product candidate development programs that we are pursuing or may choose to pursue in the future; • the rate of progress and cost of clinical trials we may commence, preclinical studies and other discovery and research and development activities; • the costs associated with developing a plazomicin IVD assay or related diagnostic to support therapeutic drug monitoring; • the timing of, and costs involved in, seeking and obtaining FDA and other regulatory approvals, including any supplemental applications relating to our NDA for plazomicin; • our ability to enter into additional collaboration, licensing or other arrangements and the terms and timing of such arrangements; • the costs of preparing, filing, prosecuting, maintaining and enforcing any patent applications or claims and other intellectual property rights, including litigation costs and the results of such litigation; • the emergence of competing technologies and other adverse market developments; • the resources we devote to marketing, and, if approved, commercializing our product candidates; • the scope, progress, expansion, and costs of manufacturing our product candidates; • our ability to enter into additional government contracts, or other collaborative agreements, to support the development of our product candidates and development efforts, including potential collaborative arrangements relating to the commercialization of plazomicin outside the United States, if approved; and • the costs associated with being a public company. Future capital requirements will also depend on the extent to which we acquire or invest in additional complementary businesses, products and technologies. We currently have no understandings, commitments or agreements relating to any of these types of transactions. If we are unable to raise additional funds when needed, we may be required to delay, reduce, or terminate some or all of our development programs and clinical trials and we may not be able to continue as a going concern.