AKAO 2017 Annual Report

98 Financing Activities Net cash provided by financing activities was $130.4 million for the year ended December 31, 2017. The net cash provided by financing activities during the year ended December 31, 2017 includes $121.2 million of net proceeds, after deducting the underwriting discounts and commissions, from an underwritten public offering of our common stock in May 2017, approximately $10.0 million of gross proceeds from the sale of contingently redeemable common stock to the Gates Foundation in May 2017, $0.4 million of proceeds from the exercise of certain warrants issued from the Private Placement, and $3.0 million from issuance of common stock pursuant to our equity incentive plans, partially offset by a $4.2 million principal repayment on the former term loan provided by Solar Capital Ltd. Net cash provided by financing activities amounted to $135.5 million for the year ended December 31, 2016. The net cash provided by financing activities during the year ended December 31, 2016 includes $94.9 million of net proceeds, after deducting the underwriting discounts and commissions, from an underwritten public offering of our common stock in December 2016, $25.1 million for the sale of common stock and warrants to purchase common stock from the Private Placement in June 2016, $10.0 million from the former term loan provided by Solar Capital Ltd. in June 2016, $3.8 million through ATM offerings in which Cowen and Company, LLC acted as sales agent, $1.2 million of proceeds from the exercise of certain warrants issued under the Private Placement, and $0.5 million from the issuance of common stock pursuant to our equity incentive plans. Net cash provided by financing activities amounted to $17.3 million for the year ended December 31, 2015. The net cash provided by financing activities in 2015 consisted primarily of net proceeds from borrowings of $14.6 million, the issuance of common stock pursuant to incentive plans of $1.4 million and the sale of common stock of $1.3 million through ATM equity offerings in which Cowen and Company, LLC acted as sales agent. Contractual Obligations and Commitments The following table summarizes our contractual obligations as of December 31, 2017 (in thousands): Payments due by period Contractual Obligations (1) Total Less than 1 year 1 to 3 years 4 to 5 years After 5 years (in thousands) Long-term debt obligations (2) .................................. 22,833 12,500 10,333 - - Contract manufacturing obligations (3) ..................... 20,722 17,829 2,893 - - Purchase obligations (4) ............................................. 1,341 1,341 - - - Lease obligations (5) .................................................. 68,949 4,028 12,619 13,522 38,780 Total.......................................................................... 113,845 35,698 25,845 13,522 38,780 (1) Pursuant to the Loan and Security Agreement with Solar Capital, we entered into a Success Fee Agreement with Solar Capital under which we agreed to pay Solar Capital $1.0 million (the “Success Fee”) if we obtain FDA approval to market plazomicin. If such approval is obtained, the Success Fee shall be due the later of (i) August 5, 2019 or (ii) the date such FDA approval is obtained, provided such approval is obtained prior to August 5, 2025. This potential payment has been excluded from the table above due to the uncertainty of the occurrence and/or timing of such approval. (2) The long-term debt obligation is comprised of a Loan and Security Agreement that was executed in August 2015 and repaid in February 2018. (3) These amounts are comprised of contractual obligations related to manufacturing of our drug supply for our product candidates for use in our clinical trials and NDA submission. (4) These amounts are comprised of commitments to expand our infrastructure to support our growth into a commercial organization. (5) These amounts are comprised of the estimated remaining rent payments on our existing lease agreements.