ASTRIA THERAPEUTICS, INC. Discussing management and analyzing financial condition and results of operations (Form 10-Q)

You should read the following discussion and analysis of our financial condition
and results of operations together with our unaudited condensed consolidated
financial statements and the related notes and other financial information
included elsewhere in this Quarterly Report on Form 10-Q and the audited
consolidated financial statements and notes thereto included in our Annual
Report on Form 10-K for the year ended December 31, 2021 , or the 2021 Annual
Report on Form 10-K. Some of the information contained in this discussion and
analysis or set forth elsewhere in this Quarterly Report on Form 10-Q, including
information with respect to our plans and strategy for our business, includes
forward-looking statements that involve risks and uncertainties. You should
review the sections entitled "Risk Factors" and "Summary of the Material Risks
Associated with Our Business" in our 2021 Annual Report on Form 10-K for a
discussion of important factors that could cause actual results to differ
materially from the results described in or implied by the forward-looking
statements contained in the following discussion and analysis. This section
provides additional information regarding our business, current developments,
results of operations, cash flows, financial condition, contractual commitments
and critical accounting policies and estimates that require significant
judgement and have the most potential impact on our unaudited condensed
consolidated financial statements. This discussion and analysis is intended to
better allow investors to view the Company from management's perspective.

summary

We are a biopharmaceutical company focused on the discovery, development and
commercialization of novel therapeutics. Our mission is to bring hope with
life-changing therapies to patients and families that are affected by rare and
niche allergic and immunological diseases. Our lead product candidate is
STAR-0215, a potential best-in-class monoclonal antibody inhibitor of plasma
kallikrein in preclinical development for the treatment of hereditary
angioedema, or HAE, a rare, debilitating and potentially life-threatening
disease. STAR-0215 has the potential to be the most patient-friendly chronic
treatment option for HAE, based on the preclinical data generated to date and
the existing HAE treatment landscape.

In January 2021, we acquired Quellis Biosciences, Inc., or Quellis, including
the STAR-0215 program, and announced a private placement that, upon closing in
February 2021, resulted in gross proceeds to us of approximately $110.0 million
before deducting placement agent and other offering expenses, which we refer to
as the February 2021 Financing. In November 2020, after we stopped the
development of our edasalonexent program as a potential treatment for Duchenne
Muscular Dystrophy, or DMD,we decided to explore and evaluate strategic options.
The acquisition of Quellis was the result of our evaluation of strategic
options.

In September 2021, we formally changed our name to Astria Therapeutics, Inc.
from Catabasis Pharmaceuticals, Inc. The name "Astria" originates from the Greek
word for star, demonstrating our commitment to patients who serve as our guiding
stars.

HAE is a rare, debilitating and potentially life-threatening disease. The
treatment options for patients with HAE have improved, however, there is
remaining unmet medical need and the global market for HAE therapy is strong and
growing. The vision for our lead program, STAR-0215, is to develop a
best-in-class monoclonal antibody inhibitor of plasma kallikrein able to provide
long-acting, effective attack prevention for HAE with dosing once every three
months or longer. Targeted plasma kallikrein inhibition can prevent HAE attacks
by suppressing the pathway that generates bradykinin and causes excessive
swelling. STAR-0215 is currently in preclinical development and we expect to
submit an Investigational New Drug application, or IND, for STAR-0215 in
mid-2022 and plan to initiate a Phase 1a clinical trial shortly thereafter with
initial results anticipated by year end 2022. We believe that this clinical
trial has the opportunity to establish proof of concept for the differentiated
profile of STAR-0215. We expect the Phase 1a clinical trial to be conducted in a
single center with healthy volunteers and evaluate several single escalating
dose cohorts with subcutaneous administration. Our goals for this trial with
STAR-0215 are to demonstrate safety and tolerability, establish the prolonged
half-life, demonstrate the duration of inhibition of plasma kallikrein activity
and to refine dose and dosing regimen for studies in HAE patients. Assuming
positive data from the Phase 1a trial, we plan to initiate a Phase 1b/2 trial in
patients with HAE in 2023. We expect the Phase 1b/2 trial, if initiated, would
be a randomized, placebo-controlled, global multi-center trial in HAE patients,
and that the primary goals for the trial would be to demonstrate safety and
tolerability, establish prolonged half-life, demonstrate inhibition of plasma
kallikrein activity, and provide an initial assessment of the impact of
STAR-0215 on HAE attack rate.

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Our vision for STAR-0215 is supported by preclinical data showing potent
inhibition of the production of bradykinin by plasma kallikrein and a long
plasma half-life that could potentially enable patients to dose less frequently.
Multiple experiments have confirmed that STAR-0215 is approximately 10-fold more
potent than lanadelumab, a monoclonal antibody inhibitor of plasma kallikrein
commercialized under the name TAKHZYRO and an approved preventative treatment
for HAE, in inhibiting bradykinin production. In cynomolgus monkey studies,
lanadelumab was observed to have a half-life of approximately 10 days, which is
consistent with what has been reported in U.S. Food and Drug Administration, or
FDA, review documents and publications for lanadelumab in non-human primates.
STAR-0215 was administered at the same dose as lanadelumab and the observed
half-life was approximately 34 days, which is about a three to four-fold longer
half-life than observed for lanadelumab. We believe this could translate to a
half-life of several months for STAR-0215 in humans. If this longer half-life is
demonstrated in clinical trials, it has the potential to enable dosing once
every three months or longer.

We presented preclinical data from the STAR-0215 program at the American College
of Allergy, Asthma and Immunology, or ACAAI, Annual Scientific Meeting in
November 2021, demonstrating the high potency of STAR-0215 for binding to and
inhibition of plasma kallikrein on a different site than lanadelumab and
supporting the ability of YTE technology to extend half-life. YTE modifications
in STAR-0215 are designed to enable a longer duration of action. In cynomolgus
monkeys dosed with STAR-0215, the YTE modifications protected STAR-0215 from
antibody clearance leading to a more than three-fold increase in plasma
half-life compared to an antibody without the YTE modifications. Additional
preclinical data presented at the American Academy of Allergy, Asthma, and
Immunology, or AAAAI, Annual Meeting in February 2022 demonstrated how STAR-0215
binds to plasma kallikrein. At the Fc Receptor and IgG Targeted Therapies
Conference in April 2022, we presented pharmacokinetic modeling data supporting
that STAR-0215 has the potential to effectively inhibit plasma kallikrein and
prevent HAE attacks with subcutaneous dosing volumes appropriate for a
self-injectable device dosed once every three months or longer. The preclinical
and modeling data to date suggest that at equal or potentially lower doses
STAR-0215 would have a significantly longer duration of action than lanadelumab
and could result in STAR-0215 being an effective preventative therapy for
patients with HAE due to inhibition of the pathologic activity of plasma
kallikrein for an extended time period.

January 2021 Acquisition of Quellis and February 2021 Finance

In January 2021, we acquired Quellis pursuant to an Agreement and Plan of
Merger, or the Merger Agreement, by and among us, Cabo Merger Sub I, Inc., a
Delaware corporation and our wholly owned subsidiary, or the First Merger Sub,
Cabo Merger Sub II, LLC, a Delaware limited liability company and our wholly
owned subsidiary, or the Second Merger Sub, and Quellis, or the Quellis
Acquisition. Pursuant to the Merger Agreement, the First Merger Sub merged with
and into Quellis, pursuant to which Quellis was the surviving entity and became
a wholly owned subsidiary of ours, or the First Merger. Immediately following
the First Merger, Quellis merged with and into the Second Merger Sub, pursuant
to which the Second Merger Sub was the surviving entity, or the Second Merger
and, together with the First Merger, the Merger. Under the terms of the Merger
Agreement, at the closing of the Merger, we issued to the Quellis stockholders
555,444 shares of our common stock, and 50,504 shares of newly designated Series
X Preferred Stock (as described below). In addition, we assumed outstanding
Quellis stock options, which became options for 55,414 shares of our common
stock, and assumed a warrant exercisable for Quellis common stock, which became
a warrant to purchase 2,805 shares of Series X Preferred Stock at an exercise
price of $341.70 per share, and a warrant to purchase 30,856 shares of our
common stock at an exercise price of $2.10 per share. Upon stockholder approval
of the Conversion Proposal (as defined below) on June 2, 2021, the warrant to
purchase Series X Preferred Stock was converted into the right to purchase
467,500 shares of our common stock, at a per share exercise price of $2.10 per
share. We concluded that the Quellis Acquisition was not the acquisition of a
business, as substantially all of the fair value of the non-monetary assets
acquired was concentrated in a single identifiable asset, STAR-0215.

In January 2021, we also entered into a Stock Purchase Agreement, or the
Purchase Agreement, with certain institutional and accredited investors pursuant
to which we sold an aggregate of 35,573 shares of Series X Preferred Stock for
an aggregate purchase price of $110.0 million, or the February 2021 Financing.
Our stockholders approved the conversion of the Series X Preferred Stock into
shares of common stock in accordance with Nasdaq Listing Rule 5635(a), or the
Conversion Proposal, at our Annual Meeting of Stockholders on June 2, 2021. On
the fourth business day after the approval of the Conversion Proposal, each
share of Series X Preferred Stock automatically converted into 166.67 shares of
common stock, subject to certain beneficial ownership limitations, including
that a holder of Series X Preferred Stock is prohibited from converting shares
of Series X Preferred Stock into shares of common stock if, as a result of such
conversion, such holder, together with its affiliates, would beneficially own
more than a specified percentage (as of March 31, 2022, these percentages are
set at 4.99% to 9.99% and can be adjusted by the holder to a number between
4.99% and 19.99%) of the total number of shares of common stock issued and
outstanding immediately after giving effect to such conversion. Shares of Series
X Preferred Stock not converted automatically are thereafter subject to
conversion at the option of the holder, subject to certain beneficial ownership
limitations. As of April 29, 2022, 54,622 shares of Series X Preferred Stock
have been converted into 9,103,664

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shares of common stock and 31,455 shares of Series X Preferred Stock remained
outstanding. Each share of Series X Preferred Stock is convertible into 166.67
shares of common stock and therefore the number of shares of underlying common
stock issuable upon conversion of the outstanding shares Series X Preferred
Stock is 5,242,501. Outstanding shares of Series X Preferred Stock are subject
to conversion at the option of the holder.

Reverse stock split

On August 4, 2021, our Board of Directors approved a reverse stock split of our
outstanding shares of common stock at a ratio of one-for-six (1:6). The reverse
stock split became effective on August 19, 2021. The reverse stock split was
approved by our stockholders at our Annual Meeting of Stockholders on June 2,
2021. All share and per share amounts of the common stock included in this
Quarterly Report on Form 10-Q, including in the accompanying unaudited condensed
consolidated financial statements, have been retrospectively adjusted to give
effect to the reverse stock split for all periods presented, including
reclassifying an amount equal to the reduction in par value to additional
paid-in capital. As of April 29, 2022, we had 13,016,955 shares of outstanding
common stock and approximately 31,455 shares of outstanding Series X Preferred
Stock, which we issued in the Quellis Acquisition and the February 2021
Financing, which are convertible into 5,242,501 shares of common stock.

financial evaluation

Our business is almost entirely dependent on the success of STAR-0215, which is
in the preclinical stage of development, and has only produced results in
preclinical and nonclinical settings. Our net losses were $15.3 million and
$170.1 million (including $164.6 million of in-process research and development
expenses) for the three months ended March 31, 2022 and 2021, respectively. As
of March 31, 2022, we had an accumulated deficit of $471.1 million. We have
financed our operations to date primarily through private placements of
preferred stock before we became a public company and our private placement of
preferred stock in the February 2021 Financing, registered offerings of our
common stock and our at-the-market programs, and have devoted substantially all
of our financial resources and efforts to research and development, including
preclinical studies and clinical development programs. As of March 31, 2022, we
had $112.8 million in cash, cash equivalents and short-term investments. We
expect that our existing cash, cash equivalents and short-term investments are
sufficient to support our operating expenses and capital expenditures through
2023. Advancing the development of STAR-0215 or any future product candidates
will require a significant amount of capital. Our existing cash , cash
equivalents and short-term investments will not be sufficient to fund STAR-0215
or any future product candidates through regulatory approval. We will need to
obtain substantial additional funding to complete the development and
commercialization of STAR-0215 or any future product candidates and support our
continuing operations, future clinical trials and expansion of our pipeline.
Furthermore, our operating plan may change as a result of many factors currently
unknown to us, and we may need to seek additional financing to fund our
long-term operations sooner than planned. See the section titled "Liquidity and
Capital Resources" below for additional information.

Research and development expenditures

Research and development expenses consist primarily of costs incurred for our
research activities, including our drug discovery efforts, and the development
of our product candidates, which include:

? Employee related expenses including salaries, benefits and shares

Compensation Calculation

Expenses incurred under agreements with third parties, including contract

? Research organizations that conduct clinical trials and research and

development and preclinical activities on our behalf;

? cost of consultants.

? Cost of laboratory supplies and study of acquisition, development and manufacture

Materials; And

? Facilities and other expenses, which include direct and allotted expenses for

Rent and maintenance of facilities, insurance and other supplies.


Research and development costs are expensed as incurred. Nonrefundable advance
payments for goods or services to be received in the future for use in research
and development activities are deferred and capitalized. The capitalized amounts
are expensed as the related goods are delivered or the services are performed.

We typically use our employee, consultant and infrastructure resources across
our development programs. We track outsourced development costs by product
candidate or development program, but we do not allocate personnel costs, other
internal costs or external

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Consultant costs for specific product candidates or development programs. We record our R&D expenditures without any R&D tax incentives that we are entitled to receive from government authorities.

The following table summarizes our research and development expenses by program
(in thousands):

                                                               Three Months Ended March 31,
                                                                  2022                2021
STAR-0215                                                    $         6,269      $         458
Edasalonexent                                                             64                456
Other research programs                                                  301                  -

Costs not directly allocated to programs: employee expenses including cash compensation, benefits, and stock-based compensation

                                           1,375              1,227
Facilities                                                                80                 88
Consultants and professional expenses, including
stock-based compensation                                               2,226                276
Other                                                                     43                 88
Total costs not directly allocated to programs                         3,724              1,679
Total research and development expenses                      $        

10358 $2,593

Based on results from the PolarisDMD Phase 3 trial of edasalonexent for the treatment of DMD, in October 2020 We have discontinued all activities related to development of edasalonexent, including the ongoing GalaxyDMD open label extension trial, and we have halted all activities related to edasalonexent by mid-2021.

We expect to incur significant research and development expenses in the year
ending December 31, 2022 and in future periods in connection with the
preclinical and clinical activities related to the development of STAR-0215.
Because of this, we expect that our research and development expenses over the
next several quarters will be higher than the prior year periods. Development of
STAR-0215 and any future product candidates is highly uncertain and we cannot
reasonably estimate at this time the nature, timing and costs of the efforts
that would be necessary to complete the development of any such product
candidates. We are also unable to predict when, if ever, material net cash
inflows would commence from any such product candidates. This is due to the fact
that we would need to raise substantial additional capital to fund the clinical
development of any such product candidates and the numerous risks and
uncertainties associated with developing and commercializing product candidates,
including the uncertainties of:

? Create an appropriate safety profile with toxicology that enables IND

studies;

? Successful enrollment and completion of clinical trials;

? Feedback from the Food and Drug Administration and foreign regulatory authorities on the planned trial

designs, preclinical studies, manufacturing capabilities and plans;

? Changes in the Food and Drug Administration and foreign regulatory approval processes or views

may delay or prevent approval of new products;

? receiving marketing approvals from the relevant regulatory authorities;

? Establishing or making arrangements with commercial manufacturing capabilities

Third Party Manufacturers

? Obtaining, maintaining and regulating the protection of patents and trade secrets

exclusivity.

Commercial sales launch, if we can get marketing approval,

? Whether alone or in cooperation with others, our ability to compete

successfully combined with other products; And

? Acceptable security file continues after approval.

Any change in the outcome of any of these variables with respect to the development of STAR-0215 ​​or any future candidate product would significantly alter the costs and timing associated with the development of that candidate product.

General and administrative expenses

General and administrative expenses consist primarily of salaries and other
related costs, including stock-based compensation, for personnel in executive,
finance, accounting, commercial, business development, legal and human resources
functions. Other significant costs include facility costs not otherwise included
in research and development expenses, legal fees relating to patent and
corporate matters, and fees for accounting and consulting services.

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We anticipate that in the near term our general and administrative expenses will
remain relatively consistent with their current levels, although as we continue
to develop STAR-0215 and potentially expand our pipeline to include other
product candidates, our general and administrative expenses may increase.

acquired in the research process and development expenditures

Acquired in-process research and development ("IPR&D") expense resulted from the
Quellis Acquisition in January 2021. The acquisition cost allocated to acquire
IPR&D with no alternative future use was recorded as expense at the acquisition
date and no additional IPR&D expense relating to the Quellis Acquisition is
expected to be reported in future periods.

Manpower Reduction

In December 2020, following the decision to stop development of edasalonexent,
we announced that we were reducing our workforce during the quarter ended
December 31, 2020. The reduction resulted in total expenses for employee
severance and employee benefits of $0.6 million, of which $0.2 million was
recorded during the three months ended March 31, 2021. As of March 31, 2022, all
severance and employee benefits related to the reduction of workforce has been
paid.

Other Income (Expense), Net

Other net income (expenses) consists of interest income earned on cash and cash equivalents and our short-term investments and net depreciation expenses on short-term investments, and gains and losses related to foreign currency fluctuations.

Significant accounting policies, judgments and estimates

This discussion and analysis of our financial condition and results of
operations is based on our financial statements, which we have prepared in
accordance with United States generally accepted accounting principles. We
believe that several accounting policies are important to understanding our
historical and future performance. We refer to these policies as critical
because these specific areas generally require us to make judgments and
estimates about matters that are uncertain at the time we make the estimate, and
different estimates-which also would have been reasonable-could have been used.
On an ongoing basis, we evaluate our estimates and judgments. We base our
estimates on historical experience and other market-specific or other relevant
assumptions that we believe to be reasonable under the circumstances, the
results of which form the basis for making judgments about the carrying value of
assets and liabilities that are not readily apparent from other sources. Actual
results may differ from these estimates under different assumptions or
conditions.

During the three months ended March 31, 2022, there were no material changes to
our critical accounting policies as reported in our 2021 Annual Report on Form
10-K.

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Results of Operations

We anticipate that the results of our operations may fluctuate in the foreseeable future due to several factors, such as the progress of our research and development efforts and the timing and outcome of regulatory submissions.

Comparison of the three months ended March 31, 2022 and 2021

The following table summarizes our results of operations for the three months
ended March 31, 2022 and 2021, together with the dollar change in those items
(in thousands):

                                                     Three Months Ended March 31,           Period-to-
                                                       2022                 2021           Period Change
Operating expenses:
Research and development                          $        10,358     $          2,593    $         7,765
General and administrative                                  5,020                2,880              2,140
Acquired in-process research and development                    -          
   164,612          (164,612)
Total operating expenses                                   15,378              170,085          (154,707)
Loss from operations                                     (15,378)            (170,085)            154,707
Other income, net                                              55                    1                 54
Net loss                                          $      (15,323)     $      (170,084)    $       154,761

Research and development expenditures

Research and development expenses increased by $7.8 million to $10.4 million for
the three months ended March 31, 2022 from $2.6 million for the three months
ended March 31, 2021, an increase of 299%. The substantial increase in research
and development expenses was primarily attributable to a $5.8 million increase
in direct costs to support preclinical development of the STAR-0215 program, a
$2.0 million increase to professional service expenses primarily due to expense
recognized on vested warrants inherited in the Quellis Acquisition as described
in Note 1, "Organization and Operations", a $0.3 million increase in other
research and programs, and a $0.1 million increase in employee expenses. These
increases were offset by a $0.4 million decrease in costs to support the
edasalonexent program due to stopping all development activities associated with
the program.

General and administrative expenses

General and administrative expenses increased by $2.1 million to $5.0 million
for the three months ended March 31, 2022 from $2.9 million for the three months
ended March 31, 2021, an increase of 74%. The increase was attributable to a
$0.7 million increase in professional services expense primarily due to new
product planning and business development activities, a $0.6 million increase in
employee related costs, a $0.5 million increase in stock-based compensation
expense, a $0.2 million increase in our Delaware franchise tax fee, and a $0.1
million increase in insurance expense.

acquired in the research process and development expenditures

Acquired IPR&D expense was $164.6 million for the three months ended March 31,
2021. Acquired IPR&D expense resulted from the Quellis Acquisition in January
2021. The acquisition cost allocated to acquire IPR&D with no alternative future
use was recorded as an expense as of the closing date of the Quellis
Acquisition. No acquired IPR&D expenses were incurred for the three months
ended
March 31, 2022.

Other Income, Net

Other income, net increased by $54,000 to $55,000 for the three months ended
March 31, 2022 from $1,000 for the three months ended March 31, 2021. The
increase was primarily attributable to an increase in interest and investment
income due to higher interest yields and an increase in our interest-earning
assets.

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Liquidity and capital resources

From our inception through March 31, 2022, we raised an aggregate of $426.0
million through private placements of preferred stock before we became a public
company and our private placement of preferred stock in the February 2021
Financing, registered offerings of our common stock and our at-the-market
programs. As of March 31, 2022, we had cash, cash equivalents and short-term
investments of $112.8 million. We expect that our existing cash , cash
equivalents and short-term investments are sufficient to support our operating
expenses and capital expenditures through 2023. We have based this estimate on
assumptions that may prove to be wrong, and we could exhaust our available
capital resources sooner than we anticipate.

We will need to obtain substantial additional funding to complete the
development and commercialization of STAR-0215 or any future product candidates
and support our continuing operations, future clinical trials and expansion of
our pipeline. In addition, STAR-0215 or any future product candidates, if
approved, may not achieve commercial success. Our commercial revenues, if any,
will be derived from sales of product candidates that we do not expect to be
commercially available for years, if at all. Accordingly, we will need to
continue to rely on additional financing to achieve our business objectives.
Adequate additional financing may not be available to us on acceptable terms, or
at all. The terms of any financing may adversely affect the holdings or the
rights of our stockholders. Market volatility, inflation, interest rate
fluctuations and concerns related to the COVID-19 pandemic may have a
significant impact on the availability of funding sources and the terms on which
any funding may be available. If we fail to raise capital as, and when, needed,
we may be unable to continue our operations at planned levels and be forced to
modify our business strategies and reduce or terminate our operations.

February 2021 Finance

employment January 28, 2021we have entered into a purchase agreement and have sold a total of 35,573 shares of Series X preferred stock in February 1, 2021
Total Returns Deadline Approx $110.0 millionnet proceeds $104.3 million.

Put on the market

We had entered into various sales agreements with Cowen and Company LLC , or
Cowen, pursuant to which we could issue and sell shares of common stock, under
at-the-market offering programs. On May 20, 2021, we terminated our sales
agreement with Cowen. On June 30, 2021, we entered into an Open Market Sale
AgreementSM with Jefferies LLC , or Jefferies, pursuant to which we can issue
and sell shares of common stock, of up to $25.0 million under at-the-market
offering programs (collectively, with the Cowen at-the-market offering program,
the ATM Programs). We pay the sales agent commissions of 3% of the gross
proceeds from any common stock sold through the ATM Programs. As of March 31,
2022, we have not sold any shares of common stock pursuant to the Jefferies
agreement. There was also no activity from the ATM Programs during the three
months ended March 31, 2021.

cash flow

Comparison of the three months ended March 31, 2022 and 2021

The following table provides information regarding our cash flows for the three months ended March 31, 2022 and 2021 (in thousands):

                                                                Three Months Ended March 31,
                                                                   2022                 2021
Net cash used in operating activities                        $       (12,559)      $      (8,716)
Net cash (used in) provided by investing activities                  (27,099)              26,445
Net cash provided by financing activities                                   -             104,261

Net (decrease) increase in cash and cash equivalents and restricted cash

                                              $       

(39,658) $121,990

net cash used in operating activities

Net cash used in operating activities was $12.6 million For the three months ending March 31, 2022 It mainly consists of net loss $15.3 million
Adjusted to calculate compensation based on stock of $1.2 million The expenses recognized for orders $1.5 million.

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Net cash used in operating activities was $8.7 million for the three months
ended March 31, 2021 and consisted primarily of a net loss of $170.1 million
adjusted for the non-cash portion of acquired IPR&D of $164.6 million and other
non-cash items such as stock-based compensation expense of $0.4 million and a
net increase in operating assets of $3.6 million, which resulted primarily from
a decrease in accrued expenses of $2.7 million and a decrease in accounts
payable of $1.7 million, partially offset by a decrease in prepaid expenses of
$0.8 million.

net cash (Used in) provided by investment activities

Net cash used in investing activities was $27.1 million for the three months
ended March 31, 2022 and consisted primarily of proceeds from purchases of
short-term investments of $81.7 million offset by maturities of short-term
investments of $54.6 million. Net cash provided by investing activities was
$26.4 million for the three months ended March 31, 2021 and consisted primarily
of proceeds from maturities of short-term investments of $20.0 million and cash
acquired in the Quellis Acquisition of $6.4 million.

Net cash generated from financing activities

Net cash provided by financing activities was $104.3 million during the three
months ended March 31, 2021, which was attributable to net proceeds of $104.3
million from the February 2021 Financing.

Funding requirements

Our primary uses of capital are compensation and related expenses, manufacturing costs for preclinical and clinical materials, third party preclinical research and development services, and other legal and regulatory and overhead expenses.

From March 31, 2022We had an accumulated deficit $471.1 million. We have been primarily involved in research and development activities and have incurred operating losses and negative cash flow from operations since our inception.

As of March 31, 2022, we had available cash, cash equivalents and short-term
investments of $112.8 million. We expect that our existing cash , cash
equivalents and short-term investments are sufficient to support our operating
expenses and capital expenditures through 2023.

Our estimate as to how long we expect our cash, cash equivalents and short-term
investments to be able to fund our operations is based on assumptions that may
prove to be wrong, and we could use our available capital resources sooner than
we currently expect. Because of the numerous risks and uncertainties associated
with research, development and commercialization of biotechnology products, we
are unable to estimate the exact amount of our operating capital requirements.
Further, changing circumstances, some of which may be beyond our control, could
cause us to consume capital significantly faster than we currently anticipate,
and we may need to seek additional funds sooner than planned. Our future funding
requirements will depend on many factors, including:

Progress, timing, costs, and results of clinical trials, research, and

? Preclinical development efforts for STAR-0215 ​​and any future product

Candidates, including potential future clinical trials;

? Our ability to enter into any additional terms and conditions and timing

cooperation, licensing or other arrangements we may make;

? The number and characteristics of future product candidates we are following and

their development requirements;

? the outcome, timing and costs of obtaining regulatory approvals;

The costs of marketing activities for any of our product candidates

which obtain marketing approval to the extent that these costs are not

The responsibility of any future collaborators, including costs and timing

? Create product sales, marketing, market reach, distribution, and sourcing

Chain and manufacturing capabilities, expanding the scope of pharmaceutical manufacturing

material and drug product on clinical and commercial scale, securing all raw materials

The materials needed to make such an expansion and successfully complete the whole

other related activities;

? If we obtain marketing approval for any of the candidates for our products, the revenue, if

any of the commercial sales of our product candidates;

If we obtain marketing approval for any of the candidates for our products, our ability

? To successfully compete with other approved products that have been approved or

They are used as the indications for which our products are approved,

Including with respect to STAR-0215 ​​in HAE;

? Our headcount growth and associated costs;

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Costs of preparing, filing, following-up and maintaining patent applications

? Protect and defend our intellectual property rights

intellectual property claims;

Progress, timing, costs, and results of clinical trials, research, and

? Preclinical development efforts for STAR-0215 ​​and any future product

Candidates, including potential future clinical trials;

? The impact of the COVID-19 pandemic on our operations, business and prospects;

And

? The costs of operating as a public company.

Identifying potential product candidates and conducting preclinical testing and
clinical trials is a time-consuming, expensive and uncertain process that takes
years to complete, and we may never generate the necessary data or results
required to obtain marketing approval and achieve product sales. In addition,
STAR-0215 or any future product candidates, if approved, may not achieve
commercial success. Our commercial revenues, if any, will be derived from sales
of medicines that we do not expect to be commercially available for years, if at
all. Accordingly, we will need to continue to rely on additional financing to
achieve our business objectives. Adequate additional financing may not be
available to us on acceptable terms, or at all.

Until such time, if ever, as we can generate substantial product revenues, we
expect to finance our cash needs through a combination of equity offerings, debt
financings, collaborations, strategic alliances and licensing arrangements. We
do not have any committed external source of funds. To the extent that we raise
additional capital through the sale of equity or convertible debt securities,
our stockholders' ownership interests will be diluted, and the terms of these
securities may include liquidation or other preferences that adversely affect
our stockholders' rights. Debt financing, if available, would result in periodic
payment obligations and may involve agreements that include restrictive
covenants that limit our ability to take specific actions, such as incurring
debt, making capital expenditures or declaring dividends, that could adversely
impact our ability to conduct our business.

If we raise funds through collaborations, strategic alliances or licensing
arrangements with third parties, we may have to relinquish valuable rights to
our technologies, future revenue streams, research programs or product
candidates or to grant licenses on terms that may not be favorable to us. If we
are unable to raise additional funds through equity or debt financings when
needed, we may be required to delay, limit, reduce or terminate our product
development or future commercialization efforts or grant rights to develop and
market product candidates that we would otherwise prefer to develop and market
ourselves.

Physical cash requirements of known contractual obligations

The following table summarizes our significant contractual obligations as of the payment due date by period March 31, 2022:

Payments due by period

                                                              Less than 1                       More than 3
(In thousands)                                     Total          Year         1 - 3 Years         Years
Operating lease obligations (1)                     1,625              731              894                -
Payments under vendor agreements (2)                  766              766                -                -
Total contractual cash obligations                $ 2,391    $       1,497    $         894    $           -


(1)Represents future minimum lease payments under our non-cancelable operating
leases. The minimum lease payments above do not include any related common area
maintenance charges or real estate taxes.

(2) Represents future principal payments under vendor agreements if certain clinical milestones related to Phases 1A of the planned STAR-0215 ​​clinical trials are met.

As of March 31, 2022, material contractual obligations included our facility
leases pursuant to which we will make payments of $1.6 million. These payments
include those pursuant to our current facility lease until its expiration in
June 2022 as well as a new sublease we entered into in January 2022, as
described in Note 7, "Commitments", commencing in May 2022 through its
expiration in June 2024. As of March 31, 2022, also have material contractual
obligations to certain vendors to which we will make payments of $0.8 million if
certain clinical milestones related to the planned Phase 1a clinical trials of
STAR-0215 are met.

We enter into agreements in the normal course of business with vendors to conduct preclinical research studies and other services and products for operational purposes. We have not included these payments in the above schedule of contractual obligations because contracts are revocable at any time by us, generally on 60 days’ prior written notice, and we therefore believe that our non-cancellable obligations under these agreements are not material.

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