NVUS 2018 Annual Report

Contractual Obligations Contractual obligations represent future cash commitments and liabilities under agreements with third parties and exclude contingent liabilities for which we cannot reasonably predict future payment. Our contractual obligations primarily result from property leases for office space. Although we do have obligations for CRO services, the table below excludes potential payments we may be required to make under our agreements with CROs because timing of payments and actual amounts paid under those agreements may be different depending on the timing of receipt of goods or services or changes to agreed-upon terms or amounts for some obligations, and those agreements are cancelable upon written notice by the Company and therefore, not long-term liabilities. Additionally, the expected timing of payment of the obligations presented below is estimated based on current information. The following table represents our contractual obligations as of December 31, 2018, aggregated by type (in thousands):

Payments Due by Period

Less than 1 year

More than 5 years

Contractual Obligations

Total

1 - 3 years

3 - 5 years

Operating Lease Obligations

Ͷ $ Ͷ $

Ͷ Ͷ

$ $

514 $ 514 $

180 $ 180 $

334 $ 334 $

Total

See Note 6. Commitments and Contingencies in the notes to the consolidated financial statements for a summary of contracts held by the Company as of December 31, 2018.

Off-Balance Sheet Arrangements We do not have any off-balance sheet arrangements as defined in the rules and regulations of the SEC.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk. Per §229.305 of Regulation S-K, the Company, designated a Smaller Reporting Company as defined in §229.10(f)(1) of Regulation S-K, is not required to provide the disclosure required by this Item.

Item 8. Financial Statements and Supplementary Data. The Report of Independent Registered Public Acc

d ounting Firm, our consolidated financial statements an accompanying notes listed under Part IV, Item 15. Exhibits, Financial Statement Schedules of this Annual Report on Form 10-K are set forth beginning on page F-1 immediately following the signature page hereof and incorporated by reference herein.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. Not applicable

Item 9A. Controls and Procedures. Evaluation of Disclosure Controls and Procedures

As of December 31, 2018, our management, with the participation of our principal executive officer and principal finan FLDO RIILFHU HYDOXDWHG WKH HIIHFWLYHQHVV RI RXU GLVFORVXUH FRQWUROV DQG SURFHGXUHV 7KH WHUP ³GLVFORVXUH FRQWUROV DQG SURFHGXUHV ´ DV GHILQHG LQ 5XOHV D -15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the 6(&¶V UXOHV DQG IRUPV 'LVF losure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to WKH &RPSDQ\¶V PDQDJHPHQW LQFOXGLQJ LWV SULQFLSDO H[HFXWLYH DQG SULQFLSDO ILQDQFLDO officers, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost benefit relationship of possible controls and procedures. Based on this evaluation, management concluded that our disclosure controls and procedures were effective in alerting them in a timely manner to material information required to be disclosed in our periodic reports filed with the SEC.

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