1. Organization and Operations Applied Genetic Technologies Corporation (the Company or AGTC) was incorporated as a Florida corporation on January 19, 1999 and reincorporated as a Delaware corporation on October 24, 2003. The Company is a clinical-stage biotechnology company that uses a proprietary gene therapy platform to develop transformational genetic therapies for patients suffering from rare and debilitating diseases. On February 11, 2020, the Company closed an underwritten public offering of 6.5 million shares of its common stock at $5.00 per share, generating gross proceeds of $32.5 million, before deducting underwriting discounts, commissions and other offering expenses payable by the Company. Additionally, the underwriters exercised their option to purchase an additional 975,000 shares of common stock to cover over-allotments, and such transaction closed on February 13, 2020 and generated additional gross proceeds of $4.9 million. On June 30, 2020, the Company entered into a loan agreement for a term loan in the aggregate principal amount of up to $25.0 million. On that date, the Company received net loan proceeds of $9.9 million, before consideration of any related debt financing fees. The loan agreement is further discussed at Note 8 in these Notes to Financial Statements. In July 2015, the Company entered into a collaboration agreement with Biogen MA, Inc., a wholly owned subsidiary of Biogen Inc. (Biogen), pursuant to which the Company and Biogen collaborated to develop, seek regulatory approval for and commercialize gene therapy products to treat X-linked retinoschisis (XLRS), X-linked retinitis pigmentosa (XLRP) and discovery programs targeting three indications based on the Companys adeno-associated virus vector technologies. The Biogen collaboration agreement became effective in August 2015. On December 7, 2018, the Company received notice from Biogen that it had elected to terminate the collaboration agreement, which became effective on March 8, 2019. The Biogen collaboration agreement and other transactions with Biogen are further discussed at Note 9 in these Notes to Financial Statements. The Company has devoted substantially all of its efforts to research and development, including clinical trials. The Company has not completed the development of any products. The Company has generated revenue from collaboration agreements, sponsored research payments and grants, but has not generated product revenue to date and is subject to a number of risks similar to those of other early stage companies in the biotechnology industry, including dependence on key individuals, the difficulties inherent in the development of commercially viable products, the need to obtain additional capital necessary to fund the development of its products, development by the Company or its competitors of technological innovations, risks of failure of clinical studies, protection of proprietary technology, compliance with government regulations and ability to transition to large-scale production of products. As of June 30, 2020, the Company had an accumulated deficit of $181.4 million. While the Company expects to continue to generate some revenue from partnering, the Company expects to incur losses for the foreseeable future. The Company has funded its operations to date primarily through public offerings of its common stock, private placements of its preferred stock, collateralized borrowing and collaborations. As of June 30, 2020, the Company had cash and cash equivalents and liquid investments of $80.5 million.