1. Nature of Business and Basis of Presentation Organization Avedro, Inc. (Avedro or the Company) was incorporated in Delaware on November 6, 2002. The Company is an ophthalmic pharmaceutical and medical device company developing and commercializing a suite of products based on its proprietary corneal collagen cross-linking technology platform (the Avedro Cross-Linking Platform) to address a wide variety of ophthalmic disorders and conditions, primarily associated with corneal weakness. The primary components of the Avedro Cross-Linking Platform are proprietary pharmaceutical formulations of riboflavin (vitamin B2), a single dose pharmaceutical, sold primarily in conjunction with the Companys innovative devices for the delivery of metered doses of UVA light, a medical device. The technological advances that the Company has made with the Avedro Cross-Linking Platform have enabled the Company to expand the use of corneal cross-linking beyond the traditional areas in which it has been historically applied. In April 2016, the Company received U.S. Food and Drug Administration (FDA) clearance for the single dose pharmaceuticals Photrexa Viscous and Photrexa, and the KXL System medical device. The Company sells these products in the United States through a direct sales force and distributes its products outside of the United States through international medical device distributors. As of September 30, 2019, the Company has devoted the majority of its efforts to business planning, research and development, starting up production, developing markets, raising capital, recruiting management and technical staff and commercializing its newly approved products in the United States. Unaudited Interim Condensed Financial Statements The accompanying unaudited interim condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and pursuant to Article 10 of Regulation S-X of the Securities Act of 1933, as amended (the Securities Act). Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. These unaudited interim condensed financial statements include only normal and recurring adjustments that the Company believes are necessary to fairly state the Companys financial position and the results of operations and cash flows. Interim-period results are not necessarily indicative of results of operations or cash flows for a full year or any subsequent interim period. The condensed balance sheet at December 31, 2018 has been derived from audited financial statements at that date, but does not include all disclosures required by U.S. GAAP for complete financial statements. Because all of the disclosures required by U.S. GAAP for complete financial statements are not included herein, these unaudited interim condensed financial statements and the notes accompanying them should be read in conjunction with the audited financial statements and accompanying notes thereto included in the Companys Annual Report on Form 10-K for the year ended December 31, 2018, as filed with the Securities and Exchange Commission on March 21, 2019. Changes in Presentation Changes have been made to the prior period presentation in the condensed balance sheets to conform to the current period presentation. Amounts previously classified as deferred rent are now included in other non-current liabilities. Reverse Stock Split On January 31, 2019, the Companys board of directors and stockholders approved an amended and restated certificate of incorporation to, among other things, effect a reverse split on the outstanding shares of the Companys common stock and convertible preferred stock on a one-for-4.45 basis (the Reverse Stock Split). The Reverse Stock Split became effective on February 1, 2019 and has been shown on a retroactive basis within all periods presented. The par values of the common stock and convertible preferred stock were not adjusted as a result of the Reverse Stock Split. Initial Public Offering In February 2019, the Company closed its initial public offering (IPO), in which it issued and sold 5,000,000 shares of common stock at a public offering price of $14.00 per share, for net proceeds to the Company of approximately $61,025, after deducting underwriting discounts and commissions and offering expenses payable by the Company. Upon the closing of the IPO, all of the Companys outstanding shares of convertible preferred stock were automatically converted into an aggregate of 10,635,89 4 shares of common stock and all warrants to purchase shares of convertible preferred stock were automatically converted into warrants to purchase up to an aggregate of 202,981 shares of common stock, resulting in the reclassification of the related convertible preferred stock warrant liability to additional paid-in-capital. Subsequent to the closing of the IPO, there were no shares of preferred stock or warrants to purchase shares of convertible preferred stock outstanding. Merger Agreement On August 7, 2019, the Company entered into a definitive agreement and plan of merger (the Merger Agreement) with Glaukos Corporation (Glaukos) and Atlantic Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Glaukos (Merger Sub), pursuant to which, among other things, the Merger Sub will be merged with and into the Company, with the Company surviving as a wholly owned subsidiary of Glaukos (the Merger). Pursuant to the terms and subject to the conditions set forth in the Merger Agreement, which has been approved by the board of directors of each of Glaukos and the Company, at the effective time of the Merger (the Effective Time), each share of the Companys common stock issued and outstanding immediately prior to the Effective Time (other than shares of the Companys common stock owned by Glaukos, Merger Sub or the Company or any direct or indirect, wholly owned subsidiary of the Company or Glaukos) will be converted into the right to receive 0.365 shares of Glaukos common stock. The Company currently expects the Merger to close in the fourth quarter of 2019, subject to customary closing conditions and regulatory approvals, including the approval of stockholders of the Company. Liquidity The Company has had recurring losses from operations since inception and has an accumulated deficit of $201,296 at September 30, 2019, and incurred net losses of $24,846 and $18,710 for the nine months ended September 30, 2019 and 2018, respectively. Prior to the Companys IPO, the Company had funded its operations principally from issuances of preferred stock, debt financings, and product and service sales. At September 30, 2019, the Company had $52,146 of unrestricted cash and cash equivalents. The Company expects the cash balance at September 30, 2019 will be sufficient to fund operations for a period of at least twelve months from the date the financial statements are issued.