alt-10q_20190630.htm

Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: as of August 13, 2019 there were 15,338,001 shares of the registrant’s common stock, par value $0.0001 per share, outstanding.

	June 30, 2019			December 31, 2018
ASSETS
Current assets:
Cash and cash equivalents	$	41,671,738		$	33,718,713
Restricted cash		34,174			634,416
Total cash, cash equivalents and restricted cash		41,705,912			34,353,129
Accounts receivable		2,629,840			3,461,938
Tax refund receivable		1,080,559			1,008,973
Prepaid expenses and other current assets		688,862			548,094
Total current assets		46,105,173			39,372,134
Property and equipment, net		1,222,130			1,342,802
Right of use asset		732,380			—
Intangible assets, net		13,760,216			13,851,924
Other assets		156,115			183,682
Total assets	$	61,976,014		$	54,750,542
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Notes payable	$	163,724		$	71,596
Accounts payable		270,097			372,860
Accrued expenses and other current liabilities		3,046,567			4,082,949
Total current liabilities		3,480,388			4,527,405
Deferred income taxes		58,500			58,500
Other long-term liabilities		2,212,104			1,852,071
Total liabilities		5,750,992			6,437,976
Commitments and contingencies (Note 12)
Stockholders’ equity:
Common stock, $0.0001 par value; 200,000,000 shares authorized; 13,451,106 and 9,078,735 shares issued; 13,450,751 and 9,078,238 shares outstanding at June 30, 2019 and December 31, 2018, respectively		1,313			876
Additional paid-in capital		183,604,057			170,207,844
Accumulated deficit		(122,340,185	)		(116,855,991	)
Accumulated other comprehensive loss – foreign currency translation adjustments		(5,040,163	)		(5,040,163	)
Total stockholders’ equity		56,225,022			48,312,566
Total liabilities and stockholders’ equity	$	61,976,014		$	54,750,542

The accompanying notes are an integral part of the unaudited consolidated financial statements.

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2019			2018			2019			2018

Revenue	$	1,626,029		$	2,417,140		$	4,581,622		$	5,108,121
Operating expenses:
Research and development		2,945,096			4,918,961			6,162,768			10,665,890
General and administrative		2,231,817			2,933,982			4,298,299			5,381,917
Impairment charges		—			—			—			490,676
Total operating expenses		5,176,913			7,852,943			10,461,067			16,538,483
Loss from operations		(3,550,884	)		(5,435,803	)		(5,879,445	)		(11,430,362	)
Other income (expense):
Changes in fair value of warrant liability		(46,000	)		(5,228,691	)		(46,000	)		(3,680,709	)
Changes in fair value of embedded derivatives		—			4,912			—			(2,130	)
Interest expense		(748	)		(1,921	)		(1,488	)		(2,791	)
Interest income		239,964			25,617			425,211			57,206
Other income (expense)		(29,220	)		(49	)		17,528			257,675
Total other income (expense)		163,996			(5,200,132	)		395,251			(3,370,749	)
Net loss before income tax benefit		(3,386,888	)		(10,635,935	)		(5,484,194	)		(14,801,111	)
Income tax benefit		—			1,497,093			—			2,488,731
Net loss		(3,386,888	)		(9,138,842	)		(5,484,194	)		(12,312,380	)
Other comprehensive income (loss) – foreign currency translation adjustments		—			(1,078,648	)		—			(463,177	)
Comprehensive loss	$	(3,386,888	)	$	(10,217,490	)	$	(5,484,194	)	$	(12,775,557	)
Net loss	$	(3,386,888	)	$	(9,138,842	)	$	(5,484,194	)	$	(12,312,380	)
Preferred stock accretion and other deemed dividends		—			(700,093	)		(452,925	)		(2,591,414	)
Net loss attributed to common stockholders	$	(3,386,888	)	$	(9,838,935	)	$	(5,937,119	)	$	(14,903,794	)
Weighted-average common shares outstanding, basic and diluted		13,127,773			956,057			11,318,819			817,077
Net loss per share attributed to common stockholders, basic and diluted	$	(0.26	)	$	(10.29	)	$	(0.52	)	$	(18.24	)

The accompanying notes are an integral part of the unaudited consolidated financial statements.

CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY

	Common Stock				Additional Paid-In		Accumulated			Accumulated Other Comprehensive			Total Stockholders’
	Shares		Amount		Capital		Deficit			Loss			Equity
Balance, January 1, 2019		9,078,239	$	876	$	170,207,844	$	(116,855,991	)	$	(5,040,163	)	$	48,312,566
Stock based compensation and vesting of restricted stock		71				407,742								407,742
Issuance of common stock in registered direct offering, net of offering costs		4,361,370		436		12,668,348								12,668,784
Issuance of common stock upon exercise of warrants		11,000		1		30,323								30,324
Net loss								(2,097,306	)					(2,097,306	)
Balance, March 31, 2019		13,450,680	$	1,313	$	183,314,257	$	(118,953,297	)	$	(5,040,163	)	$	59,322,110
Stock based compensation and vesting of restricted stock		71				289,800								289,800
Net loss								(3,386,888	)					(3,386,888	)
Balance, June 30, 2019		13,450,751	$	1,313	$	183,604,057	$	(122,340,185	)	$	(5,040,163	)	$	56,225,022

CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY

	Series B Redeemable Convertible Preferred Stock						Common Stock				Additional Paid-In			Accumulated			Accumulated Other Comprehensive			Total Stockholders’
	Shares			Amount			Shares		Amount		Capital			Deficit			Loss			Equity
Balance, January 1, 2018		12,177		$	9,281,767			608,499	$	61	$	121,657,587		$	(77,684,839	)	$	(4,576,986	)	$	39,395,823
Stock based compensation and vesting of restricted stock								71		—		356,737									356,737
Exercises of stock options								7,703		1		18,487									18,488
Conversion of Series B redeemable convertible preferred stock into common stock		(5,219	)		(5,218,572	)		130,447		13		5,218,559									5,218,572
Accretion of Series B Redeemable convertible preferred stock					1,891,321							(1,891,321	)								(1,891,321	)
Foreign currency translation adjustments																		615,471			615,471
Net loss															(3,173,538	)					(3,173,538	)
Balance, March 31, 2018		6,958		$	5,954,516			746,720	$	75	$	125,360,049		$	(80,858,377	)	$	(3,961,515	)	$	40,540,232
Stock based compensation and vesting of restricted stock								71				252,156									252,156
Exercises of stock options								1,837		-		4,410									4,410
Accretion of Series B redeemable convertible preferred stock					956,150							(956,150	)								(956,150	)
Conversion of Series B redeemable convertible preferred stock into common stock		(4,036	)		(4,036,539	)		334,180		33		4,036,506									4,036,539
Redemption of Series B redeemable convertible preferred stock for cash and release of embedded derivative		(2,364	)		(2,364,044	)						23,292									23,292
Issuance of common stock for the exchange of warrants								167,700		17		2,126,983									2,127,000
Foreign currency translation adjustments																		(1,078,648	)		(1,078,648	)
Net loss															(9,138,842	)					(9,138,842	)
Balance, June 30, 2018		558		$	510,083			1,250,508	$	125	$	130,847,246		$	(89,997,219	)	$	(5,040,163	)	$	35,809,989

The accompanying notes are an integral part of the unaudited consolidated financial statements.

	For the Six Months Ended June 30,
	2019			2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(5,484,194	)	$	(12,312,380	)
Adjustments to reconcile net loss to net cash used in operating activities:
Impairment charge		—			490,676
Stock-based compensation		697,486			608,893
Depreciation		121,899			77,528
Amortization		107,580			29,446
Unrealized gains on foreign currency exchange		(24,943	)		—
Changes in fair value of warrant liability		46,000			3,680,709
Changes in fair value of embedded derivatives		—			2,130
Changes in operating assets and liabilities:
Accounts receivable		832,098			951,727
Prepaid expenses and other current assets		(113,200	)		479,600
Accounts payable		(102,763	)		115,452
Accrued expenses and other current liabilities		(1,094,831	)		1,160,415
Deferred revenue		2,802			2,614
Lease obligation		(89,428	)		765,239
Tax refund receivable		(71,586	)		2,244,751
Deferred taxes		—			(1,507,358	)
Net cash used in operating activities		(5,173,080	)		(3,210,558	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(1,226	)		(811,646	)
Additions to intangible assets		(15,874	)		(27,505	)
Net cash used in investing activities		(17,100	)		(839,151	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Redemption of preferred stock		—			(2,364,044	)
Cash paid in conjunction with warrant exchange		—			(1,100,000	)
Proceeds from issuance of common units, net of issuance costs		12,668,784			—
Proceeds from exercise of warrants		30,324			—
Payments of notes payable		(156,145	)		—
Proceeds from exercise of stock options		—			22,898
Net cash provided by (used in) financing activities		12,542,963			(3,441,146	)
EFFECT OF EXCHANGE RATES ON CASH		—			(50,365	)
Net increase (decrease) in cash and cash equivalents and restricted cash		7,352,783			(7,541,220	)
Cash, cash equivalents and restricted cash, beginning of period		34,353,129			12,303,639
Cash, cash equivalents and restricted cash, end of period	$	41,705,912		$	4,762,419
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	$	—		$	1,791
SUPPLEMENTAL NON-CASH FINANCING ACTIVITIES:
Conversion of Series B redeemable convertible preferred stock into common stock	$	—		$	9,255,111
Accretion of Series B redeemable convertible preferred stock	$	—		$	2,847,471
Notes payable issued in conjunction with the exchange of warrants	$	—		$	1,500,000
Addition of property and equipment not yet paid	$	—		$	139,349
Addition of intangible assets not yet paid	$	—		$	5,763
Lease incentive billed but not yet received	$	—		$	139,349

The accompanying notes are an integral part of the unaudited consolidated financial statements.

Altimmune, Inc., headquartered in Gaithersburg, Maryland, together with its subsidiaries (collectively, the “Company” or “Altimmune”) is a clinical stage biopharmaceutical company incorporated under the laws of the State of Delaware. The Company is focused on discovering and developing immunotherapies and vaccines to address significant unmet medical needs. Since its inception, the Company has devoted substantially all of its efforts to business planning, research and development, recruiting management and technical staff, and raising capital, and has financed its operations through the issuance of common and preferred stock, long-term debt, and proceeds from research grants and government contracts. The Company has not generated any revenues from the sale of any products to date, and there is no assurance of any future revenues from product sales.

The accompanying unaudited consolidated financial statements are prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and disclosures required by accounting principles generally accepted in the United States for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2018 included in the annual report on Form 10-K which was filed with the SEC on April 1, 2019. In the opinion of management, the Company has prepared the accompanying unaudited consolidated financial statements on the same basis as the audited consolidated financial statements, and these consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year 2019 or any future years or periods.

The unaudited consolidated financial statements have been prepared on the basis of continuity of operations, realization of assets and the satisfaction of liabilities in the ordinary course of business. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets and liabilities that might be necessary should we be unable to continue as a going concern.

On September 13, 2018, the Company filed Certificates of Amendment to its Amended and Restated Certificate of Incorporation with the Secretary of State of Delaware to increase the number of authorized shares of the Company’s common stock, par value $0.0001 per share, from 100,000,000 to 200,000,000 shares and to effect a reverse stock split of the Company’s common stock at a ratio of 1-for-30 (the “Reverse Stock Split”). All references set forth in this quarterly report to number of shares or per share data have been presented retroactively on a post Reverse Stock Split basis.

During the six months ended June 30, 2019, there have been no significant changes to the Company’s summary of significant accounting policies contained in the Company’s Annual report on Form 10-K for the year ended December 31, 2018 as filed with the SEC, except for the recently adopted accounting standard for leases.

The Company determines if an arrangement is a lease at inception. Operating leases are recorded as a current and long-term lease obligation, with a corresponding right of use lease assets.

The lease obligations represent the Company’s obligation to make lease payments arising from the lease. The right of use lease assets represent the Company’s right to use an underlying asset for the lease term. The lease obligations and the operating right of use lease assets are recognized at the commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Short-term leases are leases having a term of twelve months or less. The Company recognizes short-term leases on a straight-line basis and does not record a related lease asset or liability for such leases.

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 requires a lessee to separate the lease components from the non-lease components in a contract and recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018. The standard requires a modified retrospective approach or an optional transition to apply the new guidance in the year of transition rather than at the beginning of the earliest period presented. The Company adopted ASU 2016-02 in the first quarter of 2019 under the optional transition method. The Company’s current operating leases will be accounted for as operating lease liabilities and right of use assets upon adoption. The Company has elected the package of practical expedients permitted. Accordingly, the Company accounted for its existing operating leases as operating leases under the new guidance, without reassessing (a) whether the contracts contain a lease, (b) whether classification of the operating leases would be different in accordance, or (c) whether the unamortized initial direct costs before transition adjustments would have met the definition of initial direct costs at lease commencement. In addition, the Company does not allocate the consideration between lease and non-lease components. On January 1, 2019, the Company recorded a lease liability and a corresponding right of use asset. The adjustment resulted in an increase of $756,347 to total assets and total liabilities on the January 1, 2019 consolidated balance sheet. The adoption will not have a material impact on the consolidated statement of operations or consolidated statement of cash flows.

In June 2018, FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718)—Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). ASU 2018-07 expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The Company adopted ASU 2018-07 in the first quarter of 2019. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

In August 2018, FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement, was issued to modify and enhance the disclosure requirements for fair value measurements. This update is effective in fiscal years, including interim periods, beginning after December 15, 2019, and early adoption is permitted. The Company is still completing its assessment of the impacts and anticipated adoption date of this guidance.

Subsequent to the quarter ended June 30, 2019, the Company entered into a definitive agreement to acquire all of the equity interests of Spitfire Pharma, Inc. (“Spitfire”) on July 8, 2019. Spitfire was a privately held, preclinical pharmaceutical company developing a novel dual GLP-1/glucagon receptor agonist for the treatment of non-alcoholic steatohepatitis.

The transaction closed on July 12, 2019. The Company issued 1,887,250 unregistered shares of its common stock (the “Shares”) as upfront consideration to certain former securityholders of Spitfire (collectively, the “Spitfire Equityholders”), representing an amount equal to $5,000,000 less working capital and transaction expense adjustment amounts as defined in the agreement (the “Closing Consideration”). The number of Shares issued as payment of the Closing Consideration was determined based on the average of the closing prices of the Company’s common stock as reported on the Nasdaq Global Market for the twenty (20) consecutive trading days prior to and including July 8, 2019, the date on which the parties entered into the Agreement and Plan of Merger and Reorganization (the “Merger Agreement”).

The Merger Agreement includes $88,000,000 in future contingent payments for regulatory, clinical and sales milestones using the acquired intellectual property. The Company will record the contingent consideration when and if the milestones are achieved and the milestone payments become payable.

The Company determined that the acquisition of Spitfire should be accounted for as an asset acquisition instead of a business combination because substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, and therefore, the asset is not considered a business. The Company plans to expense the acquired intellectual property as of the acquisition date as in-process research and development with no alternative future uses. The Company expects to record an in-process research and development expense for the up-front consideration during the third quarter of 2019. Transaction costs of $618,417 are recorded within research and development expense on the Consolidated Statements of Operations and Comprehensive Loss during the three and six months ended June 30, 2019

Because the Company has reported a net loss attributable to common stockholders for all periods presented, basic and diluted net loss per share attributable to common stockholders are the same for all periods presented. For periods presented, all preferred stock, unvested restricted stock, common stock warrants, and stock options have been excluded from the computation of diluted weighted-average shares outstanding because such securities would have an antidilutive impact.

Potential common shares issuable upon conversion, vesting or exercise of preferred stock, unvested restricted stock, common stock warrants, and stock options that are excluded from the computation of diluted weighted-average shares outstanding are as follows:

In May 2017, the Company closed on a business combination and recorded an initial purchase price allocation including goodwill. During the six months ended June 30, 2018 and prior to the end of the measurement period for accounting for the business combination, the Company recorded adjustments to the purchase price allocation resulting in a net decrease in tax refunds receivable, with a corresponding net increase in goodwill, of $490,676. As goodwill related to this transaction had previously been determined to be fully impaired, the Company recognized an impairment charge of $490,676 as a result of these purchase price allocation adjustments during the six months ended June 30, 2018. The purchase price allocation was considered final in May 2018, and no further adjustments were recorded.

Amortization expense of intangible assets subject to amortization was $14,836 and $14,972 for the three months ended June 30, 2019 and 2018, and $107,580 and $29,446 for the six months ended June 30, 2019 and 2018, respectively. Amortization expense was classified as research and development expenses in the accompanying unaudited consolidated statements of operations and comprehensive loss.

The Company’s current portion of outstanding notes payable are summarized as follows:

The Company’s long-term portion of outstanding notes payable as well as other long-term liabilities are summarized as follows:

On July 27, 2018, the Company renewed its existing line of credit agreement for a six-month term with an increase to the borrowing capacity from $250,000 to $1,750,000, subject to a minimum liquidity requirement equal to the outstanding balance of the line. The line of credit was not renewed and expired in January 2019. There was no balance on this credit facility as of December 31, 2018 or for the period within 2019 prior to its expiration.

Altimmune France has two non-interest-bearing research and development funding arrangements with BPI France that were entered into in December 2013 to provide Altimmune France up to €750,000 in research funding in the first arrangement and up to €250,000 in the second arrangement. Altimmune France was permitted to draw 50% of the funds upon the signing of the arrangements, an additional 30% contingent upon a financial audit and technical progress report, and the remaining amounts at the completion of the research and development project being funded by the arrangements. In October 2016, the Company and BPI France agreed to extend the term on the arrangement by two years. Each of the two obligations is repayable in sixteen quarterly installments from June 2019 through March 2023. The total amount advanced under the arrangements was €500,000 as of June 30, 2019 ($568,321 as of June 30, 2019). In April 2019, the Company was notified that €102,951 ($117,018 as of June 30, 2019) exceeded the allowable funding in accordance with the arrangement and made payment of this amount on June 5, 2019. The remaining balance is repayable in sixteen quarterly installments from June 2019 through March 2023, and the Company paid €31,250 ($35,520) during the six months ended June 30, 2019. As of June 30, 2019, $163,724 on this note is classified as short term, and $252,902 as long term. The BPI France notes are recorded at their repayment value which approximates fair value.

On March 12, 2019, the Company issued a combined total of 1,500,000 common units and 2,861,370 pre-funded units to two institutional investors in a registered direct offering (the “Registered Direct Offering”). Each common unit in the Registered Direct Offering was sold at a price of $3.21 and consisted of one share of common stock and 0.70 of a warrant to purchase one share of common stock at an exercise price of $3.21. Each warrant sold in the Registered Direct Offering was exercisable immediately and expired five years from the date of issuance. Each pre-funded unit in the Registered Direct Offering was sold at a public offering price of $3.20 and consisted of a pre-funded warrant to purchase

one share of common stock at an exercise price of $0.01 per share and 0.70 of a warrant to purchase one share of common stock at an exercise price of $3.21. The pre-funded warrants were immediately exercisable and were able to be exercised at any time until all of the pre-funded warrants were exercised in full. All of the pre-funded warrants were exercised prior to March 31, 2019. The net proceeds of the Registered Direct Offering were approximately $12,668,784, after deducting the underwriting discount and offering expenses payable by the Company.

The warrants issued in the Registered Direct Offering were concluded to be equity classified freestanding financial instruments. The Registered Direct Offering triggered a down round adjustment to the exercise price of warrants previously issued in an October 2018 public offering from $4.1798 to $2.7568. The Company treated the value of the effect of the reduction in exercise price as a deemed dividend of $452,925 during the six months ended June 30, 2019, which reduced income available to common shareholders.

A summary of warrant activity during the six months ended June 30, 2019 is as follows:

For warrants classified as a liability, the following is a summary of the periodic changes in their fair value during the six months ended June 30, 2019:

The fair value of common warrants classified as a liability was estimated using the Monte Carlo simulation valuation model with Level 3 inputs. The following assumptions were used to estimate the fair value of warrants that were classified as a liability at June 30, 2019.

The Company’s stock option awards generally vest over four years and typically have a contractual life of ten years. At June 30, 2019, there was $1,579,524 of unrecognized compensation cost related to stock options, which is expected to be recognized over a weighted-average period of 3.39 years. During the six months ended June 30, 2019, the Company granted 618,000 stock options with a weighted average price of $2.76 and per share weighted average grant date fair value of $2.09.

Information related to stock options outstanding at June 30, 2019 is as follows:

At June 30, 2019, the Company had unvested restricted stock of 323,262 shares with total unrecognized compensation expense of $990,288, which the Company expects to recognize over a weighted average period of approximately 3.42 years. During the six months ended June 30, 2019, the Company released 71 shares of common stock from restriction as a result of the vesting of restricted stock.

Stock-based compensation expense is classified in the unaudited consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2019 and 2018 as follows:

On March 29, 2019, the board of directors adopted the 2019 Employee Stock Purchase Plan (the “2019 ESPP”). A total of 403,500 shares of the Company’s common stock have been reserved for issuance under the 2019 ESPP. Subject to any plan limitations, the 2019 ESPP allows eligible employees to contribute through payroll deductions up to 10% of their earnings for the purchase of the Company’s common stock at a discounted price per share. The offering periods begin in February and August of each year, with the initial offering period commencing on August 1, 2019. The common shares issuable under the 2019 ESPP were registered pursuant to a registration statement on Form S-8 on April 4, 2019.

Unless otherwise determined by the administrator, the Company’s common stock will be purchased for the accounts of employees participating in the 2019 ESPP at a price per share that is the lesser of 85% of the fair market value of the Company’s common stock on the first trading day of the offering period or 85% of the fair market value of the Company’s common stock on the last trading day of the offering period.

The Company rents office and laboratory space in the United States. The Company also leases office equipment under a non-cancellable equipment lease through December 2022. Rent expense during the three and six months ended June 30, 2019 under all of the Company’s operating leases was $83,903 and $174,079, respectively, which includes short-term leases and variable lease costs not included in the lease obligation.

The office space lease provides for increases in future minimum annual rental payments as defined in the lease agreements. The Company has determined the lease renewal option is not reasonably certain.

The operating cash outflows related to operating leases for the six months ended June 30, 2019 was $89,428.

Supplemental other information related to the operating leases balance sheet information is as follows:

The Company is a party in various other contractual disputes, litigation, and potential claims arising in the ordinary course of business. The Company does not believe that the resolution of these matters will have a material adverse effect on its financial position or results of operations.

Refer to Note 3 for a description of the Merger Agreement entered into on July 8, 2019.

The following discussion and analysis of our financial condition and results of operations should be read together with our consolidated financial statements and related notes appearing elsewhere in this quarterly report on Form 10-Q and our consolidated financial statements and related notes for the year ended December 31, 2018 included in our annual report on Form 10-K, which was filed with the Securities and Exchange Commission on April 1, 2019.

This quarterly report on Form 10-Q contains forward-looking statements that involve substantial risks and uncertainties. The words “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “may,” “will,” “should,” “could,” “target,” “strategy,” “intend,” “project,” “guidance,” “likely,” “usually,” “potential,” or the negative of these words or variations of such words, similar expressions, or comparable terminology are intended to identify such forward-looking statements, although not all forward-looking statements contain these identifying words. There are a number of important risks and uncertainties that could cause our actual results to differ materially from those indicated by forward-looking statements. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. We have included important factors in the cautionary statements included in this quarterly report on Form 10-Q, particularly in the section entitled “Risk Factors” in Part II, Item 1A, that could cause actual results or events to differ materially from the forward-looking statements that we make. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments that we may make.

We have based the forward-looking statements included in this quarterly report on Form 10-Q on information available to us on the date of this quarterly report, and we assume no obligation to update any such forward-looking statements, other than as required by law. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we, in the future, may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

Altimmune, Inc. is a clinical stage biopharmaceutical company focused on developing liver disease and immune modulating therapies. Our diverse pipeline includes next generation peptide therapeutics for NASH (ALT-801) and chronic Hepatitis B (HepTcell^TM), conjugated immunostimulants for the treatment of cancer (ALT-702) and intranasal vaccines (NasoVAX^TM and NasoShield^TM).

On September 13, 2018 we amended our Amended and Restated Certificate of Incorporation to effect a reverse stock split of our issued and outstanding common stock at a ratio 1-for-30, or the “Reverse Stock Split”. The Reverse Stock Split was effective on September 13, 2018, and our shares of common stock commenced trading on the NASDAQ Global Market on a post-Reverse Stock Split basis on September 14, 2018. Unless otherwise noted, all share and per share numbers in this Quarterly Report on Form 10-Q are reflected on a Post-Reverse Stock Split basis for all periods presented.

The transaction closed on July 12, 2019. The Company issued 1,887,250 unregistered shares of its common stock (the “Shares”) as upfront consideration to certain former securityholders of Spitfire (collectively, the “Spitfire Equityholders”), representing an amount equal to $5.0 million less working capital and transaction expense adjustment amounts (the “Closing Consideration”). The number of Shares issued as payment of the Closing Consideration was determined based on the average of the closing prices of the Company’s common stock as reported on the Nasdaq Global Market for the twenty (20) consecutive trading days prior to and including July 8, 2019, the date on which the parties entered into the Agreement and Plan of Merger and Reorganization (the “Merger Agreement”).

The Merger Agreement also includes $88.0 million in future contingent payments based on regulatory, clinical and sales milestones using the acquired intellectual property. The Company will record the contingent consideration when and if the milestones are achieved and the milestone payments become payable.

Management’s Discussion and Analysis of Financial Condition and Results of Operations is based upon our unaudited consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the U.S. and the rules and regulations of the SEC for interim financial reporting. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses, and the related disclosure of contingent assets and liabilities. We base our estimates and judgments on historical experience, knowledge of current conditions, and expectations of what could occur in the future given available information.

There have been no changes in our critical accounting policies and significant judgment and estimates as disclosed in our annual report on Form 10-K for the year ended December 31, 2018 except for recently adopted accounting standards (See note 2). For more information regarding our critical accounting policies, we encourage you to read the discussion contained in Item 7 under the heading “Critical Accounting Policies and Significant Judgments and Estimates” and Note 2 “Summary of Significant Accounting Policies” included in the notes to the consolidated financial statements contained in our annual report on Form 10-K for the year ended December 31, 2018.

	For the Three Months Ended June 30,
	2019			2018			Increase (Decrease)

Revenue	$	1,626,029		$	2,417,140		$	(791,111	)	(32.7	)	%
Operating expenses
Research and development		2,945,096			4,918,961			(1,973,865	)	(40.1	)
General and administrative		2,231,817			2,933,982			(702,165	)	(23.9	)
Total operating expenses		5,176,913			7,852,943			(2,676,030	)	(34.1	)
Loss from operations		(3,550,884	)		(5,435,803	)		1,884,919		(34.7	)
Other income (expense):
Changes in fair value of warrant liability		(46,000	)		(5,228,691	)		5,182,691		(99.1	)
Changes in fair value of embedded derivative		—			4,912			(4,912	)	—
Interest expense		(748	)		(1,921	)		1,173		(61.1	)
Interest income		239,964			25,617			214,347		836.7
Other income (expenses)		(29,220	)		(49	)		(29,171	)	59,532.7
Total other income (expense)		163,996			(5,200,132	)		5,364,128		(103.2	)
Net loss before income tax benefit		(3,386,888	)		(10,635,935	)		7,249,047		(68.2	)
Income tax benefit		—			1,497,093			(1,497,093	)	—
Net loss	$	(3,386,888	)	$	(9,138,842	)	$	5,751,954		(62.9	)	%

	For the Six Months Ended June 30,
	2019			2018			Increase (Decrease)
Revenue	$	4,581,622		$	5,108,121		$	(526,499	)	(10.3	)	%
Operating expenses
Research and development		6,162,768			10,665,890			(4,503,122	)	(42.2	)
General and administrative		4,298,299			5,381,917			(1,083,618	)	(20.1	)
Goodwill impairment		—			490,676			(490,676	)	—
Total operating expenses		10,461,067			16,538,483			(6,077,416	)	(36.7	)
Loss from operations		(5,879,445	)		(11,430,362	)		5,550,917		(48.6	)
Other income (expense):
Changes in fair value of warrant liability		(46,000	)		(3,680,709	)		3,634,709		(98.8	)
Changes in fair value of embedded derivative		—			(2,130	)		2,130		—
Interest expense		(1,488	)		(2,791	)		1,303		(46.7	)
Interest income		425,211			57,206			368,005		643.3
Other income (expenses)		17,528			257,675			(240,147	)	(93.2	)
Total other income (expense)		395,251			(3,370,749	)		3,766,000		(111.7	)
Net loss before income tax benefit		(5,484,194	)		(14,801,111	)		9,316,917		(62.9	)
Income tax benefit		-			2,488,731			(2,488,731	)	—
Net loss	$	(5,484,194	)	$	(12,312,380	)	$	6,828,186		(55.5	)	%

Revenue consists primarily of research grants from Biomedical Advanced Research and Development Authority, or BARDA, and the National Institute of Allergy and Infectious Diseases, or NIAID, in the United States for our anthrax vaccine product candidates. These grants consist of cost reimbursement contracts, with a fixed fee based on either costs or milestones.

Revenue decreased by $0.79 million, or 32.7%, for the three months ended June 30, 2019 as compared to the same period in 2018. The increase was primarily the result of:

Revenue decreased by $0.53 million, or 10.3%, for the six months ended June 30, 2019, as compared to the same period in 2018. The increase was primarily the result of:

Research and development operating expense decreased by $1.97 million, or 40.1%, for the three months ended June 30, 2019 as compared to the same period in 2018. The decrease was primarily the result of:

Research and development operating expense decreased by $4.50 million, or 42.2%, for the six months ended June 30, 2019, as compared to the same period in 2018. The decrease was primarily the result of:

General and administrative expense decreased by $0.7 million, or 23.9%, for the three months ended June 30, 2019 and by $1.1 million, or 20.1% for the six months ended June 30, 2019, as compared to the same periods in 2018 primarily due to a reduction in labor, legal and professional costs.

Goodwill impairment charges reported during the six months ended June 30, 2018 represented an adjustment recorded during the measurement period to reduce the tax refund receivable acquired in connection with a 2017 business combination. We recorded adjustments to the purchase price allocation resulting in a net decrease in tax refunds receivable, with a corresponding net increase in goodwill, of $490,676. As goodwill related to this transaction had previously been determined to be fully impaired, we recognized an impairment charge of $490,676. The purchase price allocation was considered final in May 2018, and no further adjustments were recorded.

Other income (expense) decreased by $5.4 million and $3.8 million during the three and six months ended June 30, 2019, respectively, as compared to the same periods in 2018. The decreases are primarily due to changes in the fair value of warrant liability and embedded derivatives.

We recorded no income tax benefit or expense for the three and six months ended June 30, 2019, as compared to an income tax benefit of $1.5 million and $2.5 million for the same respective periods in 2018. We had a valuation allowance against most of the deferred tax assets. During the three and six months ended June 30, 2019, we did not identify any discrete items, therefore all of our tax loss was applied to the valuation allowance. During the six months ended June 30, 2018, our income tax benefit included $1.5 million for our projected 2018 unlimited

lived Federal net operating loss determined to be realizable, $0.7 million due to Maryland state net operating losses, and discrete tax benefits of $0.3 million related to a change in estimate.

Our primary sources of cash during the six months ended June 30, 2019 was the cash on-hand as of January 1, 2019 and the receipt of $12.7 million in proceeds from the Registered Direct Offering. Our cash and cash equivalents were $41.7 million at June 30, 2019. We believe, based on the operating cash requirements and capital expenditures expected for 2019, our cash on hand at June 30, 2019, and revenue from our government sponsored contracts, are sufficient to fund operations for at least a twelve-month period from the issuance date of our June 30, 2019 financial statements.

We have not generated any revenues from the sale of any products to date, and there is no assurance of any future revenues from product sales. Our sources of revenue consist of revenues under our contract with BARDA and NIAID for the development of NasoShield and SparVax-L, respectively, and to a lesser degree from other licensing arrangements. We have incurred significant losses since we commenced operations. As of June 30, 2019, we had accumulated losses of $122.3 million since our inception. In addition, we have not generated positive cash flows from operations. We have had to rely on a variety of financing sources, including the issuance of debt and equity securities. As capital resources are consumed to fund our research and development activities, we may not have sufficient capital to fund our plan of operations. In order to address our capital needs, including our planned clinical trials, we must continue to actively pursue additional equity or debt financing, government funding, and monetization of our existing programs through partnership arrangements or sales to third parties.

In July 2016, we signed a five-year contract with BARDA. The contract, as amended, has a total value of up to $130.0 million and is used to fund clinical development of NasoShield. Under the contract, BARDA pays us a fixed fee and reimburses certain costs for the research and development of an Ad5-vectored, protective antigen-based intranasal anthrax vaccine through cGMP manufacture and conduct of a Phase 1 clinical trial dose ranging assessment of safety and immunogenicity. The contract consists of an initial base performance period providing approximately $24.1 million in funding for the period July 2016 through November 2019. BARDA has seven options to extend the contract to fund certain continued development and manufacturing activities for the anthrax vaccine, including Phase 2 clinical trials. Each option, if exercised by BARDA, would provide additional funding ranging from approximately $1.1 million to $34.4 million for the period November 2019 through July 2021. Through June 30, 2019, we have received an aggregate of approximately $19.6 million under the current BARDA contract.

We have a NIAID contract that is incrementally funded for the development of SparVax-L. Over the base period of the contract, approximately $5.2 million was awarded for initial funding, which includes a cost reimbursement component and a fixed fee component payable upon achievement of certain milestones. NIAID exercised options under this agreement to provide additional funding of approximately $10.1 million and an extension of the period of performance through September 2019. The contract had a maximum total value of up to approximately $28.1 million if all technical milestones were met and all eight contract options were exercised by NIAID. Work under all exercised options will bring total committed and final funding under the NIAID contract to $15.3 million. Activities under this contract are substantially complete, and we are seeking additional government funding to advance the program beyond the completion of this contract. No such funding has been identified as of the date of this filing.

The following table provides information regarding our cash flows for the three months ended June 30, 2019 and 2018:

Net cash used in operating activities was $5.2 million for the six months ended June 30, 2019 compared to $3.2 million during the six months ended June 30, 2018. Our sources of cash provided by operations during the three months ended June 30, 2019 were primarily cash receipts of revenue generated by our BARDA and NIAID contracts. The primary uses of cash from our operating activities include payments for labor and labor-related costs, professional fees, research and development costs associated with our clinical trials, and other general corporate expenditures. The increase in cash used in operations of $2.0 million year over year is due to a decrease in net loss as adjusted for noncash items of $3.5 million offset by changes in working capital accounts of $5.5 million.

Net cash used in investing activities was $0.02 million for the six months ended June 30, 2019 compared to $0.84 million during the six months ended June 30, 2018. The net cash used in investing activities during 2018 was primarily due to purchases of property and equipment related to the buildout of the Company’s new office and laboratory facilities which was completed in 2018.

Net cash provided by financing activities during the six months ended June 30, 2019 was $12.5 million compared to net cash used in financing activities of $3.4 million for the same period in 2018. The net cash provided by financing activities during the six months ended June 30, 2019 was primarily the result of the receipt of $12.7 million in proceeds from the Registered Direct Offering (as discussed below). The net cash used by financing activities during the six months ended June 30, 2018 was the result of cash paid to redeem preferred stock and retire certain warrants.

On March 12, 2019, we issued a combined total of 1,500,000 common units and 2,861,370 pre-funded units to certain institutional investors in a registered direct offering or the “Registered Direct Offering”. Each common unit in the Registered Direct Offering was sold at a price of $3.21 and consisted of one share of our common stock and 0.70 of a warrant to purchase one share of our common stock at an exercise price of $3.21. Each warrant sold in the Registered Direct Offering was exercisable immediately and expires five years from the date of issuance. Each pre-funded unit in the Registered Direct Offering was sold at a public offering price of $3.20 and consisted of a pre-funded warrant to purchase one share of our common stock at an exercise price of $0.01 per share and 0.70 of a warrant to purchase one share of our common stock at an exercise price of $3.21. The pre-funded warrants were immediately exercisable and were able to be exercised at any time until all of the pre-funded warrants are exercised in full. All of the pre-funded warrants were exercised prior to March 31, 2019. The net proceeds of the Registered Direct Offering were approximately $12.7 million, after deducting the underwriting discount and offering expenses payable by us. The Registered Direct Offering triggered an adjustment to the exercise price of the warrants issued with the offering of common units and pre-funded units on October 2, 2018 from $4.1798 to $2.7568.

We have financed our operations to date principally through proceeds from issuances of our preferred stock, common stock, and warrants. At June 30, 2019, we had $41.7 million of cash, cash equivalents and restricted cash. Accordingly, management believes that the Company has sufficient capital to fund its plan of operations for at least a twelve-month period from the issuance date of our June 30, 2019 financial statements. However, in order to address our capital needs in the long-term, including our planned clinical trials, we must continue to actively pursue additional equity or debt financing, government funding, and monetization of our existing programs through partnership arrangements or sales to third parties.

As of June 30, 2019, we did not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as “special purpose” entities, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, we are not required to provide the information required by this Item.

Our management, with the participation of our principal executive officer and principal financial officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15 under the Securities Exchange Act of 1934, as amended (“the “Exchange Act”) as of the end of the period covered by this Quarterly Report on Form 10-Q.

Based on this evaluation, our principal executive officer and principal financial officer concluded that, as of June 30, 2019, our disclosure controls and procedures were effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) and Rule 15d-15(f) under the Exchange Act) during the quarter ended June 30, 2019 identified in connection with the evaluation thereof by our management, including the Chief Executive Officer and Chief Financial Officer, that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

In addition to the other information set forth in this Form 10-Q, you should carefully consider the factors discussed in Part I, Item 1A, subsection “Risk Factors” in our 2018 Annual Report on Form 10-K filed with the SEC on April 1, 2019, as they could materially affect our business, financial condition or future results of operations. The risks described in our 2018 Annual Report on Form 10-K filed with the SEC on April 1, 2019 are not the only risks that we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially adversely affect our business, financial condition and future results of operations. The following information updates, and should be read in conjunction with, the risk factors previously disclosed in Item 1A, subsection “Risk Factors” to Part I of our 2018 Annual Report on Form 10-K filed with the SEC on April 1, 2019. Except as set forth below, there have been no material changes to the risk factors previously disclosed under the caption “Risk Factors” in our 2018 Annual Report on Form 10-K.

We recently completed the acquisition of Spitfire Pharma, Inc. and the failure to successfully integrate its operations could adversely affect our future results.

Our success will depend, in significant part, on our ability to realize the anticipated benefits from combining our operations with the operations of Spitfire Pharma, Inc. (“Spitfire”). The failure to integrate successfully and to manage successfully the challenges presented by the integration process may result in our failure to achieve some or all of the anticipated benefits of the merger. Potential difficulties that may be encountered in the integration process include the following:

If the acquired business is not successfully integrated into our company, our business, financial condition and results of operations could be materially adversely affected, as well as our professional reputation. Furthermore, if we are unable to successfully integrate the acquired business and operations, or if there are delays in combining the businesses, the anticipated benefits of the acquisition may not be realized fully or at all or may take longer to realize than expected. Successful integration of the acquired business will depend on our ability to manage these operations, to realize opportunities for revenue growth presented by our products and eliminate certain excess costs of the acquired business.

# This certification will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent specifically incorcporated by reference into such filing.

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused the report to be signed on its behalf by the undersigned, thereunto duly authorized.

Delaware		20-2726770
State or Other Jurisdiction of Incorporation or Organization		I.R.S. Employer Identification No.

910 Clopper Road Suite 201S, Gaithersburg, Maryland		20878
Address of Principal Executive Offices		Zip Code

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.0001 per share	ALT	The NASDAQ Global Market

		Page

PART I — FINANCIAL INFORMATION

	Item 1. Consolidated Financial Statements (Unaudited)

	Consolidated Balance Sheets	1
	Consolidated Statements of Operations and Comprehensive Loss	2
	Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity	3
	Consolidated Statements of Cash Flows	5
	Notes to Consolidated Financial Statements	6

	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	13

	Item 3. Quantitative and Qualitative Disclosures about Market Risk	17

	Item 4. Controls and Procedures	17

PART II — OTHER INFORMATION		18

	Item 1. Legal Proceedings	18

	Item 1A. Risk Factors	18

	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	18

	Item 3. Defaults Upon Senior Securities	18

	Item 4. Mine Safety Disclosures	18

	Item 5. Other Information	18

	Item 6. Exhibits	19

	As of June 30,
	2019		2018
Redeemable preferred stock		-		6,966
Common stock warrants		10,386,256		25,211
Common stock options		873,066		53,846
Restricted stock		323,262		639

	June 30, 2019
	Estimated Useful Lives	Gross Carrying Value		Accumulated Amortization			Net Book Value
Internally developed patents	6-10 years	$	734,432	$	(416,857	)	$	317,575
Acquired licenses	16-20 years		285,000		(261,326	)		23,674
Total intangible assets subject to amortization			1,019,432		(678,183	)		341,249
IPR&D assets	Indefinite		13,418,967		—			13,418,967
Total		$	14,438,399	$	(678,183	)	$	13,760,216

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☐

Years ending December 31,
The remainder of 2019	$	29,690
2020		45,933
2021		25,375
2022		25,375
2023		25,375
2024 and thereafter		189,501
Total	$	341,249

	June 30, 2019		December 31, 2018
Accrued professional services	$	417,618	$	552,619
Accrued payroll and employee benefits		808,585		1,257,191
Accrued interest		2,685		1,192
Accrued research and development		1,539,045		2,076,704
Lease obligation, current portion		246,193		—
Deferred rent, current portion		—		175,490
Deferred revenue		32,441		19,753
Total accrued expenses	$	3,046,567	$	4,082,949

	June 30, 2019		December 31, 2018
BPI France notes, long-term portion	$	252,902	$	501,174
Lease obligation, long-term portion (see Note 11)		1,618,055		—
Deferred rent, long-term portion		—		1,045,807
Common stock warrant liability (see Note 9)		111,000		65,000
Other		230,147		240,090
Total other long-term liabilities	$	2,212,104	$	1,852,071



Warrants outstanding, beginning of period	7,344,297
Issuances	3,052,959
Exercises and conversions	(11,000	)
Warrants outstanding, end of period	10,386,256

Balance, January 1, 2019	$	65,000
Changes in fair value (Monte Carlo simulation valuation)		46,000
Balance, June 30, 2019	$	111,000


Expected volatility	96.3	%
Expected term (years)	3.10
Risk-free interest rate	1.7	%
Expected dividend yield	0.0	%

	Number of Stock Options		Weighted- average Exercise Price		Weighted- average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding		873,066	$	5.67		5.89	$	2,000
Exercisable		112,944	$	18.97		5.18	$	-
Unvested		760,122	$	3.69		5.99	$	2,000

	June 30, 2019
Operating lease obligations	$	1,864,248
Operating lease right-of-use assets	$	732,380
Weighted-average remaining lease term		5.83
Weighted-average discount rate		8.0	%

Year ending December 31,
The remainder of 2019	$	191,428
2020		387,079
2021		393,542
2022		400,198
2023		407,054
2024 and thereafter		552,948
Total lease payments		2,332,249
Less imputed interest		(468,001	)
Total	$	1,864,248

No.		Description


10.1		Transition Services Agreement, by and between the Company and Sybil Tasker, M.D., MPH, dated June 17, 2019.

10.2		Release of Claims Agreement, by and between the Company and Dr. Tasker, dated June 17, 2019.

10.3		Employment Agreement, dated June 10, 2019, by and between the Company and William Brown (incorporated by reference to Exhibit 10.1 to the Registrant’s Form 8-K filed on June 12, 2019).

31.1		Certification of Principal Executive Officer Pursuant to SEC Rule 13a-14(a)/15d-14(a)

31.2		Certification of Principal Financial Officer Pursuant to SEC Rule 13a-14(a)/15d-14(a)

32.1		Certification Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code

32.2		Certification Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code

101.INS		Instance Document

101.SCH		XBRL Taxonomy Extension Schema Document

101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		XBRL Taxonomy Extension Label Linkbase Document

101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document

	ALTIMMUNE, INC.

Dated: August 13, 2019	By:	/s/ Vipin K. Garg
	Name:	Vipin K. Garg
	Title:	President and Chief Executive Officer (Principal Executive Officer)

Dated: August 13, 2019	By:	/s/ Will Brown
	Name:	Will Brown
	Title:	Chief Financial Officer (Principal Financial and Accounting Officer)