IMMATERIAL RESTATEMENT OF PRIOR PERIOD FINANCIAL STATEMENTS

Subsequent to the issuance of our unaudited interim financial statements for the quarter and year-to-date periods ended September 30, 2017, management identified certain immaterial errors within previously reported operating expense captions of “selling, general, and administrative” and “research and development” that solely relate to our stock-based compensation recognition (see Note 6). These errors were primarily the result of an improper system setting during our implementation of a new stock-based compensation software in 2012. Consequently, incremental expense for the reversal of previously applied forfeiture estimates was not timely recognized upon the full vesting of each award, as required; this error persisted through September 30, 2017. We considered these errors from a qualitative and quantitative perspective, and concluded they are not material. We have restated our accompanying Consolidated Financial Statements to correct for these immaterial errors for all annual periods presented, as well as the interim financial information (unaudited) presented within Note 19.

Restatement of Consolidated Balance Sheet as of December 31, 2016:



	As Previously Reported			As Restated
Additional paid-in capital	$	640,166		$	648,384
Accumulated deficit	$	(402,641	)	$	(410,859	)
Total stockholders’ equity	$	236,026		$	236,026

Restatement of Consolidated Statements of Operations for the years ended December 31, 2016 and 2015:



	Year Ended December 31,
	2016						2015
	As Previously Reported			As Restated			As Previously Reported			As Restated
Operating costs and expenses:
Selling, general and administrative	$	87,347		$	88,418		$	86,514		$	88,064
Research and development	58,936			59,123			50,766			51,073
Total operating costs and expenses	208,072			209,330			203,288			205,145
Loss from operations	(61,628		)	(62,886		)	(40,732		)	(42,589		)
Loss before income taxes	(70,825		)	(72,083		)	(50,379		)	(52,236		)
Net loss	$	(68,512	)	$	(69,770	)	$	(50,785	)	$	(52,642	)
Net loss per share:
Basic	$	(0.94	)	$	(0.96	)	$	(0.78	)	$	(0.81	)
Diluted	$	(0.94	)	$	(0.96	)	$	(0.78	)	$	(0.81	)

Restated Consolidated Statements of Comprehensive Loss for the years ended December 31, 2016 and 2015:



	Year Ended December 31,
	2016						2015
	As Previously Reported			As Restated			As Previously Reported			As Restated
Net loss	$	(68,512	)	$	(69,770	)	$	(50,785	)	$	(52,642	)
Total comprehensive loss	$	(64,772	)	$	(66,030	)	$	(55,254	)	$	(57,111	)

The Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2016 and 2015 have also been restated to include the changes to net loss and additional paid-in capital, as noted above, as well as a prior period adjustment of $5.1 million to beginning “accumulated deficit” and “additional paid-in capital” as of January 1, 2015.

Other than for the correction to net loss and stock-based compensation, the restatement adjustments had no impact on cash flows from operating, investing, or financing activities for the years ended December 31, 2016 and 2015. Furthermore, such restatement adjustments had no impact to total assets, total liabilities or total stockholders' equity.