Cystic Fibrosis Development Award

In August 2016, the Company received a $1,000,000 payment from the CFFT for achieving a milestone in July 2016 related to dosing the median clinical trial patient as per the terms of the Company’s development award with the CFFT (See Note 13).

2015 Bonus Payments

As previously disclosed, the Company’s Compensation Committee had not previously determined the amounts of performance-based cash bonuses payable to the Company’s executive officers for the fiscal year ended December 31, 2015. On August 11, 2016, the Compensation Committee approved bonuses in the amounts of $136,950, $136,950, $136,125 and $114,125 for Yuval Cohen, the Company’s Chief Executive Officer, Mark Tepper, the Company’s President and Chief Scientific Officer, Barbara White, the Company’s Chief Medical Officer and Sean Moran, the Company’s Chief Financial Officer, respectively. In determining the amounts of the cash bonuses to be paid, the Compensation Committee considered that the Company did not pay performance-based cash bonuses for the fiscal year ended December 31, 2014.