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•	Probability-Weighted Expected Return Method: The probability-weighted expected return method (“PWERM”) is a scenario-based analysis that estimates value per share based on the probability-weighted present value of expected future investment returns, considering each of the possible outcomes available to the Company, as well as the economic and control rights of each share class.

•	Option-Pricing Method: The option-pricing method (“OPM”) is a method in which shares are valued by creating a series of call options with exercise prices based on the liquidation preferences and conversion terms of each equity class. The estimated fair values of the preferred and common stock are inferred by analyzing these options.

•	Discounted Cash Flow Method: The Discounted Cash Flow (“DCF”) method estimates the enterprise value based on the estimated present value of future net cash flows the business is expected to generate over a forecasted period and an estimate of the present value of cash flows beyond that period, which is referred to as equity value.

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•	contemporaneous valuations of the Company’s common stock prepared by an unrelated third party valuation firm;

•	the Company’s stage of development;

•	valuations of comparable companies;

•	the rights, preferences and privileges of the Company’s preferred stock relative to those of its common stock;

•	the Company’s financial condition and operating results, including its revenue, history of net losses and levels of available capital resources;

•	the general and industry-specific economic outlook; and

•	the lack of marketability of the Company’s common stock.

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•	As of March 22, 2018 and June 27, 2018, the Company had not yet hired investment bankers for the IPO process.

•	There were no significant adverse changes in the business, operations or products that had occurred since July 31, 2017.

•	The Company drew down $15 million in the aggregate under its term loan agreement with CRG.

•	The Company generated revenue of $7,767,000 in Q2 2018, which exceeded its operating plan.

•	The procedure volume increased from 774 in Q1 2018 to 1,008 in Q2 2018.

•	As of September 13, 2018 and September 23, 2018, the Company had not yet hired investment bankers for the IPO process.

•	The Company had hired investment bankers for the IPO process and held its organizational meeting on October 30, 2018.

•	The Company generated revenue of $9,614,000 in Q3 2018, which exceeded its operating plan.

•	The procedure volume increased from 1,008 in Q2 2018 to 1,243 in Q3 2018.

•	The Company announced positive clinical data for its products at VEITHsymposium in November 2018.

•	The Company was planning to confidentially submit its Registration Statement to the Commission in late December 2018.

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•	There were no significant adverse changes in the business, operations or products that had occurred since September 30, 2018.

•	As of February 27, 2019, the Company had made substantial progress toward completing its IPO.

•	The Company generated revenue of $11,470,000 in Q4 2018, which exceeded its operating plan.

•	The procedure volume increased from 1,243 in Q3 2018 to 1,584 in Q4 2018.

•	The Company had confidentially submitted its Registration Statement to the Commission in December 2018.

•	The Company has not received the valuation range proposed by the investment bankers for the IPO.

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Better Market Conditions. The Preliminary Price Range also took into account performance and valuations of companies in January and February 2019 that the lead underwriters expect will be viewed as comparable to the Company, as well as the recent performance of one successful initial public offering of in the medical device industry that the lead underwriters felt may potentially be viewed by investors as comparable.

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Increased Probability of an IPO and Substantially Enhanced Liquidity and Marketability of the Company’s Stock. The December 2018 Valuation Report reflected the illiquidity of the Company’s common stock on December 31, 2018 and the uncertainty of the IPO. The difference between the fair value of the Company’s common stock as of the Most Recent Grant Date and the midpoint of the estimated Preliminary Price Range reflects a discount of approximately [***]%, assuming the occurrence of the Reverse Share Split at 2.7-for-1. In contrast, and given the probably to the completion of the Company’s IPO, the Preliminary Price Range assumes a successful offering and represents an estimate of the fair value of the unrestricted, freely tradable stock that would be sold in the public market without discounts for illiquidity and lack of marketability.

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Conversion of Preferred Stock. The holders of the Company’s convertible preferred stock currently enjoy substantial economic rights and preferences over the holders of its common stock. Furthermore, holders of outstanding convertible preferred stock are entitled to receive liquidation preferences prior to payments to holders of common stock in the event of any liquidation, dissolution or winding-up of the Company. In addition, holders of the Company’s outstanding convertible preferred stock are entitled to receive dividends prior to any dividends declared or paid on any shares of the Company’s common stock. The holders of convertible

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Substantially Enhanced Balance Sheet and Financial Resources. Given the proximity to the completion of the IPO, the Preliminary Price Range assumes a successful offering. A successful offering provides the Company with (i) proceeds that substantially strengthen the Company’s balance sheet as a result of increased cash, (ii) access to the public company debt and equity markets, and (iii) a “currency” to enable the Company to make strategic acquisitions as the Board may deem appropriate, which are reflected in the valuation reflected in the Preliminary Price Range.

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