<SEC-DOCUMENT>0001193125-24-009256.txt : 20240223
<SEC-HEADER>0001193125-24-009256.hdr.sgml : 20240223
<ACCEPTANCE-DATETIME>20240117161158
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-24-009256
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20240117

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Adverum Biotechnologies, Inc.
		CENTRAL INDEX KEY:			0001501756
		STANDARD INDUSTRIAL CLASSIFICATION:	BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836]
		ORGANIZATION NAME:           	03 Life Sciences
		IRS NUMBER:				205258327
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		100 CARDINAL WAY
		CITY:			REDWOOD CITY
		STATE:			CA
		ZIP:			94063
		BUSINESS PHONE:		(650) 649-1004

	MAIL ADDRESS:	
		STREET 1:		100 CARDINAL WAY
		CITY:			REDWOOD CITY
		STATE:			CA
		ZIP:			94063

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Avalanche Biotechnologies, Inc.
		DATE OF NAME CHANGE:	20100921
</SEC-HEADER>
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<TYPE>CORRESP
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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right">VIA EDGAR </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">January&nbsp;17, 2024 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">United States Securities and Exchange
Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Corporate Finance </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">100 F Street, N.E.
</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, D.C. 20549 </P> <P STYLE="font-size:0pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">Attn:</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Li Xiao and Mary Mast </P></TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>Re:</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B>Adverum Biotechnologies, Inc. </B></P></TD></TR></TABLE>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B>Form <FONT STYLE="white-space:nowrap">10-K</FONT> for the Fiscal Year Ended December&nbsp;31, 2022 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B>Filed March&nbsp;30, 2023 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B>File <FONT STYLE="white-space:nowrap">No.&nbsp;001-36579</FONT> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ladies and Gentlemen: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On behalf of Adverum Biotechnologies,
Inc. (the &#147;<B><I>Company</I></B>&#148;), we are submitting this letter in response to comments received from the Division of Corporation Finance (the &#147;<B><I>Staff</I></B>&#148;) of the Securities and Exchange Commission by letter dated
December&nbsp;18, 2023, regarding the Company&#146;s Form <FONT STYLE="white-space:nowrap">10-K</FONT> filed March&nbsp;30, 2023. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Set forth below are the
Company&#146;s responses to the Staff&#146;s comments. For the Staff&#146;s convenience, we have included the Staff&#146;s comments in this response letter in italics. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I><U>Form <FONT STYLE="white-space:nowrap">10-K</FONT> for the Fiscal Year Ended December&nbsp;31, 2022 </U></I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I><U>Notes to Consolidated Financial Statements </U></I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I><U>5. Leases, page 96 </U></I></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>1. Please respond to the
following lease related comments: </I></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><I>&#149;</I></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>You disclosed here that you adjusted to eliminate the deferred rent receivable in 2022 because its
collectability was determined to be less than probable. Help us understand how you have considered whether such a determination would raise similar concern for the impairment of your right of use lease assets. </I></P></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman"><B>Response: </B>The Company respectfully acknowledges the Staff&#146;s comment and advises the Staff during the year ended December&nbsp;31,
2022, the Company determined, based on publicly available information about the sublessee for a building in North Carolina (&#147;NC Premises&#148;) and correspondence between the Company and the sublessee, that collectability of the lease payments
from the sublessee was no longer probable. In accordance with ASC <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">842-30-25-13,</FONT></FONT></FONT> the Company recognized an adjustment to eliminate
the deferred rent receivable as a current period adjustment to lease income and in accordance with ASC <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">842-30-25-12</FONT></FONT></FONT> limited the
amount of sublease income recognized to the cash collected from the sublessee. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">January 17, 2024 </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman">Given the uncertainty surrounding collection of lease payments from the sublessee, the
Company performed an impairment analysis of the <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">right-of-use</FONT></FONT> (&#147;ROU&#148;) asset recognized on the NC Premises head lease and related leasehold improvements
(&#147;the long-lived asset group&#148;) in accordance with ASC <FONT STYLE="white-space:nowrap">360-10.</FONT> The Company compared the sum of the estimated undiscounted future cash flows attributable to the long-lived asset group in question,
exclusive of the deferred rent receivable referenced above, to the carrying amount of the long-lived asset group and concluded that the carrying amount was recoverable. When estimating the undiscounted future cash flows attributable to the
long-lived asset group in accordance with ASC <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">360-10-35-30,</FONT></FONT></FONT> the Company consulted with a broker and concluded that, based on its
intent to sublease to a new tenant in the event its current sublessee could not fulfill its obligation under the existing sublease, there were still new potential sublessees for the leased space, albeit likely at a discount to the terms of the
current sublease. The total undiscounted future expected cash flows arising from the current or future sublease (even assuming sublease payments that are at a discount to the terms of the current sublease) significantly exceeded the carrying value
of long-lived asset group. As such, the Company concluded that the long-lived asset group was not impaired. The Company also concluded that the collectability issues identified with the sublessee for the NC Premises did not affect any other
long-lived asset groups. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><I>&#149;</I></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>Quantify for us and revise future filings to clearly disclose the charges to the statement of operations as a
result of lease modifications, as well as their related accounts. This comment also applies to your 2023 <FONT STYLE="white-space:nowrap">10-Q</FONT> filings. </I></P></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman"><B>Response: </B>The Company respectfully acknowledges the Staff&#146;s comment and provides responses to the Staff as follows: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman">On January&nbsp;8, 2021 the Company entered into an operating lease agreement for the NC Premises referenced above. On October&nbsp;26, 2021,
the Company entered into an agreement to sublease the NC Premises to a single sublessee through the remainder of the lease term. Concurrent with the sublease, the payment terms on the Company&#146;s head lease were modified. The Company accounted
for the amendments as a lease modification in accordance with ASC <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">842-10-25-11(d).</FONT></FONT></FONT> The Company remeasured the lease liability,
resulting in an increase to the lease liability and corresponding ROU asset of $2.1&nbsp;million, with no amounts recognized in the consolidated statement of operations. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman">On November&nbsp;1, 2021, the Company entered into an amendment to terminate the lease of one of its Redwood City premises (&#147;800 Saginaw
Lease&#148;). The Company accounted for the amendment as a full lease termination and recognized a $1.1&nbsp;million loss during the quarter ended September&nbsp;30, 2021 as a result of the termination, which should not have been recorded. During
the quarter ended September&nbsp;30, 2022, the Company identified that it had incorrectly accounted for the termination of 800 Saginaw Lease and should have accounted for the partial lease termination as a modification. The correction of this error
is discussed below. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">January 17, 2024 </P>
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 of 8 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman">On March&nbsp;24, 2023, the Company executed an agreement to accelerate the termination date
of another of its Redwood City premises (&#147;900 Saginaw Lease&#148;) from December&nbsp;31, 2031 to September&nbsp;30, 2023. Concurrent with the execution of the amendment to the 900 Saginaw Lease, the Company executed an amendment to a lease for
another one of its Redwood City premises (&#147;100 Cardinal Lease&#148;) with the same Landlord to provide for additional tenant improvements related to the 100 Cardinal Lease of up to $2.0&nbsp;million to be used at the Company&#146;s discretion.
The Company continued to occupy and use all of the space associated with the 900 Saginaw Lease through September&nbsp;30, 2023. The Company continues to occupy and use all of the space associated with the 100 Cardinal Lease as the Company&#146;s
sole headquarters building following the amendments. Management evaluated the guidance in ASC <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">842-10-25-19</FONT></FONT></FONT> and concluded that the
amendments to the 900 Saginaw Lease and the 100 Cardinal Lease should be combined and considered a single contract for the purpose of applying ASC 842 as the two agreements were executed at the same time with the same Landlord and together they
fulfill a single commercial objective, where the Landlord is incentivizing the Company to accelerate the lease term of the 900 Saginaw Lease and move the Company&#146;s operations from 900 Saginaw to 100 Cardinal. The Company accounted for these
amendments as a lease modification in accordance with ASC <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">842-10-25-11(c)</FONT></FONT></FONT> and ASC <FONT STYLE="white-space:nowrap"><FONT
STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">842-10-25-13.</FONT></FONT></FONT> As a result of the modification the Company remeasured the lease liability, which resulted in a reduction to the lease liability of $8.3&nbsp;million with
a corresponding reduction of the ROU asset of $8.3&nbsp;million in the quarter ended March&nbsp;31, 2023. There was no charge recognized in the consolidated statement of operations. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman">On April&nbsp;3, 2023, the Company entered into an amendment of the lease of its NC Premises. Under this amendment, the parties agreed to
substantially reduce the total tenant improvement allowance in exchange for lower monthly rent. The Company accounted for this amendment as a lease modification in accordance with ASC
<FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">842-10-25-11(d).</FONT></FONT></FONT> The Company remeasured the lease liability, resulting in a reduction to the lease liability with a corresponding
reduction of the ROU asset of $5.7&nbsp;million in the quarter ended June&nbsp;30, 2023. There was no charge recognized in the consolidated statement of operations. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman">In future filings, the Company will more clearly disclose the charges to the consolidated statement of operations as a result of lease
modifications, as well as their related accounts. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>As a related matter, you disclosed under Item 9A that an immaterial
<FONT STYLE="white-space:nowrap">non-cash</FONT> lease accounting error was identified in previously issued financial statements. Please help us understand the nature and amount of the error, as well as how you have assessed its materiality.
</I></P></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman"><B>Response: </B>The Company respectfully acknowledges the Staff&#146;s comment and advises the Staff that the
immaterial <FONT STYLE="white-space:nowrap">non-cash</FONT> lease accounting error disclosed under Item 9A relates to the 800 Saginaw Lease. During the quarter ended September&nbsp;30, 2022, the Company identified that it had incorrectly accounted
for the 800 Saginaw Lease amendment. This is because the 800&nbsp;Saginaw Lease was part of a master lease agreement that also included the 900&nbsp;Saginaw Lease (i.e., 800 Saginaw and 900 Saginaw were separate lease components within a master
lease). </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">January 17, 2024 </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman">In accordance with ASC <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT
STYLE="white-space:nowrap">842-10-25-11(c),</FONT></FONT></FONT> the Company should also have accounted for the termination of the 800 Saginaw Lease as a modification of the 900 Saginaw Lease. Accordingly, the Company should have reallocated the
remaining consideration in the master lease and remeasured the lease liability of 900 Saginaw Lease using the Company&#146;s incremental borrowing rate determined on the effective date of the modification. The remeasurement of the 900 Saginaw Lease
would have resulted in a decrease in the 900 Saginaw Lease liability of $4.2&nbsp;million, $4.0&nbsp;million and $3.9&nbsp;million as of December&nbsp;31, 2021, March&nbsp;31, 2022 and June&nbsp;30, 2022, respectively, a decrease in the related
operating ROU asset of $3.1&nbsp;million, $3.0&nbsp;million and $2.9&nbsp;million as of December&nbsp;31, 2021, March&nbsp;31, 2022 and June&nbsp;30, 2022, respectively, and a corresponding reversal of the previously recorded impairment related to
the 800 Saginaw Lease in the amount of $1.1&nbsp;million. This adjustment was due primarily to a decrease in the incremental borrowing rate used to remeasure the lease liability. Accordingly, the impairment recorded resulted in an immaterial error
in operating expenses for the year ended December&nbsp;31, 2021, and, because the Company recorded a <FONT STYLE="white-space:nowrap">non-cash</FONT> gain to correct the consolidated balance sheet for the aforementioned overstatements, also resulted
in an immaterial error in the quarter ended September&nbsp;30, 2022. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman">During the quarter ended September&nbsp;30, 2022, the Company also
corrected the previously recorded impairment related to the 800&nbsp;Saginaw Lease in the amount of $1.1&nbsp;million in the quarter ended September&nbsp;30, 2021 (i.e., the impairment taken in the quarter preceding the termination of the 800
Saginaw Lease/modification of the 900&nbsp;Saginaw Lease). Prior periods were not adjusted. As of September&nbsp;30, 2021, there was not an identifiable asset group below the entity-wide level related to the lease that was expected to be terminated.
While the Company was actively marketing the leased asset for sublease and/or negotiating for a lease termination in the quarter ended September&nbsp;30, 2021, the Company had not ceased using the leased asset as of September&nbsp;30, 2021.
Therefore, there was no identifiable asset grouping below the enterprise level at the end of the third quarter of 2021. The resulting impairment test should not have been performed at that level, and the $1.1&nbsp;million impairment charge should
not have been recorded. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman">The Company concluded that the error was not material because it represented less than 5% of total assets and
liabilities as of December&nbsp;31, 2021, March&nbsp;31, 2022 and June&nbsp;30, 2022, respectively, and less than 2% of operating expenses for each of the periods ended December&nbsp;31, 2021, March&nbsp;31, 2022 and June&nbsp;30, 2022 as well as
for the period ended September&nbsp;30, 2022 during which the error was corrected. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman">Additionally, the Company believes that investors are
primarily focused on the Company&#146;s cash and investment financial resources as well as the development of its lead product candidate, <FONT STYLE="white-space:nowrap">Ixo-vec.</FONT> The identified misstatement was
<FONT STYLE="white-space:nowrap">non-cash</FONT> and did not relate to product development. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">January 17, 2024 </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman">A summary of the Company&#146;s assessment of qualitative factors is presented below. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TD VALIGN="bottom" NOWRAP> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; display:table-cell; font-size:8pt; font-family:Times New Roman; "><B>SAB 99 Qualitative Factors</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>The Impact of Error</B></P></TD></TR>


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<TD VALIGN="top">Whether the misstatement arises from an item capable of precise measurement or whether it arises from an estimate and, if so, the degree of imprecision inherent in the estimate.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">No. By nature, the measurement of <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">right-of-use</FONT></FONT> assets and lease liabilities involves estimation, considering inputs such as the Company&#146;s
incremental borrowing rate. The determination of the incremental borrowing rate involves estimation uncertainty and there is a wide range of observed credit spreads for similar companies. The misstatement on the impairment of the <FONT
STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">right-of-use</FONT></FONT> assets arose due to the lack of technical accounting evaluation on a termination of a lease component, and whether the lease needed to be remeasured, not due to a
difference in estimation.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">All adjustments are based upon reasonable estimates or known amounts.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Yes, the remeasurement of the <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">right-of-use</FONT></FONT> assets and lease liability were based on reasonable estimates.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Whether the misstatement masks a change in earnings or other trends.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">No. The misstatements from the lease remeasurement did not mask a change in earnings or other trends. The misstatements did not cause a change in the direction or overall magnitude of trends such as growth of operating expense and
net loss. Also, the magnitude of the error is deemed not likely to influence the judgment of a reasonable person relying upon the Company&#146;s consolidated financial statements.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Whether the misstatement hides the failure to meet analyst&#146;s consensus expectations for the enterprise.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">No, the error did not hide a failure to meet analysts&#146; consensus expectations as the Company is still developing its products and is not
generating revenue from the sales of its products. Investors/analysts focus more on the Company&#146;s ability to successfully develop its products than on expense or <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT
STYLE="white-space:nowrap">net-loss-per-share</FONT></FONT></FONT> projections. The Company believes that the impact of the error on the Company&#146;s consolidated balance sheet and net loss per share (both basic and diluted) is not material for
each period.</P> <P STYLE="font-size:6pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Generally, net loss per share is not a closely-watched figure for the
Company&#146;s investors as investors have been primarily focused on the development results. The Company does not have a track record of closely meeting analyst <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT
STYLE="white-space:nowrap">net-loss-per-share</FONT></FONT></FONT> expectations as there is a wide range of expectations by the analysts who cover the Company. It is common to make or miss <FONT STYLE="white-space:nowrap"><FONT
STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">net-loss-per-share</FONT></FONT></FONT> expectations by $0.05 per share or more in individual quarters, so a $0.01 <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT
STYLE="white-space:nowrap">net-loss-per-share</FONT></FONT></FONT> effect is not considered to be significant to investors.</P></TD></TR></TABLE></DIV>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">January 17, 2024 </P>
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<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="65%"></TD></TR>

<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; display:table-cell; font-size:8pt; font-family:Times New Roman; "><B>SAB 99 Qualitative Factors</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>The Impact of Error</B></P></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Whether the misstatement changes a loss into income or vice versa.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">No. The Company would have incurred a net loss in each period presented irrespective of the misstatements.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Whether the misstatement concerns a segment or other portion of the registrant&#146;s business that has been identified as playing a significant role in the registrant&#146;s operations or profitability.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">No. The Company only has one segment, and the misstatements had no material impact on the Company&#146;s operations.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Whether the misstatement affects the registrant&#146;s compliance with regulatory requirements.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">No. The misstatements do not affect the Company&#146;s compliance with known regulatory requirements.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Whether the misstatement has the effect of increasing management&#146;s compensation.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">No. The misstatements have no effect on management compensation.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Whether the misstatement involves concealment of an unlawful transaction.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">No. The misstatements do not involve concealment of fraud or an unlawful transaction.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Whether management or the independent auditor expects (based, for example, on a pattern of market performance) that a known misstatement may result in a significant positive or negative market reaction, that expected reaction should
be taken into account when considering whether a misstatement is material.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">No. A significant positive or negative market reaction was not expected.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Whether the misstatement affects the company&#146;s compliance with loan covenants or other contractual requirements</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Not applicable, as there are no loans outstanding.</TD></TR></TABLE></DIV>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">January 17, 2024 </P>
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<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="65%"></TD></TR>

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<TD VALIGN="bottom" NOWRAP> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; display:table-cell; font-size:8pt; font-family:Times New Roman; "><B>Other Considerations</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>The Impact of Error</B></P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Whether the misstatement affects a significant element of the financial statements (e.g., amount or disclosure is under greater scrutiny by users of the financial statements)</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">No. Management believes that investors are primarily focused on the cash and investment financial resources. The lease error is <FONT STYLE="white-space:nowrap">non-cash</FONT> and is well below any material threshold or element of
the Company&#146;s consolidated financial statements.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Whether the misstatement resulted from the motivation of management</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">No. The error was not intentional.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Whether the misstatement affects the overall accuracy of the financial statements</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">No. Management believes that investors are primarily focused on the cash and investment financial resources and this error is not material to the use of cash in operating activities.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Whether the misstatement relates to sensitive matters</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">No. The error does not relate to sensitive matters such as fraud, <FONT STYLE="white-space:nowrap">non-compliance</FONT> with laws and regulations, violations with contractual provisions or conflicts of interest.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Whether the misstatement affects metrics that drive investor conclusions or are important to investor models or whether the misstatement affects entity-specific trends and performance metrics (e.g.,
<FONT STYLE="white-space:nowrap">non-GAAP</FONT> measurements or key ratios monitored by analysts or other key users of financial statements) that may influence investment decisions</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">No. Management believes that investors are primarily focused on the cash and investment financial resources and this error is not material to the use of cash in operating activities.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Whether the misstatement is a <FONT STYLE="white-space:nowrap">one-time</FONT> item and does not alter investors&#146; perceptions of key trends affecting the entity</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">No. Management does not believe that the error would alter investors&#146; perceptions of key value drivers affecting the entity. Management does not believe that investors consider the lease modification to be a material
transaction for the Company as investors are predominantly focused on the development of its lead product candidate, <FONT STYLE="white-space:nowrap">Ixo-vec</FONT> <FONT STYLE="white-space:nowrap">(ADVM-022).</FONT></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Whether the misstatement relates to items involving related parties or known users (e.g., whether the external parties to the transaction are related to the entity&#146;s management)</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Not applicable, the misstatements do not involve related parties or known users.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Whether the misstatement causes the disclosures to be inadequate or omit information not specifically required by US&nbsp;GAAP but which is important to the understanding of the financial statements or conveys something in a false
or misleading manner</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">No. The misstatements do not cause the disclosures to be inadequate or materially incomplete. The remeasurement of the lease asset and liability and the related footnote disclosures (such as the future lease commitments) are
correctly stated.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Whether the misstatement relates to the incorrect selection or application of an accounting policy that has an immaterial effect on the current period&#146;s financial statements but is likely to have a material effect on future
periods&#146; financial statements</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">No. The misstatements are accounting errors that were corrected in the quarter ended September&nbsp;30, 2022, and would not have a material effect on future period consolidated financial statements.</TD></TR>
</TABLE></DIV>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">January 17, 2024 </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman">The Company concluded that, based on the aggregate of quantitative and qualitative
considerations related to the misstatements, the misstatements are immaterial to the historical results (i.e., the year ended December&nbsp;31, 2021 and the three months ended March&nbsp;31, 2022 and June&nbsp;30, 2022) and the three and nine months
ended September&nbsp;30, 2022 during which the error was corrected. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">***** </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Please contact me at (415) <FONT STYLE="white-space:nowrap">693-2326</FONT> with any questions or further comments regarding the response to the Staff&#146;s
comment. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Sincerely,</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Cooley LLP</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Julia Boesch</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Julia Boesch</TD></TR>
</TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">cc:</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Linda Rubinstein, Adverum Biotechnologies, Inc., Chief Financial Officer </P></TD></TR></TABLE>
<P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">John Rakow, Adverum Biotechnologies, Inc., General Counsel </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Kenneth Guernsey, Cooley LLP &nbsp;&nbsp;&nbsp;&nbsp; </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Marcus Lindner, Ernst&nbsp;&amp; Young LLP </P>
</DIV></Center>

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