Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Financial Statements Details

v3.23.1
Condensed Consolidated Financial Statements Details
3 Months Ended
Mar. 31, 2023
Condensed Consolidated Financial Statements Detail  
Condensed Consolidated Financial Statements Detail

3. Condensed Consolidated Financial Statements Details

Equity Securities

Equity securities consisted of an investment in Rezolute’s common stock of $0.3 million for both March 31, 2023 and December 31, 2022 (Note 4). For the three months ended March 31, 2023 and 2022, the Company recognized a loss of $24,000 and $0.2 million, respectively, due to the change in fair value of its investment in Rezolute’s common stock in the other income (expense), net line item of the condensed consolidated statements of operations and comprehensive loss.

Intangible assets, net

The following table summarizes cost, accumulated amortization, and net carrying value of the intangible assets as of March 31, 2023 (in thousands):

Accumulated

Net Carrying

Cost

Amortization

Value

As of March 31, 2023

Ebopiprant IP (Note 4)

$

15,247

$

322

$

14,925

Total intangible assets

$

15,247

$

322

$

14,925

The following table summarizes cost, accumulated amortization, and net carrying value of the intangible assets as of December 31, 2022 (in thousands):

Accumulated

Net Carrying

Cost

Amortization

Value

As of December 31, 2022

Ebopiprant IP (Note 4)

$

15,247

$

97

$

15,150

Total intangible assets

$

15,247

$

97

$

15,150

The remaining life of the intangible assets is 16.7 years. The following table presents the projected amortization expense for the next five years (in thousands):

Intangible Asset

    

Amortization

 

2023 (excluding three months ended March 31, 2023)

$

673

2024

 

897

2025

 

897

2026

897

2027

897

Total

$

4,261

Accrued and Other Liabilities

Accrued and other liabilities consisted of the following (in thousands):

March 31, 

December 31, 

    

2023

    

2022

Arbitration settlement costs (Note 9)

 

4,132

 

Accrued payroll, severance and retention costs

 

1,087

 

1,449

Accrued legal and accounting fees

504

867

Accrued incentive compensation

304

562

Other accrued liabilities

100

40

Total

$

6,127

$

2,918

Net Loss Per Share Attributable to Common Stockholders

The following is a reconciliation of the numerator (net loss) and the denominator (number of shares) used in the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share amounts):

Three Months Ended March 31, 

    

2023

    

2022

Numerator

 

  

 

  

Net loss

$

(9,813)

$

(2,280)

Less: Series A accumulated dividends

 

(530)

 

(530)

Less: Series B accumulated dividends

(838)

(838)

Net loss attributable to common stockholders, basic and diluted

$

(11,181)

(3,648)

 

Denominator

 

 

Weighted average shares used in computing basic and diluted net loss per share attributable to common stockholders

 

11,460

 

11,330

Basic and diluted net loss per share attributable to common stockholders

$

(0.98)

$

(0.32)

Potentially dilutive securities are excluded from the calculation of diluted net loss per share attributable to common stockholders if their inclusion is anti-dilutive.

The following table shows the weighted-average shares from outstanding securities considered anti-dilutive and therefore excluded from the computation of diluted net loss per share attributable to common stockholders (in thousands):

Three Months Ended March 31, 

    

2023

    

2022

Convertible preferred stock

5,003

5,003

Common stock options

 

1,548

697

Warrants for common stock

 

6

6

Total

 

6,557

 

5,706