Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
Entity Registrant Name | PRECISION BIOSCIENCES INC | |
Entity Central Index Key | 0001357874 | |
Trading Symbol | DTIL | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Common Stock, Shares Outstanding | 7,233,760 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
Entity File Number | 001-38841 | |
Entity Tax Identification Number | 20-4206017 | |
Entity Address, Address Line One | 302 East Pettigrew St. | |
Entity Address, Address Line Two | Suite A-100 | |
Entity Address, City or Town | Durham | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27701 | |
City Area Code | 919 | |
Local Phone Number | 314-5512 | |
Title of 12(b) Security | Common Stock, par value $0.000005 per share | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONDENSED BALANCE SHEETS (Unaud
CONDENSED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 123,571 | $ 116,678 |
Accounts receivable | 207 | 901 |
Prepaid expenses | 5,668 | 5,977 |
Convertible note receivable | 12,251 | 11,897 |
Assets held for sale | 189 | 487 |
Contract asset | 1,359 | |
Other current assets | 790 | 419 |
Total current assets | 144,035 | 136,359 |
Property, equipment, and software—net | 4,227 | 6,338 |
Intangible assets—net | 375 | 400 |
Right-of-use assets—net | 7,689 | 8,263 |
Investment in equity securities | 3,206 | 3,206 |
Note receivable—net | 6,034 | 4,990 |
Other assets | 234 | 225 |
Total assets | 165,800 | 159,781 |
Current liabilities: | ||
Accounts payable | 1,144 | 2,968 |
Accrued compensation | 2,479 | 4,978 |
Accrued research and development expenses | 1,871 | 1,557 |
Deferred revenue | 526 | 12,035 |
Loan payable-net | 22,494 | 22,412 |
Lease liabilities | 1,223 | 1,133 |
Other current liabilities | 1,916 | 2,391 |
Current liabilities of discontinued operations | 1,304 | 2,513 |
Total current liabilities | 32,957 | 49,987 |
Deferred revenue | 26,783 | 73,082 |
Lease liabilities | 7,091 | 7,723 |
Warrant liability | 14,255 | |
Contract liabilities | 10,000 | 10,000 |
Noncurrent liabilities of discontinued operations | 128 | |
Total liabilities | 91,086 | 140,920 |
Commitments and contingencies (Note 4) | ||
Stockholders’ equity: | ||
Preferred stock: $0.0001 par value - 10,000,000 shares authorized as of June 30, 2024 and December 31, 2023; no shares issued and outstanding as of June 30, 2024 and December 31, 2023 | ||
Common stock: $0.000005 par value- 200,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 7,150,385 shares issued and 7,123,370 shares outstanding as of June 30, 2024; 4,191,053 shares issued and 4,164,038 shares outstanding as of December 31, 2023 | 1 | 1 |
Additional paid-in capital | 523,959 | 509,443 |
Accumulated deficit | (448,294) | (489,631) |
Treasury stock | (952) | (952) |
Total stockholders’ equity | 74,714 | 18,861 |
Total liabilities and stockholders’ equity | $ 165,800 | $ 159,781 |
CONDENSED BALANCE SHEETS (Una_2
CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.000005 | $ 0.000005 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 7,150,385 | 4,191,053 |
Common stock, shares outstanding | 7,123,370 | 4,164,038 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Revenue | $ 49,898 | $ 19,789 | $ 67,482 | $ 28,569 |
Operating expenses | ||||
Research and development | 17,225 | 13,088 | 30,568 | 24,136 |
General and administrative | 8,527 | 9,830 | 16,955 | 20,916 |
Total operating expenses | 25,752 | 22,918 | 47,523 | 45,052 |
Operating loss | 24,146 | (3,129) | 19,959 | (16,483) |
Other income (expense): | ||||
(Loss) gain from equity method investment | (950) | (1,369) | 763 | (2,710) |
Gain (loss) on changes in fair value | 694 | 346 | (769) | |
Gain on change in fair value of warrant liability | 7,765 | 18,151 | ||
Interest expense | (560) | (553) | (1,134) | (1,075) |
Interest income | 1,843 | 1,946 | 3,506 | 3,989 |
(Loss) gain on disposal of assets | (189) | 72 | (254) | 65 |
Total other income (expense) | 8,603 | 96 | 21,378 | (500) |
Income (loss) from continuing operations | 32,749 | (3,033) | 41,337 | (16,983) |
Loss from discontinued operations | (8,858) | (19,968) | ||
Net income (loss) | $ 32,749 | $ (11,891) | $ 41,337 | $ (36,951) |
Net income (loss) per share - Basic | $ 4.7 | $ (3.13) | $ 6.87 | $ (9.84) |
Net income (loss) per share - Diluted | $ 4.67 | $ (3.13) | $ 6.81 | $ (9.84) |
Weighted average common shares outstanding - Basic | 6,966,680 | 3,803,083 | 6,013,829 | 3,756,746 |
Weighted average common shares outstanding - Diluted | 7,011,630 | 3,803,083 | 6,067,620 | 3,756,746 |
CONDENSED STATEMENTS OF CHANGES
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock |
Beginning balance at Dec. 31, 2022 | $ 60,433 | $ 1 | $ 489,696 | $ (428,312) | $ (952) |
Beginning balance, Shares at Dec. 31, 2022 | 3,725,689 | ||||
Stock option exercises | 30 | 30 | |||
Stock option exercises, Shares | 1,718 | ||||
Issuance of common stock under employee stock purchase plan | 266 | 266 | |||
Issuance of common stock under employee stock purchase plan, Shares | 9,303 | ||||
Share-based compensation expense | 4,092 | 4,092 | |||
Proceeds from issuance of common stock, net of issuance cost | 416 | 416 | |||
Proceeds from issuance of common stock, net of issuance cost, Shares | 18,012 | ||||
Restricted stock units vested, Shares | 16,717 | ||||
Net income (loss) | (25,060) | (25,060) | |||
Ending balance at Mar. 31, 2023 | 40,177 | $ 1 | 494,500 | (453,372) | (952) |
Ending balance, Shares at Mar. 31, 2023 | 3,771,439 | ||||
Beginning balance at Dec. 31, 2022 | 60,433 | $ 1 | 489,696 | (428,312) | (952) |
Beginning balance, Shares at Dec. 31, 2022 | 3,725,689 | ||||
Net income (loss) | (36,951) | ||||
Ending balance at Jun. 30, 2023 | 34,041 | $ 1 | 500,255 | (465,263) | (952) |
Ending balance, Shares at Jun. 30, 2023 | 3,862,447 | ||||
Beginning balance at Mar. 31, 2023 | 40,177 | $ 1 | 494,500 | (453,372) | (952) |
Beginning balance, Shares at Mar. 31, 2023 | 3,771,439 | ||||
Share-based compensation expense | 3,874 | 3,874 | |||
Proceeds from issuance of common stock, net of issuance cost | 1,881 | 1,881 | |||
Proceeds from issuance of common stock, net of issuance cost, Shares | 77,509 | ||||
Restricted stock units vested, Shares | 13,499 | ||||
Net income (loss) | (11,891) | (11,891) | |||
Ending balance at Jun. 30, 2023 | 34,041 | $ 1 | 500,255 | (465,263) | (952) |
Ending balance, Shares at Jun. 30, 2023 | 3,862,447 | ||||
Beginning balance at Dec. 31, 2023 | $ 18,861 | $ 1 | 509,443 | (489,631) | (952) |
Beginning balance, Shares at Dec. 31, 2023 | 4,191,053 | 4,191,053 | |||
Issuance of common stock under employee stock purchase plan | $ 112 | 112 | |||
Issuance of common stock under employee stock purchase plan, Shares | 9,037 | ||||
Share-based compensation expense | 2,906 | 2,906 | |||
Proceeds from issuance of common stock to collaboration partners and licensees | 905 | 905 | |||
Proceeds from issuance of common stock to collaboration partners and licensees, Shares | 97,360 | ||||
Proceeds from issuance of common stock and warrants through underwritten offering, net of issuance cost | 4,610 | 4,610 | |||
Proceeds from issuance of common stock and warrants through underwritten offering, net of issuance cost, Shares | 2,500,000 | ||||
Proceeds from issuance of common stock through ATM facility, net of issuance cost | 1,224 | 1,224 | |||
Proceeds from issuance of common stock through ATM facility, net of issuance cost, Shares | 98,943 | ||||
Restricted stock units vested, Shares | 46,861 | ||||
Net income (loss) | 8,588 | 8,588 | |||
Ending balance at Mar. 31, 2024 | 37,206 | $ 1 | 519,200 | (481,043) | (952) |
Ending balance, Shares at Mar. 31, 2024 | 6,943,254 | ||||
Beginning balance at Dec. 31, 2023 | $ 18,861 | $ 1 | 509,443 | (489,631) | (952) |
Beginning balance, Shares at Dec. 31, 2023 | 4,191,053 | 4,191,053 | |||
Stock option exercises, Shares | 0 | ||||
Net income (loss) | $ 41,337 | ||||
Ending balance at Jun. 30, 2024 | $ 74,714 | $ 1 | 523,959 | (448,294) | (952) |
Ending balance, Shares at Jun. 30, 2024 | 7,150,385 | 7,150,385 | |||
Beginning balance at Mar. 31, 2024 | $ 37,206 | $ 1 | 519,200 | (481,043) | (952) |
Beginning balance, Shares at Mar. 31, 2024 | 6,943,254 | ||||
Share-based compensation expense | 2,928 | 2,928 | |||
Proceeds from issuance of common stock, net of issuance cost | 300 | 300 | |||
Proceeds from issuance of common stock, net of issuance cost, Shares | 25,000 | ||||
Proceeds from issuance of common stock through ATM facility, net of issuance cost | 1,531 | 1,531 | |||
Proceeds from issuance of common stock through ATM facility, net of issuance cost, Shares | 144,735 | ||||
Restricted stock units vested, Shares | 37,396 | ||||
Net income (loss) | 32,749 | 32,749 | |||
Ending balance at Jun. 30, 2024 | $ 74,714 | $ 1 | $ 523,959 | $ (448,294) | $ (952) |
Ending balance, Shares at Jun. 30, 2024 | 7,150,385 | 7,150,385 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows used in operating activities: | ||
Net income (loss) | $ 41,337 | $ (36,951) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 2,235 | 3,918 |
Share-based compensation | 5,834 | 7,966 |
Loss (gain) on disposal of assets | 254 | (65) |
Non-cash interest expense | 255 | 263 |
Amortization of right-of-use assets | 574 | 745 |
(Gain) loss on changes in fair value | (346) | 769 |
(Gain) loss from equity method investment | (763) | 2,710 |
Amortization of discount on note receivable | (280) | (189) |
Gain on change in fair value of warrant liability | (18,151) | |
Changes in operating assets and liabilities: | ||
Prepaid expenses | 309 | (1,363) |
Accounts receivable | 694 | 68 |
Contract asset | (1,359) | |
Other assets and other current assets | (96) | 954 |
Accounts payable | (1,982) | (444) |
Other liabilities and other current liabilities | (4,015) | (3,490) |
Deferred revenue | (57,808) | (27,169) |
Lease liabilities | (542) | (320) |
Net cash used in operating activities | (33,850) | (52,598) |
Cash flows used in investing activities: | ||
Purchases of property, equipment and software | (114) | (1,597) |
Purchases of intangible assets | (250) | |
Proceeds from sale of equipment | 60 | 70 |
Net cash used in investing activities | (54) | (1,777) |
Cash flows provided by financing activities: | ||
Proceeds from stock option exercises | 30 | |
Proceeds from employee stock purchase plan | 112 | 266 |
Proceeds from offering of common stock and warrants, net of issuance costs | 39,780 | 2,297 |
Proceeds from issuance of common stock to collaboration partners and licensees | 905 | |
Net cash provided by financing activities | 40,797 | 2,593 |
Net increase (decrease) in cash and cash equivalents | 6,893 | (51,782) |
Cash and cash equivalents—beginning of period | 116,678 | 189,576 |
Cash and cash equivalents —end of period | 123,571 | 137,794 |
Supplemental disclosures of cash flow information: | ||
Property, equipment and software additions included in accounts payable and other current liabilities | 4 | |
Cash paid for interest | $ 1,058 | $ 968 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net Income (Loss) | $ 32,749 | $ 8,588 | $ (11,891) | $ (25,060) | $ 41,337 | $ (36,951) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Rule 10b5-1 Trading Plans On April 25, 2024 , Jeff Smith , our Chief Research Officer , entered into a trading plan intended to comply with the affirmative defense conditions under Rule 10b5-1(c) of the Exchange Act. The trading plan provides for sales of only such number of shares of our common stock as are necessary, after payment of applicable broker commissions, to satisfy the applicable tax withholding obligations arising from the vesting and settlement of restricted stock units granted to him. Such sales are to take place on the date on which Mr. Smith first becomes subject to the applicable withholding obligation or the first trading date thereafter. The number of shares of common stock to be sold under Mr. Smith’s Rule 105b-1 plan is dependent on future events which cannot be known at this time, including the future trading price of the Company’s common stock. |
Name | Jeff Smith |
Title | Chief Research Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | April 25, 2024 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1: DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business Precision BioSciences, Inc. (the “Company”) was incorporated on January 26, 2006 under the laws of the State of Delaware and is based in Durham, North Carolina. The Company is a gene editing company dedicated to improving life by developing in vivo therapies for genetic and infectious diseases with the application of the Company’s wholly-owned proprietary ARCUS genome editing platform. Since its inception, the Company has devoted substantially all of its efforts to research and development activities, recruiting skilled personnel, establishing its intellectual property portfolio and providing general and administrative support for these operations. The Company is subject to a number of risks similar to those of other companies conducting early-stage research and development of product candidates. Principal among these risks are the Company's dependence on key individuals and intellectual property, competition from other products and companies, and the technical risks associated with the successful research, development and clinical manufacturing of its product candidates. The Company’s success is dependent upon its ability to continue to raise additional capital in order to fund ongoing research and development, obtain regulatory approval of its products, successfully commercialize its products, generate revenue, meet its obligations, and, ultimately, attain profitable operations. Unaudited Interim Financial Information The accompanying unaudited condensed financial statements and notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in the annual financial statements, prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”), have been condensed or omitted pursuant to those rules and regulations. These unaudited condensed financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on March 27, 2024. The unaudited condensed financial statements have been prepared on the same basis as the audited financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation of the Company’s condensed financial position as of June 30, 2024 and condensed results of operations for the three and six months ended June 30, 2024 and 2023 and the condensed cash flows for the six months ended June 30, 2024 and 2023, have been made. The Company’s condensed results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2024 . Discontinued Operations In August 2023, the Company announced its strategic decision to operate as a single platform company focused exclusively on developing in vivo gene editing therapies with the completion of the sale of its chimeric antigen receptor (“CAR”) T infrastructure to Imugene Limited, an Australian corporation (“Imugene Limited”), and its wholly-owned subsidiary Imugene (USA) Inc. (“Imugene US”), a Nevada corporation (collectively, “Imugene”). Additionally, the Company licensed its lead allogeneic CAR T candidate for cancer, azercabtagene zapreleucel (“azer-cel”), to Imugene. Accordingly, the accompanying condensed financial statements have been recast for all periods presented to reflect the assets, liabilities and expenses related to the Company’s CAR T programs as discontinued operations (see Note 8, Discontinued Operations ). The accompanying condensed financial statements are generally presented in conformity with the Company’s historical format. Reverse Stock Split On February 13, 2024, the Company amended its amended and restated certificate of incorporation in order to effect a 1-for- 30 reverse stock split of its outstanding shares of capital stock (the “Reverse Stock Split”). As a result of the Reverse Stock Split, every 30 shares of the Company’s common stock issued or outstanding were automatically reclassified into one new share of common stock, subject to the treatment of fractional shares as described below, without any action on the part of the holders. All historical share and per-share amounts reflected throughout the accompanying financial statements and other financial information in this Quarterly Report on Form 10-Q have been retroactively adjusted to reflect the Reverse Stock Split as if the split occurred as of the earliest period presented. The Reverse Stock Split did not affect the number of authorized shares of common stock or the par value of the common stock. No fractional shares were issued in connection with the Reverse Stock Split. Stockholders who would otherwise have been entitled to receive fractional shares as a result of the Reverse Stock Split were entitled to a cash payment in lieu thereof at a price equal to the fraction to which the stockholder would otherwise be entitled multiplied by the closing sales price per share of the common stock (as adjusted to give effect to the Reverse Stock Split) on The Nasdaq Capital Market on February 13, 2024, the last trading day immediately preceding the effective time of the Reverse Stock Split. Summary of Significant Accounting Policies The Company’s complete listing of significant accounting policies is set forth in Note 1, Description of Business and Summary of Significant Accounting Policies , to the Notes to Condensed Financial Statements on its Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Recent Accounting Guidance Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting—Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 requires public entities to disclose their significant segment expense categories and amounts for each reportable segment. A significant segment expense is an expense that is significant to the segment, regularly provided to or easily computed from information regularly provided to the chief operating decision maker and included in the reported measure of segment profit or loss. This updated standard is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024. The Company is in process of evaluating the impact of this new guidance on its disclosure. Revenue Recognition for Contracts with Customers The Company’s revenues are generated primarily through collaborative research, license, development and commercialization agreements. ASC 606, Revenue from Contracts with Customers (“ASC 606”) applies to all contracts with customers, except for contracts that are within the scope of other standards. Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company evaluates the performance obligations promised in the contract that are based on goods and services that will be transferred to the customer and determines whether those obligations are both (i) capable of being distinct and (ii) distinct in the context of the contract. Goods or services that meet these criteria are considered distinct performance obligations. If both these criteria are not met, the goods and services are combined into a single performance obligation. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Arrangements that include rights to additional goods or services that are exercisable at a customer’s discretion are generally considered options. The Company assesses if these options provide a material right to the customer and if so, these options are considered performance obligations. The exercise of a material right is accounted for as a contract modification for accounting purposes. The Company recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) each performance obligation is satisfied at a point in time or over time, and if over time this is based on the use of an output or input method. For the six months ended June 30, 2024 , the Company did no t record any cumulative catch-up adjustments on its contracts with customers. During the six months ended June 30, 2024 , the Company recorded $ 58.0 million in revenue that was included in deferred revenue as of December 31, 2023. Invoices issued as stipulated in contracts prior to revenue recognition are recorded as deferred revenue. Amounts expected to be recognized as revenue within the 12 months following the balance sheet date are classified as deferred revenue within current liabilities in the accompanying condensed balance sheets. Amounts not expected to be recognized as revenue within the 12 months following the balance sheet date are classified as noncurrent deferred revenue. Amounts recognized as revenue, but not yet invoiced are generally recognized as contract assets in the other current assets line item in the accompanying condensed balance sheets. Milestone Payments – If an arrangement includes development and regulatory milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s or the licensee’s control, such as regulatory approvals, are not considered probable of being achieved until those approvals are received and therefore revenue recognized is constrained as management is unable to assert that a reversal of revenue would not be probable. The transaction price is then allocated to each performance obligation on a relative standalone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such development milestones and any related constraint, and, if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect collaboration revenues and earnings in the period of adjustment. Royalties – For arrangements that include sales-based royalties, including milestone payments based on a level of sales, which are the result of a customer-vendor relationship and for which the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation linked to some or all of the royalty has been satisfied or partially satisfied. To date, the Company has not recognized any royalty revenue resulting from any of its licensing arrangements. Significant Financing Component – In determining the transaction price, the Company adjusts consideration for the effects of the time value of money if the timing of payments provides the Company with a significant benefit of financing. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the licensees and the transfer of the promised goods or services to the licensees will be one year or less. The Company assessed each of its revenue arrangements in order to determine whether a significant financing component exists and concluded that a significant financing component does not exist in any of its arrangements. Collaborative Arrangements – The Company has entered into collaboration agreements, which are within the scope of ASC 606, to discover, develop, manufacture and commercialize product candidates. The terms of these agreements typically contain multiple promises or obligations, which may include: (1) licenses, or options to obtain licenses, to use the Company’s technology, (2) research and development activities to be performed on behalf of the collaboration partner, and (3) in certain cases, services in connection with the manufacturing of preclinical and clinical material. Payments the Company receives under these arrangements typically include one or more of the following: non-refundable, upfront license fees; option exercise fees; funding of research and/or development efforts; clinical and development, regulatory, and sales milestone payments; and royalties on future product sales. The Company analyzes its collaboration arrangements to assess whether the collaboration agreements are within the scope of ASC 808, Collaborative Arrangements (“ASC 808”) to determine whether such arrangements involve joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities. This assessment is performed throughout the life of the arrangement based on changes in the responsibilities of all parties in the arrangement. For collaboration arrangements within the scope of ASC 808 that contain multiple elements, the Company first determines which elements of the collaboration are deemed to be within the scope of ASC 808 and those that are more reflective of a vendor-customer relationship and, therefore, are within the scope of ASC 606. For elements of collaboration arrangements that are accounted for pursuant to ASC 808, an appropriate recognition method is determined and applied consistently, generally by analogy to ASC 606. For those elements of the arrangement that are accounted for pursuant to ASC 606, the Company applies the five-step model described above. For additional discussion of accounting for collaboration revenues, see Note 6, Collaboration and License Agreements . Derivative Financial Instruments On March 1, 2024, the Company entered into an Underwriting Agreement with Guggenheim Securities, LLC (the “Underwriting Agreement”), relating to the offering, issuance and sale (the “March 2024 Public Offering”) of (a) 2,500,000 shares of the Company’s common stock, par value $ 0.000005 per share, and (b) warrants to purchase up to an aggregate of 2,500,000 shares of the Company’s common stock. The warrants have a five-year term and an exercise price of $ 20.00 per share. Each warrant is exercisable immediately upon issuance, subject to certain limitations on beneficial ownership. The Company evaluates all of its financial instruments, including issued stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480, Distinguishing Liabilities from Equity , and ASC 815, Derivatives and Hedging (“ASC 815”). The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, will be re-assessed at the end of each reporting period. The warrants issued in the March 2024 Public Offering were recognized as derivative warrant liabilities in accordance with ASC 815. Accordingly, the Company recognized the warrant instruments as liabilities at fair value and will remeasure the instruments to fair value at each balance sheet date, with changes in fair value recognized in the Company’s condensed statements of operations, until exercised or expiration. The fair value of the warrants were initially estimated using a Black-Scholes option pricing model. Derivative warrant liabilities are classified as non-current liabilities as their liquidation is not reasonably expected to require the use of current assets or require the creation of current liabilities. The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 2: FAIR VALUE MEASUREMENTS The following represents assets and liabilities measured at fair value on a recurring basis by the Company (in thousands): June 30, 2024 Fair Value Level 1 Level 2 Level 3 Assets: Money market funds $ 14,327 $ 14,327 $ — $ — Investment in iECURE 3,206 — — 3,206 Imugene convertible note 12,251 — 12,251 — Assets held for sale 189 — — 189 $ 29,973 $ 14,327 $ 12,251 $ 3,395 Liabilities: Final payment fee $ 223 $ — $ 223 $ — Warrant liability 14,255 - - 14,255 $ 14,478 $ — $ 223 $ 14,255 December 31, 2023 Fair Value Level 1 Level 2 Level 3 Assets: Money market funds $ 13,960 $ 13,960 $ — $ — Investment in iECURE 3,206 — — 3,206 Imugene convertible note 11,897 — 11,897 — Assets held for sale 487 — — 487 $ 29,550 $ 13,960 $ 11,897 $ 3,693 Liabilities: Final payment fee $ 215 $ — $ 215 $ — $ 215 $ — $ 215 $ — The following represents a reconciliation of assets measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) for the six months ended June 30, 2024 (in thousands). The warrant reconciliation is disclosed in Note 13, Warrants : Investment in iECURE Assets held for sale Balance December 31, 2023 $ 3,206 $ 487 Gains from changes in fair value included in earnings — — Assets sold — ( 109 ) Write-offs — ( 189 ) Balance June 30, 2024 $ 3,206 $ 189 The carrying amounts of the Company’s accounts receivable, accounts payable, and accrued expenses and other current liabilities, approximate their respective fair values due to their short-term nature. The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis and to minimize the use of unobservable inputs when determining their fair value. The three tiers are defined as follows: Level 1—Observable inputs based on unadjusted quoted prices in active markets for identical assets or liabilities Level 2—Inputs, other than quoted prices in active markets, which are observable either directly or indirectly Level 3—Unobservable inputs for which there is little or no market data, which require the Company to develop its own assumptions Cash Equivalents As of June 30, 2024 and December 31, 2023, the Company held cash equivalents which were composed of investments in money market funds. The Company classifies investments in money market funds within Level 1 of the fair value hierarchy as the prices are available from quoted prices in active markets. Investment in iECURE In August 2021, the Company entered into an Equity Issuance Agreement with iECURE, Inc. (“iECURE”), pursuant to which iECURE issued the Company common stock in iECURE (the “iECURE equity”) as additional consideration for a license to use the Company’s PCSK9-directed ARCUS nuclease to insert genes into the PCSK9 locus to develop treatments for four pre-specified rare genetic diseases. On issuance, the Company accounted for the iECURE equity at fair value under ASC 825, Financial Instruments . Accordingly, the Company adjusts the carrying value of the iECURE equity to fair value each reporting period with any changes in fair value recorded to other income (expense). There was no change in the fair value of the iECURE equity during the six months ended June 30, 2024. The Company classifies the iECURE equity within Level 3 of the fair value hierarchy as the assessed fair value was based on significant unobservable inputs given iECURE equity is not traded on a public exchange. Assets Held for Sale The fair values of property, plant, and equipment held for sale are classified as Level 3 in the fair value hierarchy due to a mix of unobservable inputs utilized such as independent research in the market as well as actual quotes from market participants. Imugene Convertible Note As partial consideration for the assets acquired by Imugene in connection with the asset purchase agreement (the "Imugene Purchase Agreement"), Imugene issued to the Company convertible notes pursuant to the terms and conditions set forth in a convertible note subscription deed (collectively, the “Imugene Convertible Note”) in an aggregate principal amount of $ 13 million. The Imugene Convertible Note is non-interest bearing and matures on August 15, 2024 (the "Maturity Date"). On the Maturity Date, the Imugene Convertible Note must be redeemed with cash, converted into ordinary shares of Imugene Limited at a conversion price based on the 10-day volume weighted average price ( “VWAP”) of Imugene Limited’s ordinary shares prior to the date of conversion, or partially redeemed with cash and partially converted into shares, at Imugene’s discretion. There was an assessed $ 0.4 million gain o n the change in fair value of the Imugene Convertible Note during the six months ended June 30, 2024. The Company classifies the Imugene Convertible Note within Level 2 of the fair value hierarchy as the assessed fair value is based on observable market inputs including the risk-free rate and the ordinary share price, volume, and volatility. Final Payment Fee The Company was required to pay a final payment fee upon maturity of the Revolving Line (as defined in Note 3, Debt , below) and will be required to pay a final payment fee upon maturity of the 2024 Term Loan (as defined in Note 3, Debt , below) which, effective July 31, 2024, replaced the Revolving Line. The final payment fee was determined to be a derivative under ASC 815, therefore these fees were initially measured at fair value and recorded as debt discount to be amortized to interest expense over the term of the Revolving Line and, following its replacement by the 2024 Term Loan, the terms of the 2024 Term Loan. Accordingly, the Company will adjust the carrying value of the final payment fee to fair value each reporting period with any changes in fair value recorded to other income (expense). There was an assessed loss on change in fair value of the final payment fee of less than $ 0.1 million during the six months ended June 30, 2024. The Company classifies the final payment fee within Level 2 of the fair value hierarchy as the assessed fair value is based on observable market inputs including the Company’s current borrowing rate on the Revolving Line. The final payment fee is included in the other current liabilities within the condensed balance sheet as of June 30, 2024 and December 31, 2023. Warrant Liability As of June 30, 2024 , warrants representing 2,500,000 shares of common stock issued in the March 2024 Public Offering were outstanding. These warrants are classified as a liability since the warrants meet the classification requirements for liability accounting pursuant to ASC 815. This liability is subject to remeasurement at each balance sheet date until the warrants are exercised or expire, and any change in fair value is recognized in the Company’s condensed statements of operations. The Company classifies the warrant liability within Level 3 of the fair value hierarchy as the assessed fair value is based on both observable and unobservable market inputs including the Company's stock price, risk-free rate, and volatility. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 3: DEBT Revolving Line Pursuant to the terms of the loan and security agreement, as amended (the " 2019 Loan and Security Agreement"), with Banc of California (formerly known as Pacific Western Bank) the Company was entitled to request advances on a revolving line of credit of up to an aggregate principal amount of $ 30.0 million (as amended from time to time, the “Revolving Line”) at an annual interest rate equal to the greater of (a) 0.75 % above the Prime Rate (as defined in the 2019 Loan and Security Agreement) and (b) 4.25 %. As of June 30, 2024, the stated interest rate on the Revolving Line was 9.25 % and the effective interest rate was 9.99 %. On June 21, 2024, the Revolving Line maturity date was extended from June 23, 2024 to July 31, 2024, with all outstanding principal amounts due upon maturity . Pursuant to the terms of the 2019 Loan and Security Agreement, the Company was required to maintain an aggregate balance of unrestricted cash at Banc of California (not including amounts in certain specified accounts) equal to or greater than $ 10.0 million. As of June 30, 2024 and December 31, 2023, $ 22.5 million in borrowings were outstanding under the Revolving Line and the unamortized debt discount balance was less than $ 0.1 million. As described in Note 14, Subsequent Events , the Company replaced the Revolving Line on July 31, 2024 with a new senior secured term loan of $ 22.5 million with Banc of California (the “2024 Term Loan”). |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 4: COMMITMENTS AND CONTINGENCIES Litigation The Company is subject to various legal matters and claims in the ordinary course of business. Although the results of legal proceedings and claims cannot be predicted with certainty, in the opinion of management, there are currently no such known matters that will have a material effect on the financial condition, results of operations or cash flows of the Company. Servier Program Purchase Agreement On April 9, 2021, the Company entered into a program purchase agreement (the “ Program Purchase Agreement ”) with Les Laboratoires Servier and Institut de Recherches Internationales Servier (collectively, “Servier”), pursuant to which the Company reacquired all of its global development and commercialization rights previously granted to Servier pursuant to the Development and Commercial License Agreement by and between Servier and the Company, dated February 24, 2016, as amended (the “Servier Agreement”), and mutually terminated the Servier Agreement. The Program Purchase Agreement requires the Company to make certain payments to Servier based on the achievement of regulatory and commercial milestones for each product. Management assessed the likelihood of each of the regulatory and commercial milestones included in the Program Purchase Agreement in accordance with ASC 450, Contingencies . If the assessment of a contingency indicates that it is probable that the milestone will be achieved and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s condensed financial statements. Accordingly, contingent liabilities of $ 10.0 million related to the Program Purchase Agreement are accrued and included in contract liabilities in the condensed balance sheets as of June 30, 2024 and December 31, 2023. Leases The Company has an operating lease for real estate in North Carolina and does not have any finance leases. The elements of lease expense were as follows: For the Six Months Ended June 30, (in thousands) 2024 2023 Lease Cost Operating lease cost $ 967 $ 932 Short-term lease cost 378 371 Variable lease cost 220 446 Sublease income ( 212 ) — Total Lease Cost $ 1,353 $ 1,749 Other Information Operating cash flows used for operating leases 932 1,194 Operating right-of-use assets obtained in exchange for lease obligations — 2,491 Operating lease liabilities arising from obtaining right-of-use assets — ( 1,864 ) Operating Leases Weighted-average remaining lease term (in years) 5.1 3.1 Operating Leases Weighted-average discount rate 9.2 % 7.9 % Pursuant to the Imugene Purchase Agreement, Imugene subleases from the Company space at the Company’s headquarters (the “Imugene Sublease”). As the Company is not relieved of its primary obligation to the lessor under the terms of the Imugene Sublease, the Company will continue to carry the related right-of-use assets and lease liabilities on its Condensed Balance Sheets and will net sublease income with lease cost in its condensed statements of operations. Future minimum lease payments under non-cancelable operating leases with terms of greater than one year as of June 30, 2024, were as follows: (in thousands) Amount 2024 (remainder of year) $ 955 2025 1,962 2026 2,019 2027 2,078 2028 2,140 2029 and beyond 1,269 Total lease payments 10,423 Less: imputed interest 2,109 Total operating lease liabilities $ 8,314 Guarantees The Company agreed to act as a guarantor of Imugene’s assumption of the Company’s lease for its Manufacturing Center for Advanced Therapeutics (the “MCAT Lease” ) through the lease expiration date of August 31, 2027 . If Imugene (including any successor or assignee of Imugene) fails to pay rent due on the MCAT Lease, the lessor may have contractual recourse against the Company. As of June 30, 2024, the Company’s guarantee consists of a contingent liability for aggregate minimum lease payments of approximately $ 5.1 million. No contract liability for the Company’s guarantee of Imugene’s performance on the MCAT Lease was recorded as of June 30, 2024, as it was not deemed probable that Imugene will be in default under the MCAT Lease. Supply Agreements The Company enters into contracts in the normal course of business with contract manufacturing organizations (“CMOs”) for the manufacture of clinical trial materials and contract research organizations (“CROs”) for clinical trial services. These agreements provide for termination at the request of either party with less than one-year’s notice and are, therefore, cancelable contracts. If canceled, these agreements are not anticipated to have a material effect on the financial condition, results of operations, or cash flows of the Company. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 5: STOCKHOLDERS’ EQUITY Capital Structure As a result of the Reverse Stock Split, every 30 shares of the Company’s common stock issued or outstanding were automatically reclassified into one new share of common stock, subject to the treatment of fractional shares as described below, without any action on the part of the holders. The Reverse Stock Split did not affect the number of authorized shares of common stock or the par value of the common stock. On March 1, 2024, the Company entered into the Underwriting Agreement relating to the March 2024 Public Offering of (i) 2,500,000 shares of the Company’s common stock, par value $ 0.000005 per share, and (ii) warrants to purchase up to an aggregate of 2,500,000 shares of the Company’s common stock. The warrants have a five-year term and an exercise price of $ 20.00 per share. Each warrant is exercisable immediately upon issuance, subject to certain limitations on beneficial ownership. The price to the public in the March 2024 Public Offering was $ 16.00 per share of common stock and accompanying warrants, which resulted in approximately $ 37.0 million of net proceeds to the Company after deducting the underwriting discount and offering expenses of approximately $ 3.0 million. |
Collaboration and License Agree
Collaboration and License Agreements | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
COLLABORATION AND LICENSE AGREEMENTS | NOTE 6: COLLABORATION AND LICENSE AGREEMENTS TG Therapeutics On January 7, 2024, the Company entered into a license agreement (the “TG License Agreement”) with TG Cell Therapy, Inc. (“TG Subsidiary”) and its parent company, TG Therapeutics, Inc. (“TG Parent” and, together with TG Subsidiary, “TG Therapeutics”), pursuant to which the Company granted TG Subsidiary certain exclusive and non-exclusive license rights to develop, manufacture, and commercialize the Company’s allogeneic CAR T therapy azer-cel for autoimmune diseases and other indications outside of cancer. Under the TG License Agreement, the Company is entitled to receive an upfront cash payment of $ 10.0 million (the “TG Upfront Payment”). The TG Upfront Payment of $ 10.0 million is comprised of (i) a $ 5.25 million cash payment that was paid to the Company on February 5, 2024 , (ii) a $ 2.25 million cash payment that was paid to the Company on February 5, 2024 , in exchange for 97,360 shares of the Company’s common stock at a price of $ 23.10 per share, a 100 % premium to the 30-day VWAP prior to the date of the TG License Agreement , and (iii) a deferred cash payment of $ 2.5 million due within 12 months following the date of the TG License Agreement, payable in exchange for such number of shares of the Company’s common stock determined based on a price per share equal to the greater of (A) a 100 % premium to the VWAP of the Company’s common stock for the 30 trading days prior to the date of payment or (B) a minimum price of $ 11.1660 determined in accordance with Nasdaq Listing Rule 5635(d) (the “Minimum Price”). The Company is also entitled to an additional cash payment of $ 7.5 million in the event that TG Therapeutics achieves a certain clinical milestone that is expected to be achieved in the near-term (the “Initial Milestone Payment”), and additional payments upon the achievement of additional specified milestones of up to $ 288.6 million (the “Additional TG Milestone Payments”). As described below, up to $ 10.0 million of the cash payments potentially payable to the Company are payable in exchange for the issuance to TG Subsidiary by the Company of shares of the Company’s common stock (the “Company Stock Issuances”). The Initial Milestone Payment of $ 7.5 million, if payable, will consist of (i) a $ 5.25 million cash milestone payment and (ii) a $ 2.25 million cash payment payable in exchange for such number of shares of the Company’s common stock determined based on a price per share equal to the greater of (A) a 100 % premium to the VWAP of the Company’s common stock for the 30 trading days prior to the achievement of such milestone or (B) the Minimum Price. The Additional TG Milestone Payments become due upon the achievement of certain milestones as specified in the TG License Agreement. Included within the Additional TG Milestone Payments is a potential payment of $ 3.0 million in connection with achievement of a milestone specified in the TG License Agreement, payable in exchange for such number of shares of the Company’s common stock determined based on a price per share equal to the greater of (A) a 100 % premium to the VWAP of the Company’s common stock for the 30 trading days prior to the achievement of such milestone or (B) the Minimum Price. Subject to the terms and conditions of the TG License Agreement, TG Therapeutics is permitted to pay up to 50 % of the value of each Additional Milestone Payment (other than the Additional Milestone Payment described above that would, upon achievement, involve the issuance of $ 3.0 million of shares of the Company’s common stock) in freely tradable shares of common stock of TG Parent, valued based on the VWAP of the TG Parent shares of common stock on Nasdaq for the 30 trading days prior to the achievement of the applicable milestone. If a licensed product under the TG License Agreement is approved and sold, TG Therapeutics is also required to pay the Company tiered royalties ranging from high-single-digit to low-double-digit percentages on net sales of the licensed product. The Company assessed the TG License Agreement in accordance with ASC 606 and concluded that the promises in the TG License represent a transaction with a customer. The Company has concluded that the TG License Agreement contains the following promises: (i) the license to develop, manufacture, and commercialize non-oncological applications of azer-cel, (ii) deliver to TG Therapeutics a single batch of released clinical trial material (“CTM”) for azer-cel, (iii) designation of TG Therapeutics as the party with which Imugene must enter into a clinical supply agreement, and (iv) joint steering committee (“JSC”) participation. The designation of TG Therapeutics to Imugene and JSC participation were determined to be immaterial promises as the time commitment and related costs associated with performance are expected to be inconsequential to the total consideration in the contract. Accordingly, the Company concluded that the promise of the license and single batch of CTM are the two performance obligations. The Company concluded the TG License Agreement represents functional intellectual property in accordance with ASC 606 as the Company will not be providing any additional services to TG Therapeutics outside of the right to use the licensed intellectual property and supply of CTM. During the three and six months ended June 30, 2024, the Company recognized revenue under the TG License Agreement of $ 0.9 million and $ 8.0 million, respectively. A contract asset related to the TG License Agreement amounted to $ 1.4 million as of June 30, 2024. Sale of Azer-cel CAR T Platform to Imugene for Cancer On August 15, 2023, the Company entered into the Imugene Purchase Agreement, pursuant to which Imugene US acquired the Company’s manufacturing infrastructure used in the development and manufacture of azer-cel, including assuming the lease to the Company’s manufacturing facility and certain contracts of the Company with respect to the Company’s manufacturing facility, and related equipment, supplies, azer-cel clinical trial inventory and other assets related to the Company’s CAR T cell therapy platform. Additionally, in connection with the Imugene Purchase Agreement, on August 15, 2023, the Company and Imugene US entered into a license agreement (the “Imugene License Agreement”), pursuant to which the Company granted Imugene US certain exclusive and non-exclusive license rights to develop, manufacture, and commercialize oncological applications of the Company’s allogeneic CAR T therapy, azer-cel, and up to three additional research product candidates directed to targets that Imugene US may nominate prior to the fifth anniversary of the effective date of the Imugene License Agreement, pursuant to the terms of the Imugene License Agreement. Under the Imugene License Agreement, the Company is eligible to receive milestone payments of up to an aggregate of $ 206 million upon successful completion of certain development and regulatory milestones. In addition to the milestone payments, the Company is eligible to receive double-digit royalties on net sales of such licensed products. The Company is also eligible to receive mid-single digit percentage-based fees for certain change of control transactions involving Imugene and for partnering transactions involving a licensed product. Unless earlier terminated, the Imugene License Agreement, including Imugene’s obligations to pay royalties to the Company thereunder, will remain in effect on a licensed product-by-licensed product and country-by-country basis until the expiration of a defined royalty term for each licensed product and country as specified in the Imugene License Agreement. As of June 30, 2024 , management has constrained all variable consideration related to milestone payments in the Imugene License Agreement given the level of uncertainty associated with achievement of the milestone payments. Accordingly, no revenue was recognized under the Imugene License Agreement during the six months ended June 30, 2024 and June 30, 2023. Collaboration and License Agreement with Novartis On June 14, 2022, the Company entered into a collaboration and license agreement (the “Novartis Agreement”) with Novartis Pharma AG (“Novartis”), which became effective on June 15, 2022 (the “Novartis Effective Date”), to collaborate to discover and develop in vivo gene editing products incorporating the Company’s custom ARCUS nucleases for the purpose of seeking to research and develop potential treatments for certain diseases (collectively referred to as licensed products). Any initial licensed products under the Novartis Agreement will be developed for the potential treatment of certain hemoglobinopathies, including sickle cell disease and beta thalassemia. During the three months ended June 30, 2024 , and 2023, the Company recognized revenue under the Novartis Agreement of $ 0.8 million and $ 4.8 million, respectively. During the six months ended June 30, 2024 , and 2023, the Company recognized revenue under the Novartis Agreement of $ 5.3 million and $ 10.6 million, respectively. Deferred revenue related to the Novartis Agreement amounted to $ 27.3 million and $ 32.4 million as of June 30, 2024 and December 31, 2023, respectively, of which $ 0.5 million and $ 7.4 million, respectively, was included in current liabilities within the condensed balance sheets. Development and License Agreement with Prevail On November 19, 2020, the Company entered into a development and license agreement with Eli Lilly and Company (“Lilly”) to collaborate to discover and develop in vivo gene editing products incorporating the Company’s ARCUS nucleases to utilize ARCUS for the research and development of potential in vivo therapies for genetic disorders, which was subsequently assigned to Prevail Therapeutics Inc., a wholly-owned subsidiary of Eli Lilly and Company (“Prevail”), effective November 1, 2022 (the “Original Prevail Agreement”). On June 30, 2023, the Company entered into an amended and restated development and license agreement (the “Prevail Agreement”) with Prevail. The Prevail Agreement amended and restated the Original Prevail Agreement. Pursuant to the terms of the Prevail Agreement, Prevail and the Company continued to collaborate on developing the Company’s ARCUS nucleases for the research and development of potential in vivo therapies for genetic disorders, including Duchenne muscular dystrophy, a liver-directed target, and a central nervous system directed target. Pursuant to the Prevail Agreement, manufacturing initial clinical trial material for the first licensed product, which was previously the Company’s responsibility to conduct at Prevail’s expense, instead became Prevail’s responsibility at Prevail’s expense. On April 11, 2024, the Company received written notice from Prevail of its termination of the Prevail Agreement. Prevail’s notice informed the Company that Prevail was exercising its right pursuant to Section 15.3.2 of the Prevail Agreement to terminate the Prevail Agreement in its entirety without cause upon 90 days’ prior written notice to the Company. The Company subsequently exercised its rights to the return of the three programs. The termination was effective on July 10, 2024. During the three months ended June 30, 2024 and 2023 , the Company recognized revenue under the Prevail Agreement of $ 48.2 million and $ 15.0 million, respectively. During the six months ended June 30, 2024 and 2023 , the Company recognized revenue under the Prevail Agreement of $ 52.7 million and $ 17.9 million, respectively. There was no deferred revenue related to the Prevail Agreement as of June 30, 2024 . Deferred revenue related to the Prevail Agreement amounted to $ 52.7 million as of December 31, 2023 , of which $ 4.7 million was included in current liabilities within the condensed balance sheets. Development and License Agreement with iECURE In August 2021, the Company entered into a development and license agreement with iECURE (the “iECURE DLA”) and an Equity Issuance Agreement (the “iECURE Equity Agreement”), pursuant to which iECURE issued the Company common stock in iECURE. The Company adjusts the carrying value of the iECURE equity to fair value each reporting period with any changes in fair value recorded to other income (expense). There was no change in the fair value of the iECURE equity during the six months ended June 30, 2024. During the six months ended June 30, 2023, the Company recorded a $ 0.8 million decrease in the carrying value of its iECURE equity to adjust to fair value as a result of dilution from iECURE’s Series A-1 equity issued in such period. License Agreement with Caribou In February 2024, the Company announced it had granted Caribou Biosciences, Inc. (“Caribou”), a leading CRISPR genome-editing cell therapy company, a non-exclusive, worldwide license, with the right to sublicense, to one of the Company’s foundational cell therapy patent families for use with CRISPR-based therapies in the field of human therapeutics. Under the terms of the agreement, the Company received an upfront payment that has been recognized as revenue and, upon commercialization by Caribou, will receive royalties on net sales of licensed products. In addition, for each occurrence of certain strategic transactions involving Caribou, the Company is entitled to receive a specific tiered milestone payment. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 7: SHARE-BASED COMPENSATION The Company previously granted stock options under its 2015 Stock Incentive Plan (the “2015 Plan”). As of June 30, 2024 there were 29,935 stock options outstanding under the 2015 Plan and no remaining stock options available to be granted under the 2015 Plan. On March 12, 2019, the Company’s board of directors adopted, and, on March 14, 2019 the Company’s stockholders approved, the Precision BioSciences, Inc. 2019 Incentive Award Plan and the 2019 Employee Stock Purchase Plan (“2019 ESPP”), both of which became effective on March 27, 2019. On April 24, 2024, the Company's board of directors adopted, and on June 4, 2024, the Company's stockholders approved, the amendment and restatement of the Precision BioSciences, Inc. 2019 Incentive Award Plan (as amended and restated, the "2019 Plan"). The 2019 Plan provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units and other share-based awards. The 2019 Plan had 200,055 stock options and 487,946 restricted stock units (“RSUs”) outstanding as of June 30, 2024. The number of shares available for issuance under the 2019 Plan initially equaled 158,333 shares of common stock. The 2019 Plan provides for an annual increase to the number of shares of common stock available for issuance on the first day of each calendar year beginning January 1, 2020 and ending on and including January 1, 2029 by an amount equal to the lesser of (i) 4 % of the aggregate number of shares of common stock outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares of common stock as determined by the board of directors. As of June 30, 2024 , the aggregate number of shares available for issuance under the 2019 Plan has been increased by 534,177 pursuant to this provision. Additionally, the number of shares available for issuance under the plan was increased by an additional 630,000 shares in connection with the amendment and restatement of the 2019 Plan approved at the Company’s annual meeting of stockholders on June 4, 2024. Any shares that are subject to awards outstanding under the Company’s 2006 Plan and 2015 Plan as of the effective date of the 2019 Plan that expire, lapse, or are terminated, exchanged for cash, surrendered, repurchased, or canceled without having been fully exercised or forfeited, to the extent so unused, will become available for award grants under the 2019 Plan. As of June 30, 2024 , 579,710 shares were available to be issued under the 2019 Plan. Up to 17,500 shares of the Company’s common stock were initially reserved for issuance under the 2019 ESPP. The 2019 ESPP provides for an annual increase to the number of shares available for issuance on the first day of each calendar year beginning January 1, 2020 and ending on and including January 1, 2029 by an amount equal to the lesser of (i) 1 % of the shares outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares as is determined by our board of directors. As of June 30, 2024 , the aggregate number of shares available for issuance under the 2019 ESPP has been increased by 133,543 shares pursuant to this provision. The purchase price of the shares under the 2019 ESPP, in the absence of a contrary designation, will be 85 % of the lower of the fair market value of our common stock on the first trading day of the offering period or on the purchase date. As of June 30, 2024 , we had issued 42,117 shares under the 2019 ESPP. As of June 30, 2024 , 108,926 shares were available to be issued under the 2019 ESPP. The Company recognized share-based compensation expense related to the ESPP of less than $ 0.1 million during the six months ended June 30, 2024 and June 30, 2023. On August 9, 2021, the Company’s board of directors approved the adoption of the Precision BioSciences, Inc. 2021 Employment Inducement Incentive Award Plan (as amended, the “Inducement Award Plan”). The Inducement Award Plan provides for the grant of non-qualified stock options, stock appreciation rights, restricted stock, RSUs and other share-based awards to newly hired employees who have not previously been an employee or member of the board, or an employee who is being rehired following a bona fide period of non-employment by the Company. No more than 500,000 shares of the Company’s common stock may be issued under the Inducement Award Plan. As of June 30, 2024 , 356,618 shares were available to be issued under the Inducement Award Plan. The Inducement Award Plan had 118,804 stock options and 17,124 RSUs outstanding as of June 30, 2024. The Company recorded employee and nonemployee share-based compensation expense as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Employee $ 2,583 $ 3,505 $ 5,070 $ 7,060 Nonemployee 346 369 764 906 $ 2,929 $ 3,874 $ 5,834 $ 7,966 Share-based compensation expense is included in the following line items in the condensed statements of operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Research and development $ 714 $ 1,335 $ 1,473 $ 2,601 General and administrative 2,215 2,539 4,361 5,365 $ 2,929 $ 3,874 $ 5,834 $ 7,966 Determining the appropriate fair value model to measure the fair value of the stock option grants on the date of grant and the related assumptions requires judgment. The fair value of each stock option grant is estimated using a Black-Scholes option-pricing model on the date of grant using the following inputs: Three Months Ended June 30, Six Months Ended June 30, 2024 2024 Estimated dividend yield 0.00 % 0.00 % Weighted-average expected stock price volatility 88.79 % 88.79 % Weighted-average risk-free interest rate 4.50 % 4.50 % Expected term of options (in years) 5.59 5.59 Weighted-average fair value per option $ 8.53 $ 8.53 The expected volatility rates are estimated based on the actual volatility of a peer group comprising the Company and other comparable public companies over the expected term. The expected term represents the average time that stock options are expected to be outstanding. The Company does not have sufficient history of stock option exercises to estimate the expected term of employee stock options and thus utilizes a weighted-average value considering actual history and estimated expected term based on the midpoint between the final vesting date and the expiration date. The risk-free rate is based on the United States Treasury yield curve at the time of grant for the expected term of the option. The following table summarizes activity in the Company’s stock option plans for the six months ended June 30, 2024: Outstanding Option Shares Weighted-Average Exercise Price Balance as of December 31, 2023 349,662 $ 172.13 Granted 18,511 11.50 Exercised — — Forfeited/canceled ( 19,379 ) 233.85 Balance as of June 30, 2024 348,794 $ 160.18 There were no stock options exercised during the six months ended June 30, 2024 . The intrinsic value of stock options exercised was less than $ 0.1 million during the six months ended June 30, 2023. The fair value of each RSU was determined based on the closing market price of the Company’s common stock on the date of grant. The fair value of the RSUs will be recognized as expense over the requisite vesting period. The following table summarizes the Company’s RSU activity for the six months ended June 30, 2024: RSU Awards Weighted-Average Grant Date Fair Value Unvested RSUs as of December 31, 2023 214,857 $ 51.03 Granted 375,482 11.15 Forfeited ( 1,012 ) 53.67 Vested ( 84,257 ) 58.89 Unvested RSUs as of June 30, 2024 505,070 $ 20.06 There was approximately $ 15.0 million of total unrecognized compensation cost related to unvested stock options and RSUs as of June 30, 2024 , which is expected to be recognized over a weighted-average period of 1.6 years. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 8: DISCONTINUED OPERATIONS The Company determined that the sale of its cell therapy operations qualified for discontinued operations accounting treatment in accordance with ASC 205-20, Presentation of Financial Statements – Discontinued Operations . The historical balance sheet and statements of operations of the Company and the related notes to the financial statements have been presented as discontinued operations in the financial statements and prior periods have been recast. Discontinued operations include the results of the Company’s historical cell therapy operations. The following table shows amounts included in assets and liabilities of discontinued operations, respectively, on the Company’s balance sheets as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 Current liabilities of discontinued operations Accounts payable — 158 Accrued compensation — — Accrued research and development expenses 1,304 2,355 Lease liabilities — — Total current liabilities of discontinued operations 1,304 2,513 Noncurrent liabilities of discontinued operations Other liabilities — 128 Total noncurrent liabilities of discontinued operations — 128 Total liabilities of discontinued operations 1,304 2,641 The following table summarizes the results of operations of the Company’s discontinued operations for the three and six months ended June 30, 2024 and June 30, 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Classes of expenses constituting loss from discontinued operations Research and development expense — ( 8,858 ) — ( 19,968 ) Loss from discontinued operations related to classes of expenses — ( 8,858 ) — ( 19,968 ) Loss from discontinued operations — ( 8,858 ) — ( 19,968 ) The following table presents the significant non-cash items and proceeds from sales of assets related to discontinued operations for the six months ended June 30, 2024 and June 30, 2023 that are included in the accompanying statements of cash flows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization — 640 — 1,246 Share-based compensation — 315 — 684 |
Elo Transaction
Elo Transaction | 6 Months Ended |
Jun. 30, 2024 | |
Deconsolidation Of Subsidiary [Abstract] | |
Elo Transaction | NOTE 9: ELO TRANSACTION It was determined that the Company possesses the ability to exercise significant influence over the operating and financial policies of Elo, an independent entity as of December 2021. Accordingly, the Company accounts for its investment in Elo under the equity method. The Company owned approximately 37 % of Elo’s voting shares outstanding as of December 31, 2023. In January 2024, Elo raised additional funding from its Series A-2 financing. The Company recognized $ 2.7 million gain on dilution under the equity method during the six months ended June 30, 2024 . The Company owned approximately 26 % of Elo’s voting shares outstanding as of June 30, 2024. The Company’s proportionate share of Elo’s net loss for the six months ended June 30, 2024 and 2023 was $ 1.9 million and $ 2.7 million, respectively. Note Receivable The Company received common stock in Elo and a $ 10.0 million promissory note payable from Elo (the “Note Receivable”) which matures on the earlier of (i) December 1, 2028 or (ii) a Deemed Liquidation Event (as defined in the Elo’s Amended and Restated Certificate of Incorporation). As of June 30, 2024 , the carrying value of the Note Receivable was $ 6.0 million including a $ 2.0 million decrease in the carrying value as a result of equity method investme nt losses. The remaining $ 4.0 million discount on the Note Receivable will be amortized to interest income over the life of the Note Receivable. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 10: Income Taxes The Company estimates an annual effective tax rate of 0 % for the year ending December 31, 2024 as the Company incurred losses for tax purposes for the six months ended June 30, 2024 and is forecasting additional losses for tax purposes through the remainder of the year ending December 31, 2024. For financial statement purposes, the Company may have net book income for the year ending December 31, 2024 as a result of fair market value adjustments that have no tax basis. All fair market value adjustments recognized for GAAP will be reversed as a permanent difference for tax purposes and will not generate taxable income. Therefore, no federal or state income taxes are expected and none have been recorded at this time. Income taxes have been accounted for using the liability method in accordance with ASC 740, Income Taxes . Due to the Company’s history of losses since inception, there is not enough evidence at this time to support that the Company will generate future income of a sufficient amount and nature to utilize the benefits of its net deferred tax assets. Accordingly, the deferred tax assets have been reduced by a full valuation allowance, since the Company does not currently believe that realization of its deferred tax assets is more likely than not. As of June 30, 2024 , the Company had no unrecognized tax that would reduce the Company’s effective tax rate if recognized. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 11: EARNINGS PER SHARE The Company calculates basic net income (loss) per share by dividing net loss for each respective period by the weighted-average number of common shares outstanding for each respective period. The Company computes diluted net income (loss) per share after giving consideration to the dilutive effect of unvested RSUs, stock options, unsettled ESPP contributions, and warrants that are outstanding during the period, except where such securities would be anti-dilutive. The computations of basic and diluted net loss per share attributable to common stockholders are as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Income (loss) from continuing operations (in thousands) $ 32,749 $ ( 3,033 ) $ 41,337 $ ( 16,983 ) Loss from discontinued operations (in thousands) $ — $ ( 8,858 ) $ — $ ( 19,968 ) Net income (loss) (in thousands) $ 32,749 $ ( 11,891 ) $ 41,337 $ ( 36,951 ) Basic weighted-average common shares 6,966,680 3,803,083 6,013,829 3,756,746 Dilutive impact of share-based awards 44,950 — 53,791 — Diluted weighted-average common shares (1) 7,011,630 3,803,083 6,067,620 3,756,746 Basic net income (loss) per share: Basic income (loss) from continuing operations 4.70 ( 0.80 ) 6.87 ( 4.52 ) Basic loss from discontinued operations — ( 2.33 ) — ( 5.32 ) Basic net income (loss) per share 4.70 ( 3.13 ) 6.87 ( 9.84 ) Diluted net income (loss) per share: Diluted income (loss) from continuing operations 4.67 ( 0.80 ) 6.81 ( 4.52 ) Diluted loss from discontinued operations — ( 2.33 ) — ( 5.32 ) Diluted net income (loss) per share 4.67 ( 3.13 ) 6.81 ( 9.84 ) (1) 3,015,654 and 3,010,321 total common stock equivalents were excluded from the diluted weighted-average common shares calculation for the three and six months ended June 30, 2024, respectively, as their inclusion would have been anti-dilutive. For the three and six months ended June 30, 2023 all outstanding total common stock equivalents were excluded from the diluted calculation as their inclusion would have been anti-dilutive. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 12: SEGMENT REPORTING The Company has determined that the Chief Executive Officer (“CEO”) is the Company’s chief operating decision maker (“CODM”) as the CEO makes decisions as it relates to allocation of resources and key market strategies. The CODM reviews financial information presented on an aggregated basis. Additionally, resource allocation and key market strategy decisions are made by the CODM based on aggregated results. As such, it was concluded that the Company operates as one segment. |
Warrants
Warrants | 6 Months Ended |
Jun. 30, 2024 | |
Warrants and Rights Note Disclosure [Abstract] | |
WARRANTS | NOTE 13: WARRANTS The warrants issued in the March 2024 Public Offering are classified as a liability in accordance with ASC 815, since these warrants met the definition of a derivative instrument and did not qualify for equity classification. These warrant agreements include a fundamental transaction clause whereby, in the event that another person or entity becomes the beneficial owner of 50% of the outstanding shares of the Company's common stock, and if other conditions are met, the Company may be required to purchase the warrants from the holders by paying cash in an amount equal to the Black-Scholes value of the remaining unexercised portion of the warrants on the date of such fundamental transaction. This liability is subject to remeasurement at each balance sheet date until the warrants are exercised or expire, and any change in fair value is recognized in the Company’s condensed statements of operations. The warrants were recorded at their fair value of $ 32.4 million at issuance based on the Black-Scholes option-pricing model. The following assumptions were used to estimate the fair value of the warrants at issuance: Estimated dividend yield 0.00 % Weighted-average expected stock price volatility 89.03 % Weighted-average risk-free interest rate 4.17 % Expected term (in years) 5.00 Weighted-average fair value per option $ 12.96 The fair value adjustment for the three months ended June 30, 2024 was $ 7.8 million using the Black-Scholes option-pricing model. As of June 30, 2024 all of the 2,500,000 w arrants are outstanding. The Company estimated the fair value of the warrant liability using the following assumptions as of June 30, 2024: Estimated dividend yield 0.00 % Weighted-average expected stock price volatility 91.10 % Weighted-average risk-free interest rate 4.36 % Expected term (in years) 4.67 Weighted-average fair value per option $ 5.70 The following table summarizes the Company’s warrant liability (in thousands): Warrant Liability Balance at January 1, 2024 $ — Issuance of warrants 32,406 Change in fair value of warrant liability ( 10,386 ) Balance at March 31, 2024 $ 22,020 Issuance of warrants — Change in fair value of warrant liability $ ( 7,764 ) Balance at June 30, 2024 $ 14,256 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 14: SUBSEQUENT EVENTS On July 31, 2024, the Company entered into an amended and restated loan and security agreement (the “2024 Loan and Security Agreement”) with Banc of California (formerly known as Pacific Western Bank) pursuant to which Banc of California provided the Company with a term loan with a principal amount of $ 22.5 million (the “2024 Term Loan”). The proceeds from the 2024 Term Loan were used to repay the $ 22.5 million outstanding principal balance under the Revolving Line, and pursuant to the terms of the 2024 Loan and Security Agreement, the Revolving Line was terminated. The maturity date under the 2024 Loan and Security Agreement is June 30, 2027 (the “2024 Term Loan Maturity Date”). The Company may prepay all or a portion of the amounts due under the 2024 Term Loan without penalty or premium at any time, provided that if the Company refinances the 2024 Term Loan with borrowings from another lender, the Company is required to pay Banc of California an early termination fee of $ 100,000 . Once repaid, the Company may not reborrow amounts under the 2024 Term Loan. The 2024 Term Loan bears interest at an annual rate equal to the greater of (i) 1.50 % below the Prime Rate (as defined in the 2024 Loan and Security Agreement) then in effect or (ii) 4.50 %. Under the terms of the 2024 Loan and Security Agreement, the Company paid a fee of $ 2,500 upon closing of the 2024 Term Loan. Upon the earliest to occur of the Term Loan Maturity Date, the date that the Company repays the 2024 Term Loan and elects to terminate the 2024 Term Loan, and the date that the 2024 Term Loan becomes due or Banc of California elects to terminate the 2024 Loan and Security Agreement in connection with an event of default thereunder, the Company is required to pay Banc of California a fee of $ 225,000 . Under the terms of the 2024 Loan and Security Agreement, the Company granted Banc of California a security interest in a cash security account at Banc of California (the “Cash Security Account”), and Banc of California agreed to terminate all other security interests it has in the Company’s assets. The Company is required to maintain an aggregate unencumbered balance in the Cash Security Account at least equal to the outstanding principal amount of the 2024 Term Loan then outstanding. The 2024 Loan and Security Agreement includes customary representations, warranties and covenants (affirmative and negative), including restrictions on mergers by the Company with and into other companies, and incurrence of secured indebtedness, in each case, subject to specified exceptions. Certain of the restrictive covenants, including covenants related to capital expenditures, transactions with affiliates, subordinated debt, inventory and equipment, and encumbrances on the Company's assets (other than the Cash Security Account) included in the 2019 Loan and Security Agreement were deleted. The 2024 Loan and Security Agreement also includes standard events of default, including in the event of a material adverse change. Upon the occurrence of an event of default, Banc of California may declare all outstanding obligations immediately due and payable, take such other actions as are set forth in the 2024 Loan and Security Agreement and increase the interest rate otherwise applicable to the amount outstanding under the 2024 Loan and Security Agreement by an additional 3.00 %. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Precision BioSciences, Inc. (the “Company”) was incorporated on January 26, 2006 under the laws of the State of Delaware and is based in Durham, North Carolina. The Company is a gene editing company dedicated to improving life by developing in vivo therapies for genetic and infectious diseases with the application of the Company’s wholly-owned proprietary ARCUS genome editing platform. Since its inception, the Company has devoted substantially all of its efforts to research and development activities, recruiting skilled personnel, establishing its intellectual property portfolio and providing general and administrative support for these operations. The Company is subject to a number of risks similar to those of other companies conducting early-stage research and development of product candidates. Principal among these risks are the Company's dependence on key individuals and intellectual property, competition from other products and companies, and the technical risks associated with the successful research, development and clinical manufacturing of its product candidates. The Company’s success is dependent upon its ability to continue to raise additional capital in order to fund ongoing research and development, obtain regulatory approval of its products, successfully commercialize its products, generate revenue, meet its obligations, and, ultimately, attain profitable operations. |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The accompanying unaudited condensed financial statements and notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in the annual financial statements, prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”), have been condensed or omitted pursuant to those rules and regulations. These unaudited condensed financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on March 27, 2024. The unaudited condensed financial statements have been prepared on the same basis as the audited financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation of the Company’s condensed financial position as of June 30, 2024 and condensed results of operations for the three and six months ended June 30, 2024 and 2023 and the condensed cash flows for the six months ended June 30, 2024 and 2023, have been made. The Company’s condensed results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2024 . |
Discontinued Operations | Discontinued Operations In August 2023, the Company announced its strategic decision to operate as a single platform company focused exclusively on developing in vivo gene editing therapies with the completion of the sale of its chimeric antigen receptor (“CAR”) T infrastructure to Imugene Limited, an Australian corporation (“Imugene Limited”), and its wholly-owned subsidiary Imugene (USA) Inc. (“Imugene US”), a Nevada corporation (collectively, “Imugene”). Additionally, the Company licensed its lead allogeneic CAR T candidate for cancer, azercabtagene zapreleucel (“azer-cel”), to Imugene. Accordingly, the accompanying condensed financial statements have been recast for all periods presented to reflect the assets, liabilities and expenses related to the Company’s CAR T programs as discontinued operations (see Note 8, Discontinued Operations ). The accompanying condensed financial statements are generally presented in conformity with the Company’s historical format. |
Reverse Stock Split | Reverse Stock Split On February 13, 2024, the Company amended its amended and restated certificate of incorporation in order to effect a 1-for- 30 reverse stock split of its outstanding shares of capital stock (the “Reverse Stock Split”). As a result of the Reverse Stock Split, every 30 shares of the Company’s common stock issued or outstanding were automatically reclassified into one new share of common stock, subject to the treatment of fractional shares as described below, without any action on the part of the holders. All historical share and per-share amounts reflected throughout the accompanying financial statements and other financial information in this Quarterly Report on Form 10-Q have been retroactively adjusted to reflect the Reverse Stock Split as if the split occurred as of the earliest period presented. The Reverse Stock Split did not affect the number of authorized shares of common stock or the par value of the common stock. No fractional shares were issued in connection with the Reverse Stock Split. Stockholders who would otherwise have been entitled to receive fractional shares as a result of the Reverse Stock Split were entitled to a cash payment in lieu thereof at a price equal to the fraction to which the stockholder would otherwise be entitled multiplied by the closing sales price per share of the common stock (as adjusted to give effect to the Reverse Stock Split) on The Nasdaq Capital Market on February 13, 2024, the last trading day immediately preceding the effective time of the Reverse Stock Split. |
Recent Accounting Guidance Not Yet Adopted | Recent Accounting Guidance Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting—Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 requires public entities to disclose their significant segment expense categories and amounts for each reportable segment. A significant segment expense is an expense that is significant to the segment, regularly provided to or easily computed from information regularly provided to the chief operating decision maker and included in the reported measure of segment profit or loss. This updated standard is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024. The Company is in process of evaluating the impact of this new guidance on its disclosure. |
Revenue Recognition for Contracts with Customers | Revenue Recognition for Contracts with Customers The Company’s revenues are generated primarily through collaborative research, license, development and commercialization agreements. ASC 606, Revenue from Contracts with Customers (“ASC 606”) applies to all contracts with customers, except for contracts that are within the scope of other standards. Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company evaluates the performance obligations promised in the contract that are based on goods and services that will be transferred to the customer and determines whether those obligations are both (i) capable of being distinct and (ii) distinct in the context of the contract. Goods or services that meet these criteria are considered distinct performance obligations. If both these criteria are not met, the goods and services are combined into a single performance obligation. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Arrangements that include rights to additional goods or services that are exercisable at a customer’s discretion are generally considered options. The Company assesses if these options provide a material right to the customer and if so, these options are considered performance obligations. The exercise of a material right is accounted for as a contract modification for accounting purposes. The Company recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) each performance obligation is satisfied at a point in time or over time, and if over time this is based on the use of an output or input method. For the six months ended June 30, 2024 , the Company did no t record any cumulative catch-up adjustments on its contracts with customers. During the six months ended June 30, 2024 , the Company recorded $ 58.0 million in revenue that was included in deferred revenue as of December 31, 2023. Invoices issued as stipulated in contracts prior to revenue recognition are recorded as deferred revenue. Amounts expected to be recognized as revenue within the 12 months following the balance sheet date are classified as deferred revenue within current liabilities in the accompanying condensed balance sheets. Amounts not expected to be recognized as revenue within the 12 months following the balance sheet date are classified as noncurrent deferred revenue. Amounts recognized as revenue, but not yet invoiced are generally recognized as contract assets in the other current assets line item in the accompanying condensed balance sheets. Milestone Payments – If an arrangement includes development and regulatory milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s or the licensee’s control, such as regulatory approvals, are not considered probable of being achieved until those approvals are received and therefore revenue recognized is constrained as management is unable to assert that a reversal of revenue would not be probable. The transaction price is then allocated to each performance obligation on a relative standalone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such development milestones and any related constraint, and, if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect collaboration revenues and earnings in the period of adjustment. Royalties – For arrangements that include sales-based royalties, including milestone payments based on a level of sales, which are the result of a customer-vendor relationship and for which the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation linked to some or all of the royalty has been satisfied or partially satisfied. To date, the Company has not recognized any royalty revenue resulting from any of its licensing arrangements. Significant Financing Component – In determining the transaction price, the Company adjusts consideration for the effects of the time value of money if the timing of payments provides the Company with a significant benefit of financing. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the licensees and the transfer of the promised goods or services to the licensees will be one year or less. The Company assessed each of its revenue arrangements in order to determine whether a significant financing component exists and concluded that a significant financing component does not exist in any of its arrangements. Collaborative Arrangements – The Company has entered into collaboration agreements, which are within the scope of ASC 606, to discover, develop, manufacture and commercialize product candidates. The terms of these agreements typically contain multiple promises or obligations, which may include: (1) licenses, or options to obtain licenses, to use the Company’s technology, (2) research and development activities to be performed on behalf of the collaboration partner, and (3) in certain cases, services in connection with the manufacturing of preclinical and clinical material. Payments the Company receives under these arrangements typically include one or more of the following: non-refundable, upfront license fees; option exercise fees; funding of research and/or development efforts; clinical and development, regulatory, and sales milestone payments; and royalties on future product sales. The Company analyzes its collaboration arrangements to assess whether the collaboration agreements are within the scope of ASC 808, Collaborative Arrangements (“ASC 808”) to determine whether such arrangements involve joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities. This assessment is performed throughout the life of the arrangement based on changes in the responsibilities of all parties in the arrangement. For collaboration arrangements within the scope of ASC 808 that contain multiple elements, the Company first determines which elements of the collaboration are deemed to be within the scope of ASC 808 and those that are more reflective of a vendor-customer relationship and, therefore, are within the scope of ASC 606. For elements of collaboration arrangements that are accounted for pursuant to ASC 808, an appropriate recognition method is determined and applied consistently, generally by analogy to ASC 606. For those elements of the arrangement that are accounted for pursuant to ASC 606, the Company applies the five-step model described above. For additional discussion of accounting for collaboration revenues, see Note 6, Collaboration and License Agreements . |
Derivative Financial Instruments | Derivative Financial Instruments On March 1, 2024, the Company entered into an Underwriting Agreement with Guggenheim Securities, LLC (the “Underwriting Agreement”), relating to the offering, issuance and sale (the “March 2024 Public Offering”) of (a) 2,500,000 shares of the Company’s common stock, par value $ 0.000005 per share, and (b) warrants to purchase up to an aggregate of 2,500,000 shares of the Company’s common stock. The warrants have a five-year term and an exercise price of $ 20.00 per share. Each warrant is exercisable immediately upon issuance, subject to certain limitations on beneficial ownership. The Company evaluates all of its financial instruments, including issued stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480, Distinguishing Liabilities from Equity , and ASC 815, Derivatives and Hedging (“ASC 815”). The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, will be re-assessed at the end of each reporting period. The warrants issued in the March 2024 Public Offering were recognized as derivative warrant liabilities in accordance with ASC 815. Accordingly, the Company recognized the warrant instruments as liabilities at fair value and will remeasure the instruments to fair value at each balance sheet date, with changes in fair value recognized in the Company’s condensed statements of operations, until exercised or expiration. The fair value of the warrants were initially estimated using a Black-Scholes option pricing model. Derivative warrant liabilities are classified as non-current liabilities as their liquidation is not reasonably expected to require the use of current assets or require the creation of current liabilities. The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following represents assets and liabilities measured at fair value on a recurring basis by the Company (in thousands): June 30, 2024 Fair Value Level 1 Level 2 Level 3 Assets: Money market funds $ 14,327 $ 14,327 $ — $ — Investment in iECURE 3,206 — — 3,206 Imugene convertible note 12,251 — 12,251 — Assets held for sale 189 — — 189 $ 29,973 $ 14,327 $ 12,251 $ 3,395 Liabilities: Final payment fee $ 223 $ — $ 223 $ — Warrant liability 14,255 - - 14,255 $ 14,478 $ — $ 223 $ 14,255 December 31, 2023 Fair Value Level 1 Level 2 Level 3 Assets: Money market funds $ 13,960 $ 13,960 $ — $ — Investment in iECURE 3,206 — — 3,206 Imugene convertible note 11,897 — 11,897 — Assets held for sale 487 — — 487 $ 29,550 $ 13,960 $ 11,897 $ 3,693 Liabilities: Final payment fee $ 215 $ — $ 215 $ — $ 215 $ — $ 215 $ — |
Summary of Financial Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs | The following represents a reconciliation of assets measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) for the six months ended June 30, 2024 (in thousands). The warrant reconciliation is disclosed in Note 13, Warrants : Investment in iECURE Assets held for sale Balance December 31, 2023 $ 3,206 $ 487 Gains from changes in fair value included in earnings — — Assets sold — ( 109 ) Write-offs — ( 189 ) Balance June 30, 2024 $ 3,206 $ 189 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Lease Payments under Non-Cancelable Leases | Future minimum lease payments under non-cancelable operating leases with terms of greater than one year as of June 30, 2024, were as follows: (in thousands) Amount 2024 (remainder of year) $ 955 2025 1,962 2026 2,019 2027 2,078 2028 2,140 2029 and beyond 1,269 Total lease payments 10,423 Less: imputed interest 2,109 Total operating lease liabilities $ 8,314 |
Components of Lease Expense | The elements of lease expense were as follows: For the Six Months Ended June 30, (in thousands) 2024 2023 Lease Cost Operating lease cost $ 967 $ 932 Short-term lease cost 378 371 Variable lease cost 220 446 Sublease income ( 212 ) — Total Lease Cost $ 1,353 $ 1,749 Other Information Operating cash flows used for operating leases 932 1,194 Operating right-of-use assets obtained in exchange for lease obligations — 2,491 Operating lease liabilities arising from obtaining right-of-use assets — ( 1,864 ) Operating Leases Weighted-average remaining lease term (in years) 5.1 3.1 Operating Leases Weighted-average discount rate 9.2 % 7.9 % |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | The Company recorded employee and nonemployee share-based compensation expense as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Employee $ 2,583 $ 3,505 $ 5,070 $ 7,060 Nonemployee 346 369 764 906 $ 2,929 $ 3,874 $ 5,834 $ 7,966 |
Schedule of Stock-Based Compensation Expense | Share-based compensation expense is included in the following line items in the condensed statements of operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Research and development $ 714 $ 1,335 $ 1,473 $ 2,601 General and administrative 2,215 2,539 4,361 5,365 $ 2,929 $ 3,874 $ 5,834 $ 7,966 |
Schedule of Stock Options Valuation Assumptions Using a Black-Scholes Option Pricing Model | The fair value of each stock option grant is estimated using a Black-Scholes option-pricing model on the date of grant using the following inputs: Three Months Ended June 30, Six Months Ended June 30, 2024 2024 Estimated dividend yield 0.00 % 0.00 % Weighted-average expected stock price volatility 88.79 % 88.79 % Weighted-average risk-free interest rate 4.50 % 4.50 % Expected term of options (in years) 5.59 5.59 Weighted-average fair value per option $ 8.53 $ 8.53 |
Summary of Activity of Option Plans | The following table summarizes activity in the Company’s stock option plans for the six months ended June 30, 2024: Outstanding Option Shares Weighted-Average Exercise Price Balance as of December 31, 2023 349,662 $ 172.13 Granted 18,511 11.50 Exercised — — Forfeited/canceled ( 19,379 ) 233.85 Balance as of June 30, 2024 348,794 $ 160.18 |
Summary of Restricted Stock Unit Activity | The following table summarizes the Company’s RSU activity for the six months ended June 30, 2024: RSU Awards Weighted-Average Grant Date Fair Value Unvested RSUs as of December 31, 2023 214,857 $ 51.03 Granted 375,482 11.15 Forfeited ( 1,012 ) 53.67 Vested ( 84,257 ) 58.89 Unvested RSUs as of June 30, 2024 505,070 $ 20.06 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The computations of basic and diluted net loss per share attributable to common stockholders are as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Income (loss) from continuing operations (in thousands) $ 32,749 $ ( 3,033 ) $ 41,337 $ ( 16,983 ) Loss from discontinued operations (in thousands) $ — $ ( 8,858 ) $ — $ ( 19,968 ) Net income (loss) (in thousands) $ 32,749 $ ( 11,891 ) $ 41,337 $ ( 36,951 ) Basic weighted-average common shares 6,966,680 3,803,083 6,013,829 3,756,746 Dilutive impact of share-based awards 44,950 — 53,791 — Diluted weighted-average common shares (1) 7,011,630 3,803,083 6,067,620 3,756,746 Basic net income (loss) per share: Basic income (loss) from continuing operations 4.70 ( 0.80 ) 6.87 ( 4.52 ) Basic loss from discontinued operations — ( 2.33 ) — ( 5.32 ) Basic net income (loss) per share 4.70 ( 3.13 ) 6.87 ( 9.84 ) Diluted net income (loss) per share: Diluted income (loss) from continuing operations 4.67 ( 0.80 ) 6.81 ( 4.52 ) Diluted loss from discontinued operations — ( 2.33 ) — ( 5.32 ) Diluted net income (loss) per share 4.67 ( 3.13 ) 6.81 ( 9.84 ) (1) 3,015,654 and 3,010,321 total common stock equivalents were excluded from the diluted weighted-average common shares calculation for the three and six months ended June 30, 2024, respectively, as their inclusion would have been anti-dilutive. For the three and six months ended June 30, 2023 all outstanding total common stock equivalents were excluded from the diluted calculation as their inclusion would have been anti-dilutive. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Consolidated Financial Statements Presented as Discontinued Operations | The following table shows amounts included in assets and liabilities of discontinued operations, respectively, on the Company’s balance sheets as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 Current liabilities of discontinued operations Accounts payable — 158 Accrued compensation — — Accrued research and development expenses 1,304 2,355 Lease liabilities — — Total current liabilities of discontinued operations 1,304 2,513 Noncurrent liabilities of discontinued operations Other liabilities — 128 Total noncurrent liabilities of discontinued operations — 128 Total liabilities of discontinued operations 1,304 2,641 The following table summarizes the results of operations of the Company’s discontinued operations for the three and six months ended June 30, 2024 and June 30, 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Classes of expenses constituting loss from discontinued operations Research and development expense — ( 8,858 ) — ( 19,968 ) Loss from discontinued operations related to classes of expenses — ( 8,858 ) — ( 19,968 ) Loss from discontinued operations — ( 8,858 ) — ( 19,968 ) The following table presents the significant non-cash items and proceeds from sales of assets related to discontinued operations for the six months ended June 30, 2024 and June 30, 2023 that are included in the accompanying statements of cash flows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization — 640 — 1,246 Share-based compensation — 315 — 684 |
Warrants (Tables)
Warrants (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Warrants and Rights Note Disclosure [Abstract] | |
Schedule of Estimated Fair Value of Warrants | The following assumptions were used to estimate the fair value of the warrants at issuance: Estimated dividend yield 0.00 % Weighted-average expected stock price volatility 89.03 % Weighted-average risk-free interest rate 4.17 % Expected term (in years) 5.00 Weighted-average fair value per option $ 12.96 The Company estimated the fair value of the warrant liability using the following assumptions as of June 30, 2024: Estimated dividend yield 0.00 % Weighted-average expected stock price volatility 91.10 % Weighted-average risk-free interest rate 4.36 % Expected term (in years) 4.67 Weighted-average fair value per option $ 5.70 |
Summary of Warrant Liability | The following table summarizes the Company’s warrant liability (in thousands): Warrant Liability Balance at January 1, 2024 $ — Issuance of warrants 32,406 Change in fair value of warrant liability ( 10,386 ) Balance at March 31, 2024 $ 22,020 Issuance of warrants — Change in fair value of warrant liability $ ( 7,764 ) Balance at June 30, 2024 $ 14,256 |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies - Additional Information (Details) | 6 Months Ended | |||
Mar. 01, 2024 $ / shares shares | Feb. 13, 2024 | Jun. 30, 2024 USD ($) $ / shares shares | Dec. 31, 2023 $ / shares shares | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Date of incorporation | Jan. 26, 2006 | |||
Stock split, conversion ratio | 30 | |||
Cumulative catch-up adjustments | $ | $ 0 | |||
Revenue recorded included in deferred revenue | $ | $ 58,000,000 | |||
Common stock, par value | $ / shares | $ 0.000005 | $ 0.000005 | ||
Common stock, shares issued | shares | 7,150,385 | 4,191,053 | ||
Underwriting Agreement | March 2024 Public Offering | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of shares issued | shares | 2,500,000 | |||
Common stock, par value | $ / shares | $ 0.000005 | |||
Common stock, shares issued | shares | 2,500,000 | |||
Warrants expire year | 5 years | |||
Exercise price per share | $ / shares | $ 20 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value Measurements Recurring - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | $ 29,973 | $ 29,550 |
Liabilities | 14,478 | 215 |
Final Payment Fee | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities | 223 | 215 |
Warrant Liability | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities | 14,255 | |
Imugene Convertible Note | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 12,251 | 11,897 |
Investment in iECURE | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 3,206 | 3,206 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 14,327 | 13,960 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 12,251 | 11,897 |
Liabilities | 223 | 215 |
Level 2 | Final Payment Fee | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities | 223 | 215 |
Level 2 | Imugene Convertible Note | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 12,251 | 11,897 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 3,395 | 3,693 |
Liabilities | 14,255 | |
Level 3 | Warrant Liability | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities | 14,255 | |
Level 3 | Investment in iECURE | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 3,206 | 3,206 |
Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 14,327 | 13,960 |
Money Market Funds | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 14,327 | 13,960 |
Assets Held for Sale | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 189 | 487 |
Assets Held for Sale | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | $ 189 | $ 487 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Balance December 31, 2023 | $ 3,206 | |
Investment, Type [Extensible Enumeration] | Investment In I E C U R E [Member] | Investment In I E C U R E [Member] |
Balance June 30, 2024 | $ 3,206 | |
Assets Held for Sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Balance December 31, 2023 | 487 | |
Assets sold | (109) | |
Write-offs | (189) | |
Balance June 30, 2024 | $ 189 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment in equity securities | $ 694,000 | $ 346,000 | $ (769,000) |
Warrants outstanding | 2,500,000 | 2,500,000 | |
Imugene Convertible Note | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment in equity securities | $ 400,000 | ||
Aggregate principal amount | $ 13,000,000 | $ 13,000,000 | |
Debt instrument maturity date | Aug. 15, 2024 | ||
I E C U R E [Member] | Equity Issuance Agreement [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment in equity securities | $ 0 | ||
March 2024 Public Offering | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Warrants outstanding | 2,500,000 | 2,500,000 | |
Maximum | Revolving Credit Facility [Member] | Seventh Amendment To Revolving Line [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Change in fair value of final payment fee | $ 100,000 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jul. 31, 2024 | May 31, 2022 | Jun. 30, 2024 | Dec. 31, 2023 | Jul. 31, 2022 | May 31, 2021 | |
Debt Instrument [Line Items] | ||||||
Interest rate during period | 9.25% | |||||
Effective interest rate | 9.99% | |||||
2019 Loan and Security Agreement | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized revolving line debt discount balance | $ 100,000 | $ 100,000 | ||||
2019 Loan and Security Agreement | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 30,000,000 | |||||
Basis point added to the prime rate | 0.75% | |||||
Borrowings | $ 22,500,000 | $ 22,500,000 | ||||
2019 Loan and Security Agreement | Revolving Credit Facility | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Required balance of unrestricted cash at bank | $ 10,000,000 | |||||
Interest rate during period | 4.25% | |||||
2024 Term Loan | Revolving Credit Facility | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Borrowings | $ 22,500,000 | |||||
Principal amount | $ 22,500,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Commitments And Contingencies [Line Items] | ||
Contingent liability for aggregate minimum lease payments | $ 5,100,000 | |
Contract Liabilities | ||
Commitments And Contingencies [Line Items] | ||
Contract liabilities | $ 10,000,000 | $ 10,000,000 |
Imugene | ||
Commitments And Contingencies [Line Items] | ||
Lease expiration date | Aug. 31, 2027 | |
Guarantor contract liability | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Components of Lease Expense (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Lease Cost | ||
Operating lease cost | $ 967 | $ 932 |
Short-term lease cost | 378 | 371 |
Variable lease cost | 220 | 446 |
Sublease income | (212) | |
Total Lease Cost | 1,353 | 1,749 |
Other Information | ||
Operating cash flows used for operating leases | $ 932 | 1,194 |
Operating right-of-use assets obtained in exchange for lease obligations | 2,491 | |
Operating lease liabilities arising from obtaining right-of-use assets | $ (1,864) | |
Weighted average remaining lease term (in years) | 5 years 1 month 6 days | 3 years 1 month 6 days |
Weighted average discount rate | 9.20% | 7.90% |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Future Lease Payments under Non-Cancelable Leases (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2024 (excluding the three months ended March 31, 2024) | $ 955 |
2025 | 1,962 |
2026 | 2,019 |
2027 | 2,078 |
2028 | 2,140 |
2029 and beyond | 1,269 |
Total lease payments | 10,423 |
Less: imputed interest | 2,109 |
Total operating lease liabilities | $ 8,314 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Millions | Mar. 01, 2024 USD ($) $ / shares shares | Feb. 13, 2024 shares | Jun. 30, 2024 $ / shares shares | Dec. 31, 2023 $ / shares shares |
Class of Stock [Line Items] | ||||
Stock split, conversion ratio | 30 | |||
Common stock, par value | $ / shares | $ 0.000005 | $ 0.000005 | ||
Common stock, shares issued | shares | 7,150,385 | 4,191,053 | ||
Underwriting Agreement | March 2024 Public Offering | ||||
Class of Stock [Line Items] | ||||
Number of shares issued | shares | 2,500,000 | |||
Common stock, par value | $ / shares | $ 0.000005 | |||
Common stock, shares issued | shares | 2,500,000 | |||
Warrants expire year | 5 years | |||
Exercise price per share | $ / shares | $ 20 | |||
Shares issued price per share | $ / shares | $ 16 | |||
Proceeds from stock plans | $ | $ 37 | |||
Offering expense | $ | $ 3 | |||
Reverse Stock Split | ||||
Class of Stock [Line Items] | ||||
Number of shares issued | shares | 30 |
Collaboration and License Agr_2
Collaboration and License Agreements - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jan. 07, 2024 | Aug. 15, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Collaboration and License Agreements [Line items] | |||||||
Contract asset | $ 1,359,000 | $ 1,359,000 | |||||
Revenue | 49,898,000 | $ 19,789,000 | 67,482,000 | $ 28,569,000 | |||
Deferred revenue | $ 526,000 | $ 526,000 | $ 12,035,000 | ||||
Common stock, shares issued | 7,150,385 | 7,150,385 | 4,191,053 | ||||
Prepaid expenses | $ 5,668,000 | $ 5,668,000 | $ 5,977,000 | ||||
Research and development | 17,225,000 | 13,088,000 | 30,568,000 | 24,136,000 | |||
Revenue recorded included in deferred revenue | 58,000,000 | ||||||
TG License | |||||||
Collaboration and License Agreements [Line items] | |||||||
Contract asset | 1,400,000 | 1,400,000 | |||||
Imugene | |||||||
Collaboration and License Agreements [Line items] | |||||||
Milestone payments to be received for additional targets | $ 206,000,000 | ||||||
Revenue | 0 | 0 | |||||
Research and Development Arrangement | |||||||
Collaboration and License Agreements [Line items] | |||||||
Percentage of premium over the volume-weighted-average-price of the company’s common stock | 100% | ||||||
Additional cash payment | $ 2,250,000 | ||||||
Initial milestone payment | 7,500,000 | ||||||
Cash milestone payment | 5,250,000 | ||||||
Research and Development Arrangement | Current Liabilities | |||||||
Collaboration and License Agreements [Line items] | |||||||
Deferred revenue | 500,000 | 500,000 | 7,400,000 | ||||
Research and Development Arrangement | Novartis Pharma AG | |||||||
Collaboration and License Agreements [Line items] | |||||||
Revenue | 800,000 | 4,800,000 | 5,300,000 | 10,600,000 | |||
Deferred revenue related to agreement | 27,300,000 | 27,300,000 | 32,400,000 | ||||
Research and Development Arrangement | iECURE | |||||||
Collaboration and License Agreements [Line items] | |||||||
Carrying value of fair value | 0 | 800,000 | 0 | 800,000 | |||
Research and Development Arrangement | TG License | |||||||
Collaboration and License Agreements [Line items] | |||||||
Upfront cash payment | 10,000,000 | ||||||
Additional cash payment | $ 5,250,000 | ||||||
First additional cash payment date | Feb. 05, 2024 | ||||||
Additional cash payment | $ 2,250,000 | ||||||
Second additional cash payment date | Feb. 05, 2024 | ||||||
Sale of stock, number of shares issued in transaction | 97,360 | ||||||
Sale of stock, price per share | $ 23.1 | ||||||
Percentage of premium over the volume-weighted-average-price of the company’s common stock | 100% | ||||||
Deferred cash payments | $ 2,500,000 | ||||||
Shares issued price per share | $ 11.166 | ||||||
Additional cash payment | $ 7,500,000 | ||||||
Percentage of value of each additional milestone payment | 50% | ||||||
Equity upon the issuance of the shares | $ 3,000,000 | ||||||
Milestone payments to be received for additional targets | 3,000,000 | ||||||
Cash payable in exchange for the issuance of stock | 10,000,000 | ||||||
Revenue | 900,000 | 8,000,000 | |||||
Research and Development Arrangement | TG License | Maximum | |||||||
Collaboration and License Agreements [Line items] | |||||||
Milestone payments to be received for additional targets | $ 288,600,000 | ||||||
Research and Development Arrangement | Prevail | |||||||
Collaboration and License Agreements [Line items] | |||||||
Revenue | 48,200,000 | $ 15,000,000 | 52,700,000 | $ 17,900,000 | |||
Deferred revenue related to agreement | $ 0 | $ 0 | 52,700,000 | ||||
Research and Development Arrangement | Prevail | Current Liabilities | |||||||
Collaboration and License Agreements [Line items] | |||||||
Deferred revenue | $ 4,700,000 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Mar. 12, 2019 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 04, 2024 | Dec. 31, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Options outstanding | 348,794 | 348,794 | 349,662 | ||||
Share based compensation expense | $ 2,929,000 | $ 3,874,000 | $ 5,834,000 | $ 7,966,000 | |||
Stock options exercised | 0 | ||||||
Unrecognized compensation cost | $ 15,000,000 | $ 15,000,000 | |||||
Weighted-average period for recognition of compensation cost | 1 year 7 months 6 days | ||||||
Maximum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Intrinsic value of Stock options exercised | 100,000 | ||||||
Restricted Stock Units | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
RSU outstanding | 505,070 | 505,070 | 214,857 | ||||
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross | 375,482 | ||||||
ESPP | Maximum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share based compensation expense | $ 100,000 | $ 100,000 | |||||
2015 Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Options outstanding | 29,935 | 29,935 | |||||
Remaining shares available to be granted | 0 | 0 | |||||
2019 Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Options outstanding | 200,055 | 200,055 | |||||
Number of shares available for issuance | 158,333 | 534,177 | 534,177 | ||||
Number of shares available to be issued | 579,710 | 579,710 | |||||
Allowed annual percentage increase in shares authorized as percentage of outstanding shares of common stock | 4% | ||||||
2019 Plan | Restricted Stock Units | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
RSU outstanding | 487,946 | 487,946 | |||||
Amended Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of additional shares available for issuance | 630,000 | ||||||
2019 ESPP | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Remaining shares available to be granted | 108,926 | 108,926 | |||||
Allowed annual percentage increase in shares authorized as percentage of outstanding shares of common stock | 1% | ||||||
Increase in common stock available for issuance | 133,543 | 133,543 | |||||
Purchase of common stock through payroll deductions expressed in percentage of fair market value | 85% | ||||||
Total number of shares issued under 2019 ESPP | 42,117 | 42,117 | |||||
2019 ESPP | Maximum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Remaining shares available to be granted | 17,500 | ||||||
Inducement Award Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Options outstanding | 118,804 | 118,804 | |||||
Number of shares available for issuance | 356,618 | 356,618 | |||||
Inducement Award Plan | Maximum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Maximum shares allowed to be issued under ESPP | 500,000 | 500,000 | |||||
Inducement Award Plan | Restricted Stock Units | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
RSU outstanding | 17,124 | 17,124 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Employee and Nonemployee Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 2,929 | $ 3,874 | $ 5,834 | $ 7,966 |
Employee | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 2,583 | 3,505 | 5,070 | 7,060 |
Nonemployee | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 346 | $ 369 | $ 764 | $ 906 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 2,929 | $ 3,874 | $ 5,834 | $ 7,966 |
Stock Option | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 2,929 | 3,874 | 5,834 | 7,966 |
Research and Development | Stock Option | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 714 | 1,335 | 1,473 | 2,601 |
General and Administrative | Stock Option | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 2,215 | $ 2,539 | $ 4,361 | $ 5,365 |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Stock Options Valuation Assumptions Using a Black-Scholes Option Pricing Model (Details) - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | ||
Estimated dividend yield | 0% | 0% |
Weighted-average expected stock price volatility | 88.79% | 88.79% |
Weighted-average risk-free interest rate | 4.50% | 4.50% |
Expected term of options (in years) | 5 years 7 months 2 days | 5 years 7 months 2 days |
Weighted-average fair value per option | $ 8.53 | $ 8.53 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Activity of Option Plans (Details) | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Share-Based Payment Arrangement [Abstract] | |
Outstanding Option Shares, Beginning Balance | 349,662 |
Option, Granted | 18,511 |
Option, Exercised | 0 |
Option, Forfeited/canceled | (19,379) |
Outstanding Option Shares, Ending Balance | 348,794 |
Weighted-Average Exercise Price Outstanding at Beginning Balance | $ / shares | $ 172.13 |
Weighted-Average Exercise Price, Granted | $ / shares | 11.5 |
Weighted-Average Exercise Price, Forfeited/canceled | $ / shares | 233.85 |
Weighted-Average Exercise Price Outstanding at Ending Balance | $ / shares | $ 160.18 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Activity of RSUs (Details) - Restricted Stock Units | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unvested RSUs, Beginning Balance | shares | 214,857 |
Granted | shares | 375,482 |
Forfeited | shares | (1,012) |
Vested | shares | (84,257) |
Unvested RSUs, Ending Balance | shares | 505,070 |
Weighted-Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 51.03 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 11.15 |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | 53.67 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 58.89 |
Weighted-Average Grant Date Fair Value, Ending Balance | $ / shares | $ 20.06 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Assets and Liabilities of Discontinued Operations on Company's Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current liabilities of discontinued operations | ||
Total current liabilities of discontinued operations | $ 1,304 | $ 2,513 |
Noncurrent liabilities of discontinued operations | ||
Total noncurrent liabilities of discontinued operations | 128 | |
Cell Therapy Operations | ||
Current liabilities of discontinued operations | ||
Accounts payable | 158 | |
Accrued research and development expenses | 1,304 | 2,355 |
Total current liabilities of discontinued operations | 1,304 | 2,513 |
Noncurrent liabilities of discontinued operations | ||
Other liabilities | 128 | |
Total noncurrent liabilities of discontinued operations | 128 | |
Total liabilities of discontinued operations | $ 1,304 | $ 2,641 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Results of Operations of Discontinued Operations (Details) - Cell Therapy Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||
Research and development expense | $ (8,858) | $ (19,968) |
Loss from discontinued operations related to classes of expenses | (8,858) | (19,968) |
Loss from discontinued operations | $ (8,858) | $ (19,968) |
Discontinued Operations - Signi
Discontinued Operations - Significant Non-cash Items and Proceeds from Sales of Assets Related to Discontinued Operations (Details) - Cell Therapy Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | $ 640 | $ 1,246 |
Share-based compensation | $ 315 | $ 684 |
Elo Transaction - Additional In
Elo Transaction - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Deconsolidation Of Subsidiary [Line Items] | |||||
Interest rate during period | 9.25% | 9.25% | |||
Carrying value of note receivable | $ 6,034 | $ 6,034 | $ 4,990 | ||
Gain(Loss) from equity method investment | $ (950) | $ (1,369) | $ 763 | $ (2,710) | |
Elo | |||||
Deconsolidation Of Subsidiary [Line Items] | |||||
Percentage of voting shares owned | 26% | 26% | 37% | ||
Gain(Loss) from equity method investment | $ (1,900) | $ (2,700) | |||
Gain on dilution under equity method | 2,700 | ||||
Promissory Note | Elo | |||||
Deconsolidation Of Subsidiary [Line Items] | |||||
Notes received | $ 10,000 | $ 10,000 | |||
Debt instrument maturity date | Dec. 01, 2028 | ||||
Carrying value of note receivable | 6,000 | $ 6,000 | |||
Promissory note discount | $ 4,000 | 4,000 | |||
Gain(Loss) from equity method investment | $ 2,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2024 | Jun. 30, 2024 | |
Income Tax Disclosure [Line Items] | ||
Uncertain tax positions | $ 0 | |
Forecast | ||
Income Tax Disclosure [Line Items] | ||
Effective income tax rate | 0% |
Earnings Per Share - Schedule O
Earnings Per Share - Schedule Of Basic And Diluted Net Loss Per Share Attributable To Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||||
Income (loss) from continuing operations (in thousands) | $ 32,749 | $ (3,033) | $ 41,337 | $ (16,983) | ||
Loss from discontinued operations (in thousands) | (8,858) | (19,968) | ||||
Net income (loss) | $ 32,749 | $ 8,588 | $ (11,891) | $ (25,060) | $ 41,337 | $ (36,951) |
Basic weighted-average common shares | 6,966,680 | 3,803,083 | 6,013,829 | 3,756,746 | ||
Dilutive impact of share-based awards | 44,950 | 53,791 | ||||
Diluted weighted-average common shares | 7,011,630 | 3,803,083 | 6,067,620 | 3,756,746 | ||
Basic net income (loss) per share: | ||||||
Basic income (loss) from continuing operations | $ 4.7 | $ (0.8) | $ 6.87 | $ (4.52) | ||
Basic loss from discontinued operations | (2.33) | (5.32) | ||||
Net income (loss) per share - Basic | 4.7 | (3.13) | 6.87 | (9.84) | ||
Diluted net income (loss) per share: | ||||||
Diluted income (loss) from continuing operations | 4.67 | (0.8) | 6.81 | (4.52) | ||
Diluted loss from discontinued operations | (2.33) | (5.32) | ||||
Net income (loss) per share - Diluted | $ 4.67 | $ (3.13) | $ 6.81 | $ (9.84) |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule Of Basic And Diluted Net Loss Per Share Attributable To Common Stockholders (Parenthetical) (Details) - shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
Earnings Per Share [Abstract] | ||
Antidilutive common share equivalents | 3,015,654 | 3,010,321 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2024 Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Warrants - Additional Informati
Warrants - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2024 | Mar. 01, 2024 | Dec. 31, 2023 | |
Warrants and Rights Note Disclosure [Abstract] | |||||
Warrant description | The warrants issued in the March 2024 Public Offering are classified as a liability in accordance with ASC 815, since these warrants met the definition of a derivative instrument and did not qualify for equity classification. These warrant agreements include a fundamental transaction clause whereby, in the event that another person or entity becomes the beneficial owner of 50% of the outstanding shares of the Company's common stock, and if other conditions are met, the Company may be required to purchase the warrants from the holders by paying cash in an amount equal to the Black-Scholes value of the remaining unexercised portion of the warrants on the date of such fundamental transaction. This liability is subject to remeasurement at each balance sheet date until the warrants are exercised or expire, and any change in fair value is recognized in the Company’s condensed statements of operations. | ||||
Fair value of warrants | $ 14,256 | $ 22,020 | $ 14,256 | $ 32,400 | $ 0 |
Fair value adjustment of warrants | $ 7,764 | $ 10,386 | |||
Warrants outstanding | 2,500,000 | 2,500,000 |
Warrants - Schedule of Estimate
Warrants - Schedule of Estimated Fair Value of Warrants (Details) | Jun. 30, 2024 | Mar. 01, 2024 |
Estimated Dividend Yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants assumptions | 0 | 0 |
Weighted-Average Expected Stock Price Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants assumptions | 91.1 | 89.03 |
Weighted-Average Risk-Free Interest Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants assumptions | 4.36 | 4.17 |
Expected Term (in years) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants assumptions | 4.67 | 5 |
Weighted-Average Fair Value Per Option | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants assumptions | 5.7 | 12.96 |
Warrants - Summary of Warrant L
Warrants - Summary of Warrant Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Mar. 31, 2024 | |
Warrants and Rights Note Disclosure [Abstract] | ||
Beginning Balance | $ 22,020 | $ 0 |
Issuance of warrants | 32,406 | |
Change in fair value of warrant liability | (7,764) | (10,386) |
Ending Balance | $ 14,256 | $ 22,020 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) | Jul. 31, 2024 | Jun. 30, 2024 |
Subsequent Event [Line Items] | ||
Interest rate during period | 9.25% | |
Banc of California | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Early termination fee | $ 225,000 | |
2024 Term Loan | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Maturity date | Jun. 30, 2027 | |
Basis point added to the prime rate | 1.50% | |
Interest rate during period | 4.50% | |
Fees paid upon closing | $ 2,500 | |
Debt instrument, interest rate increase event of default | 3% | |
2024 Term Loan | Banc of California | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Early termination fee | $ 100,000 | |
Revolving Credit Facility | 2024 Term Loan | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Principal Amount | 22,500,000 | |
Principal amount outstanding | $ 22,500,000 |